DNF … three letters that can create immense positive impact … if we allow them to.
One of my early mentors once wrote “one of Chris’s greatest strengths, and sometimes his biggest weakness, is that he doesn’t know when to give up”.
My sense is that such a mindset is probably true for many of us in the Mass Participation Industry – the dread of “did not finish (DNF)” alongside our name that sometimes continues to drive us towards an impossible finish line and unfortunately sometimes the medical tent, or worse. The fear that not throwing our arms up in celebration is a “failure”.
In my recent article “The Elephant Just Got WAY Bigger” I shared some of my thoughts and reflected on the feedback that I’m hearing from across the globe regarding the huge commercial challenges that the industry is facing. There is clearly enormous pressure as many try to “restart their engines” and still operate with a fundamentally flawed business model.
As in-person events return and we wrestle with five key challenges around revenue, cash flow and reserves, input costs and supply chain issues, the Great Resignation together with permits and ownership I can’t help but wonder how many of us may be missing huge opportunities by refusing to accept that a DNF may be the best option in the circumstances.
Just yesterday I saw a clip from Joe De Sena, Founder and CEO of Spartan where he said “I am losing my mind trying to get this business going again …. I literally feel like the 300 Spartans up against 10,000 enemy in the Battle of Thermopylae”.
Last week I heard of an established event in Europe that usually attracts 8,000 participants which just two weeks out from event day only had 4,000 registrations. The feedback was “this is going to send us broke”.
It’s a battle out there. These are the kind of stories that I am hearing on an almost daily basis and unfortunately, I believe there will be many more examples like the European event in the coming months. I have little doubt that there are significant numbers in our industry that should be proactively considering the DNF option rather than having it forced upon them.
I have had my fair share of DNF’s both on and off the course. Without doubt, some of the biggest ones have provided the most powerful lessons. Sometimes the signals were there but I was so hyper-focused on the goal that I missed or ignored them. Other times, like hitting the proverbial wall, they came as a bolt out of the blue.
In my case the DNF’s, whether chosen or imposed, always provided incredible lessons, opened new doors and made me a better person.
Standing in front of my Sydney team with the Administrator next to me, during the GFC in 2008, telling them that the company was being put into administration and they no longer had jobs, was one of the hardest things I have ever done. However, it opened the door to focusing on building my business in Asia. 14 years later I’m hugely grateful to still be based here and now with a wonderful wife and son.
Letting go of a close to three year court case that almost destroyed me and my business provided immense relief and cleared the way for the current incredible chapter which enables me to passionately live my purpose every day ….. or perhaps that should be almost every day!
Like with any purpose, my drive to help others create a more economically, socially and environmentally sustainable global Mass Participation Industry so that together we can positively impact the health and wellbeing of hundreds of millions of people has some bumps along the way.
Does some of the above resonate with you? Are there more and more days when you think “I cannot do this any longer”?
Below are seven things to consider which may help you to evaluate whether a voluntary DNF may be the best option for you in current circumstances.
I think that the considerations are probably relevant to both employees and business owners but my primary focus here is on entrepreneurs/business owners.
- Health, wellbeing and personal priorities
The huge impact of COVID on the mental health is being increasingly documented. With mental health issues often come physical issues. Are you in a position to continue your role or running your business effectively or are you potentially risking a long-term impact on your health and wellbeing?
Are you clear on your personal priorities and how have they have perhaps evolved since you first started the role or your business?
Placing my Australian business into receivership had a huge impact on my health but I had to get straight back on the horse to ensure that my Singapore business survived. A few years later my father passed away and I came crashing down. I’m certain it was a cumulative effect.
It took me over two years to fully recover from the impact of the court case – I was burnt out and depressed from the financial, emotional and operational pressure of trying to juggle the court case and the business. I would have days where I would burst into tears in the back of a taxi for no apparent reason, my immune system was compromised and I made several bad business decisions that added even more pressure.
