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How startups can build resilient business models to counter Covid-19
Survival of the fittest the theory that was given by Charles Darwin is the only truth in present scenario. Startups have been the biggest casualty of the present pandemic. It’s just the same nature way to eliminate those who cannot survive. When a tree falls in forest it also sounds death Nell for lot of small trees, which were growing around it.
Its not just about getting valuation with total addressable market and raising funds for expansion without thinking about changing times, there is no one to blame as when pandemic strikes it just strikes.
Startups were too busy with expansion and customer acquisition without understanding the actual need of the customer when things go wrong, yes I do agree it was the same customer who was willing to try and experiment which led to startups gaining traction and valuations.
With these changes startups still have better chance to build business models, which are actual need of the hour rather than finding solutions to problems, which had scalability and growing to become bigger with valuations.
A bigger company takes lot of hit when the revenue chain gets changed where as startup can take the hit as it does not have bigger problems in paying heavy salaries. Startups which were cautious and whose business models were solving actual problem, which came with easiness to customer, have survived the present scenarios.
Lets understand as how startups should build resilient business models, the major aspect is to understand the actual necessity of customer, when he does not have purchasing power. The saying is a Baker will never go out of business irrespective of any scenario and the present pandemic has proved it.
Startups should focus more on financial feasibilities with worst case scenarios and link its growth to keeping in mind the financial feasibility of its day to day existence. Lot of startups got carried away with funding’s and tractions having lot of employee retention programmes giving salary on par with leaders, providing various options and programmes to keep entertaining the employees which had its own impact on bottom lines.
Startups should focus more on tapping new areas with minimum expenses rather than going way out, of expansion at cost.