Tough times bring out the best in us and there’s no better example of this, than the enterprising Startups that are battling the current CO-VID 19 pandemic with innovation and class. These unprecedented times have thrown up challenges even the top companies of the world could never have predicted. But the Indian SME sector seems to be rising to the challenge. Let’s find out how….
The SME market in India is a mix of Startups that are actually growing during these times, others who are coping and very few that have given up.
Suddenly, growth is not a priority. It’s day to day survival and profitability that have emerged as focus areas. As successful Startups are boosting their technology-enabled services and rising to the challenges being faced in their states and communities, they are setting positive examples for the rest to follow.
You may also be interested in this: Top 4 Easy to Start Small Businesses For Startup Entrepreneurs
We’ve consolidated a list of business strategies from global experts and local Startups that are proven ways to handle the effects of this pandemic.
1) Evaluate Your Current Business Model
Your company’s business model refers to how you conduct your business. Where and who you source your products or services from and how you provide these to your customers. The traditional business model of brick and mortar shops has been evolving into online buying and e-commerce models for quite some time. Now more than ever, this online model is gaining popularity due to social distancing habits. Even offices are turning offering remote working opportunities for the same reason.
If your business is still relying on third parties or operating from physical outlets, its time to get independent and go online. You need to be in tune with customer expectations and business conditions and adapt as much as you can.
If you need further convincing, study the industry reports of companies such as Zomato, BYJU’s, Toppr, Myra or Dunzo and study their gross profit margins, sales and cost data and evaluate their successes for yourself. Track your own financial metrics and cash flow and identify which business model would suit you better based on current sales, collections, debts and even credit cycles.
2) Plan Policies That Can Be Revised
Whether its a business model, HR policies or a Marketing campaign, avoid planning annually. Make 3 month plans according to what the current situation is and prepare to revise at any point, even prior the end of the current quarter. You will need to keep adapting to ensure your expenses are kept in check, your sales continue and that you learn from your mistakes.
Your sales goals will alter, product timeline can change and even your distribution strategies can develop in unexpected ways. There will be new opportunities that arise from this new normal but you need to be attentive to these. As we look at the pandemic from a more positive perspective, we see altered mobility, new ways of learning, fresh customer habits and numerous changes that are going to be beneficial in the long run.
3) Increase Customer and Stakeholder Communication
Everyone is aware of trying times, including your customers. This is the time to increase customer communication via customer support and call telephony services. Every online channel of communication is currently being utilised by successful Startups who understand the value of this.
Be transparent about what is going on in your company and how you are dealing with it. Express empathy and assure your customers, not only of your ongoing or future business, but of an overall recovery from this.
Address all your stakeholders via appropriate modes of communication. Stay in touch, share experiences and show as much compassion as you can.
Employees need your understanding and support as well. Explore remote working systems and deploy them wherever necessary. Take care of your employees’ well being and safety to gain their long term loyalty.
Also read: Why Companies Should Focus More On Customer Service for Gen Z’ers and Millennials
4) Understand the Current Investors’ Mind
Those Startups vying for investment during these times, try to understand what the VCs are looking for. Plan for meetings with financial advisors and shape your business model and strategies according to what the investors are looking for.
Make your business plans in accordance to the VC mindset rather than trying to fit your ideas into their heads. Align your interests with theirs and you will find success.
5) Utilize Technology in Every Area Possible
Due to social distancing norms, all business communication is online. Every company, whether traditional or new, established or Startup, is conducting business meetings over video conferencing and messaging, Educational institutes have adopted online curriculum and are teaching over video calling.
Remote working has strengthened the need to develop online communication, cloud-based services and data metrics that keep in tune with changing customer expectations.
Technology has proven to be a strong supporter during the pandemic and companies that are boosting their technology are gaining in multiple ways.
As the global economic scenario alters and creates new markets, sectors, and opportunities, the right business strategy is to evolve and synchronize with the situation.