How to Manage the Covid-19 Period: 5 Tips for Entrepreneurs
Since December 2019, the Covid-19 pandemic took the world under its impact, quickly changing how we run things from daily routines to business decisions. As Covid-19 continued to spread rapidly, the preventive measures, such as travel restrictions and lockdowns, taken both by public and private sectors coupled with the changes and disruptions in demand for goods and services are affected the global economies, stock markets, and industries worldwide. Through this process, airline companies along with the travel and hospitality sectors took the biggest hit, closely followed by the retail sector, as the production and manufacturing experienced disruptions. In addition, startups are one of the most affected groups because they are newly founded companies with less cash or funding and brandlover customers. On the other hand, businesses which quickly digitalized its operations and industries that offered solutions to the needs of the time such as telemedicine, work from home tools, e-commerce, and gig economy, boomed.
Ten weeks ago we formed survivalpath, a movement that we hope will help entrepreneurs focus on the risks and opportunities that the current Covid-19 crisis brings, on re-evaluating their operations, and on the actions required to survive and to carry their businesses to the next level. Our aim is to, with the input of the entire startup ecosystem, create an environment where startups can move towards a winning business model by providing them with tools and methods that will support these enterprises in finding ways to go through the crisis with minimum damage and ways to rapid growth. Since day one we have been hosting important names from the ecosystem and successful entrepreneurs on our Youtube channel to learn from their experiences and share their advice.
We would like to highlight 5 key tips for entrepreneurs that we believe will be useful for their startups’ survival through the Covid-19 crisis.
1. Keep your communications healthy and genuine.
Communication with your team is a crucial factor in going through a crisis as smoothly as possible. The motivation of your team is important. Keep your employees engaged and listen to their needs. They were there before the crisis and they will be there after. Creating value together in these times is invaluable.
Communication with your customers is extremely critical as well, especially in a time when operations and transactions are facing challenges. Try to understand the changing needs of your customers. Keep your conversations supportive, sincere, and genuine.
2. Revise your business plan and model.
All the factors, needs, demand, supply-chain, in the business world are changing. Perform a company health check. Assess the needs of your company continuously to determine if your current business model still works. Re-calculate your costs and income. Adapt to the new market.
3. Answer the needs of the market
Change, innovate, adapt! The Covid-19 crisis suddenly changed the way we live our lives today. However, it is very likely that the pandemic will have long-lasting impact on consumer behavior. We might be abandoning some old ways and embracing new habits and behaviors in the future. Try to anticipate the shifting trends in the market and determine the new needs. Once you’ve done so use your strong muscles to create solutions to these new needs.
4. Focus on cash flow.
Cash flow determines if a company will sink or float during a crisis.Focus on your cash flow and try to extend your runway as much as you can. If necessary, look for new, suitable, supportive transaction plans.
5. Think and act fast.
Rapidly changing times need rapid actions to survive. Make well-thought decisions fast. We have no doubt that startups will rise to this challenge as they were already functioning in a fast-moving ecosystem.
Essentially, these five points are qualities every entrepreneur should embrace regardless of the times. Entrepreneurship sector, by its nature, is always full of uncertainties and risks. Therefore entrepreneurs should see this period as a learning and improvement challenge rather than a doomsday scenario. Efforts to survive through this crisis will pay off in the future by equipping entrepreneurs to tackle future problems with more ease.
Remember that these are unprecedented and difficult times for everyone. We are all in this together. Stay healthy and stay safe!
Hazal Özkan
Angel Effect Team
