Trying to launch a company is a challenge at the best of times. But it is even more difficult in the era of COVID-19 – a time of great unpredictability and instability.
According to a Goldman Sach’s survey at the beginning of the crisis, around half of all small business owners said they didn’t believe they could ride out the storm. Most thought they would go out of business and be unable to return to the marketplace within three months.
The challenges are extreme. In this article, we run through each of them in turn and attempt to chart a course forwards for anyone considering setting up a business in these strange and unique times.
Keeping Up With Legislation
Governments have been feverishly modifying statutes to keep up with the pandemic’s realities and their own social distancing policies on business. The state is trying to walk a tightrope, keeping people alive while preventing damaging economic fallout that could rumble on for years.
Companies, however, now face a bunch of new administrative challenges. Keeping up with ever-changing laws isn’t easy, especially given how convoluted and complicated they are.
Changes to the social security deferral program are designed to benefit businesses. But it is unclear how many will actually be able to take advantage of them in time. Moreover, social distancing policy changes make it unclear whether enterprises should invest in particular business models if they’re going to get shut down in the weeks and months ahead.
The best approach is to use official resources to keep up with the changes coming down the pike. Unlike regular legislation, governments aren’t providing much of a ramp. They announce changes, and firms must simply adapt in whatever way they can.
Avoiding Analytic Paralysis
The market is currently in a state of paralysis because nobody quite knows what will happen next. If there is a second wave of COVID-19, then all bets are off.
This situation is leading to a kind of overthinking. Business leaders are trying to analyze their way out of problems that probably aren’t amenable to business analysis’s traditional tools. Usually, you have to take some factors as a given. But in the current situation, we do not know what will happen to practically any metric.
The military has a solution to this problem. Senior offices instruct their troops to move in any direction during a mortar attack, so long as they’re moving. Companies should do the same.
You’re a bit like a goalkeeper in a soccer penalty shootout. The best tactic is to pick a direction and jump that way when the opposing player strikes the ball. At least that way, you have some chance of preventing it from hitting the back of the net.
Reduce Information Overload
The relentless flood of information about the virus is dizzying for entrepreneurs. Vaccines, infection rates, and policy responses all combine to create a mess. Try not to rely on these metrics when making decisions. Instead, focus on what your audience is doing and cater to that. You don’t need to become a geopolitical expert to make sound business decisions.
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