FunctionFox News
Small Creative Businesses Are Using Tough Economy to Get SmarterFunctionFox survey finds smalls shops are getting more focused, pricing more flexibly Victoria, British Columbia, March 30, 2009 – Change can be good. In this economy that might well be the mantra for owners of small creative businesses who report that they have changed the way they look at pricing, personnel and their firms' point of view, a new study reports today. Despite the downturn, nearly 40 percent of survey respondents reported that business is about the same, somewhat or busier than it's ever been. The FunctionFox Recession Outlook was designed to take the pulse of creative business executives with 25 employees or less as they manage the rough and tumble reality of the tight economy. Keeping business thriving, the owners report, requires having a fresh perspective. For some companies, that entails offering discounts, selling projects in "chunks" to lower the price of entry, and even charging more for some services. Highlights of the survey indicate that to survive and thrive today: - 70% have trimmed back expenditures - 25% have broadened their range of services - 28% have narrowed or changed their area of expertise - 32% have accepted projects they normally would not take - 33% have changed the way they price projects "Despite the pressures, small businesses are finding this to be a time of reinvention, much of which involves focusing on the process of what it takes to run a good business," said Mary-Lynn Bellamy-Willms, Founder and CEO of FunctionFox. "They are doing more marketing, building stronger teams, restructuring their companies and offering new services, many in the online arena. All are positive solutions to running a profitable business in a downturn." Survey respondents reported tackling pricing and payment was top priority. Solutions include: -"Becoming more diligent in the estimating process to provide more comprehensive pricing up front" -"Giving clients more flexible payment terms" -"Restructuring quoting system for increased accuracy" -"Raising prices in design to compensate for cut-backs in printing" (and thus the mark-up) Not all survey respondents said that business was rosy. The FunctionFox Outlook found business owners reporting that some clients are slow to pay. For some companies, the work pipeline is dribbling instead of flowing. Nevertheless, the economy has given many firms new vigor. They report revving up their marketing and promotions – activities that can be neglected when the work is flowing freely but which are vitally important to the success of any business in any economy. As one respondent wrote: "We have more time to focus on core business positioning and strategic marketing ... basically getting back to those back-burner projects. Another great thing – we're forced to think more creatively about how we reach out to folks and manage our resources and cash flow." METHODOLOGY The survey, deployed February 24th through March 10th, 2009 was completed by 165 highly targeted professionals in design, advertising, public relations, web and marketing communications in the U.S. and Canada. Respondents were invited to participate by email as part of the February 2009 issue of the FunctionFox About Time Newsletter. The survey was delivered online. (For charts, visit http://www.functionfox.com/recession-outlook-2009.pdf) For a copy of the full FunctionFox Recession Outlook Report, visit http://www.functionfox.com/recession-outlook-2009 ABOUT FUNCTIONFOX FunctionFox is the leading provider of time and project tracking software for small creative companies. TimeFox, its web-based timesheet and project management software, is the number one ranked time-tracking system in North America. Graphic design, advertising, communications, marketing, multimedia, public relations, and interactive firms all choose TimeFox as their web-based time and project management application. TimeFox is currently used by thousands of customers in Canada, the US, Europe, Asia, Australia and New Zealand. For more information please visit http://www.functionfox.com or contact: Corina Ludwig, President FunctionFox Systems Inc. #2-415 Dunedin Street Victoria, BC, Canada V8T 5G8 Toll Free: 1.866.369.8463 Telephone: 1.250.479.1285 Fax: 1.250.479.1285 info@functionfox.com |
Corina Ludwig, President |
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