Winter Is Coming, Challenge for The Startup World

Winter is Coming can generally be interpreted as something bad will happen. Popularized by the famous series Games of Thrones, this term is indeed used in the series as the meaning of ‘something bad will come/happen’. The community then uses this term as a sign or signal that bad things will come. Likewise, this term is used in the business world or startup.

The meaning of winter is coming means to influence the journey of the startup. Winter is coming is a warning sign for startups to prepare themselves for the worst conditions. It’s more than declining profits, as funds are running low, including symptoms or results of ‘winter is coming’ warnings.

Startup Winter in Indonesia

The startup winter phenomenon is slowly starting to occur in Indonesia. ‘Winter is Coming’ affects not only small startups but also unicorn startups. The big problem started with the number of ‘burning money’ startups. This term makes a bad impact that is quite fatal. Although, of course, there are also good intentions in the activities of ‘burning money’ by startup actors. Investors are one of the hearts of a startup in progress.

Many investors are more selective in choosing the startups they will fund. If you look at it, they don’t want to lose out on companies that don’t have much profit. They prefer viable companies with great hopes or opportunities to grow rapidly. Of course, this is an obstacle for new or small startups that need funds to grow. This certainly affects the life of the startup. The startup can only close or go bankrupt if you can get past this.

Not only that, the events now happening are the cause of the signal ‘Winter is Coming’. This has happened everywhere, namely the rampant global economic crisis. Since the occurrence of Covid-19, the decline in the world economy has been felt. Many startups have permanently closed because of this. Affect the income or profit of a startup. The funding crisis is the main problem. This is a big reason for a startup or company to close permanently.

Startup Winter Implication

With this bad thing, many startups have permanently closed because they cannot continue their startup growth due to funding or other crises. Some of these startups choose to lay off or lay off their workers or fire employees to keep their companies running. Here are some large startup companies that have reduced the number of employees:

  • Ruang Guru
  • Sayur Box
  • Sirclo
  • Grab Kitchen
  • GoTo
  • Shopee Indonesia

Among them GoTo. Reportedly fired 12% of its employees or around 1,300 people. Based on information obtained from GoTo Management, this was done due to global macroeconomic challenges that impacted entrepreneurs around the world. According to GoTo’s management, this is done, among other things, by focusing on core services, namely on-demand, e-commerce and financial technology.

To support accelerated growth since the beginning of the year, GoTo has also evaluated overall cost optimization, including aligning operational activities, integrating work processes, and renegotiating various cooperation contracts. GoTo Management also added, “This difficult decision cannot be avoid so that the company is more agile and able to maintain growth rates so that it continues to have a positive impact on millions of consumers, driver-partners and merchants.”

How To Survive?

Significant changes such as the economic crisis and competition for funding by investors are all related to how our startup runs. Then how to deal with this ‘winter is coming’ situation?

  • Study the situation that occurred. Try to analyze what is happening and think about its impact on your startup/company. Will it have a good or bad impact?
  • Change company habits. Adjust to the situation. 
  • Reconstruction of work patterns, needs and finances. Prepare as many as possible according to a predetermined estimate.

That’s the information about the startup winter phenomenon that every businessman must be aware of because it could be a great strategy today that will backfire in the future, so the company must continue to adapt to the situation. If you want to learn more business knowledge for your startup? Go to Gear Up Website! There are learning courses that you can choose! Strength your startup now!  

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