The Challenging

The potential for a wave of consumer optimism that sometimes accompanies the election of a new president—one that I believe was universally hoped for by both Democrats and Republicans—has failed to materialize. It has been overwhelmed by a free-falling stock market as well as news of banking chaos, business closings, job losses and political rancor. Until consumers get over their fear of the unknown—or learn to live with it—most businesses, including photographers, will be in for a struggle.
It doesn’t help that the explosion of new photographers in the industry over the past five or so years has created chaos for both photographers themselves and for consumers who are bewildered by marketplace extremes in pricing and business practices. The addition of so many newbies in such a short time has destabilized the industry because it has escalated the number of fragile businesses in several categories: hobbyists who don’t care about being profitable as long as they are bringing in a few bucks; wannabes who don’t know what’s up; once-profitable businesses that have not responded properly to increased competition, old-time businesses that are in decline; newer businesses that are just holding on; and marginally profitable part-timers who would collapse if they went full time prematurely.
Economic downturns always shine light on one of the real downsides of running a small business: Most small business owners in distress have fewer jobless benefits than company employees. This is especially concerning at a time when health care premiums for non-group plans are increasing dramatically.

The Uncertain

The possibility of a bipartisan approach to solving economic problems appears to be doomed. In its place I believe we have entered into an era of heightened “polinomics,” in which we will witness an epic struggle between two long-standing ideological factions: the proponents of big government as the solution to economic pain and those who believe that private enterprise is the best engine for creating economic growth. The outcome of this struggle is likely to determine the length of the current recession and possibly even the future character of America and Americans. Of all the challenges we face, this causes me the greatest concern because it most directly affects the future of small business and the economic legacy that we pass on to our children and grandchildren. I fear that hastily adopted, short-term economic solutions are most likely not the best long-term solution for America. This is, I believe, the lesson of history, and it is being obscured because of a willingness of bureaucrats and citizens alike to accept that we are “in uncharted territory.” Several months ago I pretty much thought this to be true, but that was before I started digging into economic history. This is something I hope many small-business people will do, then draw their own conclusions and make their voices heard to their elected representatives. I say this because I am just cynical enough to believe in the wisdom of the well-known quote of economist Thomas Sowell:

The first lesson of economics is scarcity: there is never enough of anything to fully satisfy all those who want it. The first lesson of politics is to disregard the first lesson of economics.

In the brave new world of polinomics, few things are clear except for the fact that politics and economics always make uncertain bedfellows, especially for those who are sleeping on the floor and kept awake by their snoring.

The Hopeful

• This might sound strange, but I believe that the very best news there is for the professional photographic industry is the fact that most—and I do mean most—photographers are not very good at business simply because they never try to be. When they get over their fear of, their loathing for, or their indifference to business principles and finally start to learn what they need to know, their progress can be stunning. I see it all the time. Every week I get encouraging emails and notes from students who have achieved impressive successes because they grasped the tools they were given in class and did nothing more than put them to work. So I am convinced that many photographers can move forward during this recession by reading a book or taking a class or implementing well-known success strategies that are not as much fun as trying new photographic techniques or buying more photographic stuff.
• Small businesses have greater flexibility and can more easily adjust to changes in the economy than their larger counterparts. You probably know people whose jobs have disappeared or who recently received pink slips tucked into their paychecks. They have far fewer options than those of us who have learned to work by our wits. Even though the marketplace for photographers may be difficult for a while, we can change directions, use our creativity, and start thinking outside the box. This may mean cutting back regular studio operations several days a week to save on expenses and use other skills to get different kind of business, such as helping families to create decorative wall groupings from their family portraits and snapshots. And recognize that you can cut back your expenses a lot more than you know. So take a deep breath, push away the tendency to panic when your phone is not ringing as much as usual, and make use of the character-trait advantage that self-employed business people have over those who depend on others for their livelihood: self-reliance. You have more options than you think.
• I’ve always believed in the business premise that you should never underestimate the value of a good crisis . . . another way of saying that when the economy gives you lemons, open up a lemonade stand. The fact is that smart business owners view a crisis as a wake-up call to buckle down, refocus, assess options, recognize opportunities, and restructure for future profitability. I know this to be true because Jim and I opened two businesses during recessions, and we bought our vacation home on the tail-end of another, as we saw its potential as a rental property. Was any of this easy? No. But it was possible because we learned from past mistakes, worked the current problem, and didn’t panic. Perhaps we were too tired to panic :-).
• One of the harsh realities of a recession is that some businesses will not withstand it; but it is also a fact that the “pruning of the business tree” infuses life in the ones that are left. This is bound to happen in the photography industry.
• One of the often-overlooked benefits of a recession is that local business people who trade with a similar market are often more willing to engage in partnership marketing than they might be otherwise. So seize the initiative and invite several non-competing vendors to go to lunch with you to talk about cooperative marketing ventures, such as a charity event or a “night out” that will lift people’s spirits and call attention to your businesses.
• The best way to make the most out of times when people are down in the dumps or shell-shocked by media scare-mongering is to reach out and touch your clients. Take a few loyal clients to lunch to see how they are doing. Ask their opinions about new directions you are considering for your business. There is nothing more valuable than seeing through the eyes of an intelligent, caring person who is interested in what you do. As my good friend and Marketing Goddess Carol Andrews often says: “You can’t read the label when you are inside the bottle.”

Recently I’ve been asked the same question over and over: What should your marketing message be when consumers are fearful of the future? In my opinion the answer to that question is no different from what it should be in good times: It’s the value of thoughtful, artful photography in the lives of the families we serve. People know this, but they forget it until the water is rising or the brushfires are threatening, and inevitably the first belongings they pack are their family photographs. In bad times and good, we have to be better storytellers, because the benefits of what we sell are so much easier for the heart and the mind to recognize than all the “stuff” that so many retailers have a hard time defending during a recession.

At last month’s Studio Management Services workshop in Atlanta, Carol Andrews brought along a full newspaper page ad for De Beers, the diamond company of “A Diamond Is Forever” fame The ad talked about “ living in different times,” and the importance of “fewer, better things.” They clearly understand how to communicate the value of a product that last and grows more valuable every year. This sentiment could just as easily describe the portraits that comprise the history of a family.

Last Saturday I spoke to my blogging buddy Carrie Viohl, who called my attention to a wonderful Allstate TV commercial that delivers a similar message . . . about how families get “Back to Basics” during hard time. It is illustrated with photographs, and in my opinion it reflects the perfect message for us to convey to our clients and for ourselves to take to heart about our businesses. If you see through these eyes, I believe you’ll conclude that we all have a lot going for us.

As the Allstate ad says: The basics are good.