Startups face plenty of problems in the first few years. Entrepreneurs have to be on their toes all the time, and it’s imperative for them to make sure that they evaluate the market to determine what they need to do.
Agility is essential for modern businesses and entrepreneurs to have to constantly think outside the box to come up with unique and viable solutions without increasing their costs. In times of crisis, you will have to take certain hard decisions to keep your company afloat.
Since most startups don’t have unlimited funding and their
customer base is also relatively small, it’s important that you take
appropriate measures. Not all aspiring entrepreneurs are capable of thinking
outside the box, and this often leads to rash action. Here are some simple tips
that you can use to deal with a crisis.
Keep Costs to a Minimum and then Shrink them One More Time
During the pandemic, the revenues of many startups plummeted and projects began seeking additional investment. This is a natural reaction for those new to the market: these startups feel they are getting by on minimal resources and see no way to cut costs. However, most of the time projects still have an opportunity to save money.
Try to keep costs down instead of desperately looking for
For example, you can transfer all staff to remote work,
especially since during a pandemic, most employees already work from home. The
main thing is to take care of the security of the information on your remote
computer. Or reduce costs by automating some of the processes.
Find a Mentor
Another unconventional tip that aspiring entrepreneurs often overlook is seeking professional help. This will take time and money – you need to find a mentor first, and then pay them for services.
But finding mentors today is much easier than it used to be. Many seasoned professionals are willing to share their knowledge and experience, for less money than before the pandemic. Some mentors provide free one-time consultations. During self-isolation, some specialists have free time, others seek new clients and reduce the cost of services, and still, others want to support their business colleagues.
Change your Brand
You can resort to a more radical solution and rename the project. A pandemic is the best time to rebrand for two reasons:
During self-isolation, people work from home and also spend
a lot of time on the Internet and social media. This is a large audience that
wants entertainment. Rebranding can grab users’ attention if they see an
interesting new logo on their news feed. Hire a professional designer to create
an eye-catching and memorable design.
The rebranding will show that you respond to changes in the
world and are ready to adapt to the new rules. Example: In the spring, Time Out
magazine executives temporarily renamed him Time In. In doing so, they showed
that they encourage social distance and understand the importance of
self-isolation. You can also take into account the experience of some restaurants
that have been converted into small grocery stores to meet the new needs of
Change the Business Model of your Startup
If your business is severely affected by the pandemic,
consider changing the direction or business model of your new company. Before
starting a business, you have probably studied the market and competitors – if
some of them are doing better, it may be worth learning from someone else’s
experience. Or abandon the original plans and offer clients other services.
Look at Israel: for many years the country has been
producing cyber weapons, the developers of which have gradually gone to the
private sector. Some of them started making money not by producing a new cyber
weapon, but by creating protection against it. It’s all about thinking outside
To Take Action
The most important thing is to do something. Aspiring entrepreneurs often try to overcome the crisis. It may seem like a smart strategy at first, but in reality, survival in tough times depends a lot on the activity of startups and their founders. To survive, you must be determined, quick, and ready to adapt to the situation. These are some simple ways to maximize output and keep your company afloat during these tough and testing times.
Related: Common Reasons why Startups Usually Fail