We are in an era where not only the residents but even our work life is getting affected. And, the reason for the same is the ongoing pandemic. No matter how unsettling it is, it is indeed part and parcel for every economy. And, a thriving business success mantra is all about battling and protecting ourselves from such grenades thrown towards us from time to time. These hard times can prove to be an overwhelming process, making us do grave mistakes when it comes to managing startups and building startup ecosystems.
Therefore, as a business owner, it is more important than ever, to manage your crisis thoroughly. Crisis for any business can be inevitable, but we can prepare for it, to get rid from the same. Speaking of the coronavirus pandemic every operational business is taking a sudden downward turn. If you are an owner of a start up business and need ideas on how to keep your business afloat in the trying times than this blog can prove to be insightful information for you.
Now, let’s start with the crisis management which is strategies that can help your startup to survive the pandemic
1. Have a Strategic Financial Plan in mind:
Have you ever noticed that you are spending your worthy resources more on useless things rather than what’s most needed?
A strategic financial plan will keep you in check about your objectives, the goals, purpose and therefore the moment you or your team moves any apart from this objective, it reminds you about the same.
The very reason for such financial plan is to omit the chances of unnecessary expenses and save a chunk of money out of the profits which can be termed as a future reserve. In the current pandemic, it was more important than ever. It is because business was finding a hard time to keep the clients glued or make money. In such circumstances, the business owners were left with minimal or no cash to keep going. The outcome of which was quite evident and that they thought lay-off of employees, salary cuts as well as furloughing the staff would be beneficial for a temporary time-period.
It not only increased the overall unemployment rate but it also caused havoc to the economy. There was a gradual increase in expenses. Speaking of which, we can keep a check by designing a well crafted financial plan. The steps for doing so is as follows-
- Understand your objective
- Invest in resources accordingly.
- The profit should be bifurcated into two halves, where one can be kept for future use.
If you are a start up, a financial plan where you know how much cash you have in hand is very important. It is because it can save you from unforeseeable events.
The solid your plan is, the longer and more you can sustain in the unprecedented times.
2. Keep the Cash Flow in check:
This is a crucial aspect because you as an owner need to have a clear picture of how much your start up makes. And, accordingly, you can know the sources of your expenses-
- From where the cash comes
- Which sources are more economical
- And, where these are spent at most?
Once you analyse the answer to these questions, you can cut out on not-so-important realms, which are taking too much of your resources.
This can be only done and planned once you thoroughly review these questions.
Moreover, it is seen that once you understand the hierarchy of your cash flow it helps in determining how well you are on the scale of managing your operations based on the fiscal estimates.
3. Secure finance options
Every industry is going through a tough period. No matter what the circumstance, evolution is indeed the part and parcel for every other industry today.
In the coming months, financial intuitions like the banks may review their policies altogether, which will determine how they will lend money.
So, it is advised to plan accordingly. Communicate with your bank, and ask about the different procedures. Once you do this, you might know how you can implement your plans accordingly.
Moreover, you can also check all the lending options and resources. It will function as your plan B.
4. Hire a crisis communication team and assign roles
Often it is seen that task like these, go unnoticed due to other immediate deadlines. At times, people keep delaying the task and roles. In such circumstances, the company is putting itself at a huge risk, and it is due to the fact it failed to secure its future-profit-reserves.
This can be prevented from happening, by assigning a small team of dedicated finance employees. These teams are furthermore led by the CEO, and no decision can be taken without his approval. Moreover, the team should have a PR officer, chief officers including his legal counsel team.
This team cross-checks the process implemented by the other departments. This is planned so that, both of the teams in question are aware of the current requirements and plan of action. When this happens, each department knows the process of cash flow.
5. Work solely on your strengths
A pandemic is a time where you cannot risk to venture in a new realm. This is a time in which you only work on what’s best. This is because when a business steps foot in a new market, they work more on test and trial techniques. Speaking of trials, it involves more of the financial resources.
This can be prevented when the business focuses only on what’s best and rather than indulging in what is not. A step of utmost importance in this regard can be taken by analyzing your customers. Understanding the customer behaviour and knowing their past purchase decisions. When you thoroughly understand this step, you are likely efficient to provide your customers with more specific services.
In the above context, a business should remember that an audience always wants to be a part of that business which makes them feel connected with their situations as well as beliefs. In simpler terms, in the unforeseeable times like the pandemic, it is recommended to strive harder with the thing you provide the best as well as exploring other ventures. Take this time to improvise on your offerings rather than investing your energy trying to enter a new market.
6. Make your loyal customers your asset:
It has been said that customers are integral to business operations. These are the lifelines which ensure that your business is always in the game. After all, without any customer, there’s no business. With the customers shutting down and staying confined to their homes, this stage is crucial for any startup today. Ensure that your customer relationship management game is flawless. You can do this by maintaining a great bond with your loyal customers.
Your customers know you, they have tried your services and still they have your back. Work on them, this time is hard for them too, provide them with offers of value.
In simpler terms, it is the time that requires a business to offer top-notch customer experiences.
You can further do this, by offering them with the after-sales services or loyalty programs. No matter what you do, do not forget to ask them to refer your services and put a positive word in the form of a feedback.
7. Cost-cutting on the expenses
Sometimes, we need plan and at times tool to manage remote team in pandemic. No matter how hard and well you have managed your profits all along; cutting-off the unnecessary expenses is unavoidable. When the times are tough, the profits are less. It means you need to manage your financial resources. You can do this by the following ways-
- You can cost-cut in the realm of providing salaries to your employees
- You can put a hold on the unnecessary operations
- Or you can cut on the budget of different departments
Wrapping it up!
On a concluding note, these events are not only unforeseeable but also unavoidable. All you need is the proper management of your resources. And no matter what keep striving hard. We have innumerable accounts of business that did not lose hope even in the toughest of times. And the same business today, are known to dominate that particular market.