Putting The Best Foot Forward- Key COVID-19 Decisions For Fintech Startups
The COVID-19 situation is a tough one for all industry verticals and fintech is no exception. In fact, the challenges may be bigger if you have just started in the domain. Operating in the tech-first vertical is tough and customers will come in trickle because you are dealing in money. At the same time, there are bigger opportunities to be explored as well, when people and businesses are switching to digital finance. Now is the time to make some smart decisions so that you can stay strong in the current situation and put your best foot forward in the post-pandemic world. Here are some key COVID-19 related decisions that can help your fintech startup survive and thrive.
Have a crisis management plan in place
Although things were more complicated when the virus first struck, they aren’t going to be normal in the near future. You can expect the crisis to continue for some time, till things are under control. Obviously, having a crisis management plan for your fintech startup is essential to sustain. Consider aspects like business continuity, financial vulnerabilities, evolving customer expectations, and technology challenges to create a well-established plan. Ideally, it should address the worst issues to get you through the crisis and keep the business alive and kicking.
Operate in a cash-conservation mode
Like any other startup, saving on cash can make the difference between life and death for your fintech venture. You will probably have switched to a cash-conservation mode already, so continue operating with the same mindset until the situation is resolved. Check your cash reserves periodically and identify ways for minimizing the burn rate. Rather than harsh moves like selling assets or laying off staff, consider renegotiating payment terms, making salary cuts, deferring avoidable operational expenses, and embracing other soft money-saving measures to stay afloat.
Revamp your infrastructure
Since technology plays a key role in fintech startups, you need to have a proper infrastructure to run seamlessly. Remote operations continue to be important, so arming your employees with the right hardware and software is crucial. If you use Mac for enterprise, you can easily align with the challenges of remote work. While these systems excel in performance and security, it is easy to maintain and manage them as well. For example, here are some steps for resolving disk failure explained so that your employees can handle the challenge easily. Similarly, training and education for employees matter when it comes to ensuring that they deliver the highest level of productivity.
Stay on top of communication
Another key decision that fintech startups need to take for staying on track during the pandemic is to stay on top of communication, both internally and externally. Staying in touch with your investors, staff, suppliers, and customers and communicating clearly, transparently and often wins trust and consolidates long term relationships. Right now, trust and loyalty are the only catalysts to stay alive and move ahead.
Although this is a tough time for startups, there is hope for survival if you take the right approach. Implementing the right decisions at the right time is the key to breeze through and make a strong comeback.
