The Covid 19-crisis is affecting our business, but we will make it through - not least thanks to our business model.
Are you alright and are your business gonna make it?
It seems like the question everyone is asking during those uncertain times. We've both been asking it ourselves - inside the team and talking to our partners - and we've been asked it a bunch as well.
For that reason, we've decided to make a public answer; to assure everyone we're okay.
Stagnation instead of growth Luckily, no one at the office has been tested positive for Corona, and we have introduced security measures to make sure everyone stays safe.
On the business side, however, we're are going to be affected in both the short and long term.
Some projects are already delayed, which affect us now. How much we will be affected in the longer term is hard to say, but we expect the revenue from our licensing deals to be smaller than our forecast.
Ultimately this will likely mean stagnation instead of growth - which isn't fatal for our business. Luckily we run a healthy and well-established business, which means we expect to make it through the crisis without having to cut staff - simply by moderating our expenses for some time.
A lot of eggs in a lot of baskets Our business model helps us immensely going through a crisis like this. Instead of carrying all our eggs in the same basket, we run a lot of projects simultaneously: Consulting jobs, licensing deals and the in-house products developed with the help from soft funding.
Spreading our activities across 10+ active projects in various sectors like this essentially gives us 10+ revenue sources, which strengthen us in times like this. One might be slowing down for a while, but it's unlikely for all project to stop at the same time - even in a time of crisis.
And actually, this isn't our first crisis. Lolle & Nielsen Inventions was born on the back of the global recession in 2008. Hopefully, this economical crisis won't be as long or as deep, but having already been through one crisis we know how to behave as a business during difficult times.
So to sum up: We are ok!