The Covid-19 pandemic has shaken up the world in manifold ways and is wreaking havoc on startups. Entrepreneurs are trying and making an effort to survive, from changing business plans and workplaces to challenges finding investment. Thus, to keep your business healthy throughout the coronavirus outbreak and well-positioned for success once it is over take advantage of the below-highlighted survival tips.
Create an Effective Action Plan:
James Cameron – a Canadian filmmaker – once quoted, ‘Hope is not a strategy. Luck is not a factor. Fear is not an option.’ This philosophy fits nicely in this situation. Therefore, the first survival tip for startups is to make an effective action plan together with your partners and investors and look the truth straight in the eye. You, your co-founders, and your employees should keep a close eye on your vision and the actions you take in the weeks and months to come.
Your initial step is to pinpoint vulnerability and determine which of these can be fixed at the earliest. Ideally, there are steps to diversify your income or increase your profitability and ensure that your finances are in good shape. Create a robust financial model and run financial scenarios. It will help you determine when to make substantial changes as events unfold.
Accept Accountability for your Employees:
It is your responsibility to ensure the safety of your employees. Security means two things. First, even if it is not easy, adhere to government regulations, and second, ensure that your employees are comfortable working from remote places or offices. It is crucial to be in touch with all your employees to boost their morale. Calls on a daily or weekly basis are essential. Regardless of the size of your company, be open and honest about your strategy and decisions.
Don’t Quit on Fundraising:
It is difficult to know how investors will react to situations like this. Companies with a strong foothold in the market can always raise more funding, and a few investors might see this as an opportunity to do great business. High valuations may become hard to get, terms may become more onerous, and the size of a potential investment round may be limited – but they may still occur! Maintain your optimism while remaining realistic.
Always Stick to your Long-Term Strategy:
Keep your long-term objectives in mind. External factors should not be allowed to sway your decisions needlessly. It is hard to stay focused on long-term goals when things become rough, but having a frame of reference to compare short-term actions can help. It will also assist you in devising a recovery strategy.
Staying disciplined is sound advice not just during downturns but in general. It entails forecasting, cost control, or recruiting discipline. You must make the most of this time to build a culture of discipline under all circumstances. Be wise, cautious, and helpful. You will be better prepared for any business shock if you have a disciplined culture in place, and it will bring your team closer together.
Seek Advice from your Mentors:
There is always a strong power of people working together and learning from one another. Therefore, you must always go out and seek advice from your mentors, talk to your colleagues, and double-check your business decisions at the earliest. The Covid-19 pandemic is a challenging time for startups. It is not less than a rollercoaster ride but also the time for them to grow and shine.