No one was fully prepared for the social and economic ripple effects caused by COVID-19. The effects are deep, and they will likely last longer than what experts are predicting. But within the uncertainty, frenzy, and tragedy brought forth by COVID-19 there lies two fast-track options to startups of all sizes, from every industry: adapt now or fail faster.
While startups are no strangers to volatility, these unprecedented times require them to closely examine, or even change, their long-term strategies through immediate community action at the hyperlocal level. Serial social entrepreneur Sonny Patel succinctly sums this up in Conscious Company’s December article “Why Founders Should Stay and Become Investors in Their Own Communities: “Startups need to build deep, impactful connections within their communities to succeed long term.”
This sentiment holds especially true during the time of COVID-19; and this is exactly what companies like Denver-based Handoff did to keep business alive and thriving. Using these three steps, Handoff pivoted its offering and the community rewarded them for it.
See a Need, Fill a Need
“We’re simply doing our part to help support our immediate community,” said Handoff co-founder Tommy Riley in their public announcement of the new feature. “Folks are staying home, which is the right thing to do. But this has significant ripple effects on our beer economy. By featuring local-only beers, we’re helping Colorado’s breweries continue to stay in business.”
Build Reputation and Goodwill
At the end of the day, helping microbreweries stay in business was Handoff’s way of staying in business as well. It was a win-win; and Handoff, which was in the middle of raising outside funds prior to the pandemic, saw their order volume increase more than 300% the week they launched this initiative.
Then something big happened: The campaign was so successful that breweries without retail presences started asking Handoff about selling direct-to-consumer beer. This was the moment Handoff had been waiting for since launching their company in May 2019: validation of an enterprise strategy.
Within days, Handoff’s team developed an in-store pickup option that integrated directly into taprooms’ point of sale platform. They even took it a step further by dedicating $1 per order to go to a local fund that supports brewery workers.
“We’re doubling down on doing the right thing. Our hope is that it will continue to pay off. We may not even need to raise outside capital anymore.”Tommy Riley, co-founder of Handoff
Because it’s the right thing to do
Whether you’re bootstrapped, or flush with VC money, the economic uncertainty of the global pandemic can unlock new opportunities and business models if you approach it with empathy and creativity.
The Colorado startup scene, like most other states, will undoubtedly take a financial and traction hit. But there is hope. In a recent interview with the regional startup blog Colorado Inno, Natty Zola, partner at Matchstick Ventures, said: “Let’s build meaningful, caring relationships with each other. Let’s keep giving first. And we will get through this together and be stronger on the other side.”
Call it opportunistic or call it a perfect storm. However anyone chooses to characterize Handoff’s decision, startups across the country should be looking at ways to integrate giving and community into their business models right now, and in a post-COVID-19 world. It’s the only way we’ll get through this together.