* This post was originally published as a LinkedIn article.
The October 7th massacre has profoundly impacted every Israeli, bringing a storm of emotions – from grief and anxiety to anger and despair and extending to concern for the soldiers and captivated civilians in Gaza. Amidst this turmoil, Israeli businesses are struggling with numerous challenges: funding constraints, employees on army reserve, stressed staff, anxious customers, paused sales activities, and more. In times of war, the landscape for startups undergoes a dramatic transformation, demanding unprecedented resilience and adaptability. As businesses navigate the murky waters of wartime, it becomes essential to rethink startup strategy and tactics, especially when resources are constrained and uncertainty looms large.
While trying to recap startups tactics at wartime, a quote from Harry Potter resonated deeply with me – “Help will always be given at Hogwarts to those who ask for it” (Albus Dumbledore in Harry Potter and the Deathly Hallows). This quote from Harry Potter echoes the Israeli spirit during the war – a wholehearted willingness to help and support others in facing challenges. We just need to ask for it.
Staying Connected
Transparent communication with your stakeholders is critical. In a period marked by heightened uncertainties, maintaining open lines of communication can help in managing expectations and reinforcing trust. Keep stakeholders informed about the war’s impact on your business and the risk mitigation steps you’ve taken. Ensure open channels for stakeholders to voice their concerns or ask questions. Be ready for tough questions. If you’re a CEO in a military reserve, delegate this task to one of your executives or board members.
Increase the visibility of the company’s leadership. Personal messages from the CEO or other senior leaders can provide reassurance and a sense of direction during uncertain times.
Securing Funding Amidst Wartime
Funding may be tighter during wartime, as the economic climate is often uncertain, and investor sentiment may be cautious. You may have experienced paused investments or unfinished funding rounds. To bridge the funding gap, consider local and international initiatives for emergency investments, such as Startup for Startup, Israeli Innovation Authority, TechShield, Israel Resilience Fund, Circles of Dialogue, Safe Dome, and many more. You can also leverage ongoing fundraising events, such as Fundraising at Times of War, AWS Founders Breakfast Club etc., to get updated with recent initiatives.
Sales and Marketing Continuity
Keep sales and marketing activities rolling as much as possible. Acting “business as usual” during wartime may look inappropriate, but your international customers aren’t experiencing war. Your product still has value for them.
Optimize your marketing spend by focusing on low-cost, high-impact channels. Consider organic growth tactics and community-driven campaigns that require less financial investment. Stay flexible in your marketing efforts, ready to shift focus or messaging as the circumstances change.
Keep in mind that the international atmosphere is anti-Israeli. You may encounter harsh and antisemitic reactions, especially on social media. Respond moderately to hostile reactions and do not get into arguments. Remove toxic messages.
Customer and Partner Engagement
Connect with partners and customers on a personal level, addressing the circumstances and emphasizing the resilience and agility of the Israeli high-tech industry. Keep in mind that there is a lot of misinformation out there. Focus on the long run.
Concentrate on retaining existing customers through enhanced customer service. Stay in touch and allow them to express their concerns. You can point out that proving strength and agility despite personal and national trauma is built in the Israeli culture. Reassure them that the company commitments will be honored despite the difficulties, citing Israel’s history of rapid post-conflict growth. Please do not leave them hanging!
Form strategic partnerships with other businesses where possible to share resources, cross-promote, and support each other’s customer bases.
Overcoming Resource Constraints
The absence of staff on military reserve is challenging. Tap into your business network or community for support. Leverage local and international initiatives of free services, consulting, etc., such as Startup Reserves For Israel, Startup for Startup, and more. Consider outsourcing certain functions or temporarily hiring freelancers for specific tasks. This approach can fill gaps without long-term commitments and can be cost-effective.
Addressing Employees’ Emotional Distress
People react differently to stress. Some may experience anger and aggression. Some may freeze or act anxiously, unable to function at home and work. Some may be overwhelmed with the kids at home, and some may prefer to volunteer. Employee difficulties may profoundly affect startup operations and must not be overlooked. It’s essential to recognize the psychological impact of the conflict on your team and acknowledge reactions of distress, anxiety, helplessness, and even guilt. That’s where leadership is tested.
Valuable guidance can be provided in Eyal Doron’s Creative Management in Times of Crisis blog post, Dr. Eldad Rom’s interview about management during wartime, or Galit Deshe training program for startups – first-line support in times of crisis.
Looking Ahead
Maintaining a forward-looking perspective is crucial during these turbulent times. As you navigate the immediate challenges, don’t lose sight of your long-term goals and the post-war landscape. Plan future re-engagement strategies. Customers who may have paused their interactions with your business will need reassurance and compelling reasons to return.
Finally, nurture the resilience and adaptability your team has developed. These qualities are invaluable assets for any startup, capable of turning post-war challenges into opportunities for growth and innovation.