Last Word
Wise words
Collingwood Advisory,
CEO, Piers Bearne
discusses the facts and
ideas born out of the
outbreak
I
know that every single
person reading this has
been experiencing shock,
uncertainty, fear and
concern for family and
friends.
We all want this to be
over soon, and we have
a cognitive bias towards
seeing outcomes that
make it so. But we have to
be rational and plan for
contingencies. I’m a director
and shareholder with three
events businesses and, like
you, we are working hard
to protect our teams and
deliver value to customers.
What I’m saying comes from
the heart as well as the head.
This is tech disruption, not
just business interruption
We are all planning to deliver
our postponed events on
time; but will it be another
three, six or nine months?
We’re all risk managers now.
Whether we like it or not,
digital is disrupting events.
That doesn’t mean that face-
to-face is over. We believe
that digital is more than a
way to stay in touch with
customers: it has to be part
of the value and delivery
mechanism going forward.
We need to accelerate digital
transformation and give it
plenty of attention.
In the past week, we
66 — April
virtualised everything and
cancelled all face-to-face
meetings. We launched a
virtual workshop and virtual
Meetup. We were expecting
64 people, but already have
three times that number
registered.
All our business partners
and clients are well into their
Digital Pivot. It’s particularly
hard for tradeshows
to replicate their value
propositions online, but that
doesn’t change the facts: a
responsible risk plan requires
hybrid solutions.
Calendar land grab, digital
land grab
The exhibitions calendar
has been turned on its head,
with serious congestion in
Q4 of this year. For those
who have postponed their
Q2 event to Q4 (and may
have to postpone again), how
are we going to persuade
customers’ hard-hit budgets
to go again in their original
slot in 2021? Venues will be
under pressure to sell slots to
those who can’t commit, and
new events could appear in
vacated datelines.
Clients are sitting on
unspent budget and are
missing their branding, lead
gen and comms targets.
They are going to look for
value online, and that means
publishers.
We are all in this together.
Most publishers are suffering
from events postponements
and cancellations too. Talk
to your media partners about
innovative and collaborative
business models.
Balance sheet hacks for
independent organisers
Disclaimer: we don’t work for
corporates.
Entrepreneurs: don’t
rush into deals or personal
guarantees. Here’s the
hierarchy of funding options
that prioritises you and your
family’s security, whilst
ABOUT PIERS BEARNE
Piers Bearne is the Founder
and CEO of Collingwood
Advisory. He started his
first exhibition business
in 2002 and sold it in 2006,
and has launched and sold
two further businesses
since then. As CEO of
Clarion Events’ Confex
division, he led multiple
acquisitions. Piers is a
director and shareholder
with three events and media
companies.
helping to protect your
business. You can always
start another business, but
you can’t easily walk away
from bank debt.
1. Customer financing/the
Digital Pivot
2. Proactive and fair supplier
financing deals. Don’t wait
for them to chase you.
Partner and remember
they are hurting too
3. Invoice factoring
4. Non-guaranteed loans
(crowdfunding, friends
and family)
5. Convertible loans (friendly
investors)
6. Fundraising (wider
investor pool. Options
include crowdfunding,
angel investors and
corporates who will
venture fund you without
demanding the right to
acquire later)
7. Asset sales (individual
shows)
8. Divestment/distressed sale
of entire business
9. [Only if you are 100% sure:
Bank loans with personal
guarantee. Talk to your life
partner/family first]
Whatever you do, don’t
rush. No need to do a bad
deal.
Plant seeds
This isn’t just about
minimising losses. Now’s
the time to innovate, to tap
into your creativity as teams,
partners and friends. Let’s
get through this together, as
a community.
Be safe and well.