The Graceful Exit
July 2009
Although no one wants to see a tourism business go under, the extraordinary times through which we are living may cause some businesses, state attractions, and other tourism venues to close their doors. How we prepare for these transitions is important not only to the people being impacted but also to the locale’s other tourism businesses, Usually tourism business or attractions that close fall into one of two groups. There are those business/attractions that are for profit and simply could not survive in a down economy. There are also non-profit tourism businesses/attractions whose demise may be come from budgetary cutbacks, loss of tax revenue or because of other circumstances beyond the attraction’s control.
According to the Bureau of Labor Statistics, 4.1 million people have lost their jobs in the last year alone. It is hard enough to lose one’s job but how the job is lost can mean a lot to a person’s self-esteem and ability to find a new job or start a new business. Often a business closing comes with a great amount of self-inflicted guilt. The reality is that almost no one was smart enough to see the worldwide downturn. In most cases, a tourism business closing should not be taken as a personal failure, but rather understand it as simply an unfortunate part of the business cycle. However, having to close a tourism business does not mean that you should not learn important lessons from its closing. To help you lessen the pain of a business or attraction closing, Tourism & More offers the following advice and ideas.
- Do not take a business/attraction closing as the end of the world. There is no doubt that losing or closing a business is hard and many people go through a mourning period. Often the same psychological processes that occur with the loss of a loved one also happen with the loss of a business. When we first realize that the business/attraction has come to the end of its course we often deny the reality, then we try to bargain with those whom we feel to be responsible for the business’ demise. Often there is a great deal of anger involved, and finally we come to accept the fact that everything in life has an end, and that it is now time to move on. The bottom line is that all of these feelings are normal. Not everyone will experience them and there is no special order to how they occur. The key thing to remember is that in an economic downturn many other people are also going through their own business mourning cycle.
- If you are the boss or owner, prepare your people for the business’ death. The end of a business is never easy on anyone. However, if you are in a position of administration then you have an added responsibility. It is not fair suddenly simply to announce to your employees that they are losing their jobs. Prepare them for the eventuality, assure them that you will do everything possible to help them move on and recognize that they too are now going through a mourning cycle. Be prepared for employees to be angry with you. This is a normal part of the healing process.
- Do not forget that your customers may also have a stake in your business. Tourism is about people and if you are closing a tourism business or attraction, do not be surprised that many of your customers also will go through a grieving process. Once you have told your employees that the business is to be closed, then make sure that you inform your customers. You may have to close the business, but do it with dignity and grace. Provide recommendations as to where your loyal customers may find others who can provide them with the needed service or experience.
- Make sure that you have all of your legal ducks in a row. There is a lot more to closing a business than simply putting a key in the door. Make sure that you speak with your lawyer and accountant. Do not forget to cancel licenses and permits, make sure to pay all taxes and debts, and make sure that your creditors know that you will be closing the business/attraction.
- Contact other similar tourism businesses that may be able to take up the slack. Do not allow these people to read about your agency’s or business’ closing in the media. Chat with them to see if they can absorb some of your employees or if they can help to regroup so that the overall tourism community and product does not suffer.
- Work with your local CVB (Tourism Office) and Chamber of Commerce. Give them plenty of warning so that they do not send people to your attraction and/or business after your close your doors. They will also want to update their database and may be able to help you place your employees and/or you in new positions, even if these are temporary positions.
- Think of a business closing the same way you might think of a romantic breakup. There are several ways to terminate a relationship, try to apply these to a business closing. Try to avoid surprises. Instead deliver bad news directly, rather than beating around the bush. Furthermore, tourism is about relationships so do not disappear the day that you announce that the business is closing. Instead try to keep people’s self esteem in tack, and if possible try to assure them that there will be severance pay (if possible) or at least letters of recommendation. Deliver the news at your center or business; do not take people out on a social gathering. Finally ask people to write exit reports. These can be very cathartic and will allow you to learn what you too might have done better.
- Do not just disappear. No matter how many details you take care of prior to closing the business or attraction there is always something left undone. Leave everyone a phone number or email address where you can be reached should any questions arise after the closing. Remember, the way you go out of business is just as important as the way you come in. No matter how sad or disappointed you may be never sacrifice your reputation and remember there may well be a next time.
