How to Make Your Business Thrive During and After the COVID-19 Pandemic
Pour lire la version française de cet article, cliquez ici. This post was written by Nadine Antoun for MEST.
What should I do now? is the question on most entrepreneurs’ minds. Almost overnight, the COVID-19 crisis — an event of an extreme rarity with a severe impact, has hit everyone by surprise. Many startups are facing unsettling times that can either paralyze and create ‘unproductive uncertainty’ or on the opposite, precipitate entrepreneurs into making incautious decisions regarding their businesses. To ensure that companies thrive during and after this pandemic, entrepreneurs will have to navigate through ambiguity. As described by Monitor Deloitte “embracing uncertainty means knowing what you know, knowing what you don’t or can’t know, and knowing the difference.”
MEST knows that supporting African tech startups, such as yours, is critical during and after COVID-19.
So, what should you do now? what entrepreneurs should do now is to focus on what they know, and what they can control. Below, MEST has compiled common situations entrepreneurs are facing during the pandemic, and the actions you can take if you might be facing a similar problem. Categorized by augmenting (↑), continuing (→), or decreasing/canceling (↓), each situation has multiple options to be adapted to your specific scenario.
To use in tandem, MEST has created a roadmap that you can complete on your own or with team members for how to approach a problem in 5 steps and ultimately find solutions to thrive during the crisis.
SITUATION #1: HANDLING SUPPLY CHAIN DISRUPTION
For the first time in decades, the Chinese economy has been shrinking, which will cause some major disturbances internationally. Just like Ghana, Nigeria, South Africa, and Kenya, most African countries have China as their top import partner. Even though the Chinese Government has permitted factories and businesses to progressively return to their activities, the production levels are still not at their full capacity. This could lead to higher prices for goods, which constitutes a paramount issue for countries that are highly reliant on imports. As stated by Anand Mahindra, the CEO of the Mahindra conglomerate “What people thought was a global supply chain was a Chinese supply chain.” The supplies from China are not the only cause of the disturbance. The COVID-19 pandemic is also affecting demand. According to MIT Professor Yossi Sheffi, there is already a reduction in demand due to fear, social distancing, media, and online hype.
Additionally, the pandemic will force companies to re-evaluate their logistics. For example, due to confinement and social distancing, there could be a higher demand for express last-mile delivery. Therefore, with this step being both costly and tedious for companies, entrepreneurs could turn to “uber-like” e-logistics platforms such as PicUp and Lori Systems. In the future, Drone delivery could also be an alternative to reach remote locations. For example, companies such as Zipline and Lifebank, have been delivering blood, blood products, oxygen, and vaccines to hospitals across the continent. As of now, air traffic for drones is not regulated in Africa, however, this could change. Edward Anderson from the World Bank “ […] argues that they should be regarded as useful not just for medical deliveries. [Drones could provide] economic opportunity in agriculture, for small-scale manufacturers, and to deliver time-sensitive goods such as cash and documents.”
What should you do now regarding this situation?
In the past, companies were focused on cost reductions, scaled-down inventories, and a higher asset turnover ratio. This has lessened flexibility and made them vulnerable to disruptions such as the COVID-19 pandemic. Consequently, more businesses will rethink their global supply chains. Some of them will move from a traditional one to a digital supply network (DSN). DSNs enable companies to be agile, to forecast future challenges, and to have a clear picture of their entire supply chain. This, by using the Internet of Things (IoT), artificial intelligence (AI), robotics, cloud computing, 3D printing, and 5G technologies. Implementing a DSN will take time, but other actions can be taken right now to counteract the current situation. As a matter of fact, it will be important to communicate openly with your suppliers and watch their financial health.
This is what Desmond Koney, Complete Farmer’s CEO, has been doing, among many other measures to counteract the effects of the pandemic. Koney has kept clear and constant communications with his company’s providers to see if their logistics chain has been disrupted. Furthermore, the COVID-19 crisis has pushed Complete Farmer to build stronger relationships with its stakeholders. These are all measures you should follow as an entrepreneur. You should also regularly keep updated with news from your supplier’s cities and areas and see if there is any talk about redundancies, bankruptcies, or going out of business.
