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45 Ideas For Profitable Businesses In 2020 And Tips to Carry Them Out

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Profitable Business

Who has never dreamed of becoming their boss? But starting and starting a business requires a good idea that it can be carried out within the context in which we live. In the following article, we tell you about 45 profitable businesses in the market today.

How to know which are the profitable businesses of 2020?

For the past few months, in which the entire world has been confined. The levels of de-escalation have evolved in different ways and, although it may seem contradictory, this situation has encouraged many people to create their future. The lack of opportunities and the alarm situation caused by the coronavirus has led many businesses to reinvent themselves.

Perhaps you also want to try your luck and start on an adventure. Check out these 45 profitable business ideas for 2020 that respond to market trends to get an insight into the sectors with the greatest growth potential.

Getting familiar with the market and knowing the mines that you can find along the way is key to going safer towards the new route you want to undertake. In any case, you must study the situation, competition, costs and potential benefits, and demand. Think that many companies and businesses stay halfway, so arm yourself with courage and immerse yourself in the information.

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45 profitable business ideas for 2020

Quality homemade food and delivery

The first of our profitable businesses for 2020 is fast food, a lifestyle from which we can no longer run away. It is the response to the dynamics of work and rhythm of life that has been created, especially in large cities, in the last decade. However, the coronavirus’s arrival has forced the catering businesses to have home delivery and local pickup services. Until now, it has been the only way they have had to survive. On the other hand, many localization apps, search engines, as well as the digitization of the businesses themselves, have been key to adapting their businesses during the time of confinement and the new normality.

Logistics and Supply Chain

According to consulting firm Nielsen, online shopping has increased by 86% and has reached one million homes. There has also been an increase in demand from e-commerce companies like Amazon, which has already announced that it will hire 100,000 more workers in the United States due to the increase in orders.

Opportunities to do profitable business such as 5G, robotics, the Internet of Things, and blockchain have also been detected to help link multiple buyers with multiple suppliers reliably through a ‘mesh’ of supply chains.

Sell ​​second-hand items

The key to these profitable businesses is to accumulate a stock with face and eyes and expose it to a new product. That is, do not accept any type of item or display it in any way in the store, because it will not be able to be sold and will scare your customers away. For example, if I walk into a thrift store as a customer, I think about buying television and seeing a row of televisions from the year my grandmother or mother was born. I will not be interested in buying even if they sell it to me for one euro, because it is not practical for my needs. It is preferable to sell televisions with 5 or 7 years old, for about 200 or 300 euros. Then I would buy it since a similar first-hand television would cost me 500 euros or more.

One of the problems that accompany this business, and that makes profitable companies in 2020 related to security, is the control of illegal practices. These businesses make it possible to resell stolen products. So a protocol is established; When you buy an item from someone, this item becomes part of a list that is sent to the police. For the next 15 days, you cannot sell or expose the item until the police check that none of the products on the list match the description of an object that has been stolen and that its removal has been reported.

Franchises

Having a franchise is a step with a little less risk since you have the advantage of opening a business that is already famous, making it easier to start generating sales and profits quickly. Besides, to buy a brand it is not necessary to make an extravagant investment at the beginning of the business, there are different alternatives to finance itself and, most importantly, in many cases the brand provides you with an initial capital. On the other hand, the clearest disadvantage is that you do not have total freedom in organizing the business; There will be guidelines that the brand in question asks you to follow, especially regarding its image. Read on for more about profitable businesses.

Legal consultants in digital interactions

Another sector that is growing a lot is Legal Tech, and that is why it deserves a position in our list of profitable businesses for 2020. Due to the number of digital companies growing at an unstoppable rate and need technologies, software, and legal advice services,

If you are specialized in the legal sector, one of your opportunities is that of a digital legal advisor. There are also opportunities in helping companies deal with issues such as the right to be forgotten on the Internet, communications, or data processing. Other more general ones include civil and commercial contracts, general conditions, the constitution of companies, or any legal aspect.

Laundry at home

Another profitable business that has become necessary for the times we live in. The characteristics that new consumers have in the new normality are the value of time since their jobs occupy most of their week. They decide to delegate basic tasks to companies that offer a useful, comfortable service and save them money. A very clear example is demonstrated by Mr. Jeff, the laundry franchise that has conquered all of Latin America and Asia.

The creative pastry on request

Cooking is a passion for many people, as we talked about earlier. In recent years, a series of influencers have emerged, which has made pastry delicious cookies, cupcakes, muffins, or original cakes fashionable.

It is one of the most sought after profitable businesses because you can start from home. If you are passionate, you can do it in your spare time as a compliment. The best advice to start is to research the possible market around you and create a personal brand around what you create.

An element that you must take into account to ensure profits is to ensure that the price you put on your products exceeds production costs. The way to advertise can be from word of mouth, ad pages, or social networks. If you dedicate time and passion to the presentation, you will see how the requests will come little by little.

E-commerce services

The growing confidence of Spaniards when thinking about buying something online. This situation has allowed many entrepreneurs to risk investing in this business model. Considering that what is sought nowadays is to save time and money, consumers prefer to spend less time on the “typical purchases” that you can easily carry out online. Arguably it is one of the most profitable businesses on the list.

