Mentor Journey: How to lead your startup in the coming challenges...

Your startup journey is about get very interesting! Here you are working hard to raise funds, building a team and creating awareness about your brand and product/service. That was interesting enough. But now you have a completely different kind of interesting happening: there is an epidemic on the rise in the world and all the possible economic ramifications that are to follow. 

What can you do as the CEO of your startup and a leader?

First of all, do not react. Your focus must be on: your team, your customers/sales and finally your investors. In this article, I will share with you some thoughts on how to approach those factors.

Bootstrap, Bootstrap, Bootstrap

Go over your budget, cut out all unnecessary spendings and figure out a way to make your funds last longer. Go over your payroll and temporarily reduce it by 30 to 40%. Talk with your team, show them how keen you are on not letting anyone go in the next period and showcase how a temporarily budget cut in salaries can buy the team more time to stay together longer and finish what you all started together. Make sure to highlight that you, the founder and the rest of your co-founders will make the highest reduction to set the example for your team.

Enforce a Work from home policy

Combine that with a work from home policy. In a way, you are reducing your team personal costs (daily transportation and other minor costs like food and coffee). That will come very handy with salaries temporarily reductions. Your team will also be safe from any unnecessary virus exposure. Two birds with one stone.

Figure out with them how you can make working from home productive as well as bonding to the team as a whole. If you have a show and tell Thursday, keep doing it, but online. If you are used to hangout after work, do that, but online. Don’t change the schedule, only the medium of interaction. 

Discover potential strategic sales targets

In the coming phases, you are not to initiate any scaling activities that requires cash burning. What you are looking for is those strategic customers that would give you that much needed credibility. In other words, you are looking for customers whose brand name on your client list will make your next sale negotiation easier. You are also looking for those deals where you can make quick cash. Try to balance between both types. Quickly build your sales funnel of potential customers and use your network to engage the right people on the customer side.

Deep Conversations with your investors

Now that you have some kind of plan together, talk with your investor about it and ask them for their support in finalizing those sales deals by leveraging their contacts and support. Also initiate negotiations with them to extend you a line of credit or some emergency funds, payable by the end of the year in the form of cash, more shares in the startup or a combination of both. Just make sure that some emergency funds are there for you when and if needed. 

If there was ever a time to earn the title of a chief executive officer (CEO), it is now!

The current situation is a great opportunity for you to make your team a believer in your leadership, your customers your best allies and your investors your top promoters. 

And most importantly, stay optimistic and open to making changes.

Remember, some of the world’s best innovations came during times like these. Why? Because the circumstances will force you to consider the roads less traveled.

Please share the message. Let us spread positive actions and innovations in these challenging times.