Background:
Covid- 19 has caused a large impact on local businesses. It has a more positive impact on business ventures in a complete shutdown phase.
Impact of Covid-19 on Business
Business deals with all the economic activities by people for the sake of their survival in society by producing money. People do so by producing some goods or by providing services that may give benefits to society. Such activities can be affected by environmental calamities, one of them is COVID-19. It has devastating effects globally in terms of health, economy, and whatnot. Most of the organizations have faced a major decline in their economy. Most of the employees had to leave their jobs due to lack of financial resources of industries and they gain zero profit.
Beneficial Effect of Covid-19 on Small Business
On the other hand, some of the small and local businesses take benefits out of this situation. As the demand for the services or the product increases there are high chances for the business to gain a significant uplift. People come up with more creative and innovative ideas to win the race of adaptation and survival.
Most Profitable Business in Covid-19
The most profitable small business among all are the: medical which includes face masks, sanitizers, and other precautionary items which were in really high demand, most businesses have put their investment in this venture and converted their business operations into this area. Pharmaceutical companies were on top of the most profitable businesses in this time period. Pharmacies gained a significant benefit in these circumstances. Small grocery stores saw a boom in these times. Some businesses have done exceptionally well. For example, imported medical instruments were made locally provided by people with technical expertise, hand sanitizers, gloves, masks of different kinds, antibacterial soaps, hand washes, surface cleaners, and the list goes on. Delivery services were in high demand that including food and other products.
This pandemic has caused businesses to shut down but still, there have been a lot of opportunities out there for those who are willing to adopt the change. Many of the people out there shifted towards YouTube for selling goods online by doing live streaming and use of e-trade and home delivery. Live Streaming has helped businesses to stay in touch with customers. Changing environments requires new strategies as well.
Reason Behind The Successful Local Business:
The reason behind the successful local business is that they provided the delivery services. They learned and adopted new skills because of the changing environment.
In North Carolina, a woman ran a local yoga studio, during lockdown she went to an online session of yoga classes. Hence local business had been in a boom.
“It’s been an incredibly hard time, no one’s seen this challenge before,” the National Restaurant Association’s Whatley says. “You are seeing a lot of creativity amongst operators.”
Since people were connecting online, not all people have technical skills so they require assistance in this regard. Some businesses started to provide technical assistance e.g. finding the best internet service providers, to help them with their laptops, computers, and mobile technical support to the people facing the issues.
Tech Companies were also in high demand as everything went online and office work was done from homes. Most companies provided laptops, computers to their employees to get the work done.
Conclusion:
A major drop in business activities has been observed but it has shown elevation as well.
In conclusion, we can say that Demand for a product or service plays a significant role in initiating a new business.
- Initiating a new business requires great pre-analysis in multiple domains and almost every aspect of business is analyze in detail. Among these multiple domains, one of the most important is to look at the demand and supply of the product which affects the success of the business proportionally. More the demand, more will be the profit. Also there are less chances that your business get saturate, as more people will demand it, they will try to get it from anywhere.
- The foremost product industry that has get a boost is pharmaceutical industry. As we have seen the shortage of some medicines that was proven to give some symptomatic relief in patients suffering from covid-19. People start buying it large amounts creating its shortage. This shortage increases its demand.
- Likewise companies that produce sanitizers, face masks and gloves.
- Second boost up business platform is online home delivery of food in the times of lock down till now. There are many local businesses that have started in covid times, other than food there are online shopping options as well.
- Covid 19 has shown a new pathway to e-commerce. Online buying and selling items and services are given on a large platforms. International reach to various brands has become easier.