Online classes

The term freelance, in the same way, is a trend that takes its place strongly in the possibilities of every entrepreneur, since if you have an area in which you consider yourself good enough you can take the step and be part of the different communities of freelancers and work on your own. The profitable businesses on our list are growing!

Quality freelance in other languages

Another of our profitable businesses are specialized language freelancers. Currently, there are more than 20 million self-employed workers within the framework of the European Union. Spanish freelance professionals can be offered in other markets so that none have to move from their country or home. It could be raised from the headhunter, half consulting, half international manager.

Leisure experiences for other audiences

The idea would be to apply a bit what the SmartBox is, for example, to niches such as children. In this case, you could think of gifts that parents make for their children’s birthdays, or for example for people who are getting married, for a christening or any celebration. It is important to adapt to the audience you want to target.

Consulting

Do you have a talent for finance, or are you an expert in digital marketing? You can start with one of our profitable businesses at the top of the list, offering consultancies to individuals or companies to improve their results. Besides, consultancies, today, are one of the few profitable businesses that present low competition in the market. Therefore, it can be a great opportunity for talented in areas such as administration and mathematics. These people advise clients to make better decisions about managing their money and help them reach their goals, carrying out personalized and specialized planning.

Niche coworking

There are more and more proposals for coworking spaces in Spain. In Europe and the United States, they are already finding several niches. A way to enter this sector in Spain could go hand in hand with various segments such as women entrepreneurs with additional services.

Virtual regional tourism agency

One of the most sought-after profitable businesses since lifelong tourism lowered its revenue figures. Creating a virtual regional tourism agency could be another successful business. Offering leisure packages, gastronomy, among others, could create a quality seal for the town/city. Besides, also the possibility of carrying out activities in all seasons and also carrying out activities for educational centers.

E-commerce store

Opening an online store is ideal when you have a great product in mind but do not have enough money to open a store, then, when is a good time to open an online store. In this way, in addition to avoiding financial issues, the marketing opportunities are endless. You have it open 24/7, which means that you earn money even while you sleep, and you can also carry out promotions.

Travel agent

Although there are already enough platforms to book a trip today, it is never too late to open one more and create something that identifies you. If you are a lover of travel, it is a good option for you, (although the sector will still take a long time to recover) you will have to take into account flights, car rentals, hotels, apartments, restaurants, tours, activities, among many other things.

Event planning

Planning events or projects is something that can be done remotely, and offering your services to companies to create their events could be a very good option to open an online business. You can start this project from your home and meet your clients in restaurants or cafes, or even in their offices.

Professional photographer

Whether it’s for a wedding, a family event, or a business, people always look for a photographer to never forget those special moments. Besides, people pay quite a bit for a professional photographer. If you have this skill, all you need to do is open a website, a good camera, and set your daily rate.

Online personal trainer

If you are a sports fanatic and you love the gym (now also virtual gyms), and you can prove it, another option would be to open a gym in a city or town that you think will be successful or else, you can even open your online exercise channel and offer Live, personalized classes. On the other hand, it would be interesting for you to take a nutrition course and thus be able to offer these services as well.

Read More: What is a business? (definition, types and difference with a company)

Personal chef

On the other hand, if you like the kitchen, you can also offer personal chef services. With a website and with the demonstration that you know how to cook well, you will be able to have your clients. As a personal chef, you will spend your days cooking for people who don’t have time to do it, but who do have the money to pay someone. If you want to stand out from the rest, it would be interesting to offer adequate eating plans for each type of person.

Simultaneous translation

Simultaneous translation is another modality of translation, also known as interpretation, and is usually applied above all in conferences and events in general. This type of work is very dynamic and requires a lot of concentration and agile thinking. And the best thing is that it is a very profitable business because there are few competent professionals in the market.

Video class production

Another way to share your knowledge on the Internet is to create videos explaining a topic and then publish them on YouTube. In this way, you can work as an online teacher serving students from all over the world, since you do not have to be in the same place as them to be able to teach. You only have to record the classes once, and you can sell them to thousands of people. On the other hand, you can also use free platforms to sell your courses, and you don’t need to invest anything to get started.

Laundry services

Another profitable business that, little by little, is gaining more strength in our country, are laundry services. If you are looking to make money from home without learning something new, you can offer a laundry service that could be expanded. All you will need is to have a good washing machine at home, establish a record of sales and expenses, establish your rates and payment method, and create a website to offer the services. On the other hand, if the business is getting bigger, it would be very interesting to look at a store and expand it with a public laundry.

Software development

If you are a programmer or have knowledge of web development, you can create websites, software, and mobile applications for other companies. This is a job that pays very well, and you don’t need a boss to do it.

Rooms for rent

Another very interesting business is that of renting rooms. In this case, it would be a very good option to open a web page where all the room offers were included. It is a very interesting business, especially for students, but also for those who change cities and do not have much to start their new life. Besides, you could link it a little with a tourism page since, at the same time, you could offer these people both activities, tours, and unique experiences.

Blogger

Blogging is one of the most promising profitable businesses in recent years. More and more people are looking for information and knowledge online, which means that the Internet public does not stop growing. Besides, online businesses are an excellent alternative for those who want to work from home.

