Businesses, especially startups all over the world have been battered by the pandemic as it puts the global economy into a screeching halt.
The novel Coronavirus has forced local businesses to temporarily close shop in the effort to keep people safe in their homes. In turn, it has pushed countless budding startups into ‘survival mode’ to weather the storm. As harsh as it may sound though, the unconventional truth is that startups that remain mainly focused on treading water rather than recalibrating for growth are progressively inching closer to failure.
You might be wondering about how to effectively propel your startup to success while operating in uncertainty due to the sudden economic slump. While we understand that the added challenges brought about by the pandemic are making it even harder for startups to thrive, there are still ways to transition your startup and get back on track.
Putting a fresh new twist to unlock growth
Although business pivot has suddenly become a buzzword since the crisis started impacting businesses worldwide, the concept is nothing new. You know how when you’re about to do something outside your comfort zone so you try to think of a plan B in case things go south? Well, the same goes when leading a startup—except this time you must have a plan C, D, and even E as building a business is inherently risky. If your initial business model isn’t as sustainable as you'd hoped it would be, then it’s time to implement your plan B.
You might have heard about Airbnb’s business pivot from providing accommodation mainly for business conference attendees to becoming an essential platform for travelers across the globe. But you may not have heard about another, more fitting example:
Play-Doh, a company built in the post-depression era used to offer a wall cleaning product to wipe the black residue left by coal heaters off of walls. As coal was replaced by oil and gas heaters, Play-Doh’s wall cleaner became obsolete. Despite this, the company successfully found a game-changing pivot by remarketing their wall cleaning product as what we know it today—an essential modeling compound for arts and crafts.
It only goes to show that fighting to survive in today’s cutthroat economy isn’t an option. As startups are innovative and entrepreneurial by nature, there currently is a potential upside to all this: Unique economic opportunities are apparent across industries, providing startups with a window to think outside the box and implement an ingenious pivot strategy.
Check out Rappler Talk: Saving PH startups from the pandemic with Katrina Chan, Director of QBO to learn more about the current startup landscape including the challenges startups are facing and the needed support to help them thrive.