The continuing problems of the pandemic have negatively affected a large group of people globally. In addition to that, it also harmed many businesses and startups, interrupting their day to day activities. Covid19 has disturbed many businesses and the economy as a whole, but this is more troubling for startups as they are less likely to survive in times of crisis. Not to worry about it, as we have come up with ways that will help you to tackle the effects of the outbreak.
How startups should counter the pandemic impact
Even with the numerous adverse effects of Covid-19, startup founders and CEOs can minimize the effects of the virus and the chances of shutting down their startups.
As a company CEO, you need to keep your customers and employees safe. Without social distancing it is impossible to decrease the effects of this pandemic, therefore startups have no other option than to turn to remote working. Nowadays, there are a lot of apps that help you to communicate with your team members like Zoom, Slack, and Skype. All of them are great for remote working.
Limiting in-office work
Another important thing to do is to limit the number of people coming to the office to reduce the risk of spreading virus. Employees should only visit the office when there is an emergency and the project is crucial and you can not do it from home. Allowing limitless sick leave to the staff will also support employees to stay at home while feeling ill, reducing the risk of spreading the virus to other members of the team.
Inform your investors
As a CEO and founder, it is your responsibility to communicate what is happening with your startup to investors. All the things including your plans, cash runway, new business strategy, and overview of how the virus is affecting your startup.
This will be helpful in a way that your investors will have an idea that you can need money anytime soon. Moreover, they will have insight into the problems caused by the pandemic to your startup. So, it is essential to communicate openly and on time with investors.
Create a New Business Plan
Removing your old business plans and creating a new one from the start is important for the survival of a startup at this time, as the previous ones were made according to the normal worldview and might not work well in such times.
You need to completely restructure how your startup operates depending on a few factors, your burn rate, and cash runway, and analyzing risk and resources expected. With the help of this you will have an idea that if the current situation continues, your business won’t go out of business. Even if you don’t have enough details on the current situation, when new changes are released, it is necessary to change plans and adapt.
Effective Communication and Transparency
As a leader, you have to be honest with your team as they might fear what the future holds for their startup. This means being honest about what is going on and open about what can be done. Moreover, regular updates are essential for your startup.
When you are communicating, make sure you find a balance. Try not to sugarcoat, harsh or negative. Effective communication will help employees to stay calm as they are less likely to make assumptions and panic about the startup’s future because they are being informed of what’s going on.
Nobody knows how long startups and businesses will have to suffer from the effects of the pandemic, or even if the global economy will heal but still this will take few months for the virus to be fully enclosed. However, as a CEO you need to change the plan, increase the flexibility of your future business activities, and how they can operate effectively. Most importantly, your team needs your support and guidance. If you get nervous then it will harm your team morale.
You need to think about restructuring your startup, reevaluate your expenses, be honest and sympathetic. Most of all learn from the lessons that need to be learned from this pandemic. Only in that way, you will be able to undertake the problems associated with this virus.