YouTuber

Another profitable business idea is to be a YouTuber. It is estimated that the figures that a YouTuber generates per year reach 4 million euros. However, to be successful with this type of business, it takes a lot of work since you must publish videos frequently and make the recording, editing, and dissemination of your content. So we recommend that you read our post on how to be a YouTuber.

Marketing analyst

The marketing analyst takes care of all of a company’s marketing strategies, from planning to execution. Besides, you must measure the results of your actions and think of techniques to drive sales.

Community Manager

The Community Manager is very similar to that of the marketing analyst profession, but it focuses specifically on social networks. They are working as social media is an excellent business opportunity and can even be done as a freelancer. Do you want to continue learning more profitable businesses? Read on.

Digital influencer

It could be another of the star profitable businesses of the year. The digital influencer is the person who creates content on the Internet and has many followers, which transforms them into someone capable of influencing other people. This type of professional can generate income in many ways, mainly promoting brand products on their social networks. Without a doubt, this is one of the most desired profitable businesses today.

Screenwriter

The screenwriter’s work began to be highly valued with the boom in digital content. This professional creates scripts for everything from YouTube videos, such as online courses, videos for social networks, or TV, among many other contents.

Connections security

We continue with more profitable businesses for 2020: “Given the current situation of the Coronavirus, the main cybersecurity operators are warning of an increase in the rate of cyber attacks on hospitals and companies that have decided to bet on teleworking,” they say from Entrepreneurs. And it is that the confinement has forced practically everyone with the possibility of working remotely or teleworking, to do it from their homes.

Many companies do not have or did not have VPN lines that protect their computers from possible malware. This is where an opportunity looms for the creation of companies related to telecommuting security in aspects such as firewallsbackupsVPN, antivirus, etc.”

Online language school

This is one of the most profitable business ideas today. Language schools are everywhere, and just like revision classes, they are increasingly necessary. However, you will need to have something that sets you apart from the competition: a different teaching method, a specific target audience (such as children). If you don’t have enough money to open a store, one option would be to take the classes online and live like “languages ​​come first,” an Instagram page that offers English classes at a very affordable price.

Personal shopper for work

Not all jobs are equally flexible in terms of clothing, and some people need to be advised in this regard. Therefore, another of the innovative ideas to undertake if you like fashion and have knowledge about it is to work as a personal shopper for those people who do not know what to wear to go to work or for a special occasion. By creating your website and putting your rates and styles, you can get loyal customers.

Plus-size fashion

Selling clothes online is profitable, but very few offer large sizes or shoes that go beyond conventional sizes. So this would be an ideal business if you are looking to start in the fashion sector. Today, only one in three Spaniards has an adequate weight and, both the current physical market and the online one do not cover this need.

Online cooking classes

Gastronomy is a sector that everyone likes, and it is that not all people know how to eat well or cook well, so if you are passionate about cooking, teaching could become an attraction for all profiles. Cooking has become a kind of crafts to eat rich and healthy. So you could create a creative, exotic, and healthy cooking business.

Cleaning services

Cleaning services are always easy to offer and require no prior training or experience. You can open your website, even hire staff and then offer your services both for cleaning houses, like offices, premises, establishments, etc.

Dog watcher

Another profitable business idea that is very fashionable in the US is the dog walking and lodging service. If you are a dog lover, it would be a perfect business to implement here in Spain. There are cities where this work can be quite profitable. People who have a bad work schedule don’t have time to take their dogs for a walk and are willing to pay for someone who does. You can also offer additional services such as training, childcare, bathroom, among others.

Services for older people and disadvantaged groups

To carry out this work, if more experience is needed, but even so, it would be a very interesting business and another way to earn a living. The main activities that would be carried out are cleaning, laundry, bathing, eating, walking, and helping with daily activities depending on each person you are caring for.

Well-being at home

The state of alarm and the forced confinement has caused the temporary closure of all businesses related to sports and people’s well-being. Technology has provided us with an excellent opportunity to exercise from home. Even taking care of our well-being and setting up our beauty centers based on tutorials and directed classes. From now on, we will be able to see how gyms and sports centers will increase their appearance on content dissemination platforms and live classes.

See More: Cannabis Business Social Networks | Here’s What You Need

Driver

Another profitable business is being a driver. It is a relatively easy business to start if you live in a big city since many business people prefer to pay for a driver instead of driving themselves. You could also create platforms like Uber or Cabify and start your business.

Stylist or makeup artist

If you have experience in this industry or would like to take a styling course, once you have the training, it would be perfect to open your beauty salon, but if you still do not have enough money, you can start the business from home from a website.

Interior designer

Both home and business owners look for people to decorate their spaces. If you have design studios, you can offer this service. With a website, you can set your rates and even show your decorations. You must know how to adapt to each client since not all people have the same taste.

Decorated cakes

Decorated cakes are becoming more popular and specially themed ones. This product is highly sought after for events, birthdays, baptisms, weddings, baby showers, and any type of party in general. It is a specialized job, and it would also be important to have the option of gluten-free cakes.

Manicure and pedicure

The last profitable business idea that we present is that if you have a course in aesthetics such as manicures or pedicures, this business could be an excellent option. More and more women are decorating their nails and making extensions with new materials. The materials are simple, like cotton, enamels, nail polish removers, files and pliers, gels, or acrylic. The great advantage of this business is that people often repeat these actions every 3 or 4 weeks, so if you can make your customers happy with you, you will always have a job.

