HOW CRISIS WILL HELP YOUR START-UP TO GROW?
2020, this year has changed many lives in both positive and negative ways. It has affected every sector, from households to industries. Everyone around the globe is affected by this pandemic but have you ever wondered that this crisis can actually help your start-up to grow? Crisis is not always bad; all you have to do is find one positive aspect or point and work accordingly to grow. This year has given us a blank slate for startup to write their own success story. This year has changed many things like working patterns, a vast shift from working by being physically present in the work place to working from home on our laptops and computers, completely online. Now the question here is where the positive side we were talking about is. That positive side here is "the competition is weak this year". This is a good time for starting businesses. A bad time implies limited access of funding and low customer demand.
Starting with a blank slate is your advantage as this year, the competition is weak and you can gain advantages which might last for years and can help you in first two years of bootstrapping. Bootstrapping means building an organization from the ground up with nothing but personal funds, and investments and luck.
There is no particular formula for success of a start-up but there are four key areas to take in consideration:
1. A Good Idea: An idea is the main pillar of any start up. Your success depends on that. It should be unique, not fully but should have a unique factor or quality that other’s are not offering. That will become your plus point and will gain profits.
2. Outstanding Team: Business cannot be built in one day or with only one person. You need number or people who are good at one or the other things. Knowing the needs and hiring on that basis will make an exceptionally good team which will lead you ahead only.
3. Funding: To build a business fund, is what the person needs to do. The capital, assets etc. all these things require money and it is impossible by an individual to get this huge amount by himself.
4. Reaching Customers: You have made the product or service, put in all the money but how will you tell people out there about your product and how it is different from others. Here the role of finding target customers and reaching out to them on time comes. Find your target market, the area where you are strong and keep it strong and build the other areas with that simultaneously.
2020 is not lagging with problems and problems create opportunities. Students want to attend schools because they are lacking behind and want someone to guide them, here comes your idea for a start-up, be a tutor or advice provider. Today, due to this pandemic many skilled and qualified persons were fired or let go by their organizations. Some will take the matter in their own hands and other will be thrilled to work for one.
It has given us all a hard time. All you have to do is take this time as an opportunity to start your startup and take the advantage of crisis.
About Devansh Lakhani
Director of Lakhani Financial Services, and a Chartered Accountant, he helps start-ups raise funds from his network of investors. He guides and advises start-ups to scale up by providing efficient sales, marketing, team building, and business management strategies. He has executed fundraising by block deals on the stock exchange and conducted IPOs and right issues on the SME platform to the tune of over Rs. 50 Crore. He is currently working with start-ups from various sectors to help them channelize their business models and investments.