Like any number of other business sectors, the language teaching industry is beginning to feel the sharp bite of Covid 19 as it continues to spread across the world. In China, Hong Kong, Italy, Madrid and Bucharest, schools of all descriptions have been ordered to close and the likelihood is that public health authorities in other regions will soon adopt a similar policy in an attempt to restrict further contagion.
As we all know, controlling the spread of the virus really is a matter of life and death as something like 2-3% of those people who contract the disease die as a result. In most cases the victims are either elderly, or individuals with previous health problems, and while this isn’t the typical profile of most language learners, younger, healthier students can become transmitters and unwillingly infect their elderly or weaker relatives. Hence the school closures.
At the same time the number of people travelling abroad has fallen off a cliff as more and more people, including language students (or their parents) are persuaded that non-essential travel is best avoided in current circumstances. Several airlines have even cancelled flights to regions that have the largest number of coronavirus cases, including flights to and from key markets for the language teaching industry such as Italy and China.
You don’t need an MBA to know that if a business loses a large proportion of its income for any length of time the consequences are likely to be serious. So what can be done to lessen the impact? Various things, some obvious, others perhaps less so:
- Cut back on expenditure. The most obvious response to a drop in income, although unlikely to be enough of a solution, given that most language schools have a broad range of fixed costs that can’t readily be trimmed.
- Talk to your bank. If cash is short, an overdraft will help. But you’ll have to persuade your bank’s risk assessors that the downturn is temporary and that cash will return. You’ll also need to bear in mind that banks are likely to be inundated with similar requests from dozens of other businesses. How long is the queue?
- Sell any non-essential assets. Do you really need that mini-van? Does anyone else want it?
- Assuming you own them, re-mortgage your premises. Again, this presupposes that your bank has the time and inclination to talk to you about such an idea, but most banks will see this as a relatively safe option.
- Offer existing students (i.e. those who have already paid for a course) who can’t come to class, an online course as an alternative to a refund. Using web conferencing tools such as Zoom, your teachers can continue to teach your students, either individually or in groups, face-to-face and in real time. You could even sweeten the offer by including an interactive self-study course component. (But be careful which course you choose, there is an awful lot of reputation damaging garbage out there.)
- Start advertising online courses (with or without a self-study component) to new students. Imagine you have been told to self-isolate to help prevent the spread of the virus. Might you be tempted to use some of this time to improve your language skills? There’s only so much television you can subject yourself to…
- Find a new investor: if all else fails and you are confident that the slump in business will be temporary, you may be able to persuade someone with some spare cash to inject some of it into your business in exchange for a proportion of the shares. (And no, just in case you were wondering, this is not an unscrupulous pitch from me to people in need.)
A number of language schools will probably succumb to the effects of the virus at some point. How many collapse will depend on their current state of health (the weakest will succumb first) and the time it takes for the rate of contagion to drop away and for the virus to disappear from the headlines. Let’s hope that’s a matter of weeks rather than months, for everyone’s sake.