We hope that these ideas have given you a little inspiration on the road to entrepreneurship. Do not forget that the important thing is to start something that you know you will put passion into and not just effort.

Bismarck Lepe is CEO and founder of Wizeline, a product intelligence company that helps businesses drive the development of products. Prior to Wizeline, Lepe was a co-founder and founding CEO of Ooyala, a video technology platform company. At Ooyala, he raised $20 million in funding and led the strategy that drove its early growth and success. Previously, he was an early employee at Google, responsible for Ads Quality products and Video Advertising, which contributed over $1 billion in revenue.

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10 Sales Myths That Must Be Clarified And Corrected

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10 Sales Myths That Must Be Clarified And Corrected

The sales profession is possibly one of the most closely associated with myths, fables, and legends. Of all kinds. Positive and negative. None of them is correct, obviously, but they all condition the tasks of inexperienced and experienced salespeople. The myths sales are even foundation of organizational policies and business strategies. They are not a guide only for individuals, but also for businesses and companies.

Here are 10 of the most widespread and “credible” myths out there. Each of them has, of course, the corresponding “deconstruction”.

1. In Sales, everything is related to talking, a lot.

Actually:

  • Selling is about listening. And to do it actively. Lori Richardson puts it well: “What sales are really about is having conversations with people to help them develop their companies or their lives. If you appreciate things like that, selling is an admirable task.”
  • Selling is about getting the prospect to speak. That it manifests expectations and perceptions. The seller proposes, and the prospect provides. Therefore, getting him to speak is much more beneficial than keeping him as a passive listener.
  • Selling is about understanding when the prospect talks.
  • And it is also about understanding what the prospect does NOT talk about. Decoding silence is one of the most important skills a salesperson can develop.
  • The best sellers “speak with their eyes.” This is the most effective way to build empathy and get things flowing in the interaction.
  • A seller does not necessarily have to be an extrovert. In many ways, the shy person is the best seller.

2. Products or services are sold.

Actually:

  • It sells “that problem” that the product or service helps to solve. If it were to sell only products and services, the seller was not essential, because there are many ways to expose a product or service without human participation. The seller is indispensable when presenting problems, solutions and experiences in the commercial relationship.
  • It is about showing the solution that the product or service provides for the exposed problem.
  • The seller must highlight the Benefits that each attribute of the product or service will represent for the customer. The characteristics of products or services are not promoted, the benefits they provide depending on the exposed problem are highlighted.
  • The seller positions himself as the solution to the exposed problem. And in this way, it departs entirely from the interpretation of the myth. Because the seller himself is a person, not a product or service.

Read More: 24 Ideas For Strategic Business Management

3. Sales professionals are born, not made.

Actually:

  • Sales is a performing art that is learned through structured and systematic training. And nobody is born with this developed process.
  • Sales are 85% perseverance and 15% inspiration. There is no guarantee whatsoever for the “crib genius”.
  • Sales professionals are made under the tutelage of great mentors and coaches. If the natural gifts are not activated and aligned with the needs and particularities of the system, they are useless.

4. Sales are better and faster, offering discounts.

Actually:

  • Refunds never make a customer happy enough to place an order. This logic is as limited as supposing that love is guaranteed only with a good kiss.
  • Refunds cannot increase the competitive profile of an offer at the structural level.
  • Discounts are given as a competitive tactic, not to increase sales. Discounts allow you to match or contain attacks from the competition. They are defensive mechanisms. Arranging them as elements to approach a prospectus weakens the offer.
  • Discounts are not tools to close sales.
  • It is possible to sell without giving discounts. It is the most beneficial in the short and long term.
  • Customer relationships supported by discounts are fragile. And they are completely spoiled when the discount is not valid.

5. Selling is an art.

Actually:

  • Selling is a science. The art of selling sits on the cusp of that science, not the bottom.
  • Sales are first a process and then a product of skills.
  • Deals are based on the ability to master the science of creating a conversation with a potential customer about a product or service.
  • Selling is empowering the customer to win a discussion that the seller is proposing. In this art is manifested.
  • Sales consist of asking the right questions to the customer and then finding the right solutions.

6. Digital marketing will replace sales.

Actually:

  • Marketing, at best, can trigger the attention of prospects. But sales management will always be necessary to perfect operations.
  • Sales are the function that perfects the business. Marketing is just a support activity. It is not marketing (digital or not) that directs the interests of sales. The Strategy is who does it.
  • Sales roles and responsibilities will progressively accompany the technical transformations posed by digital marketing. In this way, sales will align technical resources with digital marketing. However, conceptually, sales will always take precedence over marketing activities.

7. Artificial Intelligence in Sales (AI) is only a “show” of little benefit.

Actually:

  • Artificial Intelligence is one of the most powerful tools that sales can count on.
  • Customer purchasing behaviour is much better analyzed by doing Regression Analysis of historical data from former customers. In this, Artificial Intelligence is of incomparable help.
  • Scientific data helps every seller to forecast customer demands.
  • The interpretation of the behaviour of clients in Social Networks and related, regarding their products and services (Social Listening), provides incomparable feedback and new ideas.

