Kapil Jain of Graphitto Labs Shares 5 Survival Strategies for Entrepreneurs during COVID-19
It has been quite a few months since the Covid-19 pandemic has caused the entire world to slump. Businesses, small or big, all around the world have experienced an economic paralysis such that entrepreneurs are now looking for strategies to survive this pandemic without any threat.
The need of the hour is to cut unnecessary costs and adjust to the current environment with gradual transitions because it is quite evident that even after a proper vaccine is developed to cure the coronavirus, the world will not resume its normalcy as it was before the pandemic.
It has become essential for entrepreneurs to assess whether these changes in circumstances has brought to their business new opportunities or new threats. As per the situation, they will have to reflect on a plan to survive and grow their business.
Kapil Jain, founder of Graphitto Labs Private Limited, in this article shares 5 survival strategies for Entrepreneurs to survive Covid-19.
- Keep a check on your cash flow- All industries have been effected by this global pandemic one way or the other, therefore, it is not only important to look into merely the revenue but also the cash flow. Conduction of a proper assessment of fixed as well as variable expenses that re spent and the revenue received is highly essential. This will help you get a clear picture of the financial situation of your business and you will be able to devise a detailed plan on how to cut unnecessary costs.
The market in the current situation is highly unpredictable and therefore, keeping a track of your cash flow will help you survive this pandemic. Management of cash flow and saving up on resources is one of the most essential things that you have to practice even after the resumption of normal activities after the pandemic is over.
- Make alterations in business model if needed- The post Covid-19 world is not going to be as easy as it was before this pandemic. The market will fluctuate tremendously and the needs and demands of consumers will also change, especially in relation to business such as hotels, restaurants, travelling, etc. Therefore, it is important that entrepreneurs concentrate on bringing in any type of innovation that they think is necessary or may benefit their business in long term, similar to Graphitto Labs which established a completely new vertical and ventured into health-care segment.
Adapting your business as per the changed dynamics of the market, will be pertinent during such difficult times even if it involves re-strategising.
- Prepare short term plans- The present situation does not guarantee that the Covid-19 pandemic will be over soon. Hence, it will be necessary that you stay prepared for all kinds of situations that may or may not arise. Making detailed plans will help you stay prepared no matter how long the crisis continues.
The uncertainty of the current situation makes it difficult to make any long term strategies regarding expenditures, whether it is fixed or variable. Make policies up to 3 or 9 months, focus spending on only crucial things, reconsider your sales techniques, expand your business digitally and try cutting back on marketing costs for at least a small period of time so as to not go out of business.
- Be patient with investments- No doubt securing investments during these difficult times is a major task, yet entrepreneurs should be patient. Especially, for business which are either new or do not have access to long-term funds, the situation might be risky for them but they should not leave hope.
Investors may take long to respond to your wants since they might be going through financial crunch themselves, however, hope remains that the market will eventually perform better once the pandemic is over. As entrepreneurs, you can request the existing investors for more funds to help your business or you may propose new ideas to help you sail through.
- Maintain healthy communication- These are very difficult times, not only for you but all the other stakeholders in the business such as customers as well as your investors. Therefore, even if the business is not flourishing during the pandemic, it is important that you maintain a healthy chain of communication with all the concerned stakeholders.
A well-established network of connections is always a great help during stressful times. It is also important that you stay honest and transparent with them. In case of financial crisis, you can give sufficient notice to your vendors, suppliers, etc. regarding the situation in case there might occur any delay in payments. If there is a need to lay off employees, then you should inform them beforehand and explain to them the given condition. The implementation of such tough decisions should be done with compassion and humbleness.