The Covid19 pandemic has engendered an unfavourable set of circumstances for all the small and medium sized firms and startups. As the economy of the country sees a declining graph and the business activities witnesses a moratorium, financial as well as crediting crunches are very much likely to take place. The funding atmosphere is not in the pink state which makes no room for startups to try and obtain monetary support at least at this point of time. Although, some fortunate ones are some-how deriving toned funding from significant investors which is succouring them pull through their endeavours and meet the targets.

A survey conducted by LocalCircles says that about 61 per cent of the startups and SMEs are making up their minds on whether to scale down their business in the next six months or not, for majority of startups do not have an absolute strategy nor do they have enough fund to run the business when there is no business in the market. The reality is a lot more cruel and serious than what it just looks like, with financial situation that is wobbly, no external funds, an off colour market scenario, and tethered business alliances it will be really difficult of entrepreneurs to keep the startup’s body and soul together.

About 47 per cent of startups and SMEs have less than one month of cash funds left and many are out of funds already. This is not only going to have an impact on the up and running of the businesses but will also have an adverse aftermath to people associated with it.

It’s not an End
It is natural for business people to get intimidated and petrified in situations as such. But on a genuine

context, things cannot end here, it is high time for every entrepreneur look out for new scopes and chances that lies within. They can modify their endeavours according to the present necessities or if feasible change the course of their venture and start up something new.

Taking a note of the situation Rakesh Munnanooru, Founder & CEO of a Technology Enabled Employee Transportation Solution provider-WhistleDrive stated, “Any funded company would be fine; however, it is a fact that all startups are in panic mode, and a few may shut down if the situation prolongs. It is a challenging phase to be an entrepreneur."

There are many who are opting to deviate from the line of business and adopt something that can help them make a business in this lockdown. Most of the firms are taking up door-to-door delivery of essential goods which is one of the most called for activity. No matter in which vertical they had been operating but to make the most of the situation, make some income and cater the need of the society, companies are making room for delivery portal.

Similarly, there are companies who are taking interest in the health, technology, food sectors and others, taking utmost opportunity to craft useful and out of the box innovations and solutions. Efforts are to be put in identifying the latitudes to stay in order and relevant. startups can utilize this time by concentrating in observing crowdfunding, concentrate more on their future projects and sort of important measure that remain unattended because of other priorities .

Since a huge per cent of people are into social media today, startups can turn their attention in strengthening their online presence, promote themselves on different platforms and reach out to their targeted audiences, even if the sales do not see a hike, popularity will definitely be gained.

On the positive note, Startups are not left alone to combat this crisis, several industry bodies and the government are thinking of sketching out measures that than help the companies find the path.

“As Covid-19 slams the world, we live in uncertain times as the severity of the downturn can lead to a wide range of potential outcomes. Tech Startups will encounter difficult times and those who are in the early stage and in the fundraiser cycle will face an uphill task and some may perish. Those Tech startups who adapt by revisiting burn, product roll out strategy, hiring and customer acquisition cost can expect to survive by judicial allocation of available cash in their balance sheet.” - Srikanth Chintalapati, Partner at Mantra Capital