It's normal that turbulent moments, such as crises and recessions, generate anguish and uncertainty in business. And the first reaction of many entrepreneurs is to seek a way of not being part of the crisis.
Most of the time, this is not a possibility. Neither is it the right thing to do. On the contrary, it is crucial to be perceived as part of a crisis to see the movements it causes.
As many say, it is not about taking advantage of the situation. It is about observing the changes in people's behavior and needs, and about the possibilities your company has to help them.
And there are plenty of examples of companies and businesses that either were established or grew amid a crisis.
During the recession in the USA, after the New York Stock Exchange crash of 1929, Charles B. Darrow imagined that people could want to play at investing, as they could not invest in real life. This is how the game of Monopoly, or Banco Imobiliário in Brazil, was created. It is still the best-selling board game in the world.
Around this time, in 1930, Brazil was experiencing the coffee crisis as a result of worldwide declining demand for the product. Consequently, Brazilian producers were forced to burn their stagnant stocks. To reduce this loss, the Brazilian government partnered with Nestlé to process the coffee into powder, creating a product with longer shelf life.
More recently, Mandaê Start-up noticed the growth in the number of electronic shopping, realizing that it would not take long for problems to arise in the delivery of products. For this reason, it created a pick-up and packaging service that makes it easier to distribute goods from Brazilian e-businesses.
These cases show us that, in times of turbulence, we need two strategies:
Life doesn't stop. It changes.
In crises, new needs and new problems arise in everyday life for people to solve. And here is the key point: what and how can you adapt your service, product, or business to offer an effective solution to one of these new daily challenges?
When a company is growing, the search for adjustments and improvements is a less natural one. On the other hand, turbulent moments bring the flaws and failures in the process into focus. It’s crucial to observe these points to review procedures and optimize operations more efficiently.
Continue reading: Competition combined with technology benefits society.