If You’re Not Going Forward… You Are Sinking: by Deborah Kaufman

Do you ever feel like you’re in idle and can’t seem to get your business moving forward? In this economy, it’s happening to all of us. Yes…you are not alone!

An investor in one of the companies we founded once asked about our revenue projections. When I told him that they were a bit flat, he commented “if you’re not going forward, you are sinking!” The thought scared the hell out of me. There were over 100 people and their families depending on us to meet revenue projections. We were just entering another economic crisis, or at least it was for software companies. It was the beginning of the ‘dotcom’ bust. We were all flying so high that it never occurred to us that revenue would come to a screeching halt when the public market enthusiasm for tech stocks began drying up. We were trying to file our IPO (initial public offering) before the window closed and there was intense pressure on hitting revenue projections to achieve the desired valuation. It was a time when investors, board members and our executive team were not sleeping nights. Contracts that we considered ‘sure bets’ were suddenly delayed or canceled. Everyone from our customers to our vendors was in the same pickle. There was no cash flowing.

While we finally recovered from those days, it got me thinking about the economy today and how many of us who own small businesses are trying to figure out how to keep the ball moving forward. No matter how talented you are as a photographer, the current economy has created some obstacles that are affecting your bottom line.

I guess the good news is that you’re not alone. We are all experiencing the same thing. Knowing that you’re not alone is of little comfort when you’re trying to balance the checkbook. I guess that is equivalent to saying that everyone on the Titanic should have felt better just knowing that they were not alone.

So what are your colleagues doing about it? Everything you can imagine and then some! I’ve never seen so many workshop sites, podcasts, blogs, e-learning, and e-books cropping up over the past few months. And, why you ask? Photographers who have mastered their craft are sharing what they know…and for a profit. That’s certainly good news for all of us interested in improving our skill. However, they wouldn’t be doing it if there wasn’t such a large market of hungry photographers who are looking for the ‘quick fix’ to their business problems.

The panic of reduced income to many small and mid-sized studios is a reality. The knee-jerk reaction to the economy, while giving the business owner the illusion of going forward, is oftentimes taking their greatest resource (their time) away from what will really generate income…their core business.

Don’t get me wrong, I’m not advocating that you stop learning. In fact, I’m suggesting just the opposite. There has never been such a body of great work out there to inspire you to refine your skills. However, you don’t want to throw the baby out with the bath water. Stick to what you know best, and leverage that to differentiate and generate a new crop of prospective customers.

Anne King (Dapremont)

Rarely, do entire segments of an industry dry up during an economic fluctuation. That’s not to say it can’t happen, but let’s think about it for a minute. Is it likely that brides and their families will not want the best wedding photography that they can get their hands on in a recession? Is it likely that seniors will not want the edgiest, hippest, coolest shots as remembrances of their high school experience in a recession? Is it likely that people will lose their interest in collecting art (landscapes, wildlife, etc.) during a recession? Or, is it likely that companies will no longer need great commercial images to sell their products or services in a recession?

The truth is that each one of these industry segments will experience different obstacles in capturing revenue in a down economy. There is little doubt that clients’ expectations are higher today than they were a few years ago. They want ‘more for their money’ and they will hold onto their wallets until they find someone who will give it to them. It doesn’t mean you go out and immediately reduce your pricing, in fact that could hurt your business more than you may realize if you are constantly chasing price points to draw in customers. But, it does mean that you look at value and perceived value in the eyes of your clients. Are you missing opportunities to add value to your packages through technology advancements (HD DSLR’s), style differentiation (taking a workshop to enhance your skill), or added-value packages (leveraging existing client relationships) that will meet or exceed these new expectations?

The fastest way to jump-start revenue is to look at your core business and leverage what you know. Go back to your existing client list and look for up-selling opportunities. When was the last time you had any contact with them? Your database of clients is your greatest asset in a difficult economy. It is much easier to inspire a customer to return for another engagement or project than it is to find a new customer. They already know and appreciate your work. Give them a reason…a good reason…to want your service again. Show them your recent work! Show them how you have refined your skills (workshop, specialized training, new equipment, etc.) to produce even better results! There is simply nothing more powerful than an image with the ‘wow’ factor to motivate a customer to contact you.

If your strategy today is the same as it was five years ago, you are missing the boat. There are opportunities in every market, even this one. The trick is to “go forward so that you don’t sink” but to do it in a very focused, very deliberate way. Jumping at every opportunity that crosses your path is time consuming and at the end of the day may not get you where you need to be. You’ve spent years developing your business. Certainly, a little downturn in the economy doesn’t mean you should toss away everything you’ve built and start over again. Look at the ‘low hanging fruit’ in your business first, and then branch out from there. For most of us, it’s our customer list and then our prospect list. You may be surprised with what you find.

Deborah has been a marketing and business professional for over 30 years and has had a digital marketing business for almost as long. Earlier in her career, she founded two technology companies and two traditional book publishing companies as well.

Company: Embella, Inc.
Phone: 315-628-1214
Email: dkaufman@embella.com
Website: www.embella.com
Blog: www.deborahkaufman.com
Twitter: @deborahakaufman
Facebook: http://www.facebook.com/profile.php?id=1626295695

Photo Credit: © 2010 David E. Warner

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