Growing a successful startup is difficult enough, but even more challenging during the COVID pandemic. Even established startups are having trouble keeping the lights on, and teams employed.
A survey found that 77 percent of small business owners are worried about COVID and its impact on the economy. And 49 percent have seen a decrease in consumer demand.
With daily cash flow slowly declining for startups and small businesses, it can be easy to see how founders and owners are worried. Many startups only have a month or two of cash to weather an economic storm.
To provide some hope, we compiled a list of 7 COVID business survival tips for startups. Let’s dive in.
1. Return Leased Equipment
It is not uncommon for startups to lease equipment when just getting business operations up and running. But paying on leased equipment that may be getting little to no use doesn’t make sense during COVID. Start saving monthly by returning the leased equipment, or renegotiating the contract.
2. Re-Examine the Software Your Startup Utilizes
Startups rely on a lot of software to do business. From generating leads to developing tech solutions, software and web-based platforms are often staples. However, software and web-based products can be pricey.
To reduce monthly spend, a startup needs to take a closer look at the software and platforms that are in use. For instance, premiere lead generation and outreach software can cost thousands every month.
Do you really need that software to make business happen? In most cases, a startup team can get back to basics utilizing free services to track sales and operations efforts.
3. Protect Business Spend That You Can’t Do Without
There are some business expenses your startup simply can’t cut. For example, your vehicle may be essential when it comes to business travel during the COVID pandemic, since air travel is risky and far more difficult to navigate.
Protecting those essential business assets, like getting vehicle warranties, or renters insurance, for your startup office. You can learn more about these types of must-haves, like an extended car warranty via this Olive: When does extended warranty start on a used car blog article.
4. Consider Home Office To Decrease Monthly Rent
Having an office for your startup is great. You can separate personal from professional life, as well as begin building a powerful startup culture. But spending a ton of money every month on an office doesn’t really make sense if no one is there.
Even if you can have your team still in-office, why take the risk, and keep spending the much needed funds? Making home office a thing for your startup can seriously reduce monthly spend. It may even be enough to keep your team safe from layoffs.
There are a handful of companies in the tech space that will be making home office a permanent thing too. For instance, Twitter recently announced that it will have remote work options forever.
5. Get Rid Of The Business Consultant
Why do you need a business consultant for your startup if scaling down during the pandemic is on the to-do list? Consultants are extremely expensive. And in all reality, you probably don’t need to pay a consultant anyway. Find a few mentors willing to help for free and get rid of the costly business consultant.
6. Negotiate Reduced Payments With Suppliers
Depending on what type of startup you have, you may be using a number of suppliers for electronics, manufactured parts, and more. Instead of having those monthly payments go out to suppliers like usual, renegotiate payment terms to help lighten the burden a bit for your startup.
Yes, those suppliers are probably dealing with their own COVID business problems, but they do understand the problems startups and small businesses are facing during pandemic economic uncertainty. Give them a call and see if you can work out a temporary deal.
7. Bootstrap Your Marketing Efforts
Marketing can eat up a lot of your startup budget. From email marketing to social media, there are endless ways to spend much needed money on marketing. Instead of paying someone to do your marketing, bootstrap and do it yourself.
This can be a big time money saver every month. And you’ll be surprised by how easy DIY marketing is. Hit social media, write more actionable blogs, and guest post on industry publication websites. Get more from your marketing by spending less.
In Conclusion . . .
The above 7 COVID business survival tips for startups are just the tip of the iceberg. There are certainly a number of other money saving pandemic tips startups can leverage to keep business operations running. How has your startup been weathering the economic storm COVID has ushered in? We want to hear from you.