When the dot-com bubble burst a few years ago, there was no shortage of tech businesses going under.

What may be surprising to learn, though, is that some brave entrepreneurs continued to launch new tech companies - and found success.

"In every tragedy or negative, there's always opportunity," says Alex Shan, co-founder of Toronto-based IT consulting firm Jolera.

"Whenever something bad happens, you have to look at the positive side and when everyone else is scared, there is really an opportunity."

Photo courtesy of Jolera
IT consulting firm Jolera co-founders Joseph Khunaysir, left, and Alex Shan see opportunity in the current recession.

Faced with tough economic times once again, Shan and his partner are doing just that.

The Jolera team, which primarily works with big not-for-profit groups, has spent the last few months developing new products and a plan - a plan to not only survive in this downturn, but thrive.

"In a recession, lots of companies go out of business and there's a vacuum created. But life still goes on and people still need services," Shan says.

"We want to be ready for when that vacuum is created."

At a time when most businesses are bucking down and retreating in the face of the economic crunch, Jolera is looking for the opportunity in crisis. It's a strategy that business experts say can make all the difference in today's tight market.

"A lot of people tend to protect what they've got in a downturn, but in my mind, it's a great time to experiment," says Rob Warren, executive director of the Asper Centre for Entrepreneurship at the University of Manitoba in Winnipeg.

"It's a great time to gain market share, take over your competitors' orders, consolidate if they go under, try new things and find new solutions - so that when the downturn is over, you'll be in a much better position coming out it than if you had just hunkered down."

So what does it take to turn a bust economy into a boom for your business?

The industry you're in is a big factor. Experts say some sectors could see a significant boost, thanks to increased government spending and multimillion-dollar bailouts.

"If your main customer is government or if you're in infrastructure, you'll actually do pretty well because all the provinces and the federal government are very committed to spending big money on infrastructure right now," Warren says.

"It'll be a far bigger challenge for battered industries like manufacturing and retail."

Few sectors have been as hard hit as the airline industry. With skyrocketing fuel prices last year and now fewer people flying, these are turbulent times for aviation companies. Even so, some carriers are positioning themselves to cash in on the crisis.

"The airline industry has undergone some pretty significant rationalization in the last year - there have been thousands of employees laid off across North America, hundreds of aircraft simply parked and dozens of airlines that have gone out of business," says WestJet public relations manager Robert Palmer.

"There have also been airlines in Canada that have withdrawn or reduced service on routes, so opportunities do present themselves in situations like this ... and you may have occasion to look at some of the routes your competitors pulled out of."

Flying ahead with expansion plans, WestJet is not only adding more routes, but has just inked a new code-share agreement with Southwest Airlines that will give it access to dozens of U.S. destinations. The Calgary-based carrier is also planning to accept 45 new aircraft over the next five years.

Air Canada, meanwhile, is also expanding its reach out of Calgary, offering four new non-stop routes starting in May to San Diego, London, Ont., Whitehorse and Portland, Ore.

"Our focus remains on strategic growth that meets travellers' needs by offering the best schedules, the most choice and the lowest fares on an everyday basis," said Daniel Shurz, Air Canada's vice-president of network planning, in a statement.

WestJet's Palmer noted that his company is also adding new aircraft to its fleet. "We'll probably take nine aircraft this year alone, which is pretty extraordinary," Palmer says.

"Some economists have wondered if this is a recession we've just chosen not to take part in, but we believe there are opportunities. People still need to travel and when budgets are tight, where do they go? They go to the low-cost carrier."

At times like this, being a low-cost provider is one of the best ways to get ahead. Companies that are currently thriving - including Wal-Mart and McDonald's - offer economical options to cash-strapped consumers.

"The low-cost providers will do really well, and if you consider that Southwest Airlines actually started flying during a recession, the reason that they came out strong and were able to attract people was because of their low fares and that enabled them to gain customers and grow routes," Warren says.

"They got lots of people through the door because of the low price and were then able to demonstrate that they had a good service."

Providing good service and going above and beyond what your competitors are doing is another way to get ahead.

It's something service companies, including Jolera, have always focused on, but now need to work on more than ever.

"One of the keys right now is ensuring our clients' success," says Shan. "We're not like Bell Canada or Telus who say: 'You didn't pay last month, so we're cutting off service.' "We want to make sure our clients are OK, so that they'll keep being our clients. I've learned that if you give a lot back, you get a lot back."

In an effort to get more customers, Shan is also looking to other markets. He just returned from a business-building trip to India and has plans to travel to Nigeria and Zambia in April.

"Looking at how the world economy is doing, we've identified that moving into emerging markets is a good strategic move right now, since markets in North America and Europe are really getting hit by this downturn," says Shan.

"We're trying to offset that by not only introducing new products that are more aligned with a downturned economy, but also expanding to emerging markets that have really seen an influx of cash over the last few years."

With a recent AMEX/ Ipsos Reid survey showing that almost 89 percent of small-business owners polled want to focus on growing their business, Jolera isn't alone in its expansion plans.

"This is a challenging time but almost all small-business owners told us they still want to grow, even with the prevailing economic environment," says Howard Grosfield, vice-president and general manager of small-business services for American Express Canada and international markets. "I think the opportunity in crisis just requires you to find those pockets, those opportunities for growth. Being innovative and flexible can help you capitalize on those opportunities."

One of the biggest opportunities, say experts, is aggressively seeking out your competitors' customers. In this make-or-break market, it could well be one of the quickest ways to get ahead.

"If you can go to a company that you and someone else supply a product for and try to become their sole supplier by showing them how that could save them money, you can really gain market share," advises Warren.

"By positioning yourself to take over more orders like that, you'll be in a very good position."

In an attempt to get more market share, WestJet plans to introduce a new customer-loyalty program this year.

Aimed at adding value, the frequent-flier program will target an edge the competitors already have by letting customers earn points for free flights. The airline is also introducing more "buy-on-board" options to increase sales, while doing everything it can to reduce expenses.

One seemingly simple cost-cutting measure - having flight crew and all employees travelling onboard clean the aircraft between flights - has already saved the company millions of dollars.

"It doesn't matter if you're working or if you're going to Punta Cana for a holiday, you get up and clean the aircraft before you get off. That simple act of dusting off seats, checking seat pockets, re-arranging seat belts and cleaning the plane ourselves does two things - it helps us achieve our goal of a 30-minute turnaround time and it saves the company almost $11 million a year."

For Jolera, the biggest challenge isn't keeping costs down, but managing the fears of its customers so that they don't cut back or cancel service.

"Fear is a huge thing and it's not good for business," Shan says.

"A lot of our customers aren't suffering because of the economy, but because there's so much fear, they're cutting back. All the bad news is bad for business."

(Tess van Straaten can be reached at tess@businessedge.ca)