300 grams business or how to open during a crisis
A crisis that only about him have not been written over the past six months. On the Internet you can find a huge number of articles, blogs and videos on crisis management. Everyone is talking about how to “stay afloat”, “not to roll aside” and “survive” in such an acute and stressful time for a business that already had to develop in the conditions of the fragile economy of the post-Soviet countries.
We went further and asked if there are so many ways to “survive” in the market, is there any possibility of development during the crisis or even starting a business from scratch?
Having monitored the most dynamic of the markets – the IT technology market, we found CitySites, which showed high rates of development precisely in times of crisis. Read about what came of it below.
CitySites is a network of city sites in 6 CIS countries, such as Ukraine, Belarus, Russia, Kazakhstan, Georgia and Lithuania. In these countries, the company has already opened more than 100 sites of the city.
It turned out to be interesting that the company began its active development in times of crisis, back in 2008, and in 2014 again showed a surge in activity, opening a record number of sites for itself. Representative offices of the company appeared in 65 cities and this is in just one year (the dynamics of discoveries are displayed on the citysitesglobal.com website). Naturally, we wondered if there was any connection in this or the guys were just lucky.
Our editorial staff managed to talk with one of the top managers of the company, who answered our most important question:
Are such rates of development really not random and are the planned steps of the company, as well as part of the crisis management?
“You see, today the market of Internet technologies and IT business, in comparison with traditional types of business, is the undisputed leader in increasing its turnover and growth rates. Given the high margin in online business, it is becoming increasingly attractive for our entrepreneurs, ”comments Ivan Polienko, Development Director of CitySites.
“It just so happened that we had to develop our network just when it was the most difficult, but as it turned out, it played into our hands, and now we are reaping the fruits of those victories and the experience that we got in 2008 year. I’ll tell you more, we have now even made a box with our franchise in order to encourage more confidence in our crisis than to give them confidence or something. It sounds funny, of course, but believe me, it works. ”
What kind of box, what’s in it, tell me?
We have not invented anything new. It’s just a box with our product, but the paradox is that the product is a business, and even on the Internet, which can neither be seen nor felt.
Therefore, we decided to give our franchise a physical shell. Even from the point of view of banal psychology, it is much more pleasant to realize that what you bought can be held in hands, during this difficult time we are trying by any means to increase the trust of our partners to the company.
The boxed version of the city site (the working name of the franchise kit) includes certificates for the site itself as a product, electronic versions of all documentation on physical media and corporate literature. By corporate literature I mean instructions for administering a site, books for managers, and, naturally, a book describing the business model itself. It took us the most time to prepare it, since we wrote this book exclusively by the internal top management of the company, trying to create step-by-step instructions for developing this business for several years.
I can confidently say that we did it at a decent level, since we are always happy to share all our experience with partners. We did not want them to make the mistakes that remained a long gone stage for us, and act according to the strategy tested by dozens of our partners in various cities and countries.
That is, CitySites is not afraid of the crisis. Share with us why? Indeed, in times of crisis, many close, leave the market, reduce costs, and you have the opposite. Maybe you know some secret?
There are no secrets, and we are really not afraid of the crisis.
Firstly, a lot depends on the nature of our activities and the specifics of the business. It’s no secret that the essence of making money on a city site is selling ads to your resource. It, in turn, does not require expensive developments, printouts, stickers, filming or readings, therefore, in combination with a decent level of site monetization, the correct distribution of the cost part and the high percentage of sales of our managers at a minimum rate, we get a very high margin from the sale .
Also, the crisis itself plays into our hands, providing an opportunity to get inexpensive rent, qualified specialists, which are becoming much more in the labor market due to the closure of companies or downsizing.