You may have heard that the rich often get richer in down economies? How?
They can afford to purchase things like real estate, cars, stocks, businesses, etc. when every body else is struggling to make ends meet. So, if they are buying assets for pennies on the dollar during a bad economy, think about what those assets will be worth when the economy turns around. This is how a lot of rich people make fortunes while others are struggling.
So, what does this mean to you, the video business owner?
It means that whether you are wealthy or not, you can also take advantage of the deals that are out there in this down economy. (Let me clarify that I'm referring to the U.S. Economy.)
Think about your office situation. If you are working from home but have been waiting for the right time to move into a commercial office space, you'll never get a better deal than you can get right now.
Obviously, if your business is struggling, then stay put. But, if you are maintaining your revenues, even in these down times, you will hold the stronger position when negotiating with property owners, etc. Just be sure to keep your lease term to 3 years or less.
Typically a commercial property owner wants you to sign a 3 to 5 year lease but I've seen people getting leases now for terms of 1 or 2 years. Don't lock yourself in to a long-term lease if you can help it. These days, you'll be able to get pretty much whatever term you want, especially if the office you are interested in has been empty for a while.
These suggestions also apply if you are currently in an office space but want to upgrade. You'll get a lot more studio for the money if you negotiate and move now before the economy turns around. If you are looking to downsize your office space, now's the time to start negotiating new terms that will be favorable to your video production business.
I'm in the market to purchase a studio and I can't believe how affordable commercial real estate is these days. In fact, I'm currently trying to get financing for a property that if successful, will give me $50,000+ in equity the minute I close the deal with the builder and the bank.
If I can get that much equity now in this bad economy, think about what the property will be worth when the economy turns around. The new studio (if I'm successful closing the deal) is located right next to several brand new shopping centers. The one right across the street has a Super Target, Best Buy and a Bed Bath and Beyond. I can throw a rock and hit Super Wal-Mart, Office Depot and Old Navy.
This is prime real estate and I'm about to have my video production company right smack in the middle of it. I'm not looking for walk-ins but just by having my logo within view of all those shoppers will increase my brand value tremendously.
I hope I'm successful. Wish me luck!
Other areas you should think about upgrading in these down economic times is your equipment, software, etc. Don't buy this stuff new. Instead, check out ebay or craigslist to see what people are selling it for. I've seen a lot of gear up for sell that is almost brand new for nearly half of what you can get it retail.
If you haven't already, you should re-evaluate all expenses in your video production business to see if you can negotiate better terms with existing vendors or sign up with new vendors.
It is truly a buyer's market out there and you can save yourself hundreds a month and thousands a year if you make some changes now. I anticipate that the economy will improve greatly in the next year or so you'll want to move on this stuff right away.