The economy will more than likely be affected after a crisis. People will be looking into ways to effectively restore their businesses so that they will survive and thrive despite what occurred.
A crisis can cause companies to make budget cuts, go through hiring freezes, and lose money due to lack of business.
However, when your business makes it through the crisis, there is usually strong demand afterward.
As the economy recovers, pent-up demand will usually take place. That’s where your business can take advantage.
What Is Pent-Up Demand?
Pent-up demand occurs when the demand for a good or service becomes exceptionally strong because it has been suppressed due to a crisis or a hard recession.
It is a term that economists use to describe the strong spending of consumers following a period of weak consumer spending.
When times are tough, consumers save more than usual and halt their purchases due to unforeseeable economic conditions.
Pent-up demand can speed up the recovery process for the economy as it allows consumers to spend more money and increase the economic flow of goods and services.
Pent-up demand can take place in many parts of the world after the current economic crisis due to the COVID-19 pandemic.
Many businesses are closed and not allowed to operate because of mandatory lockdowns.
Not only are consumers waiting before they purchase goods, but they are also waiting before they have repairs and maintenance done.
However, the need to have the repairs and maintenance performed is increasing, which creates urgency.
Pipes still break, dryers and washers wear out, cars break down, windows break, clothes tear, food gets eaten, alcohol is drunk.
Life keeps going on.
Preparing Your Business for Pent-Up Demand
Even in a time of crisis like the coronavirus, helping your business thrive is a priority.
While the government is looking into providing aid for small businesses, it’s not the only thing you should be doing.
Small business owners should be preparing for the rise of business that’s to come.
Two things are critical:
- Continued market presence;
- Keeping your team ready to come back.
On your market presence, take a look into what drives the demand for what your business provides or sells.
It’s important during this time to not retreat from your online presence.
In fact, use this time to update your website and the content that is on it. If you are a 411locals.com customer, reach out to the customer service team and ask them to make the changes you want.
This is also a great time to get serious about pillaring of social media content. Use our article here to learn more about it.
Concerning your team, in reality, it’s possible you may have to lay off employees. With the newly passed COVID 19 rescue plan, your employees may be able to draw up to 100% of their salary during the crisis.
When business starts to take off, you will need those trained, knowledgeable employees.
So, keep talking to them. Call them and send them emails. Give them updates on the status of the business. Encourage them to wait for things to get back into gear.
If it’s possible, give them small incentives to improve their training and skills online.
You can survive this and thrive afterwards. Pent up demand is coming, get ready!
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