To know the 7 Tips to help founders be successful post Covid-19, let’s go through an important scenario. Crunchbase suggests the investments by venture capital firms saw a downfall of 17% in the first quarter (of 2020) in comparison to the previous quarter.
Well, these are indeed very challenging times for founders. Are you one of them? Are you faced with making difficult decisions as a founder?
Has the pandemic affected your fundraising? Is your revenue source drying up? Are you in a dilemma of how to proceed in the post-COVID-19 scenario?
Here are some tips that could help founders be successful post-COVID-19.
Accept the current situation–
Founders must make their peace with the fact that getting their hands, on funds is going to be difficult. The investors will be more cautious.
Therefore, the founder’s focus should be on ensuring that there are enough funds to tide them over the next 8-10 months.
A funding round that can bring in enough funding to let the operations continue for the next 12 months, could be a good way to proceed with.
Creating a financial model will make these numbers and the financial standing of the startup more clear. And it’ll be easier for you to make decisions post covid-19.
Adapt to the new reality –
Adaptability is going to be one of those crucial elements that would decide who would survive and who wouldn’t. Reassess your goals and realign them with the new reality.
For example, you might want to extend your fundraising timeline or change your fundraising expectations considering the temperament of the market.
Revaluate your numbers post covid-19–
The market is going through a huge change. You need to check your earlier assumptions, business model, revenue, and costs. This is the time to be more mindful of your runway and cash burn rate.
“Cash is king. Get an overview of your financial situation and do your best to cut your costs”, are Andreas Christian, Co-founder of Les Deux thoughts along the same line.
Try to reduce your costs –
To balance out the loss of investments you would need to cut down on other costs. Changes in cost allocation will have to be made.
For example, reducing the marketing budget could be one of the options. The area of cost reduction will vary depending on the needs of the business.
Manage your remote teams in an efficient way –
Your team ends up being one of your most valued assets. Managing your team while they work remotely and ensuring high team morale will prove to be extremely beneficial.
This can be achieved by regular meetings over zoom, teams, or any other platform. Informal conversations will also help strengthen the bond between you and your team.
Get Creative in your approach –
Playing by the old rules may not prove to be very beneficial in the post-COVID-19 era. Founders need to look up creatives ways to be successful.
For example, in response to the funding needs, crowdsourcing platforms like Kickstarter, Indiegogo or microlenders can be resorted to rather than the other traditional sources.
Communicate with your customers –
At the end of the day, it’s your customers who play a key role in your business’s success. So, you must put in place a regular communication system with them.
Hence, this can be achieved by sending emails and keeping your website and social media profiles updated.
The playing field has indeed changed due to Covid-19 and working along with these changes is the only way to ensure success. Founders must reevaluate and reassess their businesses and bring them in line to the new reality.
You can also use our venture capital report to evaluate your business and get access to 1000’s of investors that are looking to invest in your company.