When the pandemic began, hardly anyone took it seriously. People thought it would subside in a week or two. But then weeks became months, and months will become a year soon, and we still haven't gotten rid of Covid-19. It has completely changed the world as we knew it. Old ways of doing things have been rendered obsolete, and new ones are being discovered every day to find solutions to the problems caused by the dreaded Coronavirus.

While the pandemic has indiscriminately attacked all industries, it is the startup industry that has taken the brunt of the attack. Not having their feet planted as firmly in the market as established organizations and not having enough funds to support their workforce without generating business, the startups have been forced to rethink their business strategies to survive.

While work-from-home and online sales and marketing have emerged as saviours for many businesses during the lockdown period, the startup owners now need to set their eyes upon bigger targets. They need to figure out a way to bloom once the pandemic subsides. Let us discuss some of the strategies that the startups will adopt to boost their growth in the post-Covid era.

Work-from-home

While the transition from a traditional office-based working model to a work-from-home model was forced upon us because of the pandemic, many business organizations are beginning to realize the benefits of this model. Earlier, the executives used to frown upon the idea of working from home. However, the pandemic has proven that the opposite is the case.

The work-from-home model has several benefits for both the employees and employers, and it is going to play a key role in supporting the growth of startups in the post-pandemic phase. Let us see how:

Benefits for employees

• This working model offers safety from the dreaded Covid-19 infection that has claimed so many lives and caused so much suffering.
• It offers flexibility and saves precious hours that had to be spent in the commuting process.
• It offers the employees greater control over their work environment and boosts their morale and productivity.

Benefits for employers

• Permanently transitioning to the work-from-home model means that the startups can cut down on infrastructural expenses. It would be especially beneficial for those startups that are running low on liquidity as an after-effect of Covid-19. The capital that is saved in the process can be spent towards the growth of the business.
• Since the work-from-home model allows the employees to manage their personal and professional life better, they stay more productive - which is beneficial for business.

Digital Marketing

Printed advertisements and direct mailers wouldn't be as effective as digital marketing in the new normal. A huge chunk of the population has transitioned to the online platform for media consumption, shopping, entertainment, etc. Thus, startups would have more opportunities to reach out to potential customers online than they would have offline.

Digital marketing is something that has been gaining popularity for a long time, but the pandemic has catalyzed its adoption. Shortly, print media may cease to exist altogether and those who are wise enough to see this change coming will have an edge over their competitors in the new normal.

Better capital management

The pandemic has exposed the flaws in the system and it has shown how the startups – especially those in their nascent stages – are often working on a very limited amount of capital. According to sources, nearly 60% of businesses that were shut down temporarily due to the pandemic will now remain permanently shut.

This is a serious issue and the startups need to work on their capital management. They need to build cash war rooms, where every expense will be put under the microscope to ensure that the business isn't bleeding unnecessary capital. They also need to create an emergency fund that can be utilized in times of stress when the business isn't doing well. It will help startups survive any future calamities that might strike us out of the blue.

Exploring new avenues and adaptability

Future belongs to those who are willing to adapt to changing scenarios. While the Covid-19 pandemic has killed the demand for several products and services, it has also created new opportunities at the same time. Hand sanitizers, which occupied a relatively small share in the market, have suddenly become a basic commodity that everyone needs.

To make the most of this opportunity, many wine distilleries and cosmetics companies started producing hand sanitizers. The moral of the story is that where one door closes, another one opens. You just have to find it.

While sectors like travel and tourism will revive slowly, others are growing pretty quickly. New startups can venture into domains like Ed Tech, preventive care, e-commerce, etc. as they will be becoming quite popular in the new normal.

All that being said, one thing that we need to keep in mind is that nothing is set in stone. The pandemic has shown us that things can change in the blink of an eye. Therefore, it is a wait-and-watch game at this point. The post-pandemic era hasn't arrived yet, and it might turn out to be completely different from what we have imagined it would be like. Amid all this, the most important thing for startups is to stay positive and stay on the lookout for change.

 

About Rachit Chawla

Rachit Chawla, CEO & Founder, Finway FSC, started CHC Logistics Pvt. Ltd., an integrated third-party logistics company having 20+ branches across India specializing in the field of Warehousing and Trucking. He has successfully founded and achieved a turnover of INR 200 million in his logistics venture in a span of few years. Presently he serves CHC Logistics as Managing Director. In addition to his logistics business, he is a sophisticated high net worth investor and has been successfully managing his family's investments portfolio since 2008.

Besides being SEBI registered investment advisor, Rachit is also a certified Investment Advisor from National Institute of Securities Markets and also a holder of Insurance Regulatory and Development Authority (IRDA) license. At Finway, Rachit's responsibilities revolve around to envision organisational goals and create plans and strategies that help to achieve these goals. He is the inspirational force to all team members for achieving individual's and group's targets. He wants to establish Finway a system-driven organisation rather than only person-driven by the optimum deployment of the latest technologies. In addition, Rachit has made commendable efforts in harvesting a congenial atmosphere which helps in evolving right work culture in the organisation. He plays the role of MENTOR for the organisation so that overall growth could be achieved.

Also, Rachit is the Co-Founder, Start-up Mentor, and Director – Finance & Technology at Risers Accelerator to nurture and empower aspiring entrepreneurs to run their business successfully. Being a finance trainer and stock advisor, he aims to provide them with mentoring and complete assistance to scale their businesses to the next level, ultimately contributing to India's GDP.