By Kenda Williams
With the economic downturn front and center, Americans have responded by reducing spending. Nevertheless, a few bright lights shine through the doom and gloom. Particularly in Savannah, certain small businesses have poised themselves to weather the economic downturn and plan to grow despite it.
“We certainly, without question, have a diversified economy,” said Brynn Grant, executive director of the Creative Coast Alliance. “We can look to that and see how it can buffer any negative effects of the economy.”
“Many small business owners are being creative in their efforts to stave off negative impacts of the economy,” added Lynn Vos, director of the University of Georgia’s Small Business Development Center for the Savannah area.
Vos explained that some business owners have looked into new markets to sell their products or services, while others have expanded or modified their product or service lines to better compete. Owners are also finding new ways to use the Internet to reach their customers and sell more products, she said.
Though small in employee numbers, several local businesses have big plans and passion for the future of their products and services. Through a creative approach to operations, small-business owners have transformed their economic-downturn lemons into some sweet, Southern-style lemonade.
Benedetto Guitars: Diversity and Location
Bob Benedetto created his company in 1968, and now his premier jazz guitars possess a worldwide reputation.
“Bob is unbelievably talented and has an eye for detail,” said Howard Paul, chief executive officer of Benedetto Guitars. “He’s a traditionalist but is not afraid to be innovative. He’s a legend in the industry.”
The company creates about 40 premium instruments per month, paying great attention to the craftsmanship of each guitar.
On the business side, Paul credited market diversity with keeping the company afloat. Benedetto employs a three-tiered strategy: selling to music stores nationally and internationally; crafting one-of-a-kind custom instruments for top-tier clients; and managing a company Web site that allows Internet sales of unique instruments.
“If one market is down — for example, if music stores decide to cut down on business — we can focus more on making one-of-a-kind guitars instead,” Paul said. “As long as we can keep all three things going at once, we can keep flow throughout the company and be successful. Flexibility is the key."
The company also opts to remain agile with its guitar model designs, and each month it reevaluates what models to craft.
“Recently, we’ve been slipping more unique instruments into the mix to counter tough economic times,” he explained.
At the 2008 Annual Georgia European Union Summit, Benedetto Guitars received the Georgia Export Product Award for its success with international exports. Paul credits the company’s savvy use of Savannah’s prime port location.
“Despite the economy, we seem to be moving in the right direction,” Paul confirmed. “Even though we’re a relatively new company, it’s not a new name, and it’s well-respected throughout the world.”
Paragon: Success by Example
Paragon, a multi-media design studio in Savannah, serves clients in the areas of print, Web and motion graphics. Made up of several Savannah College of Art and Design graduates, Paragon has been in operation for seven years.
Even in the midst of the economic downturn, the company has remained focused on its goal: to create professional quality designs for clients, said Angel Ratcliffe, chief marketing “prophetess” for Paragon.
“We definitely focused and fine-tuned where we wanted to spend our marketing dollars, as well as whom we were going to target,” Ratcliffe said. “With things the way they’ve been, you have to pick apart your market (and) focus your energy.”
“As people have less money to spend, they’re particular in how they want to spend it,” added Susan Isaacs, Paragon’s head strategic “focus-izer.” “With every single thing we produce and design, we’re marketing ourselves. When you do something well, it gets noticed.”
To remain competitive, Paragon focuses on building client relationships through exemplary, creative work and thoughtful gestures.
“We want our clients to know that we appreciate them,” Isaacs said. “Our clients depend on us to look out for their best interests. They come back repeatedly, and that’s especially important right now.”
The Express Café and Bakery: Fearless Change
For more than 20 years, The Express Café and Bakery has served downtown Savannah a fresh take on breakfast and lunchtime meals. But owners Michael and Beth Meeks changed things up last August when they decided to skirt the lunch rush and serve more customers than ever with a new ordering strategy.
The Meeks implemented a new Web site technology called Web-to-Go, which allows customers to scan pictures and descriptions of menu items and create pick-up and delivery orders online.
“They can go online and see every item we have in the café,” said Meeks. “People are becoming more comfortable with it as time goes on. Orders are going up, and it’s catching on.”
With a background in marketing, Meeks said he