Has your business taken a downturn since the COVID-19 pandemic spread all across the world? Every single person has felt, in some way, the aftershocks of this ever-spreading virus.
As an entrepreneur, if you’re struggling to figure out where to dedicate your time or where to channel your focus, here are three tools that will be advantageous to your startup’s success.
People
People fall into two buckets from a startup perspective. You have those that are on the front lines with you. They are your incredible team of employees, your generous investors, and your support team of lawyers, accountants, supply chain managers, etc. Be sure to show appreciation and generosity to their health and wellbeing. If possible, try to keep your staff employed and conduct layoffs as a last resort. Without your team, you will be unable to move the needle forward when things start to turn around and the virus subsides. Now is the time to bring everyone together and rally around the long-term growth and success of your startup.
On the flip side, you have your loyal customer base. They not only purchase your product or service but also act as ambassadors to your brand and encourage others to do the same. Show your customers that you are there for them. Be sure to open communication lines up so they know you are there for them in case they have any questions or concerns. Without your customers, your startup will inevitably fail so show your utmost gratitude and grace.
Liquidity
Cash is king, but you must know what your limits are and how long you can support your startup and staff once cash flow comes to a halt.
Take a serious look at how much money you have in the bank. Strategize scenarios in which you grow, maintain, or fall behind your current revenue stream. If revenue stops completely, do you have a plan in place to support business operations? Although these questions may cause some anxiety—it is critical that you have strategies in place to help you weather the storm.
Business Model
If you already have a fully functioning startup, you’ve done the legwork and established a clear business model. However, when tumultuous times topple everything down, you may need to readjust your previous model. Although reworking your business model may seem daunting, take this opportunity to be innovative. Sometimes during the worst of times, we have some of our best moments of inspiration and creativity.
No one holds a crystal ball right now to say when things will get better. But remember it’s not a matter of “if” it will happen—it’s a matter of “when.” In the meantime, prioritize your staff partners and customers, know your startup’s financial worth and limits, and be open to shifting your business model. All of these tools will help set you up for success in the long run.
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Derek Rundell, is a successful business leader, operator, and serial entrepreneur. Derek has founded, managed and sold businesses in the technology, media and finance industries. He sits on several boards and serves as an advisor/investor to numerous established businesses and startups. Startups are Derek’s real passion, and in addition to building his own portfolio of technology, media and financial ventures, he invests in and mentors startups and entrepreneurs. He is passionate about sharing his knowledge and helping other businesses succeed.