8. Sales require a particular talent: «Lying».

Actually:

  • This is not about selling coolers to Eskimos. Sales skills are a requirement for life. All people sell something at all times: products, services, ideas, moods, projects, etc. Under this logic, “you don’t live on lies.”
  • Sales require a talent called “active listening.” The lying seller is a bad example of a genuine seller.
  • Sales from lies are bad sales. They generate a bad reputation over time and high barriers to entry for future contacts and relationships.

9. The job in Sales is the only one that does not have stability.

Actually:

  • Sales, like any other profession, work best when there are the right vocation and disposition. In this sense, there is no difference with other work or professional practices. In contrast, a positive sales career generates very promising prospects for professional development and personal success.
  • All business owners fear losing professionals who perform well in sales. In general, they are concerned with keeping them on their side and prevent competitors from capitalizing on their virtues. This does not frequently happen in other professions.
  • All people work in sales. One way or another. Therefore, assuming that it is a profession that lacks stability, mainly is an error of judgment. “The excellent seller is, in fact, a successful person. The successful man is indeed a good salesperson

10. Sellers who must work with Prospects negatively affect their professional image.

Actually:

  • Without prospects, future clients do not materialize.
  • Every seller wants to expand their work horizons and their sales volumes. Without opportunities, this is not possible.
  • Sellers build their image by selling more and better. And this does not happen, in any way, avoiding the work of prospecting new clients.

At the end of the story, the professional salesperson who is clear about what he thinks and does not feel particularly unfortunate that there is so much myth around him. That, ultimately, is part of a distinctive trait that few professions can expose. Being a seller is, in short, a privilege and honour that few know.

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Business Measures To Create Value In Times Of Crisis

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How To Start Mastering Real Estate Business

How to successfully face the challenges of the coronavirus crisis? What actions can be taken by those companies that are experiencing falling profits and liquidity strains?

The 2008 crisis had many causes, but one of the most decisive was the puncture of a speculative bubble. It required a strong reconversion of most credit institutions and many companies that were overindebted. It also required a major correction in property prices. At that time, the collapse of the stock market and other financial markets and the problems of many banks fueled a general panic. Fortunately, the Group of 20 (which brings together the leading countries, which represent 66% of the world’s population and 85% of the world’s gross domestic product) met within a few months and took a series of measures underpinned the World economy, avoiding greater evils. Despite this, some countries, such as those in southern Europe, took several years to emerge from the well.

In the coronavirus crisis, the cause has not been a speculative bubble, but a virus that has caused a pandemic, which has led to an unprecedented drop in economic activity. Fortunately, at the beginning of the crisis, banks were more healthy and had liquidity; but, on the other hand, the public sector was much more indebted than in 2008. The consequences of this fall in economic activity are similar to those of 2008: increased delinquencies, bankruptcy, company closings, unemployment, and reduced welfare. Of broad layers of the population (see table 1). 

This article presents various measures that can help many companies successfully face the challenges posed by the coronavirus crisis, especially in cases where there are drops in profits and liquidity tensions. Some of the measures that will be proposed are not easy to take. When things are going well, and companies generate profits and liquidity, it is easier to lead. There is scope to increase remuneration and incentives, to make investments and to finance growth. However, in crisis years, there is less scope for joys, and cost containment is necessary, which can undermine the working environment and relationships with other stakeholders, such as suppliers or shareholders. Therefore, the people who lead it are much more complicated.

The relevant role of governments

All crises generate a lot of uncertainty and suffering. In the coronavirus case, there is also the affectation in health, which, without any doubt, is the most important. Furthermore, there are also negative consequences that affect people’s well-being: reduced incomeloss of employment, etc. In any case, as it is a crisis of a very localized origin and which does not require significant corrections to be made of economic excesses – unlike what a speculative bubble implies – if the pandemic does not last longer than expected, The economic downturn can be limited, and the recovery can be faster.

Today, we already know that, when an economic crisis erupts, it is essential that governments act quickly and forcefully rescuing the economy to avoid a spiral of company closings and increased unemployment. This was not known in 1929, but today it is. Recall that, in 1929, the predominant ideology was the liberal one, which considered that, when a crisis occurred, governments did not have to act, since they had to let the market fix everything alone. That vision of the economy caused what is known as the Great Depression. As the welfare state was very poorly developed (there was no minimum wage, no unemployment insurance, no Social Security, no retirement pensions, no bank deposit guarantee, etc.), the governments’ inaction caused the bankruptcy of thousands of banks, and millions of people lost everything. The economy did not recover until the moment a few years later, governments came to the rescue of the economy, applying what is known as Keynesian measures since they were promoted by the Scottish economist John Maynard Keynes. In the 2008 crisis, this was already known; For this reason, countries like the United States came to the rescue of their economy, and it recovered quickly. In Europe, the reaction took longer and did not arrive until, in 2012, Mario DraghiThen President of the European Central Bank made the famous statement: “We will do whatever it takes to protect the euro, and believe me it will be enough.” From that moment, the economies of the weakest countries (Spain, Italy, Greece, Portugal.) began to improve. And the economic recovery, with continued reductions in unemployment, lasted until early 2020 when the coronavirus arrived.

