To be honest, working in an environment where dozens of loads on heads aren’t an easy task to manage, we simply forget the key principles of success, we often makes decisions in hurry and often rely on few facts rather accurate facts. When I’m writing this the world is in great crisis; hundreds of countries are in lockdown, millions of people in the world are fighting with COVID-19 pandemic. In such situation when whole world is under distress, so does the businesses are. Businesses tends to lose millions alone and trillions of dollars if consolidated the figures under single table. Today, the “think-hats” are not thinking of how to generate revenues but are more focusing on how to survive. In this crucial times when millions of business are at the verge being extinct, I personally see the huge consumer behaviour shift post-pandemic. My personal logic behind the situation is when whole under single umbrella fighting the same thing, the consumer shift in choices will be quite relative. There will be millions who will be affected by these not only by the COVID-19 but also the consequences of COVID-19. Here are the possibility that will storm down the corporate world:-
Imbalance in economic cycle
The first and the prior most impact that COVID-19 had created is the drastic shift in economic cycle. Due to unavailability of labours and personnel this is the time when the imbalance in economic cycle will happen resulting to the second possible consequence.
When the whole cycle of business process is interrupted and economically downward moving curve is on the graph, being victimized by operational loss is quite obvious. During the times of the pandemic the operational loss for the giants would be in 2 figures but for the startups it can be even worse. I have friend of mine who runs a small medium scale business started 10 years back in Enterprise sales said that in just 10 days of lockdown he suffered a loss of 200,000 dollars. The company he was running provides enterprise sales software to 100+ clients at skimming price. Since, the revenue earned from selling per unit was in five figures, he incurred the loss in six figures. Here we can argue higher the price of product higher the operational loss in terms of revenue is involved.
3. Stagnant market; the real danger
We often say flowing river has pure water, probably, what I could have learned from Chief Scout of survivor Bear Grills from his show “Man vs Wild”, “Running wild with Bear”. I would say such things and point which get stuck somewhere in your reptilian brain impacts a lot in life; this is how I’m able to relate with things seen on television and things happen in-person.
Stagnant market is a real danger just like flowing water has higher purity flowing cash in market has higher liquidity which is in fact not happening now in global COVID -19 crisis. Businesses seems to stumbled upon on their minimum level to operate vs survival. In 2017, I was travelling from Vadodara to Mumbai in train for some work, it was the early month of January and India had already demonetized two of its majorly used currency notes to curb corruption. The man whom I met in train might have be in his early 50’s, as it could have been visible from his knowledge in sales and expertise in pre and post dot com bubble burst and e-commerce sales. He told me that he was operating the business from very tender age of 19 when he was quite naïve, the business he runs was totally dependent on cash. He was looking quite tense and anxious due to this he said “my daily cost of operating business falls between 100,000 Indian rupees to 350,000 Indian rupees because people who works under him was still getting paid on daily wages” Although the decision was to demonetize the currency note was in physical terms but digitally the money was available. But there is slight catch how will you pay someone when your whole cycle of business rely on cash that too in legal terms? His clients doesn’t had the money to pay neither digitally nor physically. This had taught me something new about business world “it is not necessary what leverage you have in business your clients or customer will have; for instance in this case, the whole industry was not digitized to online banking thus making everything stagnant”.
4. Job crisis in and post COVID -19
The truth is not hidden nor can we deny in absolute terms, due to stagnation of market the revenue streams got cut, the companies and businesses in periodic terms will stuck in the middle and those who can’t afford might get shut as well. Now compare, irrespective of industry how much pressure it will build on companies and businesses to either cut of the cost or layoff the employee. For bigger companies they can recover at some point what about the startups who are quite naïve in this? Will the sustaining in the market will the question? To make it simple, Let us assume there are 10 companies in a particular area in which 100 people works, out of these 10 companies 2 are giants 3 are medium scale and rest 5 are startups. 20 people are working in giant company 40 people are working in medium scale and rest 40 in 5 of those startups. Assume the giant tsunami of COVID – 19 had made 5 startups to shut, 3 medium scale company to lay off 10 employee; where these 50 people will go? In the given circumstances, there are high chances they will apply for those 2 giants. Now assume, since these 2 companies are giant and have enough cash to run sees the opportunity in the market to capture for their product category and are ready to hire 20 employees, how many are left unemployed? 30!. Now the whole question is where these 30 will go? Many could say they should go for their own businesses but I would like to argue back do all men and women are successful entrepreneurs, what is the rate of success in a business? If everyone is ready to bare and dare to do business and become employer then who will be the employee?
5. Not everything is bad; something will happen good as well
Due to this lockdown effect, many company were forced to work-from-home flexibility option to exercise. However, their numbers may stagger but the whole new process is going to get build. Till date not many companies I would say 80 percentage of the companies were not flexible in terms of work-from-home option but this lockdown will force them work on digital infrastructure of the company to equate the revenue to growth matrix. The penetration for software’s and cloud based companies providing IT solution to work from home will be huge. I have a friend of mine who is a python developer is working from home and attending meeting using Google Hangouts, using Microsoft Teams for projects etc.
There are many things which one can learn in this time but it’s up to us how we could apply. You have read the blog title as “How startups should act in COVID -19 pandemic to grow 10x” well nothing comes for free nor the free knowledge is relative to your startup idea. There will be dozens of articles and content available on internet regarding how to grow your business or startup in recent time of pandemic. I would like to ask you “Are these solutions relevant to your businesses or they are talking about the bigger picture i.e. industry as whole?” But let me ask you another question, if these articles talk about your business category or segment in which you function; do they are providing customize solution as per your business requirement?” Well it be like same as daily horoscope reading of zodiac signs; it is given for a particular zodiac sign not particular individual, the results may vary from person to person and it’s the same case in business as well, it vary from business to business. To get proper consultation, I would like you guys to mail me at email@example.com I will help in your difficult times to grow you help me in difficult time to earn book me at USD 101 per consultation. Offer is limited to only first 10 clients! Shoot your mail as soon as possible.
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