The Pandemic-New Business Models

Published: December 12, 2020

Courtesy of Adapting to a new world

As entrepreneurs and small business professionals, we seek a profit and clarity on and why we do what we do professionally, not only for ourselves but also for the public’s good. Geoff Covin wrote an article in Forbes about businesses learning how to pivot in the wake of today’s pandemic and the shutting down of industries in how they are responding to the challenges of lost profits and business closures. The concept is that we must change in order for us to survive this new global economic downturn and return to profitability, but change is hard.

The pandemic and 2020 is ushering a new way of doing business for the distant future. That new way is the digital transformation from the traditional way of doing business in the 20th century to the 21st, moving in digitalization lanes from paper to the internet. Merchant must learn to tweak their current business models, upgrade them to what is relevant today, move goods and services, and give good customer service as they go to keep their existing customer base. As they continually to add others. And this calls for innovation; is that not what we do; innovate?

The complete shutting down of the restaurant-hospitality industry has caused restaurateurs to rethink how they are going to do business, and the fundamental changing of their current business plans, to swivel to what is relevant right now. For some, it may be more training, while others are bringing on more strategic partners, and for then others not to tweak the business model, but develop a new one.

The Inception of New Business Models

Let’s look at what others are doing around the country, in how through a streak of innovation has turned an aha moment into not only staying vital and profitable but sharing this creative intellect to others to motivate them to do the same. Due to technology and digital transformation, much of this is nothing new; it is that the pandemic has pushed this innovativeness to the forefront. And it is something we must master or shut down our various enterprises and go home and find some other career, profession, business or recreate one’s self to overcome this objection.

For example, The Beller Dinner in Queens has not had to shut down their business in twenty-two years until the pandemic. They found themselves challenged on keeping this record in tac, and they did that by opening up a drive-in and bringing the food to the patrons watching the movie in their cars. This type of ingenuity is what keeps entrepreneurs-small businesses solvent and relevant in today’s commerce.

Modern Business Models Will Propel the Post-Pandemic World

Lanham Napier, Jim Curry, Barry Libert, and K.D.  de Vries did an article in M.I.T. Sloan on this very subject matter, on how leadership must revamp their business models to stay relevant to the new business climate changes. And the benefits they bring to their various firms when implemented into a digital strategy for success and survival. The August 2020 article provides three suggestive measures that entrepreneurs or small business owners can implement into their business strategies that hold promise to others going down this new economic path to profits and exemplary service to their customer base.

Companies that have been following the traditional way of doing business will fall to other organization that has changed their business strategies to digital manipulation and maneuvering to get the best out of the current economic situation. Companies that are involved with physical capital such as stores and providing goods are subject to the economic downturn and vulnerability in the market due to a new model that leverages data and digitally to overcome the stagnation of the past conventional ways of doing things. The leveraging of data in a new centric way has a quicker pay-off and deeper reach into the market where consumers are still willing to buy.

Merchants who have services that their clientele use on a daily basis are more inclined to service this new way of doing business in the post-pandemic era, such as software for our hardware that provides the services we need to conduct business; called SaaS (software-as-a-service) over that of another providing haircuts and massages they are suitable from a leisure state but not essential on a day-to-basic they can be eliminated or dealt with at another time. Firms like Microsoft, Google, and the internet’s ubiquitousness have brought about a digital frontier that is only likened to Captain Kirk of Star Trek and his supporting cast.

Merchants Failing to Convert are Doomed

Active businesses in the U.S. have fallen some to 3.3 million or some 22% from February 2020, which was reported by the National Bureau of Economic Research (NBER) described in June 2020, which is the largest decline to date and has affected all industries. For example, minority businesses have been hit the hardest, with some 41% had a drop in business, while Latino businesses saw a 32% drop, and Asian saw a 26% decrease. And immigrants businesses saw a 25% decline. Staying a-float or agile for a small business is crucial to their survival. The continuous defining and upgrading of their skillsets are essential to ward off new challenges of the pandemic and find new ways to profit and sustain their business operations now only now but in a post-pandemic era.

Small business revenues have fallen some 70% since the pandemic started. Nevertheless, this is a learning curve for small businesses. The life-blood economically here in the U.S. And has proven to be a job provider in this economy, without entrepreneurship; our economy will falter as you can see, for the government can not do it all by themselves the help of industry is needed.

Closing Remarks

Corvid-19 and small business must at this time learn to live with each other; however, on the other hand, learn how to overcome this phenomenon as new business models are developed. Small business organizations’ procrastination or hesitation to execute a digital transformational program into their small business can have a devastating effect on the industry’s success and profitability. So, in closing, if your company has issues on the how-to of this different way of doing business, contact us, and we will assist in how to move your business from that of the old school method of doing business with is traditional to that of digital delivery (new school-digital marketing) to your market for better over-all results not only now but post-pandemic as well.
Dr. Donald E. Mitchell, D.B.A., Entrepreneurship, M.B.A., B.B.A.-Marketing

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