Effects of Global pandemic on startups
One day we all woke up to a scary threat, not just to our lives but to our businesses. A threat that was an unfathomable event to the best of experts. It gave every person an introspective pause and the space to reconsider their life choices and business strategies .
The biggest impact of the pandemic was felt in developing and underdeveloped countries. Small business and startups bare the brunt of uncertainty even more than usual as the future after lockdown is hazy. Experts and gurus have found themselves in an equal quandary as this crisis poses unique situations that have no handbook or a reference from the past.
The biggest channeled in these times is future funding, and current cash flow and liquidity. The shortage of funds and closing of debts at the same time, without any income has become a living nightmare for the startup community. Especially, when the authorities are not able to provide assistance in this regard or than delaying deadlines. These delayed deadlines in fact add to the stress than easing it. There is also another factor where the support of their investors is unknown and there is little room for hope because the pandemic has been merciless to all.
In some cases, startups are clubbing together to find solutions to problems commonly faced by the community. Many who can are supporting each other and truly emphasizing that the future, even if it is unpredictable, can be hopeful depending on the actions we take today. Advisories are going around on tackling legal and other unparalleled issues such as - How can one hand the headcount if liquidity to survive is diminishing? What are the best practices in running a successful during a crisis in a compromised form? How to continue a decent credit ranking?
Luckily, it is not all dire. People restricted to their homes and spending significant large amounts of time online, the e-commerce industry is booming. There is a huge boost in purchasing and with the support of social distancing deliveries are growing in abundance. Online groceries, for example, have greatly benefitted from this pandemic situation. Many such businesses are finding a creative solution to meet the demand and ensuring the safety of both staff and consumer.
The biggest factor that will maintain hope for startups is 'trust'. The coming year or so will be critical in building trust back into the business from consumers and for B2B enterprises as well. For the wellness and beauty industry, it will be essential that companies dive more into health benefitting aspects. Organic and pure ingredients will go a long way in gaining new customers. Experts have declared that this pandemic is going to take a turn towards more and more health and climate-conscious consumers.
