We have a global crisis going on. The tourism sector has been shut down. How long does the crisis last is anybody’s guess. So what do you do as a small business owner? Where to put your focus?
I have a hard time offering good advice for this crisis, but I can explain what did we do and how did it feel in the last big economic crisis with our small adventure company.
In the crisis that started in 2008, I was part of an adventure company called 360 DEGREES. It was quite considerable in size but still small according to any measure. Less than 10 persons, less than 0,5MEUR annual turnover. When the crisis hit, the order books were quickly reduced from full to zero. It did not happen overnight like in today’s crisis, but still quite quick.
I turned to books and was looking for as much management advice I could get. One piece of advice that stood out was not to cut any marketing expenditure and keep going as if nothing had happened.
This is exactly what we did not do. Here is what we did
The thinking behind it was simple – there is no money in the market, so it is worthless to put efforts into winning sales now. Also, clients started to negotiate on price heavily. We focused on using the crisis to change the future.
Yes. When the crisis started to wear out after 2 years (Estonia was one of the hardest-hit European markets and we were focused on local incentive tourism mostly) the market looked different. What was different?
We will work to get through the crises. What does that mean?
But most importantly. Your issues might be unique. If you have an issue you need to be soled contact us and let’s see if we can help you solve it.
First, survive and then start preparing for future growth. It will be tough, but it will be worth it.
When the Corona crisis appeared, we as the Loquiz team put an effort to “battle the corona”. Yet this situation...
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