8 Tips for Startups to Survive During COVID 19
Since the pandemic Coronavirus has attacked worldwide, it has become hard for everyone to accept the changes. The industries are getting rattled, M&A is being stopped, and term sheets have been pulled down. Don’t you think it is the worst nightmare of startups?
Earlier, money was abundant in the market, but now suddenly, everything might start withering out. On the tip of the iceberg, no one is aware of the ultimate cause of COVID-19 in the economic crisis. Every business is trying to struggle with the fact that they can overcome this severest torture and start living better than ever.
To be on the positive side of the coin, there are a couple of various ways to deal with this issue. This economic crisis has sprung up new opportunities for companies looking in the right direction. This can only be done when the leaders choose the right leadership tactics and motivate their employees to do better.
Many great companies survived the economic downturn in 2001 and 2008, and some came out stronger than ever. That could be you. If you are dealing with this crisis and looking for the best ways to survive startups during COVID-19, this article might help you.
Several companies have raised millions of dollars, but are still facing big recessions. The most significant take away from those startups can be the reason to respond to the crisis very quickly and then survive responsibly. But the ones who just hoped for the situation to go better without even doing something good, could be the biggest mistakes of the startups.
Below shared are some of the top tips to help you navigate through these stormy times.
Don’t make, ‘Hope’ a strategy to get success
The first and foremost tip that startups should focus on the real plan to start the operations. Startups need to draft a plan with the investors, cofounders, and directors to operate the business smoothly during this pandemic. Since this pandemic’s outcome is hidden from all the startups, it would be better to look straight and prepare the best plans to save the startup.
To be honest, things will get worse before they start getting better. Without seeking any funding, formulate a plan for surviving the startups for the next two years. This plan will help you to make hard and needy decisions. Always remember that all the co-founders and employees see the vision and measures all the steps that can be taken to survive the startup.
Pro Tip: Don’t put all the eggs on the hope bucket, if you really want your startup to survive this economic crisis.
Encourage staff to work remotely can be very difficult
All high-profile companies like Microsoft and Google are encouraging their staff members to adopt a work-from-home policy. For modern tech companies, the policy needed to encourage people to work remotely are unquestionably already in place. However, for smaller companies, this situation is likely to be very different. To encourage staff members to work on the same determination, and punctuality during this pandemic has been very tricky.
Therefore, startups need to stay in touch with the employees to keep up their morale and spirit. In this situation, weekly calls, appreciation for doing a good job, and bonus would be the best choice. Above all, the startups need to have transparent communication with the employees about their business plan and the decisions to attract new customers, irrespective of the company’s size.
Pro Tip: Companies also require to prepare their employees for the increased cybersecurity risks associated with remote working
Ask your mentors for advice
It is also essential to redo your company’s strategies to face the current reality of the marketplace. In this step, you would require advice from successful startup owners. When you start working on successful entrepreneurs’ advice, you can start feeling a sense of power and great learning experience from each other. So, go out of your comfort zone, ask for mentors’ advice, communicate with your peers, and then quickly validate your business decisions.
Pro Tip: After having discussions with the successful people, formulate a plan that adapts to the new reality, reviews it daily, and updates it weekly.
Be a Good Leader
In this marketplace, everyone will be looking at your startup for your leadership skills. This is the right time to outshine and show your strengths and beat your rivals. During the economic crisis, your startup must have a lot of time to prepare new strategies. Therefore, use this time productively to fill up all the holes in your business.
You can start reviewing all the business plans, processes, and products; conducting performance reviews of the employees; and streamlining all the processes. And last but not least, if there is a need to rewrite the company’s policies to make your employees happy and motivated, then do it right away! When you return to business, you’ll be more reliable, durable, strong, and able to weather the aftermath.
Pro Tip: You need to be a calm leader. Don’t panic!
Be responsible for your employee’s health
The next tip that can help your startup to survive during COVID-19 is to take responsibility for your employee’s health. In a crisis, many people around you need your helping hands to meet their ends. So, it becomes your startup responsibility to keep your employees safe.
It means that you need to comply with all the government regulations, and simultaneously, make sure that your employees feel comfortable. In fact, to be on a safer side, you also need to allocate a leader in your place, if you get sick or need to be quarantined.
Pro Tip: Since there is no silver sword here to make every employee happy, focused, and productive, but you can try to change your perspective by staying open, honest, helpful, and sweet with your employees whenever needed.
Keep an eye on new opportunities
Even though the pandemic has shuttered the company’s traditional opportunities, it doesn’t mean that it could not open the new possibilities. During this hurricane of crisis, all you need to do is to stay updated and look at every new chance that comes across in the marketplace.
You never know which opportunity is waiting for you to open the doors and cherish the success. Keep your communication channels open with others, and exposure to new business lines that you can take on immediately to generate new revenue streams.
Pro Tip: Rather than saying to everyone that all the opportunities for the businesses have been closed, you start seeking new business opportunities.
Don’t give up on Fundraising
The next idea that can help to survive your startup during the COVID-19 is don’t lose hope on fundraising events. You never know who is waiting for the brilliant idea to invest in. Strong companies with excellent ideas always get more funding. This happens because they don’t give up on fundraising events. Some investors look at these types of opportunities to invest in different firms to get great deals. There are chances that you need to do high-term valuations, calculate the taxes, and the amount of the potential investment may be limited, but it might still happen!
Pro Tip: Stay optimistic but realistic.
Comprehend your Exposure
Startups also need to comprehend their vulnerability during the crisis and find out which factor can help to sail off the storms. It becomes essential for every startup to diversify revenue and accelerate the profitability chances whenever they get. But never underestimate the order of the finance.
The more financially strong your startup will remain, the more time you can pull up the trigger and stay on the business world. Have a solid financial model and run financial scenarios. This will further help you to know when to pull the trigger on major changes as things play out.
Conclusion
By now, you would have a better idea about the tips to survive your startups during the hurricane of an economic crisis. If you are dealing with this scenario, then you can start incorporating these ideas. During this uncertainty, business owners need to navigate through the storm with compassion, boldness, and flexible leadership. These characteristics can only save them and make them stronger to weather the aftermath.
— — — — — — — — — — — — — — — — — — — — — — — — — — — — — -
Looking to start your business in Hong Kong? Register your new Hong Kong company online! Visit: https://startupregistry.hk/ or https://startupr.hk/
— — — — — — — — — — — — — — — — — — — — — — — — — — — — —-
