The COVID-19 pandemic has upended business as usual for many companies, including those in their infancy. In response to the crisis, sales and marketing plans have had to reconfigure their commercial arrangements to adapt to the new normal. Whereas in the past a company’s ability to endure crisis was based on its size and financial stability, in the current environment startups must be nimble and adaptable to survive. The Covid-19 pandemic has forced businesses of all sizes to re-evaluate their strategies, but for startups the stakes are especially high.
One of the biggest challenges for Startups has been transitioning from in-person to digital sales and marketing activities. In the past, many Startups relied heavily on face-to-face interactions to build relationships with potential and current customers. However, with social distancing measures in place, new businesses have had to find new ways to reach their target audiences.
Digital channels such as webinars, e-newsletters, and social media have become essential tools for Startups looking to engage with their customers. Additionally, many mature Startups are investing in new technologies such as chatbots and artificial intelligence to help automate sales and marketing tasks.
The pandemic has also had an impact on the way Startups generate leads. With funding cuts and reduced grants, fledgling business have had to get creative with their lead generation strategies. Inbound marketing tactics such as content marketing and SEO have become increasingly important, as they allow companies to reach their target audiences without spending a lot of money on traditional advertising.
In order to weather the storm, startups must focus on three key areas: funding, talent, and market opportunity.
1) Funding: Startups that were already struggling to raise capital prior to Covid-19 will find it even harder in the current climate. Venture capitalists are becoming more risk-averse, and many firms have put a freeze on new investments. Startups that do manage to secure funding will need to be extra careful with their spending in order to stretch their resources as far as possible.
2) Talent: The war for talent is always competitive, but in a recession it becomes even more so. Startups will need to work hard to attract and retain the best employees, as they will be in high demand. Offering competitive salaries and benefits packages will be essential, as well as creating a company culture that is attractive to top talent.
3) Market opportunity: Startups must be laser-focused on their target market and ensuring that their product or service meets the needs of this market. With businesses of all sizes cutting back on spending, there is less room for error when it comes to marketing and sales strategies. Startups must be able to articulate their value proposition clearly and show how they can provide a solution to their target market’s problem.
The Covid-19 pandemic has created an uncertain future for startups, but those that are able to adapt and pivot will be the ones that survive and thrive. Focus on these three key areas and you’ll be well on your way to weathering the storm.
Do you have a startup that has been affected by Covid-19? Contact us to share your story.