Starting and running a startup seems like a gargantuan task. You have to deal with so many challenges to keep your business, and ultimately your dreams, afloat. And when you deal with each of them, you get one step closer to success. So what are the difficulties that SMEs and startups like yours face this year, and how inventive do you need to get to approach and solve them?

Shifting Gears Amid the Pandemic

First, address the elephant in the room: the COVID-19 pandemic.

There’s no doubt that recent events have caused a lot of consumers and even businesses to slow down their spending. Plus, if your startup relies on a brick and mortar location to thrive, it’s going to be difficult for customers or clients to pay you a visit. Unless your product or service addresses the pandemic directly, you’ll have issues with reaching and attracting your audience.

Your business needs to adapt to survive. This can mean changing your products and services so that it can serve the needs of your customers during the pandemic. A lot of brands and manufacturers are already doing this. Luxury perfume manufacturers Givenchy and Dior shifted gears and started making hand sanitizer. Even one of China’s biggest chip and circuit board manufacturers, Foxconn, started making masks as well.

Your business doesn’t have to create these products specifically. For example, if your startup involves app development, you can create an application that directs people to their nearest testing centers if they start feeling symptoms. If you have laser-cutting or 3D-printing equipment, you can create plastic sneeze guards for offices or even face shields.

Cost Management

You should be a camel, not a unicorn, in 2020, according to Harvard Business Review’s article on launching a startup post-pandemic. It’s a matter of adapting to the situation, according to its author, Uri Adoni.

Camels can last days without food and water in the harshest of conditions. Your mentality should be the same for cost management. Investors aren’t looking for disruptors this 2020. They want to invest in survivors.

Show them that your business is one by:

• Monitoring your cash flow carefully to ensure that nothing is wasted on unnecessary expenses
• Being conservative and realistic as possible when it comes to your operational budget
• Cutting costs when push comes to shove
• Being transparent about your startup’s current state with updated projections and goals

Attracting Great Talent

A startup may be exciting to work for, but it may also be viewed as risky by some employees. After all, you’re still getting on your feet, with most of your funds coming mostly from investors and loans. You might not even provide benefits just yet, so employees may have to work on a contractual basis. The stability just isn’t there yet. Because of this, larger, more complete businesses may end up swooping great talent away from you. Attract and hire quality talent by doing the following:

• Craft a good mission and vision — One of the best ways to attract great talent is to pitch them a great mission and vision statement. Lay out your end goal and long-term plan for the company with excitement. Speak about your journey and how your startup turned you from an engineer to an entrepreneur. You’re sure to attract employees and partners that share the same passion as you.
• Market your company — Going to trade shows and going on speaking engagements isn’t just a way to market your brand and its products to customers, it’s also a great opportunity to attract talent. When you’re a thought leader in your industry, like-minded people will gravitate towards you and your company.
• Retain and nurture your existing workers — Your employees are the face of your company. As such, you want to do your best to maintain and nurture them through career development and advancement opportunities like training, promotions, and awards. Plus, it’s much more cost-efficient to keep your current workers than to hire new ones.

Manufacturing Delays

No matter how hard you work to get products and prototypes delivered on-time, unexpected delays can still happen. Always have a plan B when these snags happen. Create press releases and other marketing materials apologizing to customers about the hold-ups they’re experiencing due to limited stocks or service capacity.

The creation and development of a startup can be overwhelming, especially during these unprecedented times. Adapt by providing products and services that customers need during this pandemic. Attract great talent by marketing your brand’s mission and vision. Handle delays with grace by preparing in advance. Use these tips to help your startup survive (and thrive in) 2020.