Helping startups deploy countermeasures to survive the crisis created by Covid-19 (Corona Virus). It provides tips to streamline their business and #breakthebreakout

1. Mar 2020
w w w . j u s t i n n o v a t e . i o
#BREAKTHEOUTBREAK
VID-19C
Countermeasures
For Startups
Corona Virus Image Credits: https://dribbble.com/CreativeMasH

2. This Is Not A Drill: Prepare For The New Normal
Accelerate the Business Recovery Cycle
• Operations: Direct impact on
sales, supply chain,
distribution, cashflow etc.
• Continuity Measures:
enforcing remote working and
limiting interactions
• Rationalization: tough
decisions for cost optimization
and cash preservation
• Stamina: businesses develop
stamina to manage for bounce
back over extended period
• Stimulus: begin economic
recovery due to deployment
of Gov. stimulus packages
• Acceleration: proactive
measures to expedite recovery
and make up for losses
Phase 1: SLOWDOWN
(2 quarters)
Phase 2: STABILIZE
(2 quarters)
Phase 3: RECOVER
(4 quarters)
Reality:
COVID-19 triggered the start
of a new economic downturn.
Recovery will take a while
Déjà Vu:
This crisis is reminiscent of
the ‘01 dot com bubble burst
and the ‘08 financial crisis
Impact Impact ImpactBackground
innovate
2
QUICK WINS Decisions NO REGRETS Decisions BIG BETS DecisionsACTIONS
References and Sources: Bain & Company - Global Ventures - Just Innovate Analysis
• New Norm: Business
adjusting to new market /
customer reality
• Economic Impact: job cuts,
reduced trade, lower income
/ consumer spend
• Trajectory: positive changes
to business momentum and
growth trajectory

3. SUPPORT YOUR
PEOPLE, UPHOLD
YOUR CULTURE
PUT YOUR
BUSINESS MODEL
TO THE TEST
PROTECT PRIMARY
REVENUE STREAMS
AND CUSTOMERS
STREAMLINE &
STABILIZE BUSINESS
OPERATIONS
OPTIMIZE COSTS
AND PRIORITIZE
INVESTMENT
GLOVES-OFF TO
DEFEND & GAIN
MARKET SHARE
21 3
54 6
innovate
Startup Checklist
Organize Your Efforts And Define Priorities
3 References and Sources: Bain & Company - Global Ventures - Just Innovate Analysis

4. SUPPORT YOUR PEOPLE UPHOLD YOUR CULTURE
• Communication: over communicate and be transparent
• Messaging: it’s critical that your get the message right
ü Regular situation + business updates to groups and individuals
ü Implement Virtual “Water Cooler” sessions for casual chat
ü Establish meetings structure and agendas for the entire company
ü Build “CAN DO” spirit. Explain the challenge but also the plan
ü Reassure (but don’t overpromise) on job security
ü Ensure ongoing feedback whether you think employees need it or not
1 Support Your People, Protect Your Culture
Demonstrate True Leadership, Adaptability & Resilience innovate
4 References and Sources: Bain & Company - Global Ventures - Just Innovate Analysis
• Protocols: implement hygiene protocols;
• Policies: revisit and adapt current policies
See CDC https://www.cdc.gov/coronavirus/2019-ncov/community/guidance-business-response.html
• Tools: secure the necessary comms tools (e.g. Zoom +
Slack) and provide training if necessary
• Access: senior leaderships crisis team accessible to all
employees 24/7 for emergencies; business or personal
ü Facilities: perform routine environmental cleaning
ü PPE’s: provide personal protection equipment e.g. gloves,
masks, sanitizers etc. to all staff
ü Deliveries: Stop food deliveries. Allow only business mail
ü Stay Home: emphasize staying home when sick. Ensure
everyone understands that there is not shame in it, no impact
on jobs and that it’s for the collective good
ü Work from Home; implement WFH polices, schedules,
etiquettes etc. Physical meetings only if mission critical
(social distancing rules apply)
ü Travel: follow travel advisory + stop all non-essential travel

5. • Optimize marketing
spend to drive demand
• Aggressive marketing,
selective repricing
• Ensure security of supply
• Temporary suspension
of operations / locations
• Spend freezes and no-
regrets cost reduction
• Tough cost reductions
• Conserve cash for
controlled default
• Right size to core
innovate
2 Put Your Business Model To The Test
Plan For The Worst-Case Scenario
5 References and Sources: Bain & Company - Global Ventures - Just Innovate Analysis
EXAMPLES
• Exit underperforming
BUs / geos / channels

