The COVID-19 Pandemic has quickly evolved into a global disease and all regular businesses have come to a halt. Surviving as a startup is a roller coaster ride under normal circumstances. So in times like this, startups and small businesses are fighting to stand against the odds of survival. The coronavirus has impacted many businesses, even major companies around the world which stood tall before the virus, is now struggling to figure out their future. The companies have shifted their mentality from making progress and profit to survive through this pandemic.
The virus has also affected the ability of startups to raise investor capital. As the global markets are going off the deep end, the investors are not risking spending on new startups or partnerships. Given this uncertain economic future due to the pandemic turned recession, global markets may be suppressed for months, so each day the investors are stepping backward from investing money.
These challenges are not only devastating for the business owners but also for the employees they support. So, how can businesses protect themselves during this coronavirus pandemic?
In this article, we have listed a few ways entrepreneurs, startups and small businesses can protect themselves.
Utilize Government and Lender Concessions
To help small businesses around the world, governments and leaders around the world are offering all manner of concessions to help them ride out this storm. This includes tax breaks, deferral of repayments, interest-free loans, instant asset write-offs, and cash handouts. Business leaders can take leverage of these by informing themselves of the available concessions in their respective country, state or district and capitalize to save their business before the inevitable processing restricted access takes effect.
Scale Back on Office Space
The outbreak of COVID-19 has sparked a remote working revolution that might even last long beyond the end of this crisis. The office space can no longer be useful a least for the next few months that you’re paying for. You can renegotiate rent or scale back on office space for now and save the amount. Companies that are based in coworking spaces on a monthly-based contract have a lot of flexibility in this area.
Downsize if Necessary
In the middle of this crisis, survival is the most important thing. While downsizing the company is a very difficult situation, companies need to cut back salaries and will have to pare back to the essential. While the pandemic is here for a while, try cutting back all the contracts helps that are no longer necessary in this situation. Also, cutting back the marketing and sales until the customers are back to work can save money for the company. The cash cuts you do today, will have a lasting impact on your business in the future.
Review Your Business Model
While the world deals with this outbreak, companies have more time in their hands and it’s a great opportunity to reflect on the big questions that usually leads them to be a victim later. COVID-19 has provided opportunities for the companies to be truly objective about their business model and come out of it stronger in the near future.
It is hard to tell what the global market and the country’s economy might look like when we get past this. But in the meantime, business leaders can focus on managing the team effectively to be productive remotely.
