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The EP business cycle

Just like any other business, whether you are talking about retail, car sales, hotels etc there is a business cycle where you have peaks and valleys.  In the EP business we are in that winter cycle where business slows down with new clients arriving over the horizon.  There are a couple reasons for this.  The first and obvious one is that corporations are ending their fiscal year and budgets are tight and have to be met.  Secondly, the holidays are nearing and coupled with the economic strain just about everyone slows down on unnecessary spending.  This occurs every year when it comes to new clients.  Travel slows down until specific days where people travel to visit families, but from the business standpoint it comes to almost a screeching halt.

The exception to this yearly fiscal slowdown are emergencies and in those cases they will reach out for some crisis management.  Unexpected occurrences will call for the necessity of protection but for the most part this is not a fertile part of the year.  This is the time where those companies and specialists that have long term details ease through this slow period.  If you have not made good use of the fertile months this can be the make or break time for you.  For the next 3 to 4 month many will second guess the industry and his/her ability to honestly survive.  It is just the nature of the Business side of the industry.  Too often people get so caught up in the operational side, they have no clue about the REAL BUSINESS of the industry.  The amount of specialists in certain areas is like having a car dealership on every corner in a 10 mile radius.  Car sales go down during this time therefore many of the dealerships will suffer.  Although sales will decrease, the dealership(s) that offer the best deals will get the lion’s share of the business.

This is the ideal time to launch your plan for the new year because it is a poor time to try to foster new client relationships.  For those of you who make it through this season for the first time and those that make it through again, you need to prepare for this next year so that it does not have a negative effect on you and your perception of the industry the next time.

3 comments

  1. Rick Knowles

    Eric,

    I definitely know what your saying about this time of the year being slow. My Client who owns a few estates that host higher end Corp Parties/Weddings etc slows down on the Wedding end significantly from Dec-April. And I always let my agents know that BUDGETING is key to this time of the year. Don’t expect to work much for these months of down time and hopefully you saved wisely!

    1. Eric Konohia

      New potential clients especially don’t engage in new relationships until well after the new year

  2. V Wilson

    Great info!

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