As inflation soars with no signs of lowering, venue owners across the country are bracing for the effects an impending recession will have on their businesses. Many are left overwhelmed and confused, unaware of how to mitigate potential income loss. If you find yourself in the same boat, you don't have to sit back and watch your event venue fall into bankruptcy. Whether you're a new venue owner or a seasoned veteran, you can take steps to help make your business recession-proof and continue to thrive no matter what the economy throws at you. These five tips will show you how to prepare your event venue for a recession so you can face the future with confidence!
5 Tips To Prepare Your Event Venue For A Recession
1. Prioritize Savings
Saving is difficult for everyone, but no one can deny its importance, especially when it comes to safeguarding your business. Although the needs of every venue differ, ideally, you should aim to have around three months' worth of expenses set aside. Although that number may seem unattainable at first, you can make great gains by allotting a small percentage of your monthly income to savings and increasing that number over time as your business grows. Having a well-stocked savings account is your best bet against combating the effects of a recession and can provide you with comforting peace of mind.
2. Diversify Your Clientele
When you created your business plan, chances are you chose your target clientele and focused your energy on designing a space that would appeal to their needs. This approach is a sound business strategy that has proven successful for thousands of venue owners over the years. However, during a recession, it's vital to increase your reach as far as possible to ensure your venue continues to receive the income necessary to thrive. Advertising to a broader audience can help increase business and grow your venue simultaneously.
3. Network
Connect with wedding and event planners to organize in-house events. Don't be afraid to build a relationship with corporate planners, small businesses, and non-profits and offer packages and programs that they may find beneficial, such as offsites, business luncheons, etc. Works with other local venues regarding referral programs, as referrals are the most cost-efficient marketing method to dramatically increase your bottom line. Boots on the ground work like this can create beneficial partnerships that will last for years to come!
4. Show Them Your Value
Making your venue stand apart from the rest is crucial during a recession. Show potential clients why they should choose your business over others and how you will provide the most bang for their buck. Don't underestimate the value of a good deal during times requiring financial frugality. Additionally, as you seek to limit expenditures, it can be tempting to cut your advertising budget. Instead of eliminating advertising altogether, research which methods offer the highest conversions and cancel the ones that provide a smaller ROI. Remember, if clients can't find your venue, they won't use it!
5. Hire A Quality Consultant
One of the best investments you can make in your business during a recession is hiring a knowledgeable and trustworthy venue consultant to help guide you along the way. An experienced venue consultant can show you how to navigate the tricky economic terrain and safeguard against financial strain.
Bonnie R. Hawthorne is Atlanta's premier venue consultant dedicated to serving venue owners. Using her extensive experience, Bonnie will provide you with the first-class service you need for success. From one-on-one consulting to inventory sourcing and more, with Bonnie, you can trust she will show you how to ensure your venue not only survives a recession, but thrives! Call her today and see the difference her expertise makes for your venue!