The effects of COVID-19 have been immediate, economic activity has collapsed, and now the challenge is to save companies and jobs. To avoid greater evils, it is essential to use Keynesian measures and get governments to act very quickly with several types of tests:

• Immediate and lost funding subsidies for the most vulnerable part of the economy. This refers to the sectors most affected by the confinements and falls in activity (restaurants, hotels, airlines, culture, sports.) and a significant part of SMEs and the self-employed.

• Provide liquidity aids (loans and guarantees) that quickly reach the neediest companies and without too much bureaucracy.

• Promote public investment in infrastructure that, in addition to generating economic activity, contributes to improving business competitiveness and the well-being of the population.

If all these measures are carried out without wasting time, the economy can recover quickly (see Table 2). Organizations such as the International Monetary Fund have already communicated that their forecasts indicate that the fall of 2020 in many countries will recover with growth in 2021. In any case, it cannot be avoided that new crises will occur again in the future. The history of the economy shows that it is a commonplace that a new economic crisis occurs every seven or ten years. Furthermore, it cannot be ruled out that new pandemics such as that of the coronavirus arise.

If these measures are not taken, it can happen as in 2008, when unemployment reached very high levels, especially in southern Europe. But these measures undoubtedly increase public debt. Therefore, it will be necessary to improve the efficiency of federal spending and raise taxes, but the latter is less evil than what is lost if one does not act quickly and forcefully. Therefore, it is better to rescue the economy for a short period than to pay subsidies for years. If the authorities do it well, learn from international best practices, and save the economy for a time, the economic crisis will be shallower and shorter.

However, the work of governments, to be as effective as possible, must cooperate with citizens. Therefore, another factor that can be decisive for exiting the crisis is solidarity in all directions, and this affects all citizens.

Company actions

Apart from what governments and citizens do, companies have to focus on what falls within their sphere of action. It is unusual not to be misled, since, amid a crisis, harmful and even false news ( fake news ) increase, which demoralizes and makes us lose concentration. Various types of measurements can be carried out.

  1. Protection of strategic assets

As a preliminary aspect that should guide our actions, we must protect assets that provide competitive advantages, such as the talent of the human team, the capacity for innovation, or the customer network.

• Regarding equipment, the health and well – being of workers must be prioritized. If, in difficult times, you bet on them, you can get more long-term commitment. It must be ensured that they are motivated and prepared for the changes that may occur. Therefore, in crises, companies have to prioritize measures that contribute to talent retention. If, due to health issues such as a virus, confinements occur, the processes must be reorganized so that the staff can work remotely and thus be able to offer more and better services through other channels (such as online) to the clients.

• But, in addition to the people who work in the company, other assets must be protected, such as customers, suppliers, shareholders, and any other interested parties. Therefore, it is convenient to analyze their needs and identify measures that can protect them and link them more with our company. For example, in the case of certain strategic suppliers, instead of delaying the payment of what we owe them, it may be convenient to anticipate it and contribute to its future viability. In other cases, it may be advantageous to expand supply sources by diversifying suppliers. For example, in the coronavirus crisis, there have been months in which the world’s factory (China) has been stopped, which has caused supply problems in many companies around the world. In the immediate future, it is possible that Sufficient stock of masks, tests, screens to isolate workers, etc.

  1. Ensure liquidity

During a crisis, most company closings occur due to illiquidity. Therefore, the control and Management of the treasury are also a priority. In many companies, the General Directorate has to work closely with the Finance Department to monitor the situation. It is necessary to verify that the financial situation is correct to face a recession. The company must have an adequate financial structure to prevent Management from losing concentration concerning what is essential: the products, the customers, the human team. Otherwise, when a company is overwhelmed by an excess of debts and due to the difficulty of meeting their payments, the Management neglects what can generate long-term competitiveness.

Among the measures that can help strengthen liquidity, the following can be mentioned:

• Expand capital when the level of indebtedness is very high. For the financial structure to be sound, the net worth must represent an integral part of the entire investment. In many sectors, the required capital (equity) is estimated to be at least 40% of all assets. If the net worth is insufficient, the company must make capital increases or sell assets. An additional difficulty is that, amid a recession, it is not easy to sell at a reasonable price. As we will recall later, amid a crisis, it is more comfortable – and convenient if liquidity is available – to buy than to sell. Those shareholders who are reluctant to increase capital have to consider that. Inevitably, in the years before the recession, the company had benefits. So,

• Freeze or defer investments that are not essential to maintain the company’s competitive advantages. These can be in price, quality, differentiation, technology, etc. 

• Freeze or defer dividends for shareholders.

• Contract bank lines of credit, taking advantage of the lines and guarantees that governments can provide in times of crisis.

• When there are difficulties in servicing short-term debts, the debt must be renegotiated, especially banking, with the part that cannot be serviced in the short term being passed over the long term. If the company is capitalized, it will be easier for banks to help refinance debts.

• Renegotiate payment terms with suppliers.

• Anticipate customer charges by offering discounts for prompt payment.

