This much is obvious: Your customers are canceling events because of the economy, the fear of negative publicity and government interference. Competitors are stealing your clients away with crazy low bids.

But, maybe there’s a bigger reason your bookings are down – and things may not return to business as usual once the economy picks up.

It’s been happening slowly for years but it’s only just hit critical mass and has forever changed the way we will do business.

If you recognize, understand and exploit this shift your business can grow, right now, even in this lousy economy.

Those biz owners who are blaming all of their woes on the economy are misdirected. They end up reusing the playbook from the last recession, depending on marketing strategies from the last century.

What’s the bigger shift, which will have a longer lasting effect on your future than a recession? The big shift I’m talking about is web 2.0 – where most of our clients start every event project.

Transparency and honesty in your business practices is no longer just the right thing to do. It’s the only way to survive.

Those event people who think they can exist in the brave new world with less than scrupulous practices and stellar service will not last long.

I hate to tell you this, but you’re naked.

Your customers can see everything. They’re pricing your sources. They’re reading testimonials about you that you can’t control. They can request and compare quotes faster than ever before.

The bad news is Web 2.0 is no place to be when you have something to hide. However, it’s absolute nirvana to those event pros that put their clients’ needs first.

It goes beyond what they’re saying about you. It’s how well you attract, connect, engage and convert shoppers to buyers on your website. Is your website reaching your market? They’re searching for services just like yours online, right this very minute.

Can they find you? Will they find your competition first? Will they bother to stop on your site? Will it motivate them to contact you? Will they like what they see?

Don’t assume the economy is the only reason your business is down. It could be a fatal misdiagnosis.

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Singapore caterer Purple Sage  was doing great during the boom times – selling to high-end special events and corporate clients.

Then, the recession hit and now they’re doing what they can to keep their 50 person company alive. Revenues are down 35%.

Before the recession, 80% of their business came from multinational corporations and banks.

According to the The Straits Times; “The biggest shock came during the week after Chinese New Year. ‘On the third day of Chinese New Year, there were zero events. And for the whole week, we had only one event a day,’ said Mr Seow. ‘That was quite a shocker which got us worried.”

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What Are They Doing About It?

What now? The corporate catering firm plans to fill the void by promoting itself to weddings and other social events. Would you switch markets?

Also, they’re tightening their belts – turning off lights, and cutting waste where they can.  That makes sense – of course we should always be looking for ways to cut waste, true?

Event staff is being redeployed as marketing and sales. They’re using their down time to cold call, follow up on leads and even handing out fliers. Would you have your waitstaff handing out coupons?

The firm is offering a lower priced menu for cash strapped clients. Would you see it as a step down or embracing change?

My Take

Seems like Purple Sage will make it through the slow time and be a stronger company if they don’t forget the lessons they learned.

• Diversify – Lack of diversification is always a risk to any business. Make sure that most of your revenues don’t come from a handful of clients. Diversify your vendor list too. Play favorites, but have your plan B vendors at the ready.
• Systems – create a system for everything your business does – including monitoring projected sales very closely.
• Speed - you must be able to react to market trends fast. The only constant in business is change. Always be ready for it.
• Scenario Planning – What if you lost your biggest client? What if you grew by 150% in the next 6 months? What if your key employee left? What if your biggest competitor left town? Plan for many different scenarios and you’ll be able to react faster and more intelligently.

What Are You Doing About It?

Are you pursuing new markets, new marketing channels and new ideas – or are you just hoping things will get better soon? I’d love to hear your ideas.