WOW. I did not see this coming. Just think, a presidential impeachment is page 3 news! Welcome to 2020!
Twenty years ago, a business advisor of mine recommended that I read The Art of War by Sun Tzu. It was a fascinating read that was packed with strategy and deep thinking. Over the past few months, I have been reminded of this quote, “In the midst of chaos, there is also opportunity.”
Over the past 4 months, as we have adjusted our lives and changed our outlooks, I have repeatedly heard from successful business owners that they are seeing avenues for investments, expansion, and new opportunities. They see a world filled with diamonds in the rough and I completely agree with them! Allow me to share with you 3 areas where I see opportunities today.
COVID Friendly Businesses are Rocket Ships!
We are dramatically changing the way that we work and that is creating opportunities. Think about Zoom. Zoom is not new to the market, but it is filling a massive need in our world today for business professionals, students, families across the globe. Zoom positioned themselves well and capitalized on a world changed by COVID-19. Their stock price is up 390% in 2020!
There are countless other opportunities just like Zoom where companies are positioning themselves to be COVID friendly businesses and are flourishing. Investors today are specifically seeking investments that play well in this changed marketplace.
Commercial Real Estate – The Pendulum Has Swung Wildly
For the past 5-7 years, the commercial real estate market has been a landlord’s market. With uninterrupted economic expansion, there was a massive demand for space and asking prices went up and up and up. Today, landlords are facing a different reality with vacancies, non-paying tenants, and big question marks.
The result: commercial real estate is swaying to a tenant friendly market. In the short and medium term, I believe that tenants will be able to secure great real estate on more generous and flexible lease terms. Smart business owners are seeking opportunities that allow them to lock in temporarily low rent costs now and will harvest the benefit of that lease for the next 5 to 10 years!
Flexibility through Hybrid Models Feed Stability
During the COVID-19 closures this spring, several businesses closed their doors without any means to continue generating revenue from their customers. However, some quickly developed an alternative strategy to continue engaging customers, selling products and, even, making some money!
Many companies, particularly franchise systems, quickly deployed virtual or modified models to offer fitness classes, help kids with tutoring or conduct virtual consultations. This delivery flexibility allowed these companies to continue to offer products and services to customers in a way that was safe. As these businesses have been re-opening their doors, the customer loyalty has been sky high and those companies have hit the ground running. In fact, they are likely gobbling up market share as many of their competitors did not have any activity during the shutdown.
In an uncertain environment, you are certainly more cautious about the steps that you take. But don’t stop taking steps! The path forward has gems scattered throughout! I would enjoy talking in more detail with you about where I see opportunities that match your specific objectives. I you want to learn more, visit www.chriscynkar.com.