The worldwide pandemic is now causing serious challenges as economies and industries struggle to restart. Thousands of health care workers are heroically battling the outbreak, endangering their own lives. The economic recession-related effects are starting to ripple across the business landscape in the world. So as a Health news portal, we are trying to keep your morale high by presenting how a couple of individuals are working relentlessly so that it will help finance and business leaders navigate throughout the crisis.
In this movement, we discover top finance experts and business visionaries of India on how they are managing their resources to stay above the water. So read on to grasp the slip-ups, perceive the odds, and correct your course so the business heads the right way.
Abhishek Rungta, Angel Investor, Indus Net Technologies, takes us through the ups and downs of an entrepreneur roller coaster journey.
In the current situation, Abhishek advises companies to focus on their key needs and avoid working on their wants. This is a great time to reflect and find what a necessity is and what is good-to-have.
“Besides, the focus should be to remain cash-positive. And hence, we suggest the companies stay lean, manage break-even, stick to the core, and then analyze the opportunities this situation presents to them. There can be an interesting pivot or else the business can just lie low for the time being. Some businesses will also have a great opportunity to grow, and they should seize the same,” he says.
Cash flow is important for a startup
Abhishek is of the opinion that the startups need to cut their costs and drop any extra flab that they have accumulated to ensure that they have a longer runway. “Cash flow is even more important for a startup, because many of them may not be having gross profit,” he says. Most importantly Abhishek advises that the startups have to listen to their customers to understand the needs and challenges which will help them to align themselves well in this current pandemic situation.
Steps to deal with the economic slowdown
Abhishek says that there is not much that the startups can do to change the current situation, but it is in their hands to decide how to react to it, which can be done by:
- Keep a cool and calm head
- Communicate to your team and clients regularly
- Look at your cost structure
- Find essential vs. auxiliary
- Innovate to align your business and customer goals, keeping the current crisis in mind
Working from home
“I am busier than ever. I am managing my entire team, which we moved to a work-from-home arrangement. This is a good time to highlight all the weak links in my business, and hence this is a great opportunity to fix things. When we run a business from the office, we feel we are in control, which we are not most of the time. However, when you start managing the entire business in a virtual environment, you get anxious, and this shows what is not in control. So, I see this as a positive development,” he says. Besides this, Abhishek has been reading and writing a little and spending a lot of time walking to stay mentally fit.
Abhishek finds the Action COVID-19 Team (ACT) movement to be a great initiative. “It was very much required. I think the amount of help the government will be able to extend to business will be limited. It is time that businesses and individuals step up to help each other. I understand that a debt fund has been launched by SaaSBoomi for SaaS startups. I wish the government could have come to help the same businesses which have paid the taxes in good times,” he says.
“I only believe in long term investments”
“I do not feel the stock market is a correct representation of the economy by any means. I only believe in long term investments. If your investment philosophy is sorted and you know how to make your pick, this might be a good time to pick your companies for long term investment. Again, I am not a savvy investor and hence I have no clue about how to get the best deal. If a company is not overpriced, it is a good deal in my opinion,” he says.
Abhishek Rungta is an entrepreneur who over the last twenty years has built an award-winning digital innovation venture, Indus Net Technologies. The team comprises 750+ full-time professionals supporting 200+ active client’s across banking, financial services, insurance retail, publishing media, Government healthcare, and entertainment sectors in five continents.
(Edited By Rabia Mistry)