Communicate transparently with your customers We are all in this together, so the ideal way is to stay transparent with your consumers about what your business is going through. Here are a few tips to stay connected and afloat during the shutdown:ġ. This is the time when understanding the gravity of the situation and turning it favorable for the business is all that matters to let it sail smoothly in these difficult times. Since, they are already invested and have their skin in the game they are more likely to help out during this time. In order to extend the runway, businesses can even approach existing investors for additional funding. But there is nothing to worry about because if we look at the previous economic downfalls, we can notice the market eventually bounce back after the end of an epidemic crisis. Investors will be more vigilant and may take longer than usual to make funding decisions after following stringent diligence procedures. However, we might witness a dip in VC/HNI funding in the short run. There are many funds who have enough capital to deploy for the coming years and they may not shy away from it. In that case, entrepreneurs and leaders will have to keep the communication transparent as much as possible with their investors and employees.Įvery business needs capital to run and the question that crosses the mind of every founder/entrepreneur in these difficult times is from where they will get the capital. They would require a revision of sales revenue goals and product timelines along with a new operating plan. ![]() Businesses will need to strategize, communicate, and act with compassion. Some serious reconsiderations would be required if the effect of the pandemic continues for 18 months or beyond. Analyze if you need to cut back or scale up on marketing costs. It may be a good idea to revisit sales strategy – selling online versus in-person. However, if the crisis continues for 9 months to a year, entrepreneurs will have to reconfigure their business strategy to reduce the variable expenses, renegotiate fixed expenses (rent, salaries, equipment lease payments, etc.), and focus only on the crucial essentials for survival. If we consider it as a 3-month problem, an instant halt on variable expenditures like hiring, marketing, travel, etc. Since, it is difficult to gauge how long this epidemic will last, it is important to be prepared for all scenarios.
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