5 ways management plays a crucial role during Covid in a startup
The world of startups is as intriguing as it is risky. While the thrill of profit and the alluring idea of changing your life with one startup idea sounds exciting, the startup is not everyone’s cup of tea. Today, there are so many people who have startup business ideas but not everyone pursues them! If it was so easy to run a startup and earn from it, everyone would be a startup owner today. But running a startup requires a lot of things, which is why very few startups actually make it big and survive in the long run. A lot of startups often start on a good note with good startup ideas, but fail to maintain a stable rate of growth. Running a startup requires a lot of resources. It goes without saying that startups need capital to function. You either need to have a good amount of money to invest in the startup or you need to be backed by an investor. However, financial capital isn’t the most important ingredient to a successful startup.
An experienced, competent and resilient startup manager is the most important part of any startup. It’s not about the resources but it’s more about how they are utilized that truly makes all the difference, in the world of startups. This is exactly why the management of any enterprise makes a huge difference, especially in today’s scenario. As the world succumbed to the pandemic, a lot of startups had to shut down for various reasons. Many couldn’t adapt, many couldn’t evolve, and many just couldn’t withstand the losses. But the ones that managed to evolve are the ones that will make history. And the management that spearheaded these startups, truly made all the difference.
Wondering how management plays a role in the times of Covid? Here are 5 ways how:
Good managers protect their employees when the need arises:
In the past year, a lot of startups that suffered losses cut the salaries of their employees in order to minimize costs. While this may seem like an acceptable move in the short-run, it does more harm than good. Not only does it put the employees and their families in financial turmoil, but it also shows the employees that you are willing to sacrifice their well-being for short-term goals. A few startups rose to the occasion and not only paid employees full salaries but also provided them with medical assistance and gave them mental health leaves. This goes a long way in enhancing employee loyalty!
Competent management knows how to optimize costs:
During the pandemic, costs have been at an all-time high, demand for goods and services was low and so it was difficult to achieve economies of scale. In times like these, managing finances becomes very messy. However, if the management possesses financial acumen, it is possible to minimize costs and optimize financial resources through various methods. Fashion houses for instance, used waste materials to make upcycled products that are in vogue. Content companies, at the same time, could rely on user generated content instead of paid content created by external sources. A competent management can always find ways to optimize.
Experience always counts:
If a startup has been in the market for longer, the management will be better prepared for contingencies for the sheer reason that the startup might have faced similar challenges in the past. If the management has members who are experienced, they might be able to steer the startup out of the rough times.
Crisis management makes a big difference:
In sensitive times like these, it is important for brands to not just provide their core offering but to also take a humanitarian approach. In times when a lot of people are suffering, blatantly selling your product might come across as opportunistic. But being able to grow your business while also giving back to the community and being sensitive to the current situation can help the startup flourish even during a crisis like Covid. In such situations, management decisions make a huge impact.
Management that perseveres will survive:
In a pandemic, it is very difficult to be optimistic about a business, especially a startup. With increasing costs, higher production charges, more overheads and low demand, a pandemic can test the limits of any startup. But if the management is farsighted, it will be able to persevere through it all and lead the business towards stable growth. The management of any startup truly makes a huge difference in times like these.
A sound and qualified board of managers will lead the startup well, even when the going gets tough. In the world of startups and in the times of Covid, management truly plays a crucial role!