Here is a summary of additional procedures you can follow.
SITUATION #2: EMERGING CONCERNS WITH HUMAN RESOURCES
With the COVID-19 pandemic, new challenges are arising related to human resources. Whether it’s implementing new technologies to maximize remote work, providing protective equipment for on-site employees, evaluating workforce costs, giving support for employee’s physical and mental health, or handling lower levels of productivity caused by general stress and anxiety: managing human resources during the crisis is daunting. At the moment, the keys to successful human resources management are safety, over-communication, and transparency.
What should you do now regarding this situation?
If remote work is not an option, you should look into your cleaning and sanitation protocols and adjust your workplace to respect social distancing. Work Design Magazine has created a checklist that can be used to guide you while planning your employees’ return to the office. Protective gear, such as masks, gloves, and shields should be provided to your on-site employees. Moreover, Hydroalcoholic solutions and soap must be available to wash hands. Additional measures could be necessary in some cases — follow best practice guidelines for your situation.
To some degree, everyone is psychologically affected by the COVID-19 pandemic. For this reason, providing your employees with resources such as counseling is essential to promote mental health.
As for workforce costs, it is crucial to evaluate the short-term and long-term effects and plan for sustainability. You should also look at your country’s government schemes for “temporary employee and employer relief”. KPMG has gathered all the information in one place.
Depending on your company’s position, here are actions you can take.
SITUATION #3: DEALING WITH A PRODUCT LAUNCH
Marketing and brand tone
Currently, companies should be careful about how they portray themselves. In a recent survey from Kantar Insights, results show that among 35,000 consumers globally, only 8% thought brands should stop advertising during the crisis. Consumers were unanimous (78%) on the fact that brands should help them with their daily lives, and that companies should keep their customers informed on their activities (75%). In addition, 74% of the respondents thought that companies should not exploit the situation. Any business that is seen as using the pandemic as an excuse to make a profit can be seen very poorly. It could also have a lasting negative impact on a company’s reputation or brand image.“That gives a sense of how delicate the balance is at the moment” mentioned Rosie Hawkins, Kantar Insights chief innovation officer in an interview with MarketingWeek. “There is a need to talk about brands, but to do so in a way that supports governments and consumers and is not exploitative.”
When it comes to tone and messaging, a winning formula is using a reassuring, positive tone. Using a humorous tone could be contentious, with 41% of respondents from the same survey mentioning that they think brands should avoid humorous tones. Then again, it all depends on each company’s situation. If humor is part of your brand identity, it might be best to keep it that way with “more than 50% of (respondents) also think(ing) brands should talk as they have always done.”
Product launch: What should you do now?
Let’s say that you are in the final steps of your product launch, meaning that you are very close to your goal. First off, you should be proud! Launching a product is hard work. At this stage, your launch date is established, your employees know that the product launch is coming and you are ready to communicate the good news to your customers. “The big reveal is an exciting step, but it’s also a high risk-high reward moment in your product launch process,” as mentioned in the anatomy of a product launch from ProductPlan. In order to have a successful product launch, it will be important to grab the media’s attention. It is not an easy task, however, with the pandemic happening, it will be even harder to do so. At this point, you should look at the next 90 days, and establish with your team if alterations need to be done. Whether it is for the launch, the product, or the marketing approach and advertising campaigns.
SITUATION #4: HAVING A BIG LIVE EVENT
The live event industry has been deeply impacted by the COVID-19 pandemic. If you have organized an in-person event, you have probably many questions regarding whether or not to go through it. Each situation is different, depending on the local government’s rules, when your event will be, and the number of attendees you are expecting. You will have to decide if you are postponing your event, canceling it, having it online, downsizing, or just keeping it the same. You will also have to look at your finances to determine what to do and how to handle the logistics. Canceling an event might be more expensive than postponing it.
What should you do now?
