The COVID-19 pandemic has wreaked havoc on businesses both large and small all over the world, and in many cases, the long-term effects have yet to be felt. If you are one of thousands of businesses scrambling to make ends meet, you are not alone. The coronavirus has forced everyone to rethink their spending, projected plans, and target demographic. With entire industries becoming extinct almost overnight, businesses need to think on their feet if they are going to survive. As the Founder of Crux Video Game Design, Mike Ionita is no stranger to thinking on his feet. After overcoming multiple setbacks, mistakes, and challenges, Mike Ionita is now making waves in the video game design industry. Mike Ionita is here to outline some of the things you need to know, from cutting expenses, to brainstorming, and ramping up marketing, if you are going to remain resilient during this difficult time.
Mike Ionita considered himself lucky when the pandemic first hit that he was working in the video game industry. However, even his business has suffered losses since March. While Crux Game Design produces video games for clients, as well as original content exclusive to their growing online community, the pandemic has made even their most loyal customers cautious with their money—and understandably so. In an attempt to pivot their business model, Crux Game Design started offering free demos of games that had been on the backburner, allowing them to bring in new, eager audiences, to sustain their business moving forward. This is not the first time that Mike Ionita has had to pivot his business and is sure that it will not be the last. Having learned multiple lessons along the way, Mike Ionita is here to help you keep your business afloat.
Cut Unnecessary Expenses
For any business facing cash flow difficulties, the first thing you need to do is cut as many unnecessary expenses as possible. Depending on your business model and the industry you work in, try cutting expenses that do not impact your cash flow. You may want to consider minimizing recurring office supply orders, employee training, fixed asset purchases, and any pending transactions. Depending on your situation, Mike Ionita explains that you may want to consider renegotiating current contracts—like the cost of leased office space. As scary as it may seem at first, Mike Ionita explains that this is an emergency measure and is an important first step to re-strategizing.
Check in with Your Team
As you are moving through this transitional period, be sure to check in with your team. Mike Ionita explains that especially during difficult economic times, it is of the utmost importance to not allow any opportunities or clients to fall through the cracks. You want to ensure that your team can be responsive and have the systems in place necessary to stay organized. Working remotely can often mean a breakdown in communication, so formulating a new plan that works for everyone on your team will be vital to your continued success.
Reflect on Your Business Model
The pandemic has given everyone a moment to pause and reflect, and your business is no different. Mike Ionita suggests taking this time to take stock of your business, including its major strengths and weaknesses. What successes have you celebrated? What has resonated with your target demographic? What is your biggest challenge? Has your target demographic changed over the years? Re-evaluating your current business plan will help you better understand where you are to plan for where you are going. Once you have evaluated your past successes and failures, it is then time to plan.
Brainstorming a new business plan will help you adapt to the current environment, and plan for any potential threats. Do not be afraid to explore new ideas you would have never considered before, especially if being married to the original vision of your business no longer serves you. If the time has come to strategically pivot your business model, do whatever you can to pivot early and proactively. As an example, if you own a hand-made chocolate store, you may want to re-evaluate an online/digital strategy where you allow customers to order online, offering free local delivery. In many cases, pivoting your business model will require you to update your marketing strategy.
Enhance Your Marketing Efforts
Despite trying to cut down on unnecessary expenses, Mike Ionita explains that you may want to consider ramping up your digital marketing efforts. While tradeshows and business events have been postponed or cancelled, your marketing budget can now be shifted to where it is needed most. While it may seem counterintuitive, marketing can help maintain a steady cash flow and help build trust with new and existing customers online. If you run a physical store, you can no longer depend on in-person traffic to generate income. This is a great time to explore new opportunities, re-develop your brand, and build a new online audience. Maybe this means running free webinars or trying paid online advertising through search engines or social media. No matter which strategy you decide on, Mike Ionita explains that you need to ensure you are keeping track of all your metrics and link conversions so you can adjust your strategy moving forward.
Lastly, Mike Ionita explains that when you are re-building your business plan and marketing strategy, keep in mind the messaging you use moving forward. Make sure that your messaging across all platforms is cohesive and tells the same story. When you shift to a predominantly online presence, building trust with your consumers becomes a number-one priority.
