2020 has been a bad year for the global economy. Many businesses have struggled to survive this pandemic while others have succumbed to it and simply winded up. But a few are found to avail of the opportunity that the pandemic has brought to launch new products and brands and survive in the post-COVID era.
For some, this is the right time to initiate their startup business. History shows that crises on a local, regional, national, or global scale have presented opportune moments. This is perhaps the time to implement new systems, innovations, and ideas. The economic crisis of 2008 saw the launch of famous companies like Uber, Whatsapp, Groupon, AirBnb, Slack, etc.
The current coronavirus pandemic is quite terrifying and challenging. However, ambitious entrepreneurs can plan to launch their dreams. However, pitching an idea to potential investors and raising startup capital can be a tougher task than before. Having a better understanding of your niche market as well as consumer-specific needs can help you gain an advantage.
Tips on how to start a business in post-Covid times
Get to know your investors’ current mindset: Investors are more cautious during economic crisis situations and tend to pause their investments. However, others adventurous might be seeking lower valuation opportunities. Identify the potential investor who may be interested in your type of startup and provide the necessary capital.
Some may be trying to invest actively and the present crisis can be a wonderful time as company valuations tend to drop. Many might show interest in funding mature companies displaying profitability. Identify a VC who has already invested in a similar industry and has an interest in your business.
Be honest: Try to understand if the current situation has changed your proposition and product relevancy. Are you still able to provide your niche target with a solution based on their needs? Is there a need to update the offering based on prevailing reality?
Will adaptations or changes be desired on the offering, product, pricing, technology, geographies, or distribution channels being targeted? These questions do need honest answers to provide the best available solution.
The crisis is likely to increase certain market needs while decreasing others. Hence, make appropriate adjustments to meet the shifting market demands. Understand the changes in the consumers’ mindset and the market as a whole. Adapt to changes through innovations and ideas.
Be transparent & open with investors: Potential investors should be aware of the present situation of your startup business. It should also include changes that occurred during this time in your niche market as well as challenges faced, updated revenue projections, etc.
You need to showcase realistic needs to derive long and short-term funding. Provide them with a better insight into how you plan to tackle the challenges and overcome it. Avoid sugarcoating things. Rather, consider investors as your team members.
Be prepared for post-crisis development: It might take some time for the coronavirus to be curbed and the situation brought under full control. In the meantime, you should try to develop an operational plan for post-crisis business development. The business plan created should reflect your adaptability to the changing market scenario to enable business growth.
Develop a strong advisory board: It is of paramount importance during crisis times. You should get the support of experienced people to help operate and develop your venture. This way, your investors will also be satisfied with your operations and will want to invest more money into your business.
Veteran business people can provide you with valuable guidance. Your advisor board will use its network to launch new introductions and seek potential opportunities while mitigating threats.
Therefore, getting expert tips will help you to know how to start a business post-Covid era.