There is no doubt that many people have had to tighten their belts with the continuous pressure on the global economy.
The knock-on effect for businesses is that it becomes harder and harder to make a profit as people spend less and less. And many have already had to accept they cannot continue.
Now companies are trying to devise plans on how to survive and get through the economic downturn.
One of the principal problems is that you need to have a business model built on a subscription or normal levels of income when times are tough to guarantee profits.
Marc Elkiner, the co-founder of sharingbox, understands better than most how difficult it can be. The company provides innovative photo booth experiences for events and product installations.
Sharingbox had an income model that started from zero every month.
Marc says: “Because we have no monthly retainers, we always start from scratch.
“As soon as the word recession starts being used, and people know it’s looming, marketing budgets are cut. As a business owner, you always have to fear sales will crash.
“That’s the biggest stress as a business owner because you know you have people relying on you. You care about those who work for you.”
Despite the continuous refusal of the Biden government to admit the US is in a recession, the definition is two consecutive quarters of harmful gross domestic product.
This would mean America entered a recession in the Summer of 2022.
The aftermath of COVID, the war in Ukraine, escalating energy prices, and the rise of inflation have all taken their toll, causing individuals to tighten their belts and companies to tighten their belts.
Marc saw his company’s income go to nothing at the beginning of COVID, so he has some important lessons to share.
“We have had to make ourselves less dependent on sole clients. That was a lesson we learned,” says Marc.
He adds while others were battering down the hatches, he and his co-founder Sidney Valenta saw COVID as a potential opportunity to sell.
“We decided we would sell because otherwise, we wouldn’t survive. We really wanted to keep the company afloat for the employees.”
Another critical factor was that Marc and Sidney could stay with the company: “We didn’t want to have somebody telling us what to do and have the performance based on that. That way, we still have a degree of control.”
Marc started sharingbox with USD 20,000. The company is now in 10 different countries and has achieved a revenue of over $20 million a year in six years.
The key to the company’s success has been bringing a sense of cool to the photobooth experience and its innovative cloud-based software, which was implemented by Marc.
Sharingbox has enabled companies like Adidas and Calvin Klein Women to fully utilize the marketing data they get from events, boosting their growth.
Barbara Weisz, Senior Vice President of Global Operations for Groupon, worked with Elkiner at the e-commerce company, one of the world leaders in its field.
She said: “Marc’s achievements while he was a Groupon were groundbreaking. He enabled us to triple our sales and led the fastest-growing segment at Groupon, starting it from scratch. Only an expert like Marc can handle the challenges companies face today.”
“It is essential if you are a company trying to improve and grow, you would hire someone like Marc.”
“He has made a positive impact worldwide, earning him the moniker of one of the most distinguished leaders in his field.”