No crisis lasts forever. These are temporary events, even when they are long-lasting and test the economic and mental endurance of the entrepreneur.
One of the most important factors to surviving a very difficult time such as a crisis is the quality of the relationship that the entrepreneur has with her or his partner – husband or wife and the support they provide for the startup process.
Another important factor is the mental strength that the startup’s investors, employees, and partners bring to the table. It is also a critical time to communicate directly with your partners and look into their eyes. Meet face to face and not just through WhatsApp.
Let’s dig these and other factors in detail:
When communicating with investors, it is critical to be as transparent as possible about the situation and work together with them so that the investors remain committed and so that the startup can operate with a minimum amount of resources.
As an entrepreneur, from my own personal experiences, when I was owed thousands of dollars by a startup, I continued to work for it, since I understood what the goal was and strongly believed in it.
The investors and I worked closely together, and we understood that I would not let the startup go under and they wouldn’t either. I would do the same thing all over again, even in hindsight. This is the state of mind of entrepreneurs and what they are like.
Remember, these are the times that truly test the mettle of entrepreneurs and investors see this. They see everything.
And the mettle of investors is also being challenged and they are investing their money in entrepreneurs who are the investors of tomorrow.
Whenever they see entrepreneurs who are behaving in a professional manner, they will bring in more of their money as well as others.
Investors are the partners of entrepreneurs. That is why it is essential for entrepreneurs to be upfront with their investors and to consult with them. Investors have tons of experience to offer.
Manage Resources and Workflow
During a crisis, it is critical to reducing everything that is not essential so that the startup minimizes its expenses (reduce taxes, utilities, communications, office space, etc).
If the entrepreneur is taking a salary, he or she should only take the bare minimum for subsistence purposes. Have only the most critical employees (for example, technical support for your customers.
Managing resources and workflow is made easy by Tracktime24, you can easily identify areas in which changes can be made. It is essential to retain customers. Startups depend on them.
All efforts need to be made in order to retain them, including payment installments, payment deferrals, updated business models, and so forth).
What should you do with your employees?
Reduce their salaries, place them on unpaid leave, postpone payment (you must have their consent, off them equity in exchange for work, and as a final resort, you may need to let some of them go. Get creative. You are an entrepreneur.
Speak honestly with your employees (as well as your supplies) and do your best to reach an agreement with them. It is worth trying. Do the same thing with your service providers.
Is there an external development team in place for your startup? Related.
Now is the time to reduce your work down to a minimum. Payout as many shares as possible and as little money as possible.
This is the time when an entrepreneur finds out who will stick with them during tough times and who does not. It is also a time when the very best partnerships are forms – ones that will last for as long as the business does.
Synergize with other communities
Marketing and business development need to be as efficient as possible, as cooperative as possible, and online to the highest extent possible.
As an example, as the result of a previous article that I published, I have been contacted already by major corporations from across the globe, as well as international economic attaches from countries all over the world to host virtual conferences with other entrepreneurs.
There is a golden opportunity for entrepreneurs to leverage the power of their communities with prospective clients from all over the world who understand that now is the precise time that they need to expand their use of external technologies since tech-intensive organizations have more flexibility and can navigate crises such as the COVID-19 crisis more easily. There is true synergy among entrepreneurs.
Look out for new markets
Be on the lookout for other and new markets. It is time to be creative and try to adapt your solutions to less hard-hit markets. Brainstorm with your investors, partners, and employees.
There is nothing to lose by doing this. Now is the time when infrastructures are searching for opportunities to get into the startup door, whether it is for an M&A or a one-time joint venture.
There are some corporations when plenty of accumulated capital that is waiting for the right opportunities.
Now is the time to capitalize on them. Emerging from this crisis is going to be a gradual process. It is essential to make appropriate plans for the different stages that will be involved in the recovery of the global markets.
It is very important to spend time looking for alternative financing sources such as government-insured loans and crowdfunding. It is best at this time to transition into daily flow management. Daily instead of monthly. It is useful in helping you determine the best steps to take.