Starting a new business during a pandemic

19.08.2020

Starting a business involves plenty of risks, and when doing so during a global crisis, the risks are exponential. Now is also a great time to start your own business. I recommend getting three things right; establish a solid safety net, setting up the business correctly, and focusing on surviving the early stages. 

Safety Net 

 

Start with creating a safety net. A safety net allows you to generate income while your new business matures. Here are a few pointers;

  • Doing freelancing work

  • Securing a part-time job

  • starting a side hustle 

  • Securing consulting work 

  • Seek support from your partner. 

 

Setup  

 

Set up your business as lean as possible, without compromising on critical success factors such as marketing, etc. 

  • Choose a co-founder carefully. 

  • Invest a minimal amount in Reach & Development (R&D)  

  • Keep operational expenses as lean as possible.

  • Tackle regulatory requirements from day 

  • Don't compromise on Marketing spending.

  • Leverage free services and resources 

  • Keep budget to breaking even realistic. 

  • Set a clear target to achieve 

  • Host a launch party 

 

Early Stage

 

Once you have set up your business, now is the right to focus on how you will generate revenue quickly and set the trajectory towards profitability. 

  • Start generating revenue from day one.

  • Don't operate in isolation; join a coworking space or lab.    

  • Focus on quarterly goals and priorities for the first 12 months

  • Don't rely on predictions and forecasting, instead use Innovation Accounting for establishing value and growth hypothesis.

  • Getting to sustainable profitability is very important. Don't lose focus on this. 

  • Run the business like an established business. 

 

Set up your new business at Johnson Corner and increase its chance of survival through collaboration and support from fellow entrepreneurs.