Startup Masterclass #1: Navigating Through Covid-19
The coronavirus outbreak has had an enormous impact on business all over the world. Some startups have been wholly paralysed as supply chains are broken, and restrictions are imposed by Governments.
In unprecedented times like this, many business owners, entrepreneurs and even budding entrepreneurs are bound to have burning questions. Chandigarh Angels Network organised a webinar on 3rd April with Kunal Nandwani, Founder of uTrade Solutions, to enable all such individuals to get answers from a seasoned entrepreneur and investor.
Kunal started by stressing upon the fact that Coronavirus will undeniably have long term repercussions on businesses, jobs and the economy as a whole. The lockdown imposed in major countries will extend further, and normalcy will not be immediately restored.
As far as startups are concerned, Kunal says that most startups will be hit, but some may find exciting opportunities, especially those in the gaming segment, healthcare, communications etc. He emphasises on managing cash flows well till the major storm passes. Do not burn too much and avoid unnecessarily spending on marketing and sales. The main goal, for now, should be survival.
Startup funding will slow down as well since investors will tend to be more cautious of the money they give out to startups. Additionally, the funding process will take longer because physical meetings, auditing, due diligence processes cannot be done anytime soon. Startups who are looking to raise a round soon should start working hard from the get-go, keeping in mind all these factors.
Kunal suggests that startups must look at Covid-19 first as a humanitarian crisis and then as an economic crisis. Continuously going through the news will only make the mindset more prone to negativity. Also, he feels founders should be transparent with their teams and even if people need to be laid off after a point or salaries need to be cut, they should be kept in the loop.
Being a humanitarian crisis, Kunal expects social impact startups to possibly get the upper hand during this time and get in the spotlight, although funding may still be a challenge. He feels that established companies will be hurt more while smaller businesses can make pivots and adjust to the situation- being smaller is useful at this time.
Offline businesses like groceries, medicines etc. are keeping their heads above the water, being essential services. The others are likely to struggle but have time to prepare for the same proactively. With work from home becoming the new norm, real estate prices are also expected to fall according to Kunal.
He adds that such a lockdown may be a good time to build a startup in industries which are likely to survive in 2021 since it anyways takes entrepreneurs 5-6 months to build their product. If they can bootstrap initially, it’s an opportunity worth considering.
Kunal feels online communication infrastructure, healthcare, telemedicine, esports and education technology will pick up quite a lot after the pandemic. He also suggests that those looking for very early-stage funding, they can look to family and friends, university grants and banks. He further clarifies that some of the most prominent startups even today are bootstrapped, and funding is not the key to success.
Catch the session below.
