5 ways entrepreneurs can overcome the ongoing COVID-19 crisis
The Covid-19 pandemic has managed to not just slowdown the progress on the business front, but has also led to bringing certain businesses and entire industries to a standstill.
It is a challenging phase for all, and as entrepreneurs and strategisers, we are facing a new set of challenges, dealing with which could be really taxing. Even though this might be a tricky situation to deal with, it is definitely not the time to lose heart over the losses that businesses might have incurred.
This is the time to come together as a community and re-think about our business strategies and the relevance they would hold in the world post Covid-19.
Here’s a list of practices that can be adopted by entrepreneurs in order to cope with the ongoing crisis.
1. Integrating design and concept alterations
There is no denying the fact that the world might change once we overcome the situation caused by the pandemic, which also implies that the needs and demands of the consumer market will be significantly impacted.
Businesses need to realise and work upon the alterations that might be required. Innovation has always been the key to overcoming challenges in the evolving market situations. Bringing about innovation in the design of the products and the concepts that we, as businesses, are offering can help overcome this challenge posed by the pandemic.
The spread of Covid-19 has essentially altered the demand-supply dynamics of many industries, including tourism, ticketing, restaurants, etc., and the only way to get through this would be to carefully pivot the business models as per the changed industry dynamics. Edtech, Healthtech, social impact businesses, agriculture, and food processing startups are expected to gain traction post COVID-19 crisis.
2. Managing funding and investment
A sustainable business approach needs to be followed, wherein all the resources, particularly monetary resources and funds, need to be used consciously. Managing cash flow and conserving resources for a few months post resumption of normal operations shall be the key to sustainability.
A deeper analysis of fixed v/s variable cost elements within the overall cost structure should be carried out to plan for better financial management in the coming months. Patience in raising investments post crisis would be required. Even though investors will eventually loosen their purse strings in the short term, it would take a long time for anyone in closing their investment calls. From the investors’ point of view, a tech play would be sought after.
3. Incorporating short cycle planning:
Post the pandemic and once the operations get back to normal, planning for short durations and short cycles should be the mantra. Instead of looking at long-term plans, three months, six months, and one-year plans should be ready. In the current scenario, making up for the lag due to lockdown and preparing the organisation to cope up with the situation needs to be focussed upon.
4. Enabling effective mentoring for re-strategising
The need for mentoring is going to be the highest in given times.
Since we are looking at re-strategising business models, startups should strive to get relevant mentors on board. Businesses can also look at connecting with experts from different sectors who can significantly benefit the operation cycle by their inputs.
5. Maintaining the channel of communication during the crisis
During times like these, it is essential that the channel of communication is effectively and efficiently maintained. Being open and available to the concerns of all stakeholders, including customers and investors, becomes extremely important so as to maintain their association with the business.
Just like having financial reserves benefit the functioning of businesses, a well-tied communication network also proves to be a supporting block when it comes to lifting the business back up from a relative slowdown.
Adversity is not a new concept. Time and again, we have been faced with different crisis situations, be it from a widespread epidemic like the SARS or the MERS, or natural disasters and calamities. As entrepreneurs, we should be ready to face all these challenges that come our way with determination, high spirits, and innovation.
By keeping ourselves enthusiastic through this phase and remodelling our ways of operation according to the market situations, we can emerge out victorious for sure.
Edited by Megha Reddy
(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YourStory.)