5 Considerations for Your COVID-19 Recovery Plan
From our industry partner, Firestone Financial
By Sal Cifala, Senior Sales Executive
As COVID-19 continues to take hold of the country and the world, our everyday lives are impacted in ways we’ve never experienced before. While the health and well-being of you and your loved ones are probably your top priority, as a business owner you also never stop thinking about the well-being of your business. You may be at a standstill right now, but you’re also worried about the future — when the country reopens.
If you own or operate a family entertainment center or amusement route, here are some things to consider as you’re thinking through your recovery plan:
Equipment and inventory maintenance
Before you can get up and running again, your equipment and potentially your merchandise needs to be cleaned. COVID-19 can stay on surfaces for extended periods of time. Are you able to clean and sanitize the equipment yourself or will you need to hire someone? Check CDC, OSHA, and trade association guidelines to ensure you’re meeting requirements and best practices. Plan for this as early as possible so you can reopen as soon as you get the go-ahead.
Changes in consumer habits
This crisis will likely have a lasting impact on customers and their lifestyles. Yes, their financial position may have changed, but they may also have a new-found aversion to public and shared spaces. They might have on-going health and safety concerns.
Make sure to account for any concerns people will potentially have surrounding direct contact with your games, equipment, and merchandise. This can include buttons, joysticks, and bill acceptors on games, prizes, and other equipment. In addition to sanitizing your center, consider how you will communicate this to your customers and help make them feel at ease.
Consumer habits. Consumers may not want to spend money the way they previously did, or they could be hesitant to spend time in larger groups, so they aren’t rushing back into entertainment centers.
Consider ways you can entice customers to come back. Things like discounts on games or adjustments in your prize strategy, for the time being, may help draw people in.
Vendor and manufacturer relationships
Maintain and build relationships with your vendors now. Do you have outstanding orders that you need to adjust or invoices you need help with? Speak with vendors now and be honest about your position. They may be more willing to work with you and make exceptions to their policies if you reach out sooner.
- Ask them for advice.
Remember, you aren’t their only customer. Ask what other similar businesses are doing, what their orders look like for reopening, and are there additional considerations you should be taking into account. - You’ve spent years building these relationships. You’ll likely find they are more than willing to work with you and share their expertise.
Consider new revenue streams
Use this pause in business to assess additional ways you can generate business and help fill any gaps until you are able to reopen. For businesses who are currently offering takeout food options, maybe there are add-ons — games, prizes, or other items you have in inventory — that you can offer to customers when doing pick-up. Be creative and think of what you have available in stock that customers may enjoy during their time at home with their families. Use social media and email to reach out to customers and stay engaged with them.
Long-term financial planning. Your 2020 plans have completely shifted. Now is the time to assess your new financial situation and plan for reduced revenue — not just because of the revenue lost during the shutdown, but also because of the potential shift in consumer behavior.
Once you’ve accounted for this, talk to all of your lenders and bankers. Be open to restructuring current loan terms to plan for this reduced revenue. Your banker can help you determine the best path forward.
If your lender is open to discussing new financing and that’s an option you want to explore, make sure they are offering longer-term loans with deferred payment and balloon payment options.
Take another look at your 2020 needs for things like redemption inventory, staffing, equipment, maintenance, and your overhead in general.
Research available relief packages. There are numerous forms of aid available for businesses and individuals at the federal, state, and local levels. A list of SBA, federal, and state aid is available here. These are changing frequently, so check back often to make sure you’re taking advantage of the best options for you.
About Sal Cifala
Sal Cifala has been with Firestone Financial for 22 years where he currently leads the sales and relationship management efforts for the amusement, vending, gaming and carnival industries. He’s held a number of roles in the company, including asset management, workout, operations and credit before joining the sales team in 2002. Contact Sal directly to see how he can help you.
About Firestone Financial
Firestone Financial is a leading nationwide lender committed to helping customers grow their businesses. Specializing in financing for the attractions, amusements, and family entertainment center industries, they partner with Redemption Plus to help customers create incredible guest experiences through spatial theming, design, and redemption prize solutions.
Firestone Financial is a subsidiary of Berkshire Bank (Member FDIC).