As of May 21st, in Ghana, South Africa, and Kenya, public gatherings, social events, and face-to-face meetings have been suspended. It is safe to say that you should not go forward with a live event if it is in the near future. If it is in a few months, things might change. Though, it’s still a risky decision. If you decide to go with it, the World Health Organization (WHO) has established some guidelines for mass gatherings that can be applied to smaller events; “promote hand-washing, respiratory hygiene and social distancing at the event. Make sure you have emergency contact details for all participants, including where they are staying during the event. You should make it clear to them that this information will be shared with the local public health authorities to enable rapid contact tracing if a participant at the event becomes ill with COVID-19. The event organizers need to have an agreed preparedness plan in case one or more participants become ill with COVID-19 symptoms.”
How to successfully manage your event
It can be challenging to keep your guests interested and informed about the status of your event. If you decide to move your event online, Eventbrite has come up with two articles: “30 tips and tricks for hosting a successful online event” and “9 Fun Ideas to Spice Up Your Online Workshop and Engage Your Audience”. Transferring your event online could also mean a better and augmented outcome. For example, MEST has decided to change its formula for the MEST Africa Challenge. The competition that will be held online for the first time has been expanded from five markets up to nine. There can also be unexpected perks to your digital transition. This is what happened to two MEST funded startups, Samirah Maison CEO of Massira, an online forum for women about mental, sexual, and reproductive health and Abimbola-Kofoworola Oladeji, Co-founder of Adi+Bolga’s, a skincare company that offers personalized products and regimens had organized an in-person event and had to move it to a virtual one. Having the event online on WebX was a blessing in disguise. It allowed them to create a “space for anonymity” where everybody is relaxed and can talk about personal subjects. They also augmented their event from 4 days to 4 weeks. Right now is an opportune time to be creative and come up with new ways to hold your events and grab your customers’ attention.
SITUATION #5: RAISING MONEY WITH OR WITHOUT INVESTORS
During the pandemic, some companies will experience great opportunities, especially the ones related to essential services, while others will be faced with great challenges and might experience an abrupt stop in cash-flow.
What should you do now?
When it comes to raising money, the first step for entrepreneurs will be to establish whether the pandemic will have a positive impact on their businesses with high projected economic growth/potential for earnings or a low one.
The second step will be to determine whether or not the company has high internal savings, this can be established with the business runway. It is an important point since it will determine the urgency to raise money, whether it’s with the help of investors or self-sufficiently. According to an interview with Clive Butknow, chief executive officer of Kalon Venture Partners, there will be fewer VC investments with liquidity being in short supply. “Venture capitalists will focus on their current investments and on ensuring they have sufficient cash flow to see out the crisis.”
Although this may be true, if you or someone you know has been laid off due to job redundancy, it could be an opportunity to reorient towards entrepreneurship. Since the beginning of the pandemic, more African venture funds are beginning to appear, offering funding to early-stage companies. The Future Africa Collective is one of them. The Collective’s goal is to “[…] democratize the opportunity of investing in African tech startups for younger interested investors.” This type of collective could become increasingly popular, with international investors being scarce.
Additional ways to raise money without investors
Depending on your company’s situation, you will have to determine whether you want to have investors or not. Either way, you should become an expert in finding stimulus packages and grants. A good place to start is the Duke Fuqua #COVID19 Capital Relief page. Don’t overlook Hackathons, such as Africathon and NASA’s Space Apps COVID-19 Challenge which can be a great learning experience as well as an opportunity (for some of them) to earn extra cash. Finally, you should negotiate harder, and have the courage to ask difficult questions related to money. You could also sell things in your office, or offer new products or services.
CONCLUSION
Altogether, through the difficult times we are facing, these extraordinary circumstances will make you an agile entrepreneur. You will grow, whether it’s by increasing your emotional intelligence or by becoming better decision making.
Don’t forget, MEST has created a roadmap that you can complete on your own or with team members. Use it as a guide to direct you on how to approach a problem in 5 steps and ultimately find solutions to thrive during the crisis.
