A very successful entrepreneurial journey begins maybe with a simple business idea. The business idea may be a solution to the problem(s) where it may be an innovative solution or a point of difference compared to existing solutions.
Never mind, stepping forward to commence a business in an atmosphere where deep economic recessions and catastrophes decelerate local and global markets is a massive challenge that entrepreneurs are supposed to confront within the near future.
It does not mean that the best option is to give up on the business idea. Instead, entrepreneurs look for opportunities to the right way to fight against the crisis using correct strategies.
It is undeniable that still there is a positive opportunity existing to implement your infant business ideas in the post-COVID 19 period as same as how renowned companies such as Google and eBay launched in the post-2001 economic crisis period, Whatsapp, Uber, Slack, Airbnb and Groupon were launched right after the 2008 financial crisis.
All you need to make your business dream real by winning over the detrimental influences of Covid-19 is to be proactive to get ready for a worst-case scenario rather than being reactive.
In this case, identifying future challenges and the potential actions that you can implement to be accordingly adjusted to this unprecedented situation is a mandatory precondition.
Hence, we are thinking of drawing your attention towards these possible challenges and relevant solutions that you can apply to your practical scenarios to place yourself in solid confidence to face these challenges.
Is your focus valid for the new normal?
As the global pandemic has resulted in considerable changes in lifestyles and requirements of individuals, there is a possibility of the previously planned business idea being outdated and not valid to the present context anymore. Before commencing the startup, you are required to ask yourself,
- What kind of changes has the recent events made to the relevancy of my product/service and proposition?
- Is my idea capable of providing solutions to the same need as before?
- Is there a requirement to modify the offering with the latest technologies, pricing and distribution channels?
If the answer is ‘Yes, the business plan has to be upgraded to meet new market demands and conditions. Take ‘Athena Security’ as an example. They were manufacturing security cameras to detect firearms in real-time but now have modified their product to detect persons having fever with the use of thermal cameras by converting COVID 19 from a tragedy to an opportunity. Post pandemic new market trends such as dematerialization of products and services, remote working are also needed to be taken into consideration.
Do you have a financial risk?
As a significant percentage of infant businesses do possess a high risk to fall into the red zone by having financial reserves only to continue operations for three months or less, you need to comprehensively evaluate the financial position you are standing in by finding out,
- At what financial position you see yourself within Quarters 3 and 4 after the commencement?
- How much of a cash reserve you have in hand today?
- How much of a reserve do you need to stay alive during a period of 18 upcoming months?
Suppose results reflect the need for immediate remedies. Then it is time for you to validate with your venture capitals, bankers and trusted relationships to persuade them to lend their support in these hard times. It is better to bear in mind that negotiations with potential investors are more appropriate to get done in physical means even in this pandemic, if possible, as trust and confidence are not that easy to build up behind a screen. Taking actions to adequately finance the business now itself without waiting for the global economy to be recovered will strengthen you with a sufficient readiness to begin your business.
Moreover, it is critical to obtain the consultation of a veteran, experienced set of entrepreneurs during the pre-commencement period, which will eventually ease your survival in the difficult period.
How to gather and tether your crew?
A workforce with the absence of professional and psychological readiness to survive in the challenging post-pandemic period will be friction for the business to grow up. To overcome this challenge, you should gather a supportive set of personals around you in starting up your business.
Once a competent workforce is recruited, handling the crew is not as easy as in the pre-pandemic era, where technical and physical adaptations endemic to the pandemic were absent.
To jump over this hurdle, you must prioritize capital investments on required technological infrastructure to flow with post-pandemic practices where organizational cultures are nourished with the latest networking technologies.
All these much-needed pre-preparations will prevent you from being a mythical unicorn pursuing unrealistic targets and will make you a camel who is surviving even in the toughest climate.