“…Nobody warns you about things like this…”
The current global economic situation has made it downright impossible for most companies to follow through with their initial financial strategy of the year, least of all, startups. As such, an ability to be adaptive, a resilience that looks away from tactics, and focuses on pure grit and a large element of good fortune are what the startups are relying upon to stay afloat in these dangerously uncertain times.
Many of them have gone under, and with the remarkably unflattering numbers, this might be the end of the start-up adventure for many more.
In essence, we are in extremely unprecedented and volatile times, and the markets seem to be swinging in whatever uncertain ways they like.
As we agree that things might not be reverted to normal anytime soon, we spoke to some startup entrepreneurs(SE) and Investors/Venture Capitalists(I/VC) on how they view the situation and their insights into the future.
These are some of the reactions(revised);
Taiwo Adeyemo (SE): The lack of market opportunities is our fear. Where there was a booming market for us before now, what if after this period customers go into a defensive mode with no engagements and whatnot.
Dr. Afeez Lambo (I/VC): I find it interesting and a little sad that Startups who have little or no need for these funds are requesting and being granted loans by the government, and people who actually need it for feeding can’t get any relief funds. This is a serious injustice if you ask me. Our government has failed us again.
Ngozi Rose(SE): They are laying off office workers, those one’s will now start springing up their own small businesses and push out already existing one’s like myself out of business. I fear for the future.
Busayo Aderibigbe(SE): Nobody warns you about things like this, nobody teaches you about things like this. We have run out of money, we don’t know where to find any…it’s mostly the fear of what is to come. We have for today, we have for tomorrow, but the members of staff are getting nervous about the farther future because the numbers aren’t looking good.
Uche Collins(SE): Make a risk management plan, diversify revenue channels, these are tips that should have come earlier. We are right in the middle now, we are looking to investors for help.
How can startups avail themselves in this challenge?
Innovate: Strive to reinvent yourself. Don’t just be afflicted by the tsunami, ride the wave. Previous recessions have birth great inventions, this could be a turning point for you. Analyze the changing trends, restrategize your business model and look for new avenues to generate revenue
This is not the first global crisis, or recession, or pandemic; we’ve been here before. We’ve overcome this before.
And you will too.
“He says that the best way out is through, and I agree to that, in so far as I can see that there is no way out but through.”