The Covid-19 outbreak is not only a pandemic but the situation has slowed down the whole global economy to a level which has not happened in the last 20 years. We are yet to come out of the pandemic crisis and things would be difficult post that as well. At this juncture, enterpreneurs of startups are at an immense stress as they rely a lot on liquid cash. Few companies have to take tough decisions if they have to survive. So, how do we handle such a situation?
Let me write this differentiated into two phases :
(a) During the lockdown
(b) Post the lockdown
During The Lockdown :
The lockdown is a necessity and the need of the hour. However, the impact of it in business cannot be ignored. So what can one do as an enterpreneur?
- Remember, in those busy days, you have always parked few things as you did not have bandwidth or time. Now that business has slowed down, take a step back and re-evaluate all those plans which had then taken a back seat due to time constraint. See which of those can be aligned to the upcoming anticipated economic condition and work towards the same. Your team would also have less work, so create task force and engage your team in creating the next level survival strategy for the organization. Trust me, you would surely get brilliant ideas and can face the crisis as one whole TEAM.
- Review your organization chart and work with the HR Team to assess departmental level skills. Create online modules and focus on upskilling.
- Reassess your business model and create a conservative one considering the forthcoming days
- Do not take impulsive decisions and start laying off immediately. Remember, Employer Brand matters and that is something which would drive your organization in the upcoming days of crisis and tough competition. If you need to lay off your employees within 2 months of a crisis situation, that essentially means that there is a huge gap in your business strategy. Time to revisit and retrospect
Post The Lockdown :
Once we come out of the pandemic situation, then the real challenge begins – to bring back the economy to stability. That being said, lot of things need to be re-calibrated for survival of the fittest.
- Focus on completing the reorg as per the revised business strategy
- Freeze hiring for the time being
- Realign and reallocate team members taking additional responsibilities
- Cut down on operational cost whereby possible
- Have consistent business review to track performance
- Do not rush for fundraising immediately. Fundraising should be a support for service/product enhancement, not bringing you out of a tough financial situation
- Laying off employees to be the last resort