I have been keen to become an entrepreneur for a long time but pushed my aspirations due to my responsibilities towards my family but by the end of last year, I decided to quit my job as I was confident that I am ready to take the next step in my life. By doing that, I chose a life of financial uncertainties that come along when you become an entrepreneur, but, on top of that, the COVID-19 crisis hit the economy of the world which derailed my business plans.
The pandemic derailed all my business goals, but I was able to hold on to a few principles that kept me sane and my business afloat. If you are also in the same boat as me then these tips will help you keep your business alive till the crisis passes away.
1. Separate Your Personal Life:
As you venture into a new business, it is hard to keep it away from your personal life, but this is exactly what you should do from the beginning. Make sure that your family will be ok even if your business failed hence do not invest all of your savings into the business but save up for your personal life separately.
2. Create a Flexible Business Model:
During times like this, sticking to your existing business model may not always work and you should not show rigidity in changing the model, A strong leader needs to take a strategic decision in favor of the company and the customers they serve if the economic scenario changes.
3. Diversify Early in Business:
Remember not to put all your eggs in one basket hence do not just invest in one product or service but diversify from the start so that if one part of the business fails, the other part can make up for it to keep your company afloat. You can also start a completely different side business, which does not take up a lot of your time and focus from the main business. One such option is investing in bitcoin trading with the help of reliable online sites like bitcoin loopholes that not just helps you make money but also is free to register.
4. Relax on Being a Perfectionist:
The entire process of bringing a product to the market takes a lot of time and it is normal for you to release the product only after you feel it is perfect for your customers but in times like this, the customers may not care for perfection but the need to fulfill their urgency hence if you are into a service industry or manufacturing a product which is essential to be delivered soon, especially during the crisis, focus on maintaining the timeline as this is the best way to gain new customers even in such bad times. Remember, you do not need to be the best but always be better than your competition.
5. Care for Your Team:
Your employees are your essential assets. For new businesses, it is difficult to pay their employees their full salaries, especially if the business has taken a hit but try to retain all your employees as this is the time when you need to show your loyalty towards them. If the finances are tight, then hold a meeting with them and keep things transparent. One way is to pay at least a percentage of their salary to them, if not full.
6. Stock Emergency Funds Early On:
It is a very predicted scenario that businesses face losses due to low sales or economic crises, hence you need to create an emergency fund for such grey days where your company can sustain without profits for at least a few months till the sales pick up.
The Bottom Line- Love What You Do:
It is obvious that you love your business that is why you are doing this but, also love the challenges life throws at you as these tests will help you see how you hold up during a crisis and give you the opportunity to improve your crisis management skills early on in business and life.
