The crash of stock markets, liquidity crisis put many businesses in a declining phase. But as Darwainian theory says ‘Survival of the fittest’ similarly ventures who turn this adversity into opportunity, will survive in the long run. During times of crisis many companies start playing safe while there are entrepreneurs like Taylor who see crisis as a ‘Not to waste opportunity’. However, crisis require us to think in several directions before presenting any solutions like infrastructure, monetary, demand, policies, politics and business processes.
Adversity in reference to new ventures
Several studies show that crisis ailment innovation and few startups. In the 1990s crisis, out of today’s existing 50 firms 35 were established at that time. The entrepreneurs who flourish themselves during crises are exotic breed compared to entrepreneurs who developed when there are unlimited resources. What makes them different?
- Their ideology at the time of adversity.
- Their thinking skills.
- To grow even in limited resources hence are highly competitive.
- They act quickly.
There are 4 kind of opportunities that innovative entrepreneurs see and seize them:
1.Inclining extra resources to meet never met demands
There are several sectors where demand never runs off. Like medicine, health services, and food. However their distribution is inconsistent. Adversity compel their irregular demand and supply, which lead to unmet needs. Two friends Leo and his partner have found that whether private or government companies both take several weeks to clear a patient’s medical claims. And companies are using paper mode to store patient information. It is highly inconvenient and prone to loss of data. Here Leo and his friend found an opportunity to develop services to record data more digitally. Within a year they have achieved huge success and became a pioneer in delivering more managed and sophisticated results. Their revenue from $50 million in the 2000s has become $200 million by 2008. They named their digital app as’ healthify’ and it was only one field providing an internet based recording.
2. Finding gaps in services
Adversity can also create gaps because of lack of resources. It can be money, technology, primary resources, supply chains, and maketings. A tech based company engineer Adeel found that in his state only 600- 700 people are having telephone, which is creating a big communication gap. He decided to bring wireless technology to his state.
For that he needed to make a list of allies who can offer technology at a cheap rate and in long term solution. Further there were two problems. First to create demand and other to create connectivity to reach everyone. He created a business model in which he employed women, so that they could generate money and pay back their loans of connectivity in their house. For connection purpose he used wires of railway lines to provide connection. Now Adeel has one of the largest telecommunications markets in his country.
3. Minimising big problems through small solutions
Big problems don’t always mean a big method to solve it. Even a small solution can be huge. Small solutions are more approachable and it is more economical too. It is also easy to mold and make proper adjustments. Riley and Kaylee are doctors in vietnam, found it difficult to remain connected to expecting mothers and making rounds in various rooms of the hospital. While making the move, how to keep track of the baby’s heart and mother condition was a big challenge. So together they invented airstrip. It was easy to install and required certain behavioral changes in its users to get effective results. Now it has become part of services in hospitals and a much needed app while servicing.
4.Think more strategically platforms
A company’s success depends upon its connectivity to its customers. More vast your search will be, the more profit you can make. Watson the inventor of Hotkai has already explored the market of technology. Later he developed a hydrogel that can be used on the body too like Hotkei on technical gadgets. Hydrogel can be used to seal organs and other parts during surgery.
Before hydrogel, stitching was prevalent in the dissection and anatomy. This was a huge success. Soon they license it so that no company can take their ideas. It was a simple product but has huge market bases and is centered towards one technology.
It is being well said that humans think more strategically in pressure, challenge and adversity. This is so much yet to be explored and being open to them with free mind provides us opportunity even in adverse situations. We should not limit yourself from exploring. There are many companies that make great gains, on to setbacks push them backward and wipe out everything they have achieved. Companies who survived the great recession will harness the future scope to gain competitive advantage. We should train our mind to make utilisation of abundant resources available in serious crises.