How Startups Are Growing During A Pandemic

While we are in the middle of a pandemic, high unemployment levels, and a suffering economy, the financial pain of COVID-19 isn’t being felt equally among all sectors.

In fact, there are many businesses and startups that are growing, excelling, and growing.

Let’s look at how startups are growing during a pandemic.

Startups are Pivoting

The most successful startups during the pandemic are either meeting a current need or pivoting their current business model to meet demand.

For example, a fitness club startup may pivot its business model to offer on-demand fitness classes for a fee. By moving from their in-person business model, they are able to grow and continue to meet the needs of consumers.

The startups who grow during the pandemic will consider offering something with a unique value during this crisis. For example, a bar owner might turn his distilleries into a system that makes hand sanitizers.

Bottom line – growing startups are flexible and meeting changing consumer needs.

Startups are Hiring Smart

The market for top talent is open and active during the pandemic.

Growing startups are looking for the best recruits from many arenas. Because many are laid off or unemployed, startups are in a unique position to grab the top talent.

Startups are Managing Their Cash

One of the biggest issues facing startups is cash. Growing startups are managing their cash in smart ways.

They are preserving what they can for any future shutdowns as well.

And, when it comes to venture capitalists, they are still investing in startups.

Investors are looking for startups that are not only meeting consumer needs now but are enduring and can meet needs into the future.

For some of the startups experiencing exponential growth, their investors are encouraging them to grow even faster to take advantage of the current market opportunities.

Startups are Making Good Decisions

The other thing growing startups do is evaluate the current market, survey the environment, and make the best decisions for scaling up.

Many startups are overhauling their processes. They are becoming more efficient with less. Some are ditching offices for remote work, saving money in the long run.

Growing startups see what the demand looks like, they uncover the curve, and then they move in ways to meet the pandemic demand.

By putting strong strategies in place, the startups that are growing are continually working with the moving target that is COVID-19. But instead of falling to it, they are able to strategically move in ways that grow their business.

Case Study: Cohesion Education

Created by three former fourth-grade teachers, this startup created a website with over 600 educational videos three years ago. Yet, they saw an even bigger need once COVID-19 hit.

As soon as schools started closing, one of the founders took to Facebook. The company grew more in two days than they did in the first two months of the year.

Final Thoughts

Yes, the economy is struggling, and many businesses are shutting their doors. But, according to a report by Startup Genome, 26% of startups have watched their businesses grow during the crisis. Startups are growing.

Why the growth? It pays to look at the arenas as well as the reasoning behind the growth.

Because the pandemic shifted consumer shopping interests and their purchasing decisions, startups in tech, ed-tech, telehealth, grocery, food delivery, alcohol, entertainment, outdoor living, fitness and exercise, pets, and DIY have seen increases.

This has turned out well for startups catering to consumers. If you’re interested in starting and staffing a startup during the pandemic, do your research, implement strategies and models that can easily shift gears or pivot and don't give up. We won't be returning to what was our "regular" normal so we must continue to be creative and think outside of the box every day going forward.