How are Startups Innovating Against the Coronavirus Crisis?
Startups are putting various unique and innovative ideas into practice to survive and grow during this pandemic period. If you too have launched or are planning to set up your own startup in this time period, it is advisable to ponder upon these ways and turn the situation into your favor.
The discovery and spread of coronavirus has changed the face of the global economy. It has made it imperative for governments to take drastic measures like social distancing and quarantining. At the same time, it has brought forth a situation where businesses can no longer run in a normal way. Aka, all employees cannot work under the same roof and deliver products to a local marketplace where all the customers can arrive and interact.
This has left businesses with nothing but two choices. Either they remain in exogenous shock and see their superb business idea getting extinct, or gear up their business by unleashing the potential of digital transformation. And, to everyone’s utter shock, startups are going with the second choice.
Startups, regardless of whichever business sector or industry you dive deep into, are planning around integrating and optimizing digital innovative elements into their processes. They are heading to remote working and other such modes of processing to ensure that they launch their new ideas/strategies while following the guidelines shared by their governments and ensuring health and security.
And the outcomes are quite significant.
Even in this pandemic period which is anticipated to act as a catalyst for upcoming recession, various startups like Vedantu are raising fundings, launching new products/services, and making their presence in new regions/nations. A consequence of which is that everyone is getting curious to hear their story and having some inspiration for their next venture.
Assuming you to be one such Entrepreneur, investor, marketer, or developer, we will be discussing the ways these startups are innovating during COVID-19 period and what results they are obtaining. Something that will further encourage you to become the next Uber, Airbnb, Venmo, or WhatsApp.
So, here we begin.
Ways Startups are Surviving the Coronavirus Pandemic Period
1. Seeing the real picture
Due to the rise of coronavirus cases and ongoing changes, various companies like Uber and Zomato have cut off their employees by considerable numbers. Many organisations have declared bankruptcy. While, on the other hand, some companies have noticed a significant rise in their demands.
In such a scenario, startups who are familiar with their exact condition are building their brighter future. That implies, the companies who are putting efforts into being aware of the present market condition, customers’ expectations and team’s efforts to see the possibilities of survival.
So, if you too wish to experience the same level of success, bring your team on board and understand the impact of coronavirus on your business. Restructure your internal process in terms of channeling resources for generating higher value, as well as downsize other activities.
2. Embracing new Business and Revenue models
As it has been crystal clear from the growing number of downloads and revenue of Netflix, Zoom, and various other brands, startups are moving beyond the traditional business models. They are looking forward to devising new and innovative business and revenue strategies, which is aiding them to cope up with the effects of COVID-19.
This again signifies that switching to newer business models that enables you to get better outcomes from the available resources can be the key to success to startups during this pandemic period.
3. Automating monotonous processes
Today, while some of the companies are completely shut down, others are facing an overwhelming demand. One such industry is the healthcare sector.
The healthcare practitioners and medical providers are overburdened with the amount of tasks to perform. They are left with no choice than working more than a normal shift to ensure better healthcare services. In such a scenario, every worker in these institutions are facing the challenge of handling both the complex tasks like assisting doctors and easier ones like dispensing hand sanitisers and spreading words of awareness to all.
Here, startups like Asimov Robotics are coming up with an innovative way to help them out. Such startups have deployed robots at the entrances of the buildings who manage the regular yet less-risky tasks such as delivering public health messages about Coronavirus, dispensing hand sanitizer, and transporting medicines/other equipment from one place to another within the organisation.
This has set an example of RPA for not only healthcare startups, but also for others and encouraged them to appoint AI-powered chatbots and machines for handling the good fraction of tasks at their place. And this way, prevent humans from draining all of their energy.
4. Remote working
Rather than compromising with the employees’ health or business profits, various startups have moved from traditional mode of working to the remote one. They have introduced numerous digital tools into their processes to ensure that everyone could put their best efforts towards the success and prosperity of the business while sitting in the comfort of their homes. Something that is again showing a direction to those startups and establishments who have been confused how to launch/manage their business during this crisis period.
Discover opportunities against the odds
There’s no denying that every business is affected by the Covid19, though at different levels. However, not all of them have lost the hope to survive this phase. Various startups like DeliveryHero, Facebook, and UberEats have collaborated with the supermarket giants and home service providers to ensure delivery of groceries and other essentials to the doorstep of consumers - that too while maintaining social distancing. And this way, fill the gap caused due to lower demand of their products/services.
This has empowered other Entrepreneurs and investors to learn the fact that there’s a pool of opportunities even in this dreadful situation. All you need is a positive attitude, awareness, and zeal to innovation.
Communicating Digitally
Traditionally, interacting with your people once in a while was enough. After all, everyone was just in front of your eyesight.
However, now when we are stuck in different corners of the world, it has become imperative to connect with each other on a daily basis. It has become the need of the hour to remain familiar with one’s health conditions, challenges they are facing, and much more, in addition to the status of the allocated project/task. Something for which companies are relying upon communication tools like Skype, Google Drive, and so on.
So, if you too wish to follow their footsteps and mark your presence in the market, integrate the latest mobile applications and other digital solutions into your processes.
Asking for Feedback
Another effective way startups are dealing with this crisis time is feedback.
Startups, rather than going with their assumptions and individual profits, are bringing their teams on board. They are holding virtual discussions, welcoming their ideas and feedback, and this way, analyzing when and how to tackle any particular problem to streamline their processes and generate higher revenue during this period.
Crowdsourcing ideas
To lower down the effects of the coronavirus on the global economy, various crowdsourcing platforms are asking entrepreneurs, developers and marketers to showcase innovative yet immediate ideas. They are motivating them to come up with interesting ways to prevent the upcoming recession scenario and get fundings from the investors. A result of such initiatives is that a crowdsourced platform, BreakCorona received around 1,300 ideas and 180 product solutions before hitting the Day 3 of its launch.
This is another way entrepreneurs are getting fundings and other forms of support for launching their startups during Coronavirus. Which further implies if you get a mobile app idea for your startup during this pandemic period, you should also share it on such crowdsourcing platforms and get the right advice along with fundings.
Showing Positive attitude
Another way startups are succeeding in overcoming the challenges in the crisis time is by showing a positive attitude.
Right from the owner to managers and employees, everyone is accepting the hardships one is facing and are showing empathy towards each other. They are inducing the power of flexibility and collaboration in their tasks; making one feel less frustrated in this time - the period when we are caged in our rooms and flats, with or without our families and loved ones.
This act is fueling teams with the sense of belonging and encouraging them to go out of their comfort to support their company.
Seeking Government Support
Governments of different countries have come up with unique and profitable ways to support businesses and impede decline in economic growth. For instance, the France government has taken an initiative under which any startup can ask for a loan directly from a state-backed investor or request them for backing as a guarantor to get loans from standard banks.Also, the government announced that SMEs can avoid paying rent, water, electricity, gas, and other such expenses.
Likewise, the Spanish government declared 100% liquidity support, while the Norwegian government has stated a NOK 50 Bn liquidity support credit with a 90% guarantee to small and medium companies.
By remaining aware of all such initiatives and taking the right advantage of these opportunities, startups are again paving the way for a successful business even during this crisis period.
As we have covered in this article so far, startups are putting various unique and innovative ideas into practice to survive and grow during this pandemic period. If you too have launched or are planning to set up your own startup in this time period, it is advisable to ponder upon these ways and turn the situation into your favor.
Good luck!