I feel sure that many business owners will be dealing with similar levels of pressure right now.
With the benefit of hindsight, I recognised the huge sacrifices I had made in some areas of my life and the experience has allowed me to re-balance them in a different way that I now feel far more comfortable with.
- Reserves
Cash flow pressures are likely to continue to increase in the coming months with suppliers, it seems, asking for bigger deposits earlier (perhaps a reflection of their own cash flow challenges) and entry fee revenues arriving closer to event day. Do you have existing or access to potential funds to survive?
In a week which has seen interest rate increases in both Australia and USA together with speculation of similar in other countries funding pressure will surely continue to rise.
- Legal liability
In my elephant in the room article, I expressed concern with respect to news of events selling out 2023 registrations at 2019 entry fee levels. My sense is that in some cases this may be an attempt to generate cash flow which if the business does not survive presents a potential liability issue.
It, of course, also may create a stain on the industry with participants unable to be refunded. I believe that part of the reason that participants are entering later, as referenced in the article, is the result of a loss of confidence and trust generated by lack of refunds and clear policy by some events during COVID.
If your business is struggling to survive, I think it is critical to ensure that you seek appropriate professional advice to ensure that you are not exposed to being held liable for trading whilst insolvent.
- Reputational risk
I have no doubt that my reputation was impacted in the eyes of some for a number of years after having to put my Australian business into administration. In these days of scrutiny via social media it’s worth considering whether it may be more prudent to bow out with your reputation intact once you have carefully weighed up the odds rather than continue to take risks that may impact you for years to come.
- External Advice
One of the common themes of our industry is passion and commitment which has the potential to cloud rational decision making in times of economic challenges. Do you have external advisors or trusted mentors and friends who can help you see your business or role through a “non-emotional” lense?
- The Great Resignation
44% of employees are “job seekers,” according to a recent Willis Towers Watson’s 2022 Global Benefits Attitudes Survey. A US Chamber of Commerce report indicated that one of the key drivers is better work-life balance – something which is often hard to achieve in small business and especially in the mass participation industry.
I couldn’t find any statistics but wonder how these figures translate to entrepreneurs who have decided it’s time to move the other way in the same way that corporate employees are moving on. I did hear a story recently where a struggling business owner clearing less than $100k a year moved to a corporate role for $300k plus benefits.
There is also data that suggests many are leaving the corporate world to become entrepreneurs. History shows that future success stories will be born in these times and I’m sure some of them will be new initiatives in our industry and present opportunities to those who are already part of it.
- Opportunities
Many people in the mass participation industry have been in it for decades and in fear of the unknown “what next” there may be a tendency to overlook the immense and transferrable skill set that they have developed whether as an employee, a business owner or event director.
A few years back while exploring topics for my professional speaking, my mentor and good friend, Andrew Griffiths, created a huge “aha moment” for me:
“Chris there are very few businesses that scale from zero to 60,000 customers, and from 30 to 5,000 staff and contractors in a few months and then have them all turn up on the same day. That close down and re-open massive parts of cities, deal with sometimes life and death situations in all kinds of weather conditions and have to make split-second decisions under the scrutiny of the world on live TV.
A business that covers most functional areas that would be reflected in any major corporation and usually on a tiny percentage of the budget necessitating flexibility, adaptability, clear communication and resilience”.
Not everyone in the industry has been fortunate to work on events at such scale but the fundamental skill sets are similar.
In closing, I want to be very clear that I am not advocating or encouraging “giving up” without careful consideration. I am not intending to paint an industry picture of doom and gloom but simply acknowledging that it is extremely challenging times for many in our industry and indeed numerous other industries.
I am a firm believer that in every challenge there is an opportunity and that every DNF has the potential to open the door to an amazing new start line and create immense positive impact.
Perhaps the well-considered voluntary DNF may bring that new start line closer than the one you have to access through the medical tent.