How to be an entrepreneur in uncertain times

Analysis of new business styles born in the middle of the Covid-19 pandemic and proposes five essential steps for entrepreneurs

BY RRHHDigital, 15:30 – 05 November 2020

The coronavirus has changed the world. In addition, to revolutionize the way we live and interact, it has also directly affected the work of many people. The dire economic consequences of the pandemic have failed many businesses, forcing them to shut down or, at best, to rethink their structure.

“Small and medium-sized businesses, more dependent on daily sales and without large cash reserves, can be under severe financial stress,” says Mara Guzmn of SumaCRM, who adds that “when some workers leave ERTE and others face an uncertain situation, the independents try to adapt to the new normal; but the truth is that the entrepreneurial spirit is still very present in Spain ”.

Proof of this is that 63% of entrepreneurs have started again to start a business in the age of Covid-19. Despite the fact that uncertainty is seen as a brake on entrepreneurship, SumaCRM experts bet on taking risks and analyzing new scenarios and how entrepreneurs can add value. “In our case, when the pandemic started, we met the sales and marketing team, taking advantage of the uncertainty as an opportunity to help our prospects or customers,” Guzmn explains, adding that “for example, we are implementing personalized training with each company in which their business model was face to face and thanks to CRM we can help them take this step to become a digital company ”.

In this sense, the CRM company offers five key steps to undertake this scenario:

Analyze the current market: Answer the following questions: What is the offer of the competition? How do they communicate? What are they doing differently before and during this time? What are their prices? Do they master an inbound marketing strategy? Define Your Unique Selling Proposition (USP): This point is essential because it serves to distinguish yourself from others and, most importantly, to convince the customer that what you are offering is the best product or service they can buy. Customers have a simple question for any business: “How is your product better than your competition?” To survive in a very competitive market, you will need to answer this question clearly and forcefully. Create your action and investment plan: at the time of commitment, you must allocate resources which should be considered as an investment and not as a loss of cash. Therefore, a basic plan will have to be created at the start, which will be modified and adapted to the process. Here, we can help you by creating a conversion funnel that details the path the prospect takes to become your future customer. Set up a loyalty and recommendation strategy: it has been proven that taking care of customers is the best way to get afloat, because they are the ones who will help to be present in the sector and, above all, will be product prescribers or services. An example of a formula for doing this is to create an affiliate plan where the customer, when recommending someone, gets a specific benefit. Measure the whole process, always !: Data is essential from day one because it tells you where the project is heading and how it can scale or optimize it in order to get more clients and be relevant in the sector.

New business styles

Many business models are emerging as a result of the pandemic and it is that ingenuity grows more in times of uncertainty. From SumaCRM, they detected three styles of new business.

Companies linked to the health sector, which have asked a CRM to manage all the requested equipment (mask, hand gel and even machines to take the temperature), to offer it to medium and large companies, thus covering the state requirements. Another new business idea relates to companies that have worked with door-to-door sales and saw the need to dive into digital transformation. “These are companies that decide to put Excel or their physical agenda aside to digitize 100% and centralize all their information in this software, improving their internal communication and not losing any business opportunity,” explains Mara Guzmn. And on the other hand, in the service sector, the company detected two very different scenarios: entrepreneurs who have decided to leave their large company to start their own projects, most of them related to insurance or consulting services ; and companies that are starting to offer renewable services, such as energy itself.

In all cases of new businesses, the use of CRM has been the key when in business. This tool is ideal for a startup because the management of all company information remains concentrated (sales, marketing, human resources, administration, etc.). In addition, it facilitates internal communication.

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