The owner of the bakery shared his story and we both agreed that sometimes adversity could be the … [+] fuel for a new, thriving business.
There is an old saying that problems create opportunities. That’s true for those who can spot the opportunity and take advantage of it. And that’s what this story is about.
I was in London for a meeting and had lunch at a wonderful little bakery. The gentleman waiting on us was the owner. It was obvious how much pride he was taking in serving us. The bakery wasn’t very crowded, and that concerned me about how successful (or not) his business was. Then he told me the story.
He started his business in March of 2020, and it’s almost impossible to forget that this was the beginning of a global shutdown as the world had just discovered Covid-19. He was about to open a “brick-and-mortar” bakery when everything began to change. Within two months, he realized that the pandemic wasn’t going away anytime soon, and customers were not going to be visiting his restaurant. Still, they needed to eat, and he realized that food delivery was the only way he could survive. So he changed the strategy from a physical location on a busy street to preparing food items out of his home kitchen and delivering them to customers in the area.
This proved to be a good decision. Not only did he and his business partner earn a living for their families during Covid-19, but it set them up for success as the world opened back up. Customers quickly recognized the quality of the food. For a new business, food delivery was more than a way to survive, it was a form of marketing and advertising. As the number of customers who enjoyed his offerings increased, the likelihood that there would eventually be customers to visit his physical location increased as well. It worked. Once the bakery was allowed to open, customers came, and business was booming.
But there’s more. Once the bakery opened, he continued the food delivery business—with a difference. He didn’t want to deliver lunch to someone in an office nearby. He wanted to deliver lunch to everyone in that office. On the day that I enjoyed lunch in the bakery’s dining area, the kitchen was busy preparing an order of 300 sandwiches and 500 cookies.
As the owner of the bakery shared his story, we both agreed that sometimes adversity—such as a pandemic—could be the fuel for a new, thriving business. There are lessons we can take away from this type of experience. Here are three of them:
1. Adaptability is Essential for Survival: It could be a pandemic, economic downturn or any other event that impacts your business. To survive, you must be willing to change your business model. Even better is to have a conversation in advance that starts with, “What if this happened … ?” Describe all events you can think of that could negatively impact your business and then brainstorm how you might adapt to survive and thrive in the face of adversity.
2. Crisis is an Opportunity for Innovation: Back to the concept of adaptability. As you brainstorm the “What if this happened …” question, come up with as many ideas as you can think of. It doesn’t matter if they are perfect. This is just an exercise to generate ideas. Once you have your list, you can decide which ones to focus on and build out.
3. Expand Revenue Streams: Look for ways to maintain and expand revenue streams developed during a crisis. The bakery was forced to move to a delivery model from its physical brick-and-mortar location. Had they been close-minded and not willing to adapt (Lesson One), they would have been out of business before they had ever started. Coming up with different revenue models doesn’t mean you have to act on them—at least not right away. However, knowing you have different revenue streams you’re not planning to implement now in your metaphorical toolbox means you can pull them out if and when they are needed.
For existing businesses, don’t wait until a crisis to discuss “What if” scenarios. Plan in advance. Occasionally revisit these ideas and add to them if possible. Be “crisis ready.”
And for those entering into a new business, sometimes the best time to start a business can be (considered by others) the worst time to open a business.
