Jessica Shraybman, Shraybman Law in Miami.

COVID-19 has had sudden and dramatic financial effects around the world. Nonessential businesses have been shut down for months, and millions are suddenly jobless. Miami's response wasn't the quickest or strongest, though Gov. Ron  DeSantis finally shut down bars and nightclubs before St. Patrick's Day, and issued the official stay-at-home order April 1. As a result, entrepreneurs and executives have had to get creative to figure out how to keep their companies afloat. For Florida, at the top of the list of economically affected states, it's going to be one of the most difficult challenges our economy has had to overcome.

There's evidence that while the U.S. economy was already trending toward a recession, Miami was prepared to weather the storm. Our attractive business regulations bring in more and more founders and funders to power innovative technologies, products and services. Prior to the pandemic, Florida was the third fastest-growing economy in the United States, and is currently the fourth largest. Miami had the highest startup density of any U.S. city, and we are ranked seventh for investment activity. Last year and Q1 of 2020 saw record high deal flow and dollars raised.

If we can be proactive with the three Cs below, I'm hopeful Miami's startup scene will both survive and thrive.

Cash: Raise It and Save It

Even with all the venture capital flowing into Miami, we shouldn't rest on our laurels. Research from March showed most startups lacked sufficient runway to get through three months without revenue or additional funding; only 13% have a 12-month runway. This is not good news for many, particularly because in the first months of the pandemic, 44% of financings slowed down. Rather than expanding, most investors are focusing attention on their existing portfolios.

This shouldn't discourage you from pursuing opportunity. Be in touch with current investors, pitch new ones, and keep building your network. In addition to federal and state loan and grant programs, some startups are turning to crowdfunding. There are a variety to consider, including funding by donation (like GoFundMe) or for equity. Just make sure to know your audience, as some investors may be turned off by startups soliciting financing at this time.

That said, the best approach you can take is to assume you won't close new deals. Assume things are going to get worse before they get better and that your previous plans and projections are now irrelevant. Your most important goal right now should be surviving by saving.

Take a hard and honest look at your budget and find ways to cut costs. Try to renegotiate your lease (whether of a commercial space or co-working office) and other contracts. Take stock of your business development efforts and identify the ones with highest ROI. Put others on pause.

One far less glamorous, yet highly effective strategy is having savings. You may have "nonessential" perks, like "nice to have" online subscriptions or gourmet coffee delivery. Chances are you and your team can do without for now. Put cash away every time you earn money, and yes, you can even start now. Keep cash liquid and accessible. "Emergency savings," "runway," "rainy day fund," whatever you want to call it, make sure moving forward to have plenty of it.

Culture: Make Tough Decisions as Needed and Always Be Kind

When the economy takes a downturn, it's scary and challenging. It can also bring opportunity.

According to the U.S. Department of Labor, Miami generally has a 1.5% unemployment rate. In March, the number of Floridians laid off or furloughed reached nearly 12,500. According to the Beacon Council's Employment Report, unemployment in Miami rose to 3.7%. For 17 months prior to the pandemic, our unemployment was consistently lower than the U.S. average. Now it is significantly higher. And while many large companies (including, behemoths Royal Caribbean and Marriott) have had extensive, multiple rounds of layoffs, many tech companies have as well.

It may seem counterintuitive, but if you're positioned to do so, now might actually be a good time to hire. Be fair of course, and also recognize the opportunity to strike favorable deals. You can attract new, top talent at competitive salaries. You can provide flexible compensation packages. Offer a hybrid of equity, bonuses, and commissions. You can always offer to renegotiate once things settle. Having top talent will position you to get through this downturn and then propel.

Not every startup, however, will be in a position to invest. In fact, many are having to make difficult decisions to avoid closing business. Before cutting staff, consider alternatives: can you temporarily adjust total compensation packages? Offer restructured bonus for meeting stretch goals? Here too, offer equity. For entrepreneurs at the helm of troubled companies, layoffs may be necessary. If you're in that position, do it quickly, kindly, and in a single strike. Overestimate. When handling those conversations, emphasize your appreciation and be empathetic. If you can, go a step further and make introductions to others you know hiring. It will be hard, and I encourage you to check in with those individuals after a month or so.

Ultimately, by conducting a single round of layoffs, you're actually helping the rest of your team. Knowing their jobs are secure will empower them to stay productive. Empathize with those parting and quickly refocus on those remaining. As discussed in the next section, they'll be looking to you, and your attitude during this pandemic will set your company's "crisis culture."

Character: Keep It Together and Lead by Example

The past few months have been mentally taxing for everyone. Your suppliers, clients, and stakeholders. And also, your team. As CEO of a startup you likely wear two significant and different hats—manager and leader. Every day, you manage. Right now, you must lead.

No doubt you've gone through the emotions—denial, anger, fear—and that's OK. Go through it, experience it, and most importantly, lean into the reality. By doing so, you'll more quickly shift your mindset to acceptance.

Once you're there, take that mentality to your team. Be candid and communicate openly. Ask your people questions and listen empathically. Showing you care will alleviate anxiety and empower your people. Communicating the ways you're handling the situation will provide security and inspire creativity. Once you're in the swing of things, do what you can to create and maintain an uplifting work environment. Keep checking in with your people. See what they need, provide what you can; encourage greater camaraderie and again, be overly generous with praise.

We are in the midst of a unique era. For startups, we've gone from riding a wave of prosperity to crashing into deep uncertainty. No doubt, COVID-19 has caused global havoc. We are facing a new reality and the foreseeable future will continue to bring challenges. But remember, while markets crash and economies suffer, all things must come to an end, and this too shall pass.

Remember the one thing you can control—how you respond. Take stock of your startup's circumstances. Identify changes needing to be made and opportunities worth pursuing. Keep a clear head so you can make the right choices. Your team, stakeholders, and customers all share a common enemy—the external pandemic—and a common goal. By controlling your cash, culture, and character, you will get through.

Jessica Shraybman is founder and managing partner of Shraybman Law in Miami. She focuses her practice on business and intellectual property.