The COVID-19 pandemic has proven to be a very menacing affair for many economies of the world. What’s more, experts claim that the global crisis, which was caused by the rapid spread of the novel Coronavirus disease is yet to reach the peak of its destruction. Many have likened these turbulent times to the great depression which wreaked havoc on the economy for ten excruciating years. The major similarity between these two disasters is that reduced consumer spending has led to the downfall of many businesses. Consequently, many enterprises are currently struggling to keep the lights on since most of the measures put in place to contain the virus are crippling their operations.
Even so, startups seem to have an edge over huge corporations and are somewhat not as hard hit as the latter. This can mainly be attributed to how versatile these businesses are; unlike their larger counterparts, startups enjoy a more dynamic manner of doing business which can be advantageous during times like these. For instance, since they have a much smaller workforce, they can easily employ certain remote workers on a short contract basis, only when necessary. Also, since many reliable companies offer quality software development for startups, it makes it easier for small businesses to acquire these essential services easily.
Advantages of startups over large corporations
Having a small enterprise has its competitive advantages over huge multi-million companies. These merits are what give startups the much-needed headway that’s currently very essential. Here are some of the most pivotal advantages that are aiding startups and SMEs deal with the crisis a lot better.
Typically, startups have fewer clients compared to large corporations; although this may seem like a disadvantage, it can actually be quite rewarding when properly exploited. With fewer customers to handle, smaller businesses can easily create personal connections with their clientele by providing tailored services and close relations. In turn, this leads to a higher rate of retaining loyal customers due to great services. This has proven to be quite the advantage during this pandemic period since such customers would keep seeking your business’ services or goods. You might even gain new customers, thanks to exemplary personalized services. Furthermore, no amount of marketing can replicate the results of goodwill that’s built over time.
Startups and small businesses generally have fewer layers of management since business owners tend to play multiple administrative roles. This makes it a lot easier to make drastic changes to the operations of the business without too many hiccups. This has enabled such enterprises to have an easier time adapting to the Coronavirus pandemic. For instance, one of the regulations that have been put in place to curb the virus is allowing employees to work from home; given that startups have fewer workers, this shift has been a lot more forgiving for them.
Better Understanding of the Market
Entrepreneurs are usually more aware of changing consumer trends since they’re a lot closer to consumers than larger corporations. Since startups are more dynamic, they can easily adapt to market trends without having to make numerous changes or alterations. This quality has enabled many startups to respond to the changes brought about by the Coronavirus pandemic. On the other hand, big corporations are less likely to adapt quickly to emerging market trends since there are a lot of processes involved. In addition, large companies are more likely to shift their tactics because of competitors’ influence than abrupt changes in the market, which has made them a lot more susceptible to falling amidst the COVID-19 crisis.
How startups can survive the coronavirus pandemic
Although startups are less affected by the pandemic as compared to big companies, they still face certain challenges. Here are a few techniques that can help keep small businesses afloat during these hard times.
Cut Back on Expenditure
Check on the monthly expenses of your business and cut back on variable expenses such as supplies and consultancy. You can also moderate salaries depending on how much the pandemic has affected your business; it’s a lot better than laying off staff.
Plan for The Unexpected
In as much as there’s a lot of research being done on the novel Coronavirus disease, there’s a lot we still don’t know about it. For this reason, having policies to guide you in the future is paramount to enable you to stay in business. Thus, have contingency plans that’ll help you prepare for the unexpected future.
Many businesses have been extremely disrupted due to the Coronavirus pandemic. Still, startups have proven to be more resilient than large corporations during these unprecedented times. Nevertheless, all businesses should expect tough times ahead; following the few tricks provided above will certainly help you prepare accordingly.
About Author: This post has been shared by DevsData. Read more at DevsData.