Business strategy for post-COVID business opportunities

Business strategy for post COVID
Business strategy for post-COVID

The newspapers, media, social media- you name it, everything is flooded with a lot of verified and unverified details about COVID-19. What seemed like a local problem confined to only China, has actually turned out to be a Pandemic causing panic, global economic slowdown and for some people, even helplessness. Many companies are facing challenges amid the COVID-19 outbreak, including a sharp decline in business activity in the past few months. We are bound to consider every assumption about their future business operations, including burn-rate, fundraising opportunities, sales forecasts, supply-chain challenges, team headcount reduction, and optimizing capital spending. While there is a lot of negativity and fearful environment building around, hearing even a little positive can be music to the ears.

There are always highs and lows when you run a business, and an unprecedented event like the COVID-19 outbreak may even throw some opportunities for the start-up communities to come up with a viable solution to face such unexpected threats. We at Graphitto Labs, are leaving no stone unturned to find a way to survive through these tough times. There are many entrepreneurs at the moment who are working on technological innovations that could help in treating, testing, monitoring and are trying to help the world to deal with the Coronavirus outbreak. Problem Solving, resourcefulness, innovations, out of the box thinking among other traits, the start-up communities are resilient, determined, creative, flexible and hard-working. The start-up communities are bound to make the most out of what they have at their disposal in the current circumstances.

Kapil Jain, founder of Graphitto Labs Private Limited, in this article, shares 5 business strategies for Entrepreneurs for COVID-19 business opportunities.

  • Keep a check on your cash flow- All industries have been affected by this global pandemic one way or the other, therefore, it is not only important to look into merely the revenue but also the cash flow. Conduction of a proper assessment of fixed as well as variable expenses that re-spent and the revenue received is highly essential. This will help you get a clear picture of the financial situation of your business and you will be able to devise a detailed plan on how to cut unnecessary costs. The market in the current situation is highly unpredictable and therefore, keeping a track of your cash flow will help you survive this pandemic. Management of cash flow and saving up on resources is one of the most essential things that you have to practice even after the resumption of normal activities after the pandemic is over.
  • Make alterations in the business model if needed- The post-COVID-19 world is not going to be as easy as it was before this pandemic. The market will fluctuate tremendously and the needs and demands of consumers will also change, especially in relation to business such as hotels, restaurants, travelling, etc. Therefore, it is important that entrepreneurs concentrate on bringing in any type of innovation that they think is necessary or may benefit their business in the long term, similar to Graphitto Labs which established a completely new vertical and ventured into the healthcare segment. Adapting your business as per the changing dynamics of the market will be pertinent during such difficult times even if it involves re-strategizing.
  • Prepare short term plans- The present situation does not guarantee that the COVID-19 pandemic will be over soon. Hence, it will be necessary that you stay prepared for all kinds of situations that may or may not arise. Making detailed plans will help you stay prepared no matter how long the crisis continues. The uncertainty of the current situation makes it difficult to make any long term strategies regarding expenditures, whether it is fixed or variable. Make policies up to 3 or 9 months, focus spending on only crucial things, reconsider your sales techniques, expand your business digitally and try cutting back on marketing costs for at least a small period of time so as to not go out of business.
  • Be patient with investments- No doubt securing investments during these difficult times is a major task, yet entrepreneurs should be patient. Especially, for business which is either new or does not have access to long-term funds, the situation might be risky for them but they should not leave hope. Investors may take long to respond to your wants since they might be going through financial crunch themselves, however, hope remains that the market will eventually perform better once the pandemic is over. As entrepreneurs, you can request the existing investors for more funds to help your business or you may propose new ideas to help you sail through.
  • Maintain healthy communication- These are very difficult times, not only for you but all the other stakeholders in the business such as customers as well as your investors. Therefore, even if the business is not flourishing during the pandemic, it is important that you maintain a healthy chain of communication with all the concerned stakeholders. A well-established network of connections is always a great help during stressful times. It is also important that you stay honest and transparent with them. In case of the financial crisis, you can give sufficient notice to your vendors, suppliers, etc. regarding the situation in case there might occur any delay in payments. If there is a need to lay off employees, then you should inform them beforehand and explain to them the given condition. The implementation of such tough decisions should be done with compassion and humbleness.

Contributed by Kapil Jain, an award-winning serial entrepreneur and founder of Mumbai based healthcare company, Graphitto Labs Private Limited.