In a Rut? Why Not Expand?

In recent months, entrepreneurs across the country have hunkered down, cutting expenses, trimming spending and in some cases, eliminating staff--all a standard reaction to a difficult economy.

A few brave business owners, though, have embraced the opposite approach.

Faced with a dwindling customer base, these entrepreneurs bucked conventional wisdom and launched new products, spending increasingly precious time and money trying to build the new business lines. The process wasn't easy. It might have meant taking on more debt during already trying times, and lots of sleepless nights. But the risk was worth it. These business owners say the new products have helped revitalize their businesses, lifting them from the doldrums.

For Thomas Hoebbel Photography, disappearing customers gave him an opportunity to look closely at the future of his industry, taking a risk on a new technology. Since 2001, Thomas Hoebbel, the compny's founder, has taken photos for Ithaca, N.Y.-area businesses and non-profits. His images appear in marketing materials and on company websites. But as companies stopped spending, his commercial photography business languished. Clients cut their photography budgets. By early 2008, the business was pulling in about half what it did in previous years.

Hoebbel grew worried about his prospects. Not only were clients cutting back, but he also had noticed that video was increasingly prevalent on commercial websites--sometimes usurping the kind of still images that he provided. So he decided to become an online video expert. "In the recession I wasn't getting any nibbles. I needed to do something different," he says.

Hoebbel spent nearly $10,000 for video equipment and editing software--a big chunk of change when business was off. "There was a moment of, 'Is this a good time to be expanding?'" Hoebbel recalls. "But I'd rather be ahead of the curve than pick it up when everyone's doing it."

He reached out to clients, telling them about the new service. He explained that video is dynamic and that it can help a business tell its story and increase sales. He estimates that in the coming months, two-thirds to three-quarters of his business will come from video.

The greatest challenge has not been drumming up business, but figuring out how to charge for it. Video requires hours in front of the computer during the editing process, and since completing his first projects, Hoebbel has nearly doubled his prices because of the extra time that's involved. Or, he includes two edits in a package price and charges for each subsequent edit. "It's a work in progress," he says. 

Even so, he says, he's not sure where his business would be today without the new product. "It has made a huge difference to me," he says.

Back to Top Email Printer Friendly View

RATE THIS ARTICLE
Rate it:

Not Yet Rated: