How do businessmen act in crisis

Many young entrepreneurs tend to be afraid of the word “crisis.” The moment is quite difficult, crucial, requiring changes both in one’s own consciousness and in actions. Those who are not ready to live and work in a crisis leave the market, but those who were waiting in the wings can occupy vacant niches with new products and interesting offers.

The crisis is not the end, but only the beginning …

Often still inexperienced entrepreneurs are sure that in a crisis they will not be able to enter the market with a new product, because it is impossible to find investors, etc. But all this is nothing more than an illusion and a delusion.

The main thing is to know the rules of “business in a crisis” and follow them. In difficult times, Pavel Kochkin, a business consultant, is ready to share tips on doing business.

The crisis is not the end, it is just a new beginning

The main thing that every person should understand and accept (and this advice is useful not only to businessmen, but also to ordinary people), a crisis is a part of life in which the initial conditions of existence change.

The main problem of people is that the absolute majority does not want to leave the “zone of familiar comfort” and for the maximum period of time delays their “acquaintance” with the new rules of life and work.

A true entrepreneur should not be like an ostrich (after hiding his head, you will not be able to look at the situation as a whole), but should show maximum endurance and analytical mind, collecting data, analyzing new conditions and making a conclusion about the possible development of events.

The first thing to keep in mind is that even in times of crisis someone works and services crisis situations, and as a result, makes money. So, during the war, the need for weapons, equipment, poisons, fabrics and things, etc. increases, and during the crisis, legal departments at enterprises, lawyers and notaries begin to work in full.

The cost of housing, especially the elite, in the crisis period drops sharply, as demand for this product becomes sharply limited. But the need for affordable and most economical housing is growing sharply. Providing housing for refugees and immigrants is a difficult task and clearly not for one day.

We can safely say that the structure of requests is changing – you need to be prepared for this. Whoever is quicker to adapt to new conditions will quickly launch his own business and begin to make a profit.

The crisis is not the end, but only the beginning …

More – is it better or worse?

If you ask yourself the question “Which is better – a large multi-billion dollar enterprise or several small projects?”, Then in a crisis, the analogy with dinosaurs is the best. Remember how multi-ton animals reacted “lively” to minimal climate changes? Yes, yes, that’s right – dinosaurs became extinct, because they could not adapt their huge organisms to new conditions.

In business, everything is similar. The larger and “slower” the company, the more difficult it is for companies to respond to market changes, the more difficult it will be for management to keep the business machine afloat. But small and flexible enterprises can quickly adapt to the requirements of customers and rather offer rational and interesting solutions.

It is the crisis that helps such small enterprises find their customers – because in “ordinary” life it is simply impossible to get around the “market giants” without significant investments.

Step 1. In-depth analysis of conditions

To successfully enter a crisis-changing market with a new product, you must not only be able to track market trends, but also correctly predict the future based on available data.

Where to get money to start your own business? It is this problem that 95% of beginning entrepreneurs face! In the article “Where to get money for a business” we revealed the most relevant ways to get start-up capital for an entrepreneur. We also recommend that you carefully study the results of our experiment in exchange earnings: “see the results of the experiment”
In times of crisis, it is necessary not only to clearly understand the current state of things, but also to be able to predict the upcoming events.

This is quite comparable with the acquisition and sale of foreign currency at the time of exchange rate fluctuations. It is necessary to learn to see the situation as a whole and analyze the slightest signs.

Step 2. Analysis of demand and the formation of supply

A true businessman should be able to not only analyze the environment and determine the development trends of the situation, but also understand that the demand in the new conditions will not remain unchanged and the new conditions will determine the new market needs.

So in a crisis it is much more likely that a person will go to repair old shoes or give things in the studio for remodeling than to go to the store for a new thing. So it’s worth thinking about opening repair shops rather than investing in opening new stores and boutiques.

The crisis is not the end, but only the beginning …