Best practices, models and frameworks that will help you run and grow a business in the videogames industry. https://www.martijnvanzwieten.com
BWB#56: Forget Unicorns. Think Like A Camel π«
Hello friends,
Greetings from Utrecht!
Like many in the industry, I'm still recovering from a busy, but fulfilling week at GamesCom.
I'm slowly working through all of my notes from the event, and even just doing that has me excited about the follow-ups that will be happening in the days and weeks to come.
One of the things that came up numerous times was the precarious investment situation we find ourselves in. I wrote a small essay about this, which you can find below.
On a personal note, the most memorable event from GamesCom was no doubt an impromptu shortcut some of us took to get to an industry party. The shortcut took us across a cars-only overpass, and ended in a locked gate. Going back and around would have been at least a 40 minute walk. Ever the adventurers, we climbed a nearby (spiked!) fence, and successfully completed our shortcut.
When we got to the party, one of the other attendees told us they took the same route.
Except they actually checked the gate... which wasn't locked at all. π€¦ββοΈ
Today at a glance:
- Essay - Forget Unicorns, Think Like A Camel
- The end of cheap money for games
- Thinking in systems
- Organizing your doom pile
Forget Unicorns. Think Like A Camel.
Being a unicorn is all fun and games, until the money dries up. And right now, we're in a drought.
This topic came up several times during my meetings at GamesCom.
Right now, investments and publishing deals are considerably harder to secure than even 6 months ago.
Some people at GamesCom believed that money would be more readily available again come November, starting the cycle anew.
Others felt that the worst is yet to come, with events like the Embracer studio closings generating knock-on effects that will last well into 2024.
Regardless of what the future holds, it's worth considering alternatives to the investment-dependent, boom-or-bust unicorn model.
Bye-Bye Unicorn. Hello Camel.
One such alternative models success less on the imaginary unicorn, and on the hardy camel instead.
The comparison strikes a stark contrast.
In the unicorn model, success is predicated on:
- Spending like there's no tomorrow
- Accelerated hiring
- Growth at all costs
- Round after round of external investments
Companies that follow the camel model, instead aim for:
- Managing cost
- A lean, efficient team: a smart mix of FTE and freelancers
- Sustainable growth
- Profitability
- Smart partnerships
As Alex Lazarow writes for Entrepreneur:
β
Camels survive without food or water for months.
β
When the time is right, they can sprint rapidly for sustained periods of time.
β
Unlike unicorns, camels are not imaginary creatures living in fictitious lands.
β
They are real, resilient and can survive in the harshest places on Earth.
β
While the metaphor may not be as flashy, these startup camels prioritize sustainability, and thus survival, from the get-go by balancing strong growth and cash flow.β
Sure, it's great to be a unicorn when times are flush.
But we're in a collective drought right now, and it's going to be the camels that survive.
Think like a camel, and I hope to see you all at the other side of the desert. βοΈπ«
--
PS. If you want my help setting up your company for sustainable growth, I still have room for 3 clients in my 1-on-1 coaching program at a reduced price, to test drive the new structure. Go to my services page and get in touch if you're interested.
The Best Bits
βThe end of cheap money for games: another essay on the topic of the changing VC landscape, from F4 fund founder (try saying that 10 times in a row) David Kaye.
βThinking in Systems: I'm currently reading this book on systems thinking, and I'm pretty sure it'll be on my must-read list for (aspiring) leaders when I'm done. As you go through it, you start to get a better understanding of the way systems work, and start recognizing them all around you.
βOrganize your doom pile: OK, this one's more for myself than anyone else, although I'm sure some of you have similar piles. My doom pile is currently sitting at a cool 500 to-do items, ranging from project ideas to saved articles. I'm gonna do a first round of culling on Friday, and will let you know where I end up in the next BWB.
See you in two weeks!
Martijn
β
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Martijn van Zwieten
Best practices, models and frameworks that will help you run and grow a business in the videogames industry. https://www.martijnvanzwieten.com
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