Adjusting Pricing Models and Cash Flow

The events’ industry in Israel, which is worth approximately 10 billion NIS a year, was dealt a significant blow by COVID-19. State support—a partial exemption from the “arnona” (property tax), dedicated loans, furlough arrangements for workers and regular grants—did indeed help a significant proportion of venue owners to overcome the crisis. Now, with the market reopening, it is clear to see that despite the increase in demand, there is also a significant increase in their fixed and variable expenses.

Like a skilled painter who stops every once in a while to examine their painting before going back to it and making adjustments, here too my suggestion to venue owners would be to stop for a moment and adjust the direction of travel. The present situation necessitates a new business plan—to understand the precise economic ramifications of the new circumstances and to adjust the pricing models, expenses and cash flow accordingly, to enable you to thrive once the pandemic is over. At the same time, keep creating parallel income sources (such as private catering, food delivery services etc.) to ensure you have a steady source of income that will be able to withstand any future tremors.

The writer is an expert in training and consulting in business skills and a lecturer at the Bank Hapoalim Center for Financial Growth