The pandemic has severely affected businesses all around the world. However, it’s the startups that are suffering the worst. Read ahead to know the impact of coronavirus on startups. Also, find out what they should do post the pandemic.
Coronavirus Impact On Startups
The coronavirus pandemic has affected business firms adversely. However, the well-established companies are using their financial inventory to make it through the pandemic. But new startups are facing a severe cash crunch.
Moreover, they operate with limited human resources. Therefore, giving them salaries is a very tedious task for startups in such desperate times. Moreover, these companies have certain financial liabilities as well.
With no business incoming, there is a shortage of revenue generation. As a result, many companies are on a road to shutdown. Furthermore, not all startups can work from home. Some require on-field job work.
What Start-ups Can Do During Lockdown
Many countries have imposed lockdown. As a result, many companies have started to do social work during the lockdown. This not only satisfies the customers but also generates some revenue during the lockdown.
Moreover, many companies are delivering food, making food, providing necessities to households, and so on. Even start-ups can do the same. Companies like Zomato and Swiggy are actively contributing to this service.
Besides this, start-ups need to analyze what are customer needs during the lockdown. Moreover, a business plan is required. It should justify what the company can supply during the lockdown.
Also, start-ups need to go easy on cost. Customers will demand cost-cutting on products and services. Therefore, the start-ups need to adjust on this front.
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Future After The Pandemic
How will the near future look like for start-ups post the pandemic? They need to be prepared for new business trends and changes. Moreover, having a substantial financial inventory should be their target.
It will take time before the business starts rolling in. Therefore, we have an inventory of Rs12-14 Lakhs. It will ensure that the management is paid and the company resumes its operations.