survivalpath Pro Tips — Week #1

Survivalpath aims to shed some light on the business related problems caused by the Covid-19 crisis and how to tackle them. Each week day we hold broadcasts on our Youtube channel in order to bring the best names in the ecosystem to help guide you through these challenging times.

survivalpath broadcast guests of week #1

Monday: Survivalpath’s first guest last week was Koray Gültekin Bahar, who is the co-founder and CEO of Figopara, a user-friendly supplier financing platform. We discussed crisis management strategies during the times of Covid-19.

Here are the highlights of the conversation:

1. Covid-19 crisis differs from any other crisis in that nobody can foresee how this crisis is going to play out or when it’s going to end. The only thing we know is that the Covid-19 crisis will cause behavioral changes in the ways people work, live, spend and survive.
2. Covid-19 crisis prompts digital transformations. Thus, industries or companies finding digital solutions are the winners such as local grocery delivery apps Banabi, Getir, and Iste Gelsin or Zoom in the US.
3. In this time of crisis “cash is the king”. Companies must pay critical attention to their cash flow as cash flow planning will most probably determine if they’ll sink or float.
4. Listen to your clients’ needs. Try to provide solutions to their problems and avoid any unnecessary spending.
5. Keeping the team spirit and company culture alive might be difficult but casual Zoom meetings where the team can chat and have a cup of coffee will foster team bonding.

Tuesday: Our second guest was Ersin Pamuksüzer. He is the chairman and the head of the Basaksehir Living-Lab Project, co-founder of Startershub, co-founder of Mentor Effect & Angel Effect . He is also the founder of the well-being company “The LifeCo”. We discussed survival of startups and extending the runway.

Here are the highlights of the conversation:

1. Managing the crises smoothly requires special talent and capability. During times of crises, the regular ups and downs of startups are amplified significantly. The Covid-19 crisis will cause even bigger problems than the Great Depression of 1929, affecting primarily our health then the economy, psychology, and social life.
2. Everything is changing fast worldwide. Entrepreneurs are affected both psychologically and economically. Investors are hesitant even towards trusted sectors. World financial markets, consumer demands, and behaviors are changing immensely.
3. Startups should hibernate to survive the crisis. Aim to survive with minimum energy and effort.
4. Macro solutions should come into play in order to fully weather the crisis. Crises are the traumas of companies. Normalization after the Covid-19 crisis will take time.
5. Younger generations will rapidly adapt to the work from home culture and will see an increase in efficiency. It’s important to protect a balanced lifestyle by regularly taking breaks, getting some air, and continuing to exercise.

Wednesday: Survivalpath’s third guest this week was Enis Hulli, one of the managing partners of 500 Startups’ Turkey division. 500 Startups is an internationally renowned venture fund. We discussed the actions of startups in the global ecosystems.

Here are the highlights of the conversation:

1. We are in a grave crisis and no matter which sector we operate in the technology field the market will shrink. Technology investments are long term investments for brands. Thus, budgets spared for technology will decrease.
2. Hulli invests in three types of companies:
3. Companies of Turks and Eastern Europeans who live abroad formed in their respective residency countries
4. Companies formed in Turkey but extended to foreign markets on their own
5. Companies that mature their product in Turkey in order to act regionally
6. All companies will be affected negatively but companies in Turkey, which usually receive less investment will be affected less so comparatively.
7. Even if life goes back to normal in 1–2 months, the economy and the budgets will take at least 2 years to go back to the way they were before the crisis.
8. Three industries that face the imminent risk of losing half their clients in the next 12 months are sectors that consist of restaurants and cafes, travel, and retail. Hulli personally tries to invest in startups from his portfolio operating in those sectors.
9. The most crucial point for startups during the crisis is to turn decisions into actions as soon as possible. Startups should remember that they must aim to survive not to grow in this period.
10. Projects that look appealing to Hulli for investment in the near future are the ones providing solutions in the health industry.

Thursday: Our fourth guest this week was Barış Özistek. Özistek is a mechanical engineer who has years of experience in the corporate field. He then established himself a prominent place in the entrepreneurial world. He is an entrepreneur himself as well as the co-founder of two important platforms, StartersHub and Bogazici Ventures, that support entrepreneurs. We discussed business plans and models in high uncertainty situations.

Here are the highlights of the conversation:

1. We can call what we’re going through a chaos rather than crisis since no one has trusted information on what’s going to happen or when it’s going to end.
2. the one important thing to keep in mind in this period is that eventually this chaos or crisis will end and when it does it’s vital to foresee the changes that await the ecosystem and switch to a new business system accordingly. Remember that the ones who fight will win.
3. There are a lot of things that are out of our hands. However, what we can do is to focus on and predict how things are going to change, and we can see that everything is changing and changing pretty quickly.
4. Moving conferences and meetings online will become more efficient and risk-free.
5. It is possible that we’ll be making these online conferences or meetups in English in the future.
6. We can overcome the Turkish barrier to expand internationally sooner than we have planned.
7. Rethink your business model. Don’t try to make the old one work if it’s now outdated. Instead, find a new one that works.
8. When making a new business plan ask yourself what you have in hand and what you can do with it. Also pay attention to the question, “How much am I paying to get this user?”

Friday: Our last guest this week was Dilek Dayınlarlı, founder of ScaleX Ventures that invests in early-stage technology, software and Internet businesses. We discussed road maps for startups under uncertainty.

Here are the highlights of the conversation:

1. Dayınlarlı emphasized that they will invest in early-stage companies with a strong management team that manage to survive through the crises and promise a global expansion.
2. We can divide the crisis into three phases: health (we each are facing death to some degree at the moment), economic recession, and mental health problems.
3. Startups that show strong and true values during this period will receive investment.
4. Startups should focus primarily on the cash flow during the crisis management.
5. Startups should continue their conversations with people in similar situations, pay attention to their teams ,and keep up with team responsibilities.
6. Successful entrepreneurs always make realistic business plans. Think about what you can do to stay afloat , to differentiate yourself from the others, and think about how the world will change after the Covid-19 crisis ends. It is difficult to make long term plans in this period so leaving room for flexibility would be the best move.
7. If you plan on providing a new service or launching a new product understand your client and provide a solution.
8. Talk to people who are going through similar problems to keep your mind healthy. Establish a routine and stick to it for some mindfulness.

Key Tips from this week:

1. Focus on your cash flow.
2. Think about the new normals after the crisis ends. Try to predict the changes.
3. Revise your business plan.
4. Listen to your clients.
5. Fight to survive! survivalpath guide is always here to help you.
6. Most importantly stay healthy and stay home!

If you would like to contribute to the survivalpath email us at hazal@survivalpath.co

Hazal Ozkan