After months of lockdowns, countries start to ease the restrictions. Governments all over the world begin to gradually reopen the economies, though still with a strong accent on social distancing. So what does it mean for tech businesses?
The revival might not be rapid, but it has already started. Despite the losses, entrepreneurs can walk away with a conclusion that helps prepare for difficulties in the future. Our CEO communicated some ideas on how to lead a business out of a crisis in a recent Forbes post. This time, we’ll share tips on how companies can prepare to uncertain times. QA Madness team would also like to support those who need assistance with optimizing resources for effective QA right now. Intrigued? Keep reading to learn more 😉
Current circumstances are unprecedented, but it is neither first nor last economic crisis the global community is to face. Moreover, each follows the same pattern and has the same effect regardless of its reasons. It means that every time tech businesses get very similar conclusions to make. Hopefully, our tips will help you avoid some pitfalls in the future.
#1. Always have a plan for a crisis.
When everything is going well, the risk of becoming less vigilant arises. The sufficiently long economic rise cannot last forever. It is always followed by a decline. That’s why businesses should prepare an emergency plan when they are prosperous.
#2. Diversify a client base.
A crisis always hits some spheres harder than others. Client diversification allows mitigating the financial risks in case one of the niches you are involved in is severely affected. A perfect scenario is a client base diversified both by sector and region.
Tech businesses that focus on a single sphere risk losing everything suddenly. This time, brick and mortar retailers, hospitality & tourism companies suffered the most. Delivery services, eCommerce, and office software providers are on the rise. Tech companies that work with both groups have chances to maintain the balance.
On the other hand, a focus on a certain industry can be a company’s strategy. If working with various niches is not an option, look for another way to build a diversified client base. For example, consider finding clients in different regions or working with both small and big businesses where convenient.
#3. Have spare money to cover the company’s expenses for at least 3 months.
A cash pile will keep a business functioning until you understand the effect of the crisis and decide what to do next. Business owners can keep paying salaries and secure business processes. Meanwhile, company management should clearly estimate the contribution and the effectiveness of every team member in current circumstances in case they need to optimize resources.
#4. Manage your spendings well.
Clear spending management allows managers to instantly give up things a company can survive without. For example, redirecting finances is a way to avoid cutting salaries, though some bonuses have to go. Set the priorities rationally and sensibly.
#5. Stay in touch with your clients.
It is significant to know how the crisis has affected your clients, their financial solvency, and plans for the nearest future. Thus, you will understand better what to expect from this cooperation.
A supportive attitude is appreciated, too. If things aren’t going well, maybe you can come up with specific cooperation models or put some projects on hold. It is better to find a compromise than to lose a client.
eCommerce, delivery, healthcare, and government projects aimed at handling coronavirus needed the most assistance recently, as they have been focused on keeping people’s lives as normal as possible. SaaS platforms, cloud solutions, mobile games, e-learning, online streaming and logistics software are on the rise and will be in-demand in the near future. Industries affected by the lockdown the most will focus on revival as countries start to ease the restrictions.
A crisis can hit hard, but economics cannot stop. Some companies struggle, the others discover new opportunities based on the situation. It means that tech businesses should keep looking for new partnerships and finding niches where they can contribute.
Digital products aid companies to become more flexible. We understand the importance of fast & high-standard software testing services during the development of these products. We also know that businesses now find themselves in different situations. Some aren’t ready for hiring new team members. Thus, we would like to share some professional expertise via online consultations.
Our CTO can share helpful tech team management tips:
Our CEO can share valuable business management tips:
If you need help, feel free to book a meeting to have a pro bono consultancy hour with our experts.
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