6. • Proactivity: reach out to customers
and give comfort on business
continuity (build trust and loyalty)
• Focus: bespoke Sales / marketing
initiatives for high-risk customers
• Investment: reallocate resources to
accelerated sources of revenue
• Priorities: actions to neutralize risk
in key segments + geos + channels
• Pipeline: review sales pipeline and
focus on late stage opportunities
• Pricing: optimize pricing to
maximize revenue for the short
and long term
Mitigate
Revenue Declines
Ensure
Customer Centricity
• Decline in Demand: shifts focus to
essential goods and services
• Move to Online: due to personal
health risks, customer revert to
online purchases
• Propensity of Spend: consumers
holding back as they face uncertainty
Understand
Customer Shift
innovate
3 Protect Your Revenues and Customers
Take Proactive And Decisive Action
6 References and Sources: Bain & Company - Global Ventures - Just Innovate Analysis

7. ORGANIZE: re-asses capabilities of
your supplier / partner network,
understand challenges and mitigate
REVALUATE: review sourcing strategy
+ create back-ups + ensure supplier
demand fluctuation flexibility.
DEEP-DIVE: identify business
vulnerability and impacted teams
(sales, development etc.)
MONITOR: regular checking-ins to
pinpoint risks. Revise KPI’s across
BU’s / geos / channels and track
MOBILITY: move resources to
where they are needed most,
irrespective of function
AGILITY: reorganize into smaller
teams with subject matter experts
handling tasks E2E to minimize risks
innovate
4 Accelerate Operational Stabilization
Quickly Adapt To The New Normal
7 References and Sources: Bain & Company - Global Ventures - Just Innovate Analysis
SITUATIONAL
ASSEESMENT
SUPPLY CHAIN &
CAPABILITY
RESOURCE
REALIGNMENT
3) Liquidity requirements
4) Outsourced staffing
5) Geographic variations
1) Front-line operations
2) Physical facilities
3) IT infrastructure
CONTINGENCY PLANNING

8. • Detailed cost analysis with tiered cost-
cutting (short, medium + long term)
• Perform regular liquidity analysis and
monitor balance sheet items (cash,
debt, receivables/payables). Renegotiate
terms where possible
OpEx (P&L)
• Freeze non-revenue generating hires
• Pause contingent workforce
• Stop non- critical training
• Marketing focus only on high ROI areas
• Suspend prof. services where possible
• Cancel non-essential travel
CapEx (Balance Sheet)
• Negotiate payables with suppliers
• Re-prioritize major capital investments
• Identify future milestones that trigger
additional corrective actions (moving
to AMBER and RED action plans)
• Align impact of corrective actions with
investors and team. Be ready to
deploy if milestones are reached
• Benchmark actions with competitors
to ensure timely responses
MINIMIZE EXPENSES CRITICAL MILESTONES RIGHT-SIZE COSTS
ü Renegotiate pricing and supplier terms
ü Optimize overheads
ü Initiate supply chain rationalizing protocols
ü Less fixed more variable costs where possible
innovate
5 Optimize Costs and Prioritize Investment
Cut The Fat But Not The Muscle
8 References and Sources: Bain & Company - Global Ventures - Just Innovate Analysis

9. • Differentiate vs. competitors e.g.
product, CRM, M&A strategy
• Deliver sustainable cost advantage
with effective optimization programs
• Optimize supply chain to improve
agility + capability
• Ensure strong balance sheet to
support strategic business decisions
• Continue investment in marketing,
product, CRM to maintain market share
• Monitor macroeconomic and industry
trends, identify gaps to capitalize on
• Build strong barriers to ensure resilience
for future shocks
• Allocate resources smartly and identify
gaps (people, processes etc.) to be
addressed to protect business
• Capitalize on change in customer
behaviors and be ready to act quickly
• Be decisive and agile with investment
opportunities to maintain competitive
advantage as customers come back
strong
TACTICS TO OUTSMART
COMPETITION
BUSINESS BOUNCE-BACK
READINESS
ADAPT TO NEW
CUSTOMER DYNAMICS
innovate
6 Gloves-off to Maintain & Gain Share
Be Ready To Bounce Back
9 References and Sources: Bain & Company - Global Ventures - Just Innovate Analysis

10. Countermeasures Cheat Sheet
innovate
10 References and Sources: Bain & Company - Global Ventures - Just Innovate Analysis

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Startups Build & Scale Their
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