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The world is in a state of unprecedented shock. Businesses and governments around the world have been shaken before their cores Coronavirus COVID-19. This crisis forced companies to ask their employees to work from home for their safety and improvement performance. In the world of startups, however, many teams are already accustomed to telecommuting, and they can use this fact as a way to protect themselves from economic turmoil. Here’s what you can learn startups who have discussed economic crises in the past.
1. Flexibility for people to work
Worldwide, the vast majority of large corporations still work on inflexible, conservative management structures that care more about how long people work in the office than productivity. The fear of making a mistake or coming late, rather than the desire to promote a company, governs the lives of most workers. Recent and current crises have shown that distributed manufacturing-based companies, such as modern technology startups, have a competitive advantage in survival over these large corporations.
At my firm, we encourage our startups to measure the performance of their employees as a result of production, not by hours. If someone is more productive from 6 p.m. until 10 am and then in the afternoon take care of their children and start working again, expect them to be in the office from 9 to 5., it is counterproductive to expect them to be in the office from 9 to 5. Such flexibility also helps employees overcome crises as lost productivity. during working hours can be folded at a more convenient time.
I have also personally found that creating a flexible work schedule promotes a more collaborative and less hierarchical work environment. This allows people to feel in control of their time and they are more willing to dig into the depths of the project when needed. Fulfilling the expectation that people can work, however, when they feel most comfortable, it also means that performance falls less.
2. Work from home does work
As we learn, most people who work in offices could do most of their work with just a laptop. Of course, this reality does not apply to many industries, including services, entertainment and tourism, which are heavily dependent on human interaction. Startups in these areas are also struggling in a disaster, but, for many startups, office work is more a team-building practice than a need in the workplace.
Startups, accustomed to a flexible work environment where employees often (or often) work from home, have recently been taken out on social media to show other businesses how to follow in their footsteps and become more resilient to the current crisis. Others have spoken out on how to save important data when working with a laptop at home, which may be less secure than office networks. Many startups that have experience working remotely and at home have an advantage in crisis situations, allowing them to continue working without missing a beat in difficult times.
3. Solve problems quickly
Startups survive through rapid innovation, rapid feedback, and repeated trial and error. Changing plans is part of rapid growth, and technology startups often outperform their big competitors by turning on their heels to experience new ones. business models and strategies. This mode of operation means that startups can also respond quickly to changing situations and look for opportunities in a crisis.
Two event management startups, Rebus and InEvent, have been looking for ways for event organizers to survive this period through online meetings, live broadcasts and even a reward system to benefit people who support their favorite performers through the crisis. Within days of the quarantine in Colombia, Rebus has launched four new products that help manage important board meetings, monetize online concerts, set up classes for small businesses, and organize coronavirus testing across four cities. InEvent, a mass event management software, quickly launched a new platform to create virtual lobbies for conferences and meetings that can integrate with most video conferencing software.
Mexican startup AI Roomie IT has recognized the potential of its humanoid robot to help healthcare professionals. The company had its original product prepared for sale and sale to companies when pandemic exploded. Using a model they were ready for, they made adjustments so the robot could check patients ’temperatures and oxygen levels and ask a few questions to determine if a medical staff review was needed.
Colombian voice recognition startup Vozy helps businesses automate their call centers. The company uses AI and machine learning technology to identify and explore regional Spanish accents and provide personalized virtual customer service. Demand for their services has declined sharply since the outbreak of the pandemic.
The Colombian Frubana restaurant area was created to facilitate the food chain between producers and restaurants. However, due to widespread closure measures, the restaurant business has stopped. In response, Frubana has moved its platform to provide online solutions for local stores, which are the main source of food for many people living at home.
This adaptability, which startups use every day to address issues that affect their growth, helps technology companies thrive even when in short supply.
4. Technology companies are still struggling in a crisis
However, not all technology startups are experiencing crises. During periods of uncertainty, investors tend to be more risk-averse, preferring to wait for new investments until times become more predictable. Business startups can also struggle to find new customers as large businesses struggle to drop sales and seek to cut costs rather than take on new software. Startups in the travel, restaurant, event and service industries face the same challenges as their established competitors, but with lower profitability and less cash flow to increase their survival.
While startups may have some benefits, hard times are difficult for everyone. Economic shocks affect businesses of all sizes. The current global crisis will undoubtedly affect the technology industry through falling investment, resistance to innovation spending and potential over a long period without significant profits. However, crises can also be the beginning of thriving startups if they quickly streamline to provide solutions for struggling companies and individuals, from credit lines to virtual concerts.