Covid-19: Debilitating Crisis or Opportunity for Innovative Entrepreneurship
With much of America in self-quarantine or other social-distancing measures, times can be quite anxious for entrepreneurs. Who would have expected a scenario where employees can’t come to work, and customers aren’t leaving their houses? Established firms are likely to have capital reserves or lines of credit to help weather this storm, but for startups or those trying to establish new markets, this could be a threat to survival. Some of the toughest questions include:
How do I take care of loyal employees who depend on their paycheck, while there may be little or no revenue coming in to cover this cost?
What are new problems or needs our customers have that we could help to address during this crisis?
Does my core mission still hold true in a completely new and different set of circumstances? If not, does the mission need to change?
Is the business model that has sustained the company in the past still working, or does it need an overhaul? Is this likely to be a temporary or permanent change?
Ultimately though, these point to a core question of entrepreneurship that comes up every time there is a change in the surrounding business environment - should I pivot or persevere? Whether the result of changes in customer preferences, the introduction of new competition, or disruptive technologies, this same challenge is always present.
It is inspiring to see how quickly many businesses have pivoted the business model to adapt to a radical change in customer needs. Restaurants setting up no-contact curbside pick-up, Realtors conducting closings in parking lots, medical practitioners shifting to telemedicine, teachers coming up with creative ways to inspire their students using video conferencing and learning platforms, the list goes on.
Other businesses are finding that their current value proposition is in higher demand because of the changes. Whether it be providing products or services to support remote work, supplying critical medical supplies, or streaming entertainment content, persevering may involve reexamining how services can be delivered on a larger scale.
Covid-9 is no doubt a massive disruptor for every business. But, for the entrepreneur, it’s likely just another day at the office.
