Long before the pandemic hit, businesses were already looking to disrupt their existing models, in the name of ethics, sustainability, an improved customer experience – and profitability, of course. 

The pandemic changed business – and everything around it – as we know it. According to McKinsey analysts, the onslaught of Covid-19 moved us 10 years’ forward, in just 90 days’ time.

What did that look like for business owners needing to survive periods of staff furlough and shuttered doors? Lots of creative thinking, innovation, and completely flipping existing business models on their heads – without looking back. Diversity in revenue streams is always important, especially in moments of uncertainty, and businesses have adapted and pivoted in various ways.

One of the biggest changes for businesses in recent months has been embracing all things digital, whether that’s moving physical stores to the online sphere or setting up contactless payment options to minimise person-to-person contact in store. Online payment portals also give people the convenience of paying for food or beauty services in advance.

“Specifically bringing in digital services to more traditional businesses with a physical presence is a theme we’re seeing a lot,” Emma Jones, founder of small business support network, EnterpriseNation, tells HuffPost UK. 

“From bars delivering drinks selections to customers’ doors to butchers and bakers introducing online ordering, we’ve also seen launderettes adding websites and contactless laundry services which undoubtedly will continue to be a feature of their business moving forward. Some of the more crazy things we’ve seen are the gin distilleries flipping their model completely to make hand sanitizer and the vending machine company delivering healthy goody boxes to workers based at home,” she says.  

Brush up on your digital skills

The pandemic has accelerated the need for businesses to add various tech tools to their arsenals – out of necessity initially. However, many entrepreneurs have found there’s an added layer of convenience, for staff as well as customers. In-store card readers with contactless payment options also help us feel safer as we start to navigate being out and about after lockdown.

“Until very recently, almost half of the UK’s small firms were not using digital tools effectively. The pandemic has forced the hands of many of these firms and we’re seeing thousands brush up on these skills,” says Enterprise Nation’s Jones.

Being adaptable is crucial when it comes to diversifying your revenue, and many small businesses like retailers were able to quickly pivot to an online model. They discovered that not only did they remain profitable while their physical stores were shut, but they even saw unprecedented success via their online shops.

Small firms in need of a digital skill boost can check out Go and Grow online from Enterprise Nation or e-learning course, Amazon Small Business Accelerator, a free course offering advice on how to adapt, enhance or learn new digital skills. Square’s business resource centre has helpful blogs on moving bricks-and-mortar businesses online and introducing cashless payments into your business.

It’s important for businesses to think laterally, too, putting themselves in their customers’ shoes to cater to their changing needs.

“The thing about having great ideas and adapting to the new normal, is that they need to be properly costed and planned to ensure they are profitable. Consider collaborating with other businesses – can independent stores coordinate deliveries to keep costs low? But that doesn’t mean you can’t act fast and be nimble,” says Jones.

You can also get help if you’re stuck. Try the Recovery Advice for Business scheme, where an adviser can offer an hour of help a month for free.

Add some new products to the mix that fill a gap in the market 

Pivoting your business online and launching digital-first offerings was one key way to diversify your revenue streams when lockdown commenced.

Wonderfully photogenic doughnut chain, Doughnut Time, discovered that a Square-powered online shop along with a quick response to consumer demand as customers were looking for fun activities to do at home (often with kids in tow), was a winning combination.

“When the pandemic hit we knew we had to significantly change our business model in order to survive. Previously we solely operated from our London-based stores; majority of which are based in the central city. With stores closed and city workers now all based from home, we had to create a new offering which would deliver the Doughnut Time experience directly to customer’s doors,” Tom Anderson, CEO of Doughnut Time, tells us.

The brand devised DIY Home Kits in a range of flavours; each box included doughnuts, icing and toppings for a fun, edible isolation activity. Customers could also order Doughnut Time aprons online to complete the experience.

The DIY kits have been such a success that the brand is continuing to sell them online even as stores have reopened, and is currently working on developing a more premium packaging system for them. Anderson credits Instagram for allowing the brand to communicate directly with customers to see exactly what they were missing in their lives.

“Listen to your audience to find out what they want and what they need. We’re constantly engaging with our followers via our Instagram platform. The ability to hold Q&A sessions and get feedback in real-time is priceless. It was this that helped us create a product that specifically catered to the needs of our customers,” he notes. 
 

Rework your whole business model

Flip Food is a vegan deli and cafe in Bristol started by Sophie Fox, who just celebrated the cafe’s year anniversary. As a cafe with a small deli counter, she had to completely change her business model overnight once lockdown happened. 

“We switched into a shop, moved out all the tables, put up a counter and gradually stocked up our shop to make it into a specialist, all-vegan deli. I didn’t close for one day,” Fox tells us. 

She noticed that during lockdown people’s behaviours changed: they wandered into the shop in search of different options.

“They didn’t want to go to the supermarket. We gained confidence quite quickly and our instincts were to set up really safe working practices.”

By creating an environment where customers felt safe and relaxed (only two are allowed in the shop at a time), as well as tapping into her passion for diverse ingredients, Fox found that she not only managed to source a variety of products to appeal to an eclectic cooking style and broadened customers’ views on vegan products, but she really enjoyed having conversations with customers and sharing her knowledge. Flip is no longer a cafe, but a food shop with a takeaway counter.

“Our new shop is an extension of our larder at home, writ large. There were weaknesses in our previous model, and we are developing another range at the moment, a gift range of non-food items and high-quality gifts,” says Fox.

The goods from Flip are also available to purchase via the online shop, which existed – but wasn’t operational until lockdown required them to get it up and running overnight. Fox also diversified by launching click and collect services, which she calls a real “lifesaver.”