As a lover of problems, I grapple with this situation, my mind swimming with questions. How long will this crisis last, how will the world open up again, how will this affect us and, lastly, how will it change the way we do business?
Stocktake
Over this time of crisis, I have read many articles, spoken to many clients and partners in travel to try to understand their position. One thing is clear; it is a steep road we all must climb before things get back to 'normal'...whatever that may be.
As service providers to the travel industry, we would like to help fellow businesses fathom what lies ahead and support them as best we can to ensure they make it through. There are many conflicting opinions (made even more confusing by fake news reports), and I don't think anyone has the answers. That said, as we learn more about the virus and get deeper into the crisis, we can better understand it. Armed with hindsight and knowledge, we can beat a clear path forward.
Survival
COVID-19 presents a difficult time for everyone, from the business owner to the lowliest employee. We are sharing knowledge, ideas, resources, successes and failures. Adopting this practice will be invaluable in navigating your business through this crisis.
Issues business-owners are focusing on:
- Restructuring to survive: Our first and foremost concern is to save the business that will almost certainly require drastic actions and require us and our teams to work around the clock.
We will be considering setting up remote units and scaling back on staff, all the while ensuring we are complying with all labour regulations. Further mitigation may require submitting requests to financial institutions for payment holidays. Every measure is crucial.
- Dealing with suppliers and clients: Managing the fall-out and relationships with partners up and down the supply chain and understanding your contractual obligations.
- Funding and payment concessions to reduce all costs: Many businesses will need to find funding to get through this crisis and will need to make every effort to reduce the daily expenses.
- Scenario planning: While grappling with the implications of COVID-19 on your business, you need to project succession plans. A challenging undertaking at best, especially when none of us has any idea of how the crisis will play out.
- Info-gathering to allow for better-informed decision-making.
As we go deeper into the crisis, we will understand the implications better, which will mean that our survival strategy will, in all likelihood, need to change. Survival phase will continue until we get to recovery but should require less intensive intervention. Sadly, many companies will not make it to recovery through no fault of their own.
Waiting it out
Once our survival plan is in place and before the recovery begins, there will be time to plan and re-strategise for the restoration.
In a crisis, leaders must act boldly and make big decisions.
Such far-reaching action is a critical part of the process and one that allows you to have a certain amount of control of your position in response to the pandemic.
What a leader should be doing in this scenario:
- Planning for the recovery: Using the best information available, you need to game-plan to take advantage of the recovery. This plan will need to be adapted as we learn more and the realities on the ground change.
- Maintaining brand awareness: Stay front of mind with your clients throughout this period.
- Maintain and develop relationships: The tourism industry is relationship-based. Your focus should be on enhancing existing relationships and creating new ones.
- Upskilling yourself and your staff: While things are in limbo it is a perfect time to upskill yourself and staff.
- Retooling your business: That list of things you need to do to move your business forward but for which you never seem to have the time. Now is a great time to focus on them, whether it be upskilling, the introduction of new systems, technology and processes – now is the time.
- Collaborating: To get through this and to take advantage of the recovery, you should look for opportunities to work with like-minded industry peers.
- Selling in an unstable environment: Work out how you are going encourage potential travellers to visit your region of the world and use your product. Different areas/products will have advantages (highlight) and disadvantages (mitigate).
- Understanding the future: This crisis will change the future and the way we work. Try to work out how this might affect your business and how you can prepare for it.
- Scanning for opportunities: With crises come opportunities. Keep an eye out for them.
Paul de Waal, CEO Wetu
