How COVID-19 Poses Challenges to Your Startup
Updated: Dec 5, 2020
Starting a business is challenging even in the best of times. There is a lot of planning to do and work that goes into getting a business off the ground. With the current global pandemic still ongoing and showing little sign of stopping any time soon, your startup is facing even greater challenges that you'll have to overcome if you want to stay afloat.
Businesses and individuals alike are feeling the financial pinch that has come as a result of the pandemic. Economies all but shutting down at the onset of 2020 did nothing to help people financially. This has made client acquisition more difficult than typical. People are more hesitant to spend money than before, making it more difficult to convince new clients to come on board. Additionally, public health recommendations have also made it more difficult to build client relationships. If your business is to succeed, however, you'll need to find ways to acquire new clients, especially during the pandemic.
The pandemic has taken a toll on workplace productivity in virtually every industry. With employees potentially needing to take time away from work either because they themselves have caught the virus or they need to care for someone else who has it, it can be more difficult to manage workflow and maintain productivity. Thoroughly cleaning and sanitising the workplace on a frequent and regular basis can help combat the spread of illness. This can be a daunting task, and may require people to abandon normal duties for a short time to clean instead. 5S can make your workplace cleaning routine easier while retaining productivity.
Managing Cash Flow
Your business relies on a steady cash flow in order to remain functional. With many businesses trying to operate on less, managing your accounts receivable and balancing them with accounts payable is likely more difficult than usual. You'll need to take steps to protect your cash flow. This may mean making some tough decisions. Try to do so without sabotaging important business relationships. You'll benefit more in the long run for it.
COVID-19 poses multiple challenges to startup businesses. It can make it more difficult to acquire clients, threaten your productivity levels, and make managing your cash flow more difficult. These challenges can be difficult to overcome, but doing so will help you make it through to the other side of the pandemic.
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