How many of you built a new start up just before the pandemic. How did it work out so far.
How did you counter with challenges from companies not investing in new services owing to the pandemics impact on the global scenario. The likes of which not limited to cost cutting and staff layoff due to the pandemic. How did you market your services as a new player in the game. Was getting an investor a challenge.What strategies would you suggest to implement post pandemic scenario.
As an entrepreneur, my biggest concern at the moment is to seek markets in the form of new startups in these challenging times.
We source customer support and sales staff for remote locations to start ups who cannot invest in a proper infrastructure and human capital. We also provide consultancy in various other IT related functions as per scope.
Your valuable feed back would be a great learning for me and even the smallest of input may create a big impact
I rarely come across questions asking about pandemic on clarity. It is a good question and apt to the need of the hour. I used to work in a start-up company in India and was laid off as the pandemic grew nasty. Like me, many of my friends were as well. Many had businesses built just before pandemic but were forced to close due to lockdown. I talked to them and these are the following challenges they shared with me:
1. Challenge No. 1: Cash Management-First, the biggest issue most start-ups face is cash management. Many estimates suggest that it is likely to take 12 to 18 months (in a positive scenario) until a vaccine is found and approved, although the post-crisis effects may continue for longer. Such thoughts give rise to a fundamental question: how can start-ups survive during this period? Companies need to prepare for further lockdowns. Preserving cash for this period is crucial for several reasons. While most investors honour deals, some may not. Furthermore, the market for investments has also shifted. Valuations are down significantly, so getting money into the business is, and will be, increasingly difficult. Even for companies operating in sectors with high demand (such as health care), if the product-market fit is likely to be more than one year away, investors will be more cautious. Additionally, certain opportunities for generating cash short-term have frozen up. On the upside, cash-poor start-ups are less likely to be distracted from their end goals by engaging too much in side-shows and can focus on evolving their core business model. For the next 18 months, the goal is to make sure they can stay afloat.
2. Challenge No. 2: Changing valuations-A second challenge in this market involves changing valuations so business owners need to have realistic expectations. The stock market has already crashed but may go further down. Start-up valuations have become more conservative as well. It is harder to attract funding and companies trying to raise money likely lose even more equity. One reality for investors in times of crisis is that their expected returns are often much higher than in “normal times.” During the financial crisis, returns were typically more than double in comparison to fewer volatile periods. If possible, it may be worth waiting until the market has cleared the impact of the pandemic before raising money again.
3. Challenge No. 3: Leadership Complexities-Third, leadership has become more complex. Transparency and honesty about the situation are key to building, establishing and deepening trust between management and employees. Excitement comes second. Dealing with emotions is as important as showing empathy and making people feel connected. It is important to stay true to values and vision. Business leaders should consider not only having mentors, but a coach who is not involved in the company and understands the reality of your job. Coaching can contribute to well-being, prompt self-reflection for business leaders and help in making balanced decisions. Having to lay off key employees is a traumatic experience. The labour market for top talent is still active. This crisis is selective, affecting some companies hard while others thrive. Laying off top talent makes it likely they will find a good offer somewhere else and not come back when the crisis is over. This is a further reason for start-ups to act very strategically in cash management for the next year.
Challenge No. 4: Changing space needs-Fourth, the disassociation from physical workspaces, and, co-working spaces and incubators, might truncate social interaction. Start-ups depend on intense personal and social exchanges to stimulate creativity and experimentation; less opportunities for direct communication and spontaneous encounters might endanger respective start-ups’ growth. Meeting virtually is particularly effective for drawing on existing social ties and integrating and taking advantage of this digitalization movement will help start-ups emerge strengthened from this crisis.
Challenge No. 5: Consider Pivoting-Fifth, pivoting your business model is something to consider during these changing times. Several start-up firms in various sectors are changing the way they offer value to different customer groups during this crisis, for example by going online. Thinking about locking in existing customers and offering value to new customers with possibly different characteristics is a key to success. A further consideration is whether to collaborate with complementary rivals, and whether to combine resources to launch new products that may be in greater demand. We have seen 3D printers being reused for protective equipment and distilleries producing hand sanitizers. It is during crisis that responsible management practices and fair stakeholder treatment is especially visible. Making decisions quickly, transparently, and equitably will go a long way.
Your strategies during Covid-19 will be decided by 5 Ps: position, plan, perspective, projects, and preparedness.
1. What position can you attain during and after the pandemic?
To make smart strategic decisions, you must understand your organization’s position in your environment. Who are you in your market, what role do you play in your ecosystem, and who are your main competitors? You must also understand where you are headed. Can you shut down your operations and reopen unchanged after the pandemic? Can you regain lost ground? Will you be bankrupt, or can you emerge as a market leader fuelled by developments during the lockdown? We hear of many firms that are questioning their viability post-pandemic, including those in the travel, hospitality, and events industries. We also hear of firms accelerating their growth because their value propositions are in high demand; think of home office equipment, internet-enabled communication and collaboration tools, and home delivery services. Because of such factors, firms will differ in their resilience. You should take steps now to map your probable position when the pandemic eases.
2. What is your plan for bouncing back?
A plan is a course of action pointing the way to the position you hope to attain. It should explicate what you need to do today to achieve your objectives tomorrow. In the current context, the question is what you must do to get through the crisis and go back to business when it ends. The lack of a plan only exacerbates disorientation in an already confusing situation. When drawing up the steps you intend to take, think broadly and deeply, and take a long view.
3. How will your culture and identity change?
Perspective means the way an organization sees the world and itself. In all likelihood, your culture and identity will change as a result of the pandemic. A crisis can bring people together and facilitate a collective spirit of endurance — but it can also push people apart, with individuals distrusting one another and predominantly looking after themselves. It’s crucial to consider how your perspective might evolve. How prepared was your organization culturally to deal with the crisis? Will the ongoing situation bring your employees together or drive them apart? Will they see the organization differently when this is over? Your answers will inform what you can achieve when the pandemic ends.
4. What new projects do you need to launch, run, and coordinate?
Your answers to the questions above should point you to a set of projects for tackling your coronavirus-related problems. The challenge is to prioritize and coordinate initiatives that will future-proof the organization. Beware of starting numerous projects that all depend on the same critical resources, which might be specific individuals, such as top managers, or specific departments, such as IT. With too many new initiatives, you could end up with a war over resources that delays or derails your strategic response.
5. How prepared are you to execute your plans and projects?
Finally, you need to assess your organization’s preparedness. Are you ready and able to accomplish the projects you have outlined, particularly if much of your organization has shifted to remote work? We see big differences in preparedness at the individual, team, organization, and national levels. The resources at hand, along with the speed and quality of decision-making processes, vary greatly, and the differences will determine who achieves and who falls short of success.
Besides if you do have any questions give me a call: https://clarity.fm/joy-brotonath
