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The Pandemic COVID-19 has become bigger than anything we have seen in the memorable years and it’s quite destructive. Everyone is maintaining the social distance & meanwhile, a lot of us are worried about our startups. How do we go about it?
With each day passing, the Novel Coronavirus is affecting human lives & the economic market drastically. In this time, many of us are trying to save our startups that we started with a few & limited financial resources. First, let’s think about business surviving because of the COVID-19 crisis, let alone saving it.
Let’s check them about & see how we zero down COVID-19 crisis for the startups:
“In the middle of difficulty lies opportunity.” – Albert Einstein
I think we all know how being on the right time at the right place can change your life completely. Many of us believe that you will find many opportunities when there is a fall down in the market. And if you believe the theory, no time would be better than the current one.
The Novel Coronavirus has made things quite inconvenient for all of us and people are looking for solutions, So if you have a business that’s even a bit relevant to the COVID-19 solution, please continue to do so. Don’t have second thoughts.
The economic crisis always hampers large & small businesses but at the same time, gives opportunities to bloom as well. So, start looking for solutions you can provide and fill the gap with your business solutions. You won’t need to worry about anything else.
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2. CASH (in CAPITALS)
We all know how ideas can transform a penny sized business into a billion dollar empire. However, in the startup phase, what matters the most is, liquidity. Running out of cash can be the most devastating thing for a startup. The operations get running because of cash flow and if it stops any which way, you are in trouble big time.
So for your startup to survive, it’s advised to have a good amount of cash reserve for a considerable time period. We don’t know about the COVID-19 disease timeline & when it’s going to end. At least having cash in hand will keep a few things running smoothly like your startup.
3. Don’t Give Thoughts to Raise Money
While trying to build up the business, one of the most important factors is funding. A lot of businesses with good ideas vanish into nothingness because they don’t get enough funding.
Whenever there is an economic breakdown or crisis, the angel investors try to avoid any risks & start investing in selective companies.
If you check the pattern, a lot of good companies don’t get funding. If you are already in discussion with your angel investors or other funding entities, it’s better to expect nothing for now. And due to the COVID-19 crisis, nobody can blame them and everyone is looking for surviving through this drastic situation.
4. Downsize The Business
Not an ideal situation for any business, however, sometimes companies need to take decisions they aren’t proud of. For example, downsizing the business by a few angles so that the survival is possible. Mostly with startups that are investing in various projects, more resources, and the essentials to keep the work running.
We all have heard about companies laying off employees or cutting down the salary (including their own) after companywide meetings. So in order for your startup to survive, (not laying off) cut the advertising spends if you can and similar with contractual projects (if those can be cut).
Know that anything that’s taking out cash from you now will impact you big time in coming months with a cash-running-out situation.
5. Non-Equity Cash Funding
A business cannot be up & running without cash flowing in irrespective of what size of the business is. COVID-19 has made the lives of a lot of entrepreneurs a bit stressed as they cannot find good funding due to unforeseen circumstances.
However, the business/startup requires funding so let’s turn to the other side and look for some short term small-business-helping entities. Maybe the stake would be higher but it can help with a small duration cash crunch. Anything like government grants would also work because no one forecasted this bad economic crisis due to Novel Coronavirus.
6. Give Thoughts To Inflection Period
Anything that’s been drowned will come up sooner or later and that’s for sure. So, while trying to survive through the COVID-19 crisis, also think about the point when everything will become normal. The way economic breakdown gives opportunities to a lot of people, similarly, the bouncing back situation also brings unlimited opportunities.
Think about the time when all will be back to normal and you won’t have to survive. Then you will grab the opportunities as soon as they come to existence. You invest your time thinking about such opportunities and how you can make the most out of them. So think about the inflection time.
The COVID-19 crisis has impacted all of us and especially the ones who just started the business with new ideas. For now, those startups only need to think about surviving the Novel Coronavirus, let alone be profitable. If they are already in the line of providing solutions to COVID-19 victims, they are on the right track. Or else, look for the tips given above and choose the one that meets your startup needs better than anything else. SURVIVE!!