Commercial Video Production Tips: How Videographers Can Profit in a Bad Economy
You may have heard that the rich often get richer in down economies? How?
They can afford to buy things like real estate, cars, stocks, businesses, etc. when everyone else is struggling to make ends meet. So if you’re buying assets for pennies on the dollar during a bad economy, think about how much those assets will be worth when the economy improves. This is how many rich people make fortunes while others are struggling.
So what does this mean for you, the video business owner?
It means that whether you’re rich or not, you too can take advantage of the deals that are out there in this down economy. (Let me clarify that I am referring to the US economy.)
Think about your office situation. If you’re working from home but have been waiting for the right time to move into commercial office space, you’ll never get a better deal than you can now.
Obviously, if your business is in trouble, don’t budge. But, if you maintain your income, even in these down times, you will stand in a stronger position when negotiating with landlords, etc. Just be sure to keep your lease term to 3 years or less.
Typically, a commercial property owner wants you to sign a 3-5 year lease, but I’ve seen people get leases now for 1-2 year terms. Don’t lock yourself into a long-term lease if you can help it. These days, he’ll be able to get pretty much any term he wants, especially if the office he’s interested in has been empty for a while.
These tips also apply if you’re currently in an office space but want to upgrade. You’ll get a lot more studio for the money if you trade and move in now before the economy turns. If you’re looking to downsize your office space, now is the time to start negotiating new terms that will be favorable to your video production business.
I’m in the market for a studio and I can’t believe how affordable commercial real estate is these days. In fact, I am currently trying to get financing for a property that, if successful, will give me over $50,000 in equity by the time I close 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 improves. The new studio (if I can get the deal done) is located right next to several new shopping malls. The one across the street has Super Target, Best Buy, and Bed Bath and Beyond. I can throw a rock and hit Super Walmart, Office Depot and Old Navy.
This is prime real estate and I’m about to have my video production company right in the middle of it. I’m not looking for walk-ins, but just having my logo in front of all those shoppers will increase my brand value tremendously.
I hope to be successful. Wish me luck!
Other areas you should think about upgrading in these low economic times are your equipment, software, etc. Don’t buy these new things. Instead, check out eBay or Craigslist to see why people are selling it. I’ve seen a lot of equipment for sale that is almost new for almost half of what you can get at 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 providers or sign up with new providers.
It’s truly a buyer’s market and you can save yourself millions a month and thousands a year by making a few changes now. I anticipate that the economy will improve a lot in the next year, so you’ll want to move this forward right away.