COVID-19 is taking a ugly turn this year too with most countries going into the much-feared lockdown. With more restrictions on, businesses have to be prepared to take more punches. Economy slowdown will impact the business ecosystem and employment generation significantly. Fresh investments can plunge to an all-time low starting this quarter, and a significant drop in project announcements is expected. With so much negativity around, are you considering buying a business? Is it the right time to purchase a business, given that there isn’t any definitive timeline for the pandemic to die down in the near future? Part of our discussion will revolve around this point.
If you thought 2020 was a bad year, think again. A lot of businesses innovated with revised business models, a renewed spirit, daring thoughts and smart execution via online tools. Though businesses were shocked at first, they began to accept the “new normal” of existing in a COVID-19 world. A slew of new online businesses, especially app-based, made headlines and attracted the attention of investors and funding sources. Traditional businesses had a thing or two to learn from the digital transformation strategies that have helped digital businesses to thrive and succeed amidst the pandemic.
Now, is this the right time to buy a business? Definitely, but it’s just that the rules of the game have changed. The current pandemic situation might invite lesser competition. May be buyers can even grab cheaper deals. But that isn’t everything. Newer business models can change the way business is conducted. Data can play a big role in deciding whether the business is worth buying now. Banks and financial institutions may lend money at a lower interest than before. Investors may feel comfortable funding businesses which display greater potential to grow even during an unprecedented pandemic situation.
Also, when it comes to buying a business during the pandemic, there can be no shortcuts. The seller is either making it or he/she isn’t. There is perhaps no other time in history where there is clear record of success. Instead of worrying whether you’ll succeed in business or not, simply learn the ropes and the new rules of business and use them well to your advantage. As the old adage goes, “Necessity is the mother of invention”, most business models were invented when the clarinet call of adversity was loud and clear. If you’re still unconvinced of buying a business during an economic downturn, why not give us a call for an informal chat?