Strategy Avenue

buck the trend

I know I haven't posted here very much lately, simply because my focus has been on some new and exciting things for Laura Novak Photography. But I wanted to share a few tidbits of what I have been up to, and my reasoning for it in the event it might help others who are struggling with expansion vs. the economy right now.

I remember my first job was as a consultant the Bose Corporation out of Boston, and at each executive board meeting Dr. Bose would say "when the world goes left, we go right. When everyone goes right, we go left." I always remembered that in my business and throughout my career as a photographer I have intentionally always tried to buck trends.

This carries on to today, when just last week I bought a brand new two-story building for our studio just down the block (pictured above). Despite all the work I did on our leased space just three years ago, which you may have also remembered it featured in Professional Photographer and Rangefinder, I am thrilled to make the move this March. 

Just as people are cutting back, and sitting tight we'll be making a big splash with the building purchase. If you have the means and nothing to sell (because you are renting), I highly recommend considering a building purchase because:

- This is a great time to buy. I ended up purchasing the building well under asking price, and the sellers were glad to have a buyer.

- All the building, painting, flooring contractors are very slow right now, and they are willing to negotiate for work. This has saved me quite a bit.

- The US govt. is under pressure to lend to small businesses to stimulate growth so I applied for and easily got a 504b small business loan with a lower interest rate, smaller amount down and longer loan terms (for a lower monthly payment). Every bank has the ability to partner with the government for a 504b loan so be sure to ask your bank rep. about the program.

As a result I am safely expanding with minimal increase in my monthly payment into a new building I could not afford to purchase under 'normal' economic conditions. Obviously I would not recommend going into debt if your business as failing, but if you have a busy thriving profitable operation it's something worth considering.

I also have a new twitter series starting called 'adventures in buying a building' so if you twitter, be sure to follow along @lauranovak.

Laura

The economy

It's been a while since I have posted here on Strategy Avenue, mainly because I have been busy speaking at wonderful sold-out like Learnfest and ImageX and focusing on the photography business.  But don't unsubscribe your RSS feed because from time to time when I am inspired by something I will be coming back here and create a new post!

At my workshops I am being asked the same thing by every participant.  "What about the economy?  Should I be worried.  My sales are down, what should I do?"  Fortunately at Laura Novak Photography we are busier than ever and since I am a glass-half-full kind of person let me talk a little bit about why I am not as concerned.

1. People living within their means is good for photographers.  There was a time when people who were making a combined household income of 100k could get a mortgage for a 800k house and be house-poor.  Right now we are seeing a temporary shakeup but after that people will be forced by the banks to live in a home they can conservatively afford.  This is great news for non-necessities such as vacation resorts restaurants, spas, home decor and of course photography as this will result in more available discretionary income.

2. Quality trumps price.  The photographers I see struggling the most right now are once that have tried to compete on price.  If you have ever gone to one of my workshops you know how strongly I feel that is a bad idea and a fast-track to going out of business!  The ones that are still doing well have great relationships with their clients, and that relationship continues to drive sales.

3. If you have good credit, banks are still lending. The news reports are very doom and gloom but if you want to purchase property or expand your business, now is a good time to do it!  It's a buyers market for real estate and the small credit and savings banks with no sub-prime mortgages on the books are still lending with low rates.  Right now we are in the process of purchasing the building I leased three years ago.

Most of all, try to turn off CNN or the Today show - I try not to psyche myself or my staff out by the doom and gloom media reports.  I am a big believe in that whatever you expect to happen will become a self-fulfilling prophecy so be sure to keep your mind positive when you are navigating this tricky economic landscape.

Laura