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Business Planning for Feb 2010 |
February 2010
Business planning is Key
The old adage ‘the early bird gets the worm’ is never more appropriate than planning for the 2010 Games. Sure, it may seem like a “no brainer” — the Olympics are coming and business will be booming! But that’s not always the case. Past Games history shows that restaurants and retailers that aren’t near the action, particularly the Games venues, may find their business levels fall during the Games. Planning early for opportunities and recognizing the operational impacts of the Games is critical to your success. So, you’ve done your SWOT and completed an honest business assessment about how the 2010 Games will impact your business.
1. Let’s assume, you’ve decided to stay in Whistler and keep your business open:
Get ready for the experience of a lifetime! In most cases, whether you own a restaurant, a flower store or a T-shirt shop, it will not be “business as usual.”But whether your business reaps the benefits of the Games, or suffers the consequences of the Games is up to you. It’s up to each individual business to make the most of the opportunity. The best way to do that is to learn as much as possible and develop your unique game plan.
a. Don’t forget your current business
Like athletes around the world, it’s easy for businesses to dream big when it comes to the Olympic Games. The lure is that this once-in-a-lifetime opportunity can catapult a business beyond its wildest imaginings. That rags-to-riches story, while it can happen, is certainly not the norm.Businesses must consider Games’ opportunities within the context of an overall business strategy. That means evaluating how to take advantage of Olympic opportunities without compromising regular business operations. Your customers will need access to goods and services during the Games too.
For example, the 2010 Games will fall during Valentine’s Day. Despite the singular focus the resort will have on hosting the Olympics, locals will still want to buy a Valentine’s Day treat for their partners. Flower stores need to be prepared not only the accommodate the increase in sales and orders sparked from Olympic needs, but also to service a customer base who has ordered flowers every year on February 14th. It is critical to ensure those customers can be taken care of because they are the ones who will be coming back for more flowers in the years to come.
Remember, when the glitz and glamour of the Games comes to pass, life will return to business as usual. Whether your customers are still there, is entirely up to your planning.
Consider: if you lose 15 per cent of customers annually, your sales force will need to gain by 25 per cent in new customers to achieve a 10 per cent growth in sales.
A few tips to keep in mind when considering customer loyalty while pursuing new business opportunities: - Ensure the customer’s needs and expectations are at the centre of every decision, system and process.
- Let your customers know how important their business is through clear and frequent communications about your customer service initiatives.
- Be more flexible to meet unusual requests.
- Reassure customers about delivery commitments.
- Make sure staff is fully trained with the necessary skills to meet or exceed customer expectations.
- Remember the link between the individual.
- Extend hours so that visitors can browse the shops and stop in for something to eat.
- Ensure you have friendly, helpful service with knowledgeable staff that can give tourists advice and directions.
- Consider selling merchandize that’s easy to transport and captures the Olympic memory such as T-shirts, hats, pins etc.
- Boring merchandize will not move from your shelves.
- Visitors will not pay exorbitant prices for goods and services.
b) Develop creative back up plansContingency planning:
A big part of developing any good business plan is having a Plan B and even a Plan C on hand so you have roll with the punches come what may.
A back up plan is crucial.Your back up plan will be individual to your specific business.
The plan should discuss possible challenges and barriers that your business could encounter along the way.
Consider logistical challenges. Let’s use the flower store once again as an example. What happens if there is an accident on the highway and flower deliveries are delayed? Can you order and stock up on critical products in advance? Do you have room to store those products?Consider financial challenges. What happens if you experience cash flow problems and the banks are running low on cash too? Can you stock up on cash? Be aware of the potential risks like these. It will make you better able to respond to challenges if you’ve considered the possibility in advance. A solution should be at hand, and on paper, to deal with each scenario. And be flexible and ready to think on your feet.
Consider partnering: As you work through the possible scenarios of the challenges that your business could face, remember that you are not alone. Other businesses in the resort will be facing similar problems.
Just as the flower store owner worries about delayed deliveries, so too does the local coffee shop owner and the souvenir shop owner. It begs the question: is there a way to partner with other businesses that are facing similar challenges? For example, could several stores get together and rent storage space for the duration of the Games to ensure they have enough product in Whistler to meet all their needs?
It is worth considering possibilities like these sooner rather than later.
We encourage you to plan ahead and have a strategy for the Games!
2. Do you consider renting or vacating your commercial space during the Olympics?By offering the Commercial Space Matching Program, the Whistler Chamber is not intending to encourage local businesses to vacate their space. In fact, our hope is that most businesses will remain open to offer our guests an authentic Whistler experience. However, for some business owners the matching service tool may be a good fit. Some may want to volunteer and enjoy the Games or may feel that their services and products will not be in demand during the Games. Either way, businesses with a solid business plan for the Games will benefit the most from this huge business opportunity.
Things to think about: Imagine that there are more people in Whistler than we have ever seen on our busiest day. Add to that and multiply it by 17+ days. What are the opportunities for your business?
1. What are your options? - Run your business ‘above’ usual
- Operate your business and rent out to certain groups
- Vacate your business space and sub-lease to a group associated with the Games
2. What are the pros and cons for each option? - What's the short term gain versus a long term strategy?
- How will my business be represented while so many visitors are here?
- What opportunities are available that I haven't considered?
- What operational challenges will I face?
3. Use online business planning tools, e.g. 4. Calculate the revenue potential of each option and for a variety of scenarios.
5. Calculate the expenses for each option. Include potential moving costs, storage of inventory, utilities, HR costs, etc. Also, factor in loss of wages for owner/operators and potentially losing valuable employees.
6. If you are the tenant and are considering sub-leasing, check your lease or other agreement with your landlord. Do they have to agree? Does your landlord share in the additional revenue?
7. Other considerations: - Use a lawyer or commercial realtor to ink the deal
- What insurance will be required?
- Check with your accountant on potential tax issues
If you've decided to pursue your options of sub-letting or renting to groups during the Games, you can register your space here.
Louise Lundy
President
Whistler Chamber of Commerce
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Business Planning