  1. Take advantage of low prices.

When economic activity falls, prices for almost everything drop significantly. This affects, for example, stocks, real estate, and many other goods and services. Many studies show that successful companies are characterized by making the purchase or sale operations in the years that it touches. Acquisitions are made shortly after a crash, and sales when prices have already risen sharply before a bubble pops. Therefore, purchase opportunities may appear, if there is liquidity that will not be needed in the coming years, in topics such as the following:

• Properties that may be of interest to the company.

• Shares of solid companies and sectors with a future that goes below what is reasonable.

• Acquisitions of companies to enhance growth.

• Take advantage of low prices to close operations and buy products or services that will be needed later.

  1. Protect margins and profits

The fall in economic activity means less consumption and less investment, which can sink our company’s sales. So first, it’s about exploring what can be done to improve revenue:

• Bet on new business lines, innovating with products or services that satisfy needs related to the health crisis (medications, masks, gels, tests, respirators), and new requirements or new consumer buying habits (purchase by Internet, online services). For this, it is essential to pay attention to market movements and use open innovation systems. The participation of employees and customers can help discover new sources of income.

• Improve the discount policy and collection systems to adapt to customers’ situations and thus be able to sell more.

• Sales can be increased by giving additional guarantees to customers, such as the rights of return, if they do not recover from the crisis. This can give them more confidence to buy our products. In this case, the company is taking the risk of more returns in exchange for increasing sales.

• If you already have online services, you can increase your promotion to increase income. In 2020, for example, there have been companies that have experienced great growth in the technological field (Amazon, Netflix, Zoom, Houseparty …). Supermarket chains and technology product shops have greatly increased their sales through online channels. Good ideas have also appeared, such as fairs and virtual events, online training programs.

• Take advantage of the possibilities presented by social networks to improve the promotion and sale of our products.

But, in addition to improving revenue, you can take steps to act on costs:

• New, more sustainable ways of operating can be explored that reduce costs. This is the case of teleworking. A study from Stanford University (2017) concluded that improving teleworkers’ productivity in the United States is equivalent to fifty more days of work per year since they are less sick days and lose less time commuting to go to work. And office space savings can range from $ 2,000 to $ 10,000 per employee per year.

• Another cost reduction measure is to hold remote meetings by videoconference to reduce travel.

• You can also cut costs that the company has been considering for a long time, but which, to avoid problems, have continued to be assumed until now. A well-known example is Anheuser-Busch, which invested a lot of money to be the exclusive sponsor of the Winter Olympics. Still, it was an investment that had no impact on its customers, even though it motivated distributors. When the 2008 crisis erupted, they eliminated that item.

• To reduce costs, you can improve the efficiency of the investments we have in the balance sheet asset. This implies taking measures such as:

• Reduction of non-current assets, renting instead of buying or selling non-essential assets.  

• Stock reduction. In this matter, it is worth remembering that a balance must be found between efficiency and guarantee of supply. To avoid that, a too low level of stocks could jeopardize supplies when any incident occurs (transport strike, factory closure due to viruses, etc.).

• Reduction of the maturation cycle. In other words, the period that elapses since raw materials is purchased, produced, sold, and collected from customers.

• Reduce customer balances through credit management techniques or customer collection management.

•  Cash management, or treasury management, to reduce idle balances and minimize account overdrafts.

These types of measures can help the company achieve the maximum possible efficiency in its assets, and in this case, it will reduce its financing needs.

• To improve, you can also take measures that affect the ability to generate benefits :

• Reduction of the cost of materials (order planning, reduction of components, long-term contracts). In times of recession, it is possible to rethink the negotiations to obtain discounts, since suppliers may be interested in slowing down the drop in sales and, at the same time, guaranteeing customer loyalty with long-term contracts. In these cases, however, the company must take its social responsibility into account and not abuse a possible dominant position that could harm its suppliers.

• Pass fixed costs to variables to achieve a more flexible structure. 

• Take advantage or sell waste. Therefore, the cost of transportation and destruction of garbage is transformed into an income when selling it.

• Cost reduction consultancies (energy, structure). Usually, these consultancies charge based on a percentage of the cost reduction achieved.

• Use new technologies to make processes cheaper. For example, using the Internet to buy, sell, or carry out other business processes.

• Reduce reduced quality costs with continuous improvement and full quality.

• Optimize costs using the zero-based budgeting technique, which eliminates waste through the analysis of all costs euro to euro. For this, it may be convenient to reformulate the budget, even if we are halfway through the year. In many cases, the drop in activity means that the budget approved for this exercise no longer makes much sense.

• Use the objective cost technique, which calculates the maximum cost that a product can cost when it has not yet been designed. To do this, it starts from the sale price at which customers will want to buy the product and subtracts the desired margin. The difference is the maximum cost that our product can have.

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A crisis is also an excellent time to undertake.

During the crisis years, fewer companies are created, and more are destroyed. Therefore, the number of companies is usually reduced. But, curiously, it is when organizations are created that can later be very successful. Table 3 shows some examples of well-known companies that were founded in years of crisis.

Conclusions

As a synthesis of the above, we can conclude that crises greatly complicate the progress of companies. If mistakes are made, the chances that the company will generate significant losses and end up closing are multiplied. Therefore, it is necessary to do excellent Management, especially in the most strategic aspects. Among the topics to prioritize, we can highlight giving confidence to people and safeguarding strategic assets, ensuring that liquidity is sufficient to meet commitments, and propping up profits by innovating in the business model to generate more income and control costs (see table 4). If these issues are appropriately managed, we will contribute to making the company sustainable in the long term.

