COVID-19 has become the worst nightmare for the world, as we lose hundreds and thousands of people to this pandemic. This pandemic has crushed the economy and financial structure of almost every country. Calculating the impacts of the COVID-19 on economies and susceptible groups is very important to inform and the responses of governments ensure that no one is left behind in this effort
Startup businesses are affected badly, particularly new businesses which are just a few months old, due to significant downfall in all major economies of the world. Startup companies around the world are in a very critical position as a lot of new and old companies are out of service temporarily.
Liquidity (Cash in hand to company) is the biggest issue the startup ecosystem is facing right now, as a lot of new companies are having negative cash flow due to substantial drop in their sale, revenue and profit. It’s getting difficult for new startup companies to take their investors and stakeholders in trust, as business conditions are worst that even developed and big startup enterprises are considering options like laying off and shutting down the production of products to minimize their loss.
Which strategies are useful to run the business smoothly in this time of economic nightmare?
Cost control is the most effective strategy all major startup companies are using in this pandemic. In this strategy, companies control all the unnecessary expenses by reviewing and evaluating their financial and revenue position.
Renew and Review Business Strategy:
Try to renew their business strategy by doing feasibility report/ market study again in order to know all the recent demographic and needs of the clientele, so the company can cater them easily when things get back to normal and gain profit immediately.
Communicate the strategy with investors:
It’s very important for new startup companies to communicate their new strategies, studies and business plan to their investors to gain their trust and interest, so they can fund the company.
With careful market/ product/ customer study, new startup companies can accelerate their organic growth (after pandemic) by utilizing all their resources, studies and workforce dynamically. Organic growth of any startup company shows its credibility and ensures the profit.
Act smartly with compassion:
After all the studies, strategies, plans any startup company should trust the process and act with compassion and consistency to overcome all the financial problems to ensure their organic growth and success after pandemic. All these strategies may not guarantee 100 % success, but it will play a vital role in business to stand on its feet again particularly new startup businesses after this pandemic is over.
I am a social worker for past 2 years and been working with different organizations to make things happen. This not only groomed my personality but also make me a good thinker of disruption and diagonal success factor this is how entrepreneurship blooms in me. I hope you would like my content.