Strategise to conserve cash
Most startups fold up because of a lack of cash. The pandemic has made it very difficult for most small businesses to make money. It is unwise for startups to spend the way they normally do before the onset of the pandemic. It is critical to find strategies to conserve cash as you reopen your business
, at least until the economy is fully recovered. Do not rely on raising money at the moment
Depending on the stage a startup business is at, raising money may have been in the cards before Covid-19 became a reality in South Africa. Now that the economy is slowly recovering, raising money may have to take a back seat. Making plans with your investors is understandable, but relying on raising money is not the right way to proceed to build your business. Nonetheless, you can take advantage of Covid-19 resources
available for startups. Leverage on inherent advantages
Startups normally have inherent advantages that put them in a good position to survive and thrive
. It may be a small number of staff or the nimble nature of business operations. This is the time to look inward and make use of the advantages you have as a startup. You can take advantage of flexibility and remote working opportunities to cut costs and improve productivity at the same time. Explore new opportunities
Undoubtedly, the Covid-19 pandemic ruined business opportunities and impacted the South African economy negatively. That being said, this situation has opened the door for some new opportunities. A few creative startups have already started taking advantage of the few key opportunities they can identify in the current situation. If your startup can shift some of its business to be part of the solution to the numerous problems caused by Covid-19, do not hesitate to explore the opportunity. Work closely with your IT services provider
At this point, most startup founders are running to their investors, mentors, and financial advisors. While working with financial consultant services is important, do not forget that working with a professional IT services provider
can be just as beneficial. There are several strategies that can help your startup, and a reputable IT service provider can always be of immense help. Endnote
The coronavirus pandemic has affected everything, including our lives and our businesses. As a startup, thriving amid Covid-19 requires you to adapt to the new ways of doing business. This involves strategising to conserve cash, leveraging on inherent advantages, and working closely with your IT services providers.
Try to ensure that you do not panic, as this may lead you to make very bad decisions that can ruin your startup. It has been a turbulent time, but it is possible to survive and thrive as a startup business.