On the other hand, a crisis is an excellent time to review what we do and what we don’t do. For example, in periods of confinement, many things stop being done and, instead, other new things are done. At the end of the confinements, it is worth considering whether it is necessary to return to previous practices or if some tasks or activities are not ultimately worthwhile. And vice versa: analyze whether some of the methods we adopt during confinement could be continued even when we are no longer confined.

Although it is not easy to survive and move forward amid a crisis if governments do it well, citizens cooperate, and companies take the appropriate measures, it is possible to generate value and emerge stronger. As is repeated every time a period of economic activity falls, crises are also sources of opportunities, and those who take advantage of them win.

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How to discover business ideas?

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How to discover business ideas

One of the important challenges when the undertaking is the identification of business ideas, let’s remember that a business idea is conceived as something that solves something for someone willing to pay for it, this may be about facilitating a service or activity, manufacturing or marketing products, but how do you discover and identify business ideas?

In this article, we want to provide ten ways to find business ideas, particularly for people who are considering starting one and still have no clear initiative.

Ways to identify business ideas

1. Think about copying a business

Try to do the same thing that others are doing, and it is working for them, that you too can do in the same or better conditions, in the same or another place, to the same or another market.

2. Choose to improve an existing business.

A good source of a business idea is to develop an existing product or service in a better way and that they present faults or deficiencies.

In this way, you will be generating greater value or innovation in an existing or validated market.

Much of today’s technology initiatives have emerged to improve an existing product, service or business, Netflix is ​​a great example of this, where its creator after being dissatisfied with Blockbuster’s old movie rental service, he took on the task of arranging his knowledge and ability to improve the details that generated dissatisfaction with this service, including the collection or fine for delays in returning rented films.

3. Consider varying an existing business.

Another opportunity for the development of business ideas is to resort to the variation of existing businesses. This means giving an important turn to an activity or product developed, and it can be directing the existing product to a new market or a new use or utility.

An example of this has been the growing market for products and services for pets, in which today a great offer is developed that was previously exclusive to human beings; however, a large number of entrepreneurs have adapted different products and solutions to direct them to pets including dogs and cats, in this sense, grooming services, aesthetics, hairdressing, school, recreation, among others stand out.

4. Develop something exceptional or new.

If creativity is one of your great skills, developing something new or exceptional may be your option.

This alternative tries to identify problems or opportunities and be carried away by inspiration to generate new works, products, or services, previously not considered or developed.

5. Monetize your tastes

Another way to generate business ideas is to go to your tastes and passions, nothing better than life on what one likes and is passionate about or at least earn income from them.

If you have a taste or passion, it means that you are willing to invest your time in it, what you are willing or enjoy learning more every day from the one that you like or are passionate about and that you like or would like to share with others such tastes or passions, given that every day you become better, more skillful or expert in that area of ​​liking.

For this reason, your passions can be a great business opportunity. There are likely people interested in learning, enjoying, or using your expertise, knowledge, and experience in this activity.

In this alternative, it is valid to consider tastes and passions such as music, art, reading, education, writing, design, cooking, dancing, marketing, and others.

Read More: Discover 8 profitable businesses to think about in 2020

6. Exploit your knowledge or training

If you have any training in any area, you have the knowledge and skills to carry out an activity, product, or process.

Your knowledge and skills can be converted into businesses by developing products and services that help others solve a need or a desire.

This knowledge can be exploited by charging for the development of the specific activity or product, as well as by charging for sharing said knowledge and skills through training programs, or the development of info products in which it is shared—such information.

7. Enhance your work or professional experience

If you have been performing a function or activity in an organization for months or years, this has most likely provided you with important knowledge and skills that can be turned into business ideas.

Therefore, what you have done for months or years may also be developed independently for clients or markets that may need your services.

Many organizations or ventures have arisen due to some people’s decision to do for third parties what they previously did within an organization.

8. Recognize and exploit your needs

If you have ever needed to satisfy and not find a specific solution for it, you have given yourself the task of developing a solution with your means, and you have achieved it. You are facing a new business opportunity.

The above was given that like you other people very possibly have or have had the same need or problem and are looking for a solution for it that they have not yet found and what you according to your experience could help to satisfy.

9. Take advantage of changes or trends.

A constant today is a change; another way to identify business ideas is to generate products and services that capitalize on the different opportunities that social changes have been presenting or demanding.

Against this, global mega-trends can be considered. What are the specific changes that society at a worldwide level is experiencing? That, in turn, opens the opportunity for thousands of business ideas, some of the main mega-trends to date identified by researchers are:

  • Preference for organic consumption
  • Personalized lifelong and universal education
  • Globalized markets
  • Personalized marketing
  • New demographic and family structures better health technologies
  • Everyday virtuality

10. Go to your fortresses

As individuals, as well as we, have weaknesses, we also have strengths that can be recognized by third parties or by ourselves, and these strengths can become a business opportunity that can lead us to the development of products or services in favor of satisfying needs or yearnings of third parties

Recognize your strengths and explore how each of them can be turned into a great business opportunity.

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