5 Tricks Start-ups Should Work upon to Overcome Covid-19 Slowdown

Covid-19 is a global pandemic now and sectors whether consumer-based or others are facing an unprecedented challenge. Bill Gates warned that a virus could lead to a global economic depression. And, there is no denying that companies are facing this challenge at large. Also, Sequoia Capital, issued a Black Swan advisory to its portfolio companies, asking them to conserve cash and cut spends. Here are top suggestions by investor for companies and startups post Covid-19 effect:

Preserve Capital: Preservation of capital is a conservative investment strategy where the primary goal is to save capital and prevent loss in a company.  Start-ups today need to be conservative when it comes to preserving cash. “Cash is the hardest commodity so preserve capital at the time of Covid-19,” shared Sanjay Swamy of Prime Ventures.

Focus on Product: Product is the key in any business that you do. A differentiated product is very helpful in any business that you do because people look out for something different every time they visit a restaurant or place an order online. “Focus on Product, Product is differentiated and there’s no denying it is the key for any businesses,” pointed Sandeep Murthy, Partner at Lightbox Ventures.

Extend the Runway: It can take anywhere between 6 months and 3 years to get a business off the ground. To succeed, founders have to be ready to go the distance. This means shortening your time to product market-fit, being resilient, and extending your startup runway. “The runway has to be extended, preserve cash. Food companies what the Govt is calling essentials. There was no reduction in demand since last week but this week because of lock down there is a lot of gap. We are trying with larger companies on what is the best way to get supplies in the market, stores are open, shelf is depleting,” added VS Kannan Sitaram of Fireside Ventures.

Preserve your Resource: Your people are your best capital. Hence, at the time of distress do not plan to lay them off, rather preserve them. “Keep your people safe. Business will happen if life continues,” said Anjali Bansal, Founder, Avaana Capital who also believed that look at what you can do to help and support.

Improve Customer Experience: Customer is the king and you should always work on delivering a wow experience to the customer. At this point of distress, many of your customers can go away. So, you need to work on delivering a wow! Experience to your customer. “This is not going to last forever. There is light at the end of dawn. The way we do biz is going to change. There will be so much of opportunities. Recovery in different region will take time. Just over communicate and communication is the key. Speak to your investor, employee, cutting on marketing expense. Human Safety is most important. We know that putting the measures that we put forward will help. 6-12 months recovery. The biz will change and put pressure on companies differently,” added Tej Kapoor, MD, Fosun RZ Capital India, a Beijing-based venture capital firm.

Hence, we should know that things are going to come back. What are the changes you are getting in environment and how are you going to address these changes is utmost important at this point in time.