Some years ago, I did some community theatre acting. Our director was somewhat 'theatrical' in her own right and loved profound lines. Her favorite was 'Without hope, this is no life'.
A little over the top perhaps but we’ve certainly had a lousy year. With the many challenges, there have been some glimmers of hope.
Improved Internet Utilization
Last March, our company began doing advisory for a privately held Ontario based Internet Service Provider (ISP) which offers a balance of fixed wireless and fiber optic internet services. At the time, the mandate had absolutely nothing to do with the virus, but to accelerate expansion into new markets which had already been identified.
The virus has nonetheless changed the landscape. Primarily a residential service provider, this ISP's commercial business is becoming much more important as reliable internet becomes an absolute pre-requisite for most businesses to operate. As national ISP's tend to be very inflexible with their service offering, SME owners welcome the ability of a privately held ISP to develop customized support. This is resulting in major cost savings for owners of mid-sized businesses particularly important as most are rebuilding their revenue line.
More Distance Off the Tee
Golf courses across Ontario have had record year not just in terms of rounds and revenue but, more importantly, profitability. With few exceptions, greens fees and memberships are increasing in price for the 2021 season something not seen often in these gloomy economic times. This is the result of more than just increased rounds as important as that is. Golf courses are now realizing efficiencies through the requirement for online tee time bookings, advanced check- ins and, in the process, collecting earlier payment which improves cash flow. When things loosen up, the 19th hole will still be there but don’t look for as many people in the pro shop. The model has fundamentally changed and is helping the bottom line.
The Right Government Path
I am not in favour of many government subsidy programs but our government is on the right track supporting the SME sector. Over 70% of Canada’s private sector work force is employed by companies with less than 100 employees. The recovery of mid-sized business is essential for our country.
I look forward to the day when we are distancing less and meeting a little more. But to get there, we should all embrace the experiences these challenging times have forced upon us.
Hope is good, but learning is more important.
Rincroft facilitates the divestiture of medium sized businesses. Our clients are companies which are well established and profitable. Since its inception, our company has completed the sale of more than 50 business across a wide range of industries. We also provide advisory services assisting owners in building sustainable value even if they have no immediate plans to sell.
Find out more at