How to Keep Your Online Business Afloat During a Crisis
Life is tough for everyone, but there are remedies.
No business is immune to external shocks.
Whether you are a writer, a software developer, or a photographer, chances are your income will have dropped as a result of the current crisis.
A mere 2 weeks ago, my photography business was still thriving. I had freelance gigs and my digital sales were growing. Both have taken a big hit. As I specialize in travel and street photography — lockdowns, curfews, and travel bans do not work in my favour.
My writing income hasn’t gone down exponentially but several freelance clients pulled out of projects scheduled for March and April.
My blog views have gone up, but so far, this hasn’t translated into a surge in affiliate income and I don’t think it will.
Aside from writing and photography, I guess I don’t even have to mention losses on the stock market.
We are in a crisis. Everyone is affected and the vast majority of online entrepreneurs now understand the importance of a “rainy days fund”.
Unless you are selling face masks or hand sanitizer online, you probably won’t see a lot of growth in the coming weeks.
Is this a reason to despair? I would say no.
In the words of Marcus Aurelius, “every obstacle is an opportunity”. Instead of burying our heads in the sand, we ought to seize the moment and find positives amid the prevailing negativity.
To counter all the doom and gloom currently reigning over the internet, here are 5 ways to keep your online business afloat during a crisis.
1. Reduce your expenses to the minimum
Now is a good time to re-evaluate all of your recurring expenses and get your budget in order.
In this context, refrain from buying things you don’t need. Do you need new clothes? Probably not. Besides, most shops are closed anyway.
Imagine clothing stores would only be open for a couple of months every year. Would you still buy the same amount of unnecessary items? Now is a good moment to reflect on your genuine needs when it comes to fashion.
The same goes for food. Use your lockdown period to sharpen your cooking skills. I know, most delivery apps are booming and lots of progress-adverse restaurants have finally added home delivery to their menu.
Nevertheless, cooking more than usual will kill two birds with one stone. You’ll learn new recipes and save lots of dollars in the process.
Finally, identify which expenses and subscriptions do not add value to your life. A crisis is an ideal time to ponder on what kind of material things we truly need.
I am sure you can find dozens of services that are “nice to have” but unproductive. Scrap those expenses and save some money to keep your business running until the dust settles.
2. Diversify
Diversification is always crucial and even more so during a crisis.
Are your income sources too reliant on one sector? Could you spread your efforts across multiple ventures?
These are the questions you should ask yourself in times of crisis. As previously mentioned, my photography income and my stock portfolio are going under right now, but this is partly compensated by other income streams.
My total income for March and April will take a dip, but I also chose to invest in gold a couple of months ago. And boy, this was a good idea.
It wasn’t much and it had no correlation to the virus, but it was a smart diversification measure nonetheless.
Investments like real estate (lots of people are stranded and need quick Airbnbs right now), delivery startups, and good old-fashioned precious metals can produce returns in times of trouble.
Of course, there is no guarantee that these steps will yield short-term results but always consider the following: the more diversified you are, the less your livelihood will be impacted by any sort of external event.
3. Identify the most crisis-resistant income stream
If you are already well-diversified, you’ll probably have at least one crisis-resistant income stream.
The best course of action now is to focus your energy and creativity on that project. There is no point in wasting time and resources on activities that are destined to fail during a pandemic.
As an example, you might be selling your art in galleries. Producing new art for closed galleries is probably not the most lucrative idea right now. The same goes for travel-related services.
If you are a writer or Youtuber, on the other hand, now is a good time to spoil your audience with fresh, uplifting content, not necessarily the depressing articles and videos that are already ubiquitous.
4. Build skills for the future
Throughout the entire history of mankind, crises came and went. We survived the Bubonic Plague, the two World Wars, the 1970s energy crisis, and the Great Recession. We should, therefore, prepare for better days.
This involves working on new skills, ideas, and plans for the future.
As an example, I am currently refreshing my Japanese. I took private lessons in Tokyo a couple of years ago, but most of it has vanished due to a lack of practice. I am adamant that the quarantine will reinvigorate my efforts to become conversational in Japanese.
I also started classes on different online platforms to improve my knowledge in subjects like history, geography, and people management.
You’re probably locked indoors for the next couple of weeks. There are no more excuses. Start learning a new language. Launch that personal project you were always passionate about.
Getting through the crisis is good. Getting out of it with a useful set of new skills is even better.
But how does this help my fading business right now?
Well, urgent crisis management measures should go hand in hand with future-orientated decisions. Your novel skills might not safeguard your present income streams, but they will certainly contribute to the future growth of your business.
5. Don’t panic, stay positive, and minimize damage if you have to
Sometimes it’s best to focus on survival rather than growth.
You might not be able to diversify right now. You may run out of options to innovate. If all hell breaks loose, concentrate your efforts on damage control.
What steps can you take to mitigate the crisis’ effect on your business?
Your idea might be great but prone to cyclical crashes. This is nothing more than a practical demonstration of the laws of economics. Setbacks are natural, and first-rate business ideas often suffer from bad timing
Don’t panic, lots of small and big companies have gone bust and risen like a phoenix from the ashes over the years.
To conclude with a ray of hope, let’s take the example of Marvel Entertainment. The parent company of many worldwide sensations like The Avengers, Spider-Man, and Thor had to withstand massive financial woes in the 90s and early 2000s.
Marvel had been a successful comic publisher for decades before succumbing to the comic industry slump of the 1990s. Yes, you read that right. Marvel was completely bankrupt in 1994.
The bankruptcy proceedings went on for a couple of years and drove Marvel into a series of mergers. The company’s financial tide oscillated between highs and lows well into the new millennium.
It took until Disney’s takeover of Marvel in 2009 before the sleeping entertainment giant woke from its financial coma. The rest is history.
