Solutions for Growing Your Hospitality Business During an Economic Downturn
When we experience an economic downturn it’s not the time to panic, it’s the time to focus on solutions to grow your business.
A MESSAGE FROM OUR FOUNDER
RISK ASSESSMENT & MITIGATION
A Note From Our Team to Yours
Rather than panic from the fear of the unknown, we suggest you take the bull by the horns and create a plan to circumvent possible risks your business might face.
Let’s not sugar coat the current situation. The Coronavirus has already effected our industry and it looks like it’s going to get a bit worse before it gets better. Now more than ever, it’s time to put pen to paper and survey the dangers this downturn may cause. Once you understand the risks, you will have the peace of mind to come up with a plan to keep moving your business forward.
Here’s some questions that will help you prepare for any situation…
How long can your business survive without a consistent revenue stream?
What type of financial obligations does your business have (lease, payroll, accounts payable, etc.)?
How long can you survive without a salary?
What can you do to lower your operating costs during an economic crisis?
Can you create alternate revenue streams that will help you get through a down period (e.i. shippable party packages, consulting, etc.)?
As tough as I know answering these questions can be, it’s important that you get real with yourself and come to terms with what you may have to do to survive in a worst case scenario. This game plan will be your key to weathering any storm without it completely stressing you out and/or financially ruining you.
IT’S TIME TO BE PROACTIVE
What Can We Do Right Now?
Stick Together
Now is the time that we need to rally together and support each other. Reach out to your network and see if anyone has a project you can help on. If not, brainstorm with your colleagues on what you can do to diversify and earn more business. Remember, several minds working together are more powerful than one mind working alone.
Identify Bottlenecks
How can you improve your business’s operations? If you need to bounce back from an economic downtick then you’ll have to streamline your business and maximize your profits. The best way to identify problems in your operations is to create a process documentation outline. In simple terms, write down the step-by-step process you go through to run your business. Then ask yourself, where do you spend the most time and how could you be more efficient in those areas. If you have staffing issues, find a platform like Homebase to streamline scheduling. If you spend a lot of time proposing clients then you may want to look at automating that process with software, like EventCinch. It’s one of the greatest times to be alive because there are a plethora of affordable software solutions that can help you streamline & grow your business.
Double Down on Marketing
Does your website need to be revamped? When was the last time you updated your look book? Do you know how to post effective social media ads? If sales are slow that means you have time to work on your marketing game. The more content and campaigns you can create and schedule for the year, the better. That way, when things pick back up, your marketing funnel is full and ready to go.
Expand Your Clientele
If your focus has been on the wedding industry then create a plan to get more corporate clients or visa versa. Research venues in your area and reach out about becoming a preferred vendor. Create content, like themed event packages, that will help you open up new relationships with brands and leverage future business. For instance, Black LAB Events in L.A. recently created a Spa Girl Dry Bar Bridal Experience that combines their catering and staffing with Spa Girl Cocktails and the Dry Bar blowout salon. This gives them the opportunity to co-promote and get their services in front of a new audience.
FINAL THOUGHT
Remember, greatness is not achieved through success. It’s when we face adversity and hardship that we learn the most important lessons in life. With the right attitude, you will never fail.