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reinvent your business to overcome the crisis

Philippe Mella speaks at full speed, and we do not know if it is because he is still caught in the storm that devastated the event in 2020, or if it is because he is overwhelmed by euphoria of his new projects. « My doctor told me to calm down, I have never worked so hard as this year ”, declares this 56-year-old man, playing the guides through the warehouses of his company, Lomarec, located in an activity zone of Sevran (Seine-Saint-Denis).

Founded by her parents in 1969, until now it has specialized in the rental of equipment for cocktails and receptions. All kinds of cutlery, tables, stainless steel trays and silverware are stored on the pallets that stand several meters away, while waiting for demand. But, for a year, the time has passed for celebration. « In 2020, we made 95% less turnover compared to 2019. ” Despite a loan guaranteed by the State of 1.6 million euros, recourse to the solidarity fund and short-time working up to 85%, it could not avoid the redundancy of nine of its 64 employees.

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Since the activity is not going to restart anytime soon, Philippe Mella has undertaken to diversify, with the help of specialized consultants (Suppleo): when e-commerce explodes, having 4,700 m2 warehouses 15 km from Paris is an asset. So, one of its two giant hangars will become a logistics platform. « We have just signed with a major brand of coffee ”, said the business manager. It has also launched Ecosystème événementiel 93, an eco-responsible events agency, which will bring together players from the department, when activity resumes.

“We had to mourn the world before”

One year after the introduction of the first confinement, in March 2020, a number of companies in the most penalized sectors – in particular tourism, culture, hotel and catering – are still paralyzed by the difficulties. “Many hold on thanks to the aid and wait for the economy to pick up, or else devote all their energy to the implementation of telework and partial unemployment”, notes Michel Rességuier, president of the Prospheres cabinet, specializing in business transformation.

But others have opted for a different strategy: to occupy the long weeks of confinement, to keep the link with their customers or sometimes even to survive, they have initiated a transfer. “Despite the difficulties, some entrepreneurs have succeeded in changing their business model in the face of the crisis, by transforming their mode of production, by diversifying their clientele or by pivoting towards a slightly different activity”, observes Denis Dauchy, professor of business strategy at the Edhec business school. They have in common that they have gone through a painful challenge – what if the pandemic continues? -, leading to the same observation: the need to change.

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