Most startups follow a so-called 'growth strategy'. This is a strategy in which, in practice, a lot of (external) capital is attracted to acquire a large market share in a short period of time. The result of this strategy is that startups often show deep red financial results in the first few years.
The corona crisis is now throwing a spanner in the works for many startups. External capital providers are withdrawing their investments and consumers and companies (the customers) are keeping a tight rein on their purse strings . While a large part of your startup's income has probably gone up in smoke in a short period of time, your fixed costs have probably remained largely the same.
Because startups are often dependent on capital injections from external financiers and usually do not have huge reserves themselves, an economic downturn (as we are now seeing with the corona crisis) can cause the water to rise to the lips within a few weeks. In order to survive such an economic downturn, it is important to take action as quickly as possible and initiate a (temporary) transition from a growth strategy to a survival strategy .
Now more than ever, it's a matter of sink or swim for your startup.
The 5 steps to a survival strategy
In the book Survival Strategy for Startups (aff.), author belgium telegram data Tony de Bree has described 5 steps to a survival strategy for startups and scale-ups based on his practical experience. Where you are probably used to taking plenty of time to think up a solid business model , developing a (temporary) survival strategy is all about speed. When the water is up to your lips, there is no time to lose.
Step 1. Create a positive mindset
Although you have probably overcome many obstacles with your startup, chances are that you have not yet had to deal with an acute economic crisis such as the corona crisis. The future of your startup probably looked bright a few months ago and now it seems to be completely gone. However, this is not the time to panic and get stuck in the 'where on earth did it go wrong' phase. It is now important to create a positive mindset as quickly as possible and find the energy to drag your startup through this difficult time.
Step 2. Make a problem analysis & determine the impact of the corona crisis
Before you can develop a survival strategy, it is important to first be clear about the impact of the crisis on your startup. To do this, you perform a quick problem analysis, asking yourself a number of key questions.
