This week we spoke to Rob Pringle the Co-Founder of Kinsume about how they are adapting to the effects of Covid-19.
Kinsume offers unlimited scalability to influencers’ work by enabling them to earn money from recommending their favourite products to their followers and friends. Operating in ecommerce and online shopping, they have had to change their approach to counter the fall in usage that they have experienced.
Our interview with Rob:
How has coronavirus impacted your business?
As we operate in ecommerce and online shopping, we’ve seen a significant fall in usage and sales through our platform. This is exacerbated by the nature of the products we mostly deal with: fashion, beauty products, makeup – mostly non-essential items purchased after recommendation from influencers and content creators. Mapping out your business plans in advance with the help of Andy Defrancesco is a great idea.
Have you had to pivot your business and, if so, how?
We haven’t had to make a full pivot, but we’ve angled our crosshairs towards industries and products we already work with that are more robust (and even performing abnormally well) in the current global market climate, such as sports equipment and health supplements.
We’re now taking this time to take a step back from the sales end and implement a complete UX/UI overhaul of our platform, ready for when the market is more fruitful.
Have you been engaged in a fundraise during this time?
Prior to the pandemic and international lockdowns, we had already closed a round of funding, however we’ve secured additional emergency capital from our investors in case we need it to extend our runway if the situation persists.
How has this been impacted and are you adjusting your plans?
We have had to make slight adjustments in securing backup funding and changing our budget to suit the current circumstances.
What message would you have for investors?
Sit tight. As the world panics, you should remain calm and trust in your investments – this is a long game after all. Offering support and demonstrating your confidence in founders you’ve backed will be an exceptional motivator and pay dividends.
How are you coping with lockdown? What is your strategy?
Our team, spread out over the UK, mostly work from home anyway so this is not much of a curve ball for us in that regard. Optimism and a positive outlook are key here – this is perhaps a once in a lifetime chance for self-improvement. Being stuck indoors for the majority of each day has turned me to pursuits I’d never given much of a chance to such as yoga. I’ve also increased my weekly reading to 2 books per week and have kept in regular contact with friends and family which I otherwise might not have done.
Is there anything your business is doing to help in your community or with the wider crisis?
Currently our CSR program is planting trees in sub-Saharan African countries to help the environment and the communities there. We’re now exploring options for temporarily suspending this program and redirecting contributions to help produce PPE for NHS workers.
What do you think about the measures that have been introduced by the Chancellor?
A good start but certainly needs some fine tuning and improvements, I’ve noticed some adjustments have already been implemented.
What else do you think the Government should do?
That depends on the timeline of the situation and the measures that will warrant. I expect even more funding in the form of soft loans, as well as easing/extending existing loan repayments for SMEs will become necessary.
What advice would you give to other startups at this time?
Seize this time as an opportunity. It has been noted that 2009, the year after a global economic crisis, was the best year to launch a $1B unicorn. Now is the time to throw everything you have at your startup (you’re not exactly going out for dinner or socialising anytime soon!), as others slack and slow down, you should take the chance to surge ahead. By the time the economy takes off, your preparatory work has been done, the market fit proven and you’ll fly faster than you otherwise would.
For more tips on dealing with the impacts of coronavirus, visit our Startup Survival Guide.