Surviving the COVID-19 storm: resources for startups
In face of the COVID-19 crisis, we have compiled a list of resources for startups that help with monitoring news, regulations & incentives, learning from the past and adapting ways of working.
Updated Tue, June 16, 2020
The Coronavirus pandemic has the ability to continue to disrupt the economy — both near and long term. As a startup, surviving in this new reality will be challenging, but also offers opportunity for those who can react quickly. Monitoring news, regulations & incentives, learning from the past and adapting ways of working will be essential for success. Here is a list of the best resources we’ve seen so far that can help:
Forecasts & lessons from the past
- How will Covid-19 impact funding? Global private funding is expected to have the biggest decline since 2012 in Q1’20, with the highest impact on Asia. See the full forecast for the effect of the pandemic on startups.
- What’s going to happen? In COVID-19: Implications for business, McKinsey & Company dive deep into different possible scenarios of the outbreak and what outcomes to expect.
- How can we compare this to the the 2008 financial crisis? In light of the current crisis, Investopedia shares key numbers on closures, layoffs and loans 12 years ago.
- Are we better prepared this time? In this article, Straits Times compares the crisis effects on stocks, currencies, bonds and credits seen in 2008 with what we are seeing today.
June, 2020 update:
- Quick rebound: CB Insights looks at how the Covid-19 crisis has been impacting startup funding compared to the 2008 crisis
- Digitization and decentralization of manufacturing capacity: The World Economic Forum examine how the global supply chain will be changed after COVID-19
Alright. What to do next?
Dozens of investors, CEOs, and consultants have been sharing their pieces of advice for startups on how to stay strong in the times to come. Here are some of the best ones:
- Focus on SCM. Right now, small businesses should put extra focus on Supply Chain Management. GC Capital Ideas shares a report on how to set up an immediate response to supply chain disruptions.
- $$. Managing cash flow is also vital. Tech Radar and CFO Dive have some good tips for managing finances in the Covid-19 crisis.
- Reassess critical elements, such as burn rate, business model and investor expectations — check out VentureBeat’s coronavirus survival strategy for startups.
- Consider putting fundraising on hold. Find new opportunities and look for non-equity sources of cash: Dan Rosen shares his advice for how startups can survive the Covid-19 crisis.
- Hold on to your customers. Keeping churn to zero is one of the 5 tips developed by a group of investors for startups hurting with the crisis. Read all of them on Sifted’s website.
June, 2020 update:
- Entrepreneur Europe offer advice on how to reduce the impact on cash flow and also share a start-up survival guide on how to reduce cash burn & maximise cash influx.
- Founder and entrepreneur Sonia Aron offers 10 important tips to the startup community for surviving this uncertain time.
Updated June, 2020:
- US. US startups can apply for Small Business Support measures, which include the Paycheck Protection Program, SBA Loan Forgiveness and Economic Injury Disaster Loans. Note: applications for the Paycheck Protection Program (PPP) are open until June 30, 2020.
- UK. The UK government has put in place several measures to support businesses, including deferring VAT payments and a Coronavirus Business Interruption Loan Scheme. You can find which scheme applies to your business through the Coronavirus business support finder.
The Coronavirus Future Fund package has been recently launched, offering convertible loans between £125,000 to £5 million to support small innovative businesses in the country. If you are in doubt about whether your business is eligible for it, Sifted has developed a comprehensive Q&A for guidance on how to apply to the Future Fund package.
- In Denmark, a help package is being offered to SMEs whose export activities have been affected by Covid-19. In addition, the government has put in place a series of compensation schemes for businesses, which you can apply for through this link (in Danish).
Embracing remote work
If this is your organization’s first time trying to work remotely, GitHub has developed a set of general guidelines to help you get started, and McKinsey Digital developed a blueprint for remote working based on lessons learned from China. Also, Local Globe & Latitude have put together a working document with a long and rich list of resources for employees and managers working from home and administering teams.
In addition, here is a list of our favorite tools & guides on how to use them:
- For video calls: Zoom. Zoom is a great tool for video calls, especially with a larger number of participants. Zoom’s team offers a set of tips on how to use Zoom like a pro. In addition, it offers tips for successfully managing remote teams and working from home in general.
- For communication and community building: Microsoft Teams & Slack. For a list of all features Microsoft Teams offers and how to use them, click here. You can also check their general tips for effective remote work. Slack also has tips on how to master their platform, as well as general advice for managers leading remote teams.
- For project management: Notion and Monday. Both are online tools that offer numerous features for teams to work simultaneously on projects. Check out a beginner’s guide on how to use Notion, as well as set of guidelines on how to use Monday.
June, 2020 update:
- Danny Crichton offers his opinion on how COVID may spell the end from traditional working environments and how WFA (Work From Anywhere) may become the new norm.
- Forbes Business Council share 15 survival tips for businesses not used to remote working, including how communication and technology are key.
- Nick Friedman provides his top 3 tips for maintaining a company culture in a remote working environment.