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Net growth For many , being forced to rethink their businesses has resulted in big gains , says Bearne .
“ If you ’ re in a content led exhibition or conference business and you ’ re digitally smart , it really hasn ’ t been that bad over the last couple of years ,” he says . “ Quite a few companies that have got 30 % revenues are making more money at a net level . As clients transition back to face-toface events their budgets are the same , but you see your margin drop from 85 % plus to 60-65 %. That ’ s an interesting dynamic .
“ One of the things about the owner managed business – the indy sector – compared to corporates – is people have been very positive and they have been all the way through . There ’ s a tremendous amount of support and positivity on our discussion groups because that ’ s the nature of an entrepreneur . If you don ’ t
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have ability to put on rosetinted spectacles or forget the pain of starting a business you would never grow it and you wouldn ’ t stay in it .”
Confidence amongst independent organisers is also being reflected in the bigger fish hoping to buy them . However he warns a fully rounded digital offering is key to success .
“ We are seeing a lot of exuberance among corporates in the M & A market , with a very hot first half of next year . There ’ s capital to deploy . One thing that is very interesting is private equity investors are by and large pretty hot still on exhibitions . Content led businesses are much more popular than they were a couple of years ago . And everyone is interested in digital as part of the mix . Digital isn ’ t an add on . It should be integral to what you ’ re offering your exhibitors and audiences . It should be proper engagement .”
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Digital natives Where the danger lies , Bearne says , is by businesses forgetting their new-found digital skills as live events return .
He says : “ It means we need to have more people at higher levels in the businesses who are data people , digital natives , who are community first people . We also need to understand that our audiences are getting most of the information they used to get at shows online and our exhibitors , whether we like it or not , are choosing to market , network and sell stuff using digital media and particularly attribution .
“ So , what ’ s great about exhibitions ? Smoke and mirrors . There ’ s 100,000 people here – eight of them are people you needed to meet . That ’ s being disrupted by companies who supply those eight people . That doesn ’ t mean exhibition organisers get cut out , it means they need to be savvy about grabbing
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Piers Bearne founder and CEO of Collingwood Advisory
that year-round potential .”
Bearne warns that those that do not keep up with innovation will flounder .
“ There ’ s a bit of back and forth about what is a trade show business – you hear some people say ‘ trade show companies are trade show companies ’. I don ’ t think that ’ s quite true . I think trade show people mainly are trade show people and would have to reskill – and some of them are – to deliver year round networking and content , sales and marketing opportunities . If doesn ’ t happen we are going to see tech companies buying up some of the most interesting communities and shows . There are deals happing like that right now . At the other end the product sourcing and information gathering is being disrupted by publishers and platforms .”
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L e tt i n gg o Once you ’ ve launched and grown a successful independent business the biggest problem is “ being too hands on ”, he says .
“ Every year you need to get yourself further away from the operation but remain involved with the customers and culture and processes at high level . That can seem counterintuitive , but you want your creativity to be within a strong structure .” EN
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February — 17 |