For many modern professionals, especially entrepreneurs just starting their businesses, working remotely can pose a great threat to the development of the company. Furthermore, the dire economic outlook and global pandemic have further exacerbated the situation. Not only will you not be able to have a great start in your business pursuits, but you are also a few steps behind companies that already have an effective tried-and-tested business continuity plan.
The good news being, this global pandemic is unlike that of the financial crisis back in 2008. Whilst all industries are affected, some sectors are faring more than most. Industries such as healthcare and media marketing are lucky enough to see a surge in their demand and even stock market.
Regardless of the camp your company is currently standing in, it’ll be an excellent opportunity to pick up several handful of tips that will help their business stay afloat during this crisis.
1. Cash Management
Due to the global pandemic, global economics prospect has not been positive. When we’ve finally reached the point where there are no reoccurring COVID19 cases, post-crisis effects are guaranteed to linger and continue for far longer. This may include further lockdowns, a revamp in working conditions and limited mobility, amongst many things. Thus, preserving cash is crucial during this period, especially since most start up companies don’t hold onto a substantial capital.
On top of that, the market for investments has shifted significantly. Valuations have dropped substantially and souring for businesses to bring money into your company will be increasingly challenging. Those opportunities to increase business ventures and revenue generation, especially in the short term, have frozen up.
As a start up company, spend time evolving your core business model to stay afloat during this crisis.
2. Changing Valuations
As we’ve touched prior, the drop in valuations has caused complications within the market. We’ve seen the stock market crash, but unfortunately, it may drop even further in the upcoming months.
This has clearly affected fundings as well. Those that are finding avenues to raise money are also more likely to lose even more equity than they already had. You may also want to reconsider having investors onboard your projects during this volatile period, as they will expect higher returns than what they would typically propose. Thus, wait until the market settles down before raising money again.
3. Leadership Complexities
Regardless of the state of the economy, a business’s foundation is highly reliant on transparency and honesty. These two qualities are what set the keystones for building, establishing and deepening of trust and communication between management and employees.
That said, communication should also be done with excitement and empathy. Healthy relationships are not just based on honesty on both parties, but there should also be respect and sensitivity for space and emotions. This is especially important during an emotionally charged environment such as now – not only are people anxious and worried due to the pandemic, but racial concerns from both the local and international scene have made itself more apparent.
Dealing with a handful of people at one go is, undoubtedly, difficult as it is draining. If it is your first time, it may be wise to consult a mentor or a coach who can contribute to the staff’s well-being, prompt self-awareness for business leaders to help make more balanced and informed decisions.
4. Changing Space Needs
To curb the spread of the novel coronavirus, the government has made social distancing compulsory even in working spaces. This means the need to rearrange working arrangements in your office space for lease, once the circuit breaker measures lax.
For now, businesses have to resort to virtual meetings to communicate effectively. However, this dissociation from physical workspaces will not only truncate social interactions, but it doesn’t have the same as meeting physically. Visual cues such as body language and facial expression may get lost during the entire process – especially if the communication is done via email or texts.
Thus, startups will need to engage in intensely personal and social exchange to not only form organic relationships, but to also promote creativity and experimentation. However, always remember to do so with tact and sensitivity as nobody is keen to share private details when they don’t wish to. Prompt questions and should they show sign of hesitancy, bring up another topic that you think they might not be averse to. Such spontaneous and intimate conversations will improve communication amongst leaders and staff, a vital aspect of a startup’s growth.
These are a few of the things that you will need to keep in mind when pushing for a business venture during a volatile period. Responsible practices and making necessary and effective decisions are crucial to ensure that your company survive the pandemic.
Our green offices provide the perfect startup office space for you to maintain operations once the country rolls out their Phase 2 and 3 measures. Our offices are designed for optimal productivity whilst simultaneously meeting your comfort and mental wellness needs. Resuming working will be a breeze.