The impact of the Covid-19 pandemic had a larger significance on the business sector worldwide than expected. In this global crisis where nations are in lockdown trailed by social distancing, it has become very challenging for business holders especially startups/small business owners to be financially stable and run their business.
Either product or services startups all are suffering due to longer lockdowns, projects are canceled, startup funding deals are on hold, foreign investment is canceled and Non-essential goods and services are basically at a halt. In times of uncertainty startup holders will have to adapt surviving techniques and be persistent.
In this article, we will discuss some key points on how a new startup company can survive and protect its employees and business.
Handling Cash:
In order to keep your business alive in this global crisis, the first thing to do is to manage your cash flow. Cash is fuel to your business and to avoid running out of it, act early. Startup owners should be prepared for further lockdown by preserving cash and they can do it by conducting an assessment on fixed and variable expenses which offer a simple impression of where a company is financially leading.
Talk to your employees and ask them if they are okay with a reduced salary for a few months. You can also reduce the working hours of employees. You can reduce the number of employees but it will be a very hard decision because once things get back to normal, rehiring will impact business continuity.
Maximize your cash flow by availing government grants or participate in startup competitions to win cash money. Ask for funding from your friends and family. Take rational decisions and concentrate on the big picture. The ultimate goal during this pandemic is to survive.
Analyze your business model:
In these testing times, it is crucial to track your finances and cash flow but it is expected that this situation continues and might not end in the next few months so it’s better to evaluate your business model and plan for the future. In this time of crisis, there is a lot of economic uncertainty that has affected startup funding so be prepared for all types of scenarios and analyze your business that impacts revenue and cost as this will continue to challenge in future fundraising.
Plan and make some policies as it’s hard to predict when the pandemic will be over. Reconsider your business strategy, reduce expenses, modify sales targets and cut back costs if needed. This will surely help to keep business moving smoothly.
Ensure Transparency:
In this difficult time make sure to maintain a strong relationship with your customers, investors and employees. As everyone is all in this together, try to maintain empathy and transparent communication. Establish trust among your partners and try to stay connected as this helps you to stay true to the vision and future goals.
Communicate with Staff:
To ensure daily communication use online conferencing tools and engage with your employees. It is very important to boost the morale of the employee and maintain their high spirits. Form resilience and stay in touch with your employee as this helps employees to work with more productivity. Ask your employee to avail of lockdown opportunities by upgrading their skills from online courses.
Making Space Adjustments:
Working in a co-working space or incubator is surely detaching. Stimulate your office environment by using online applications like zoom and have regular team meetings with this service. Create a virtual environment of the office to be productive as this helps you to stay focused.
As business startups are all about social exchange the current crises are hindering it and in order to fight it back, you can stimulate the work environment by digitization.
Look Out for Opportunities:
Every business needs funds to run so look out for government grants. Foundations are funding small business opportunities so look for it. You need to understand that in these economic crises if you are patient enough in securing your investment you will smoothly come out of this stronger.
Consider Shifting:
When surviving is the only option, try shifting your business model by combining your resources with your competitors or launching new products. Look out for startup incubators who act as a catalyst in providing business opportunities services like management training or office spaces. The apparent advantage of these incubators provides significant funds along with mentoring experience.
In this changing time, people’s needs are also changing so try to offer value to new customers with different characteristics or try to sell or launch products that are in excessive demand; sell your products online. Take additional measures according to your business needs.
Follow Long Term Plan:
In these crises do not miss your focus from your ultimate goal. Make short term plans by considering your long term plans. Stay focused and disciplined in all conditions.
How Norgic can help a Startup to Survive.
To combat coronavirus crises Norgic is trying to empower startups by providing startup equity services. We provide exceptional service offerings with customer satisfaction. We help startups to survive that are facing challenges like in funding as we believe in entrepreneurs and their business strategies. In these tough times, we ensure the best outcome for everyone that works with us and supports startups.
In an effort to support startups our committed team of professionals serves with passion and determination to achieve the next digital transition in a timely manner. If your startup is struggling in this crisis or you have a great idea let us drop an email and interact with our experts or get a free quote as we will continue to support the economy according to our strength and capabilities.
The new business startups can survive this pandemic if they make decisions fairly and be transparent with their stakeholders. All the strategies explained above are all about survival, no matter how good your plan is or the quality of your products it doesn’t matter if you are unable to keep up with the current situation and don’t survive.
This is a challenging time but it will end someday so be productive to thrive in your business.
Image Credit: Sarah Pflug
