The Strain on Startups
The far-reaching proliferation of the SARS-Coronavirus-2, the instigator behind COVID-19, is putting the strength and adversity capabilities of countless startups to the test. This critical matter brings about both restrictions and opportunities in equal parts.
The existing circumstances force startup founders to deal with the insufficiency to hold customer gatherings in-person and cooperate face-to-face to market, deliver, and implement their products or services.
It also impedes the possibilities of networking with investors to secure essential investment transactions. A significant portion of startups may struggle to survive this upheaval due to liquidity issues, or the scarcity of startup capital.
Nearly all locations where investors and startups could assemble and propose or discover prospective agreements are now closed.
Strains on Technology and Processes
Numerous businesses have enacted a Work From Home rule. This approach is not foreign to the startup sphere. Remote employment or home-based work is usual for many startups, where a neighborhood Starbucks or a public park bench can serve as their daytime headquarters.
Although this is a regular custom for most startups, there are several areas that demand consideration.
In-person meetings have now been completely replaced by virtual meetings. This calls for sufficient internet capacity to meet the fast-growing demand, along with a dependable low-latency network. While previously a few substandard connections might have been tolerable, this can’t be the usual situation moving ahead.
Crucial documents can no longer be physically signed – an e-signature system will need to be either procured or used. Digital chat turns into a vital communication pathway and everyone should be proficient with the platform. More stringent rules that require observance need to be implemented. Thorough employee education is also crucial.
Strains on Security
Security enhancements may be required across various facets such as hardware, services, or operational procedures. For instance, an inadequacy might be pointed out if there’s a requirement for a robust VPN setup to link with office networks, but the current VPN is unable to sustain the load of the full employee headcount.
For early-stage businesses, which are typically constrained by limited funds, ramping up VPN licenses may not be feasible. It’s critical to ascertain that shortage of funds does not lead to a disregard of data security measures. Priorities need to be data privacy, safeguarding communications, and curtailing risks. It’s a distressing prospect for businesses to weather a health crisis only to face a legal wrangle afterward.
A reasonable alternative during this COVID-19 stretch, instead of acquiring new VPN licenses or hardware, could be embracing services like Cloudflare Teams for secure access.
Opportunities
Present circumstances might seem contradictory, but they unexpectedly unearth prospects for enterprising innovators.
A flurry of innovative ideas and young businesses is expected, intended to meet the expanding demand for rapid response mechanisms and robustness amidst recurring pandemic scenarios.
Technologies like blockchain, foolproof databases, IoT, and forthcoming 5G facilitated networks are foreseen to instigate solutions for immediate reaction to situations akin to the Coronavirus outbreak.
Furthermore, this situation embodies an unpredictable occurrence, and educates investors about the necessity to foster resilient systems within startups.
The conventional method of just manufacturing a Minimum Viable Product (MVP) is now inadequate. Proposing redundancy and emergency resilience solutions is increasingly essential.
The COVID-19 crisis will completely alter investors’ assessment of startups. Startups will now need to do more than identifying needs and crafting solutions. This will also open doors for new services and concepts, leading to heightened innovative efforts and funding opportunities in the startup arena.
Conclusion
The current emergency situation is not only putting our social lives, health, and financial stability under strain.
It situates many startups in a precarious condition where they stand to lose clients, forgo investment opportunities, or simply fail to weather the storm.
However, this very crisis can be a hotbed for new ideas, fuel the demand for unique services, and foster the birth of innovative startups. These startups will not only necessitate but also trail-blaze advanced technologies and strategies. This entire flow of events can powerfully stimulate the economy and enrich the pulse of the startup ecosystem.
Venture into securing safety, stay focused on the security of your operations, maintain consistent delivery to your customers in any possible manner, and fortify your business. Times of adversity often give rise to unity, encouraging us to set aside many of our disparities and extend a helping hand.
0 Comments