A coronavirus survival strategy for your startup. Here's what to have in mind
It is no longer business as usual for the economy. As a founder, your first priority is keeping your family safe and your employees. What happens to your business? We explore a startup survival strategy to enable you navigate and adapt to these changing times.
This is a conscious shutdown of our economy, trading jobs for saving hundreds of thousands of lives
The economy needs to shut down in order to save millions of lives. This has led to massive lay-offs and all industries are affected. It's time to establish how this pandemic, directly and indirectly, affects your startup.
It is likely going to cause a recession
With most people losing jobs and taking pay-cuts, a recession is likely to occur. How is your startup preparing for this?
The Covid-19 virus will change how we shop, travel, and work for at least a year and likely three
The social and economic impacts of coronavirus are likely to be very profound. This will affect how we shop, work and travel. How will your startup adapt to these changes?
It is inconceivable that you can have the same business model today as you did 30 days ago
Being able to adapt to change is important to survive this pandemic. Following the same business plan, you had a month ago is not a safe bet. Revise and adapt your business plan as often as needed because it is necessary.
Put in place lifeboat plans for three-month, one-year and three-year downturns
This is the time to figure the minimum amount your company needs to spend in order to stay alive. Revise your expenditure, processes, targets, products timelines and your entire business model.
Recognize that your investors will act in their interests, which may no longer be yours
Access to capital is important for a startup. Investors are also trying to figure out how this pandemic affects their business model. Your startup may no longer be their priority and they may act in their interest. Prepare for a long cold winter and ensure that you maintain a very low burn rate for your business to survive.
Take action now
The time to act is now! There is need to take drastic measures but whatever you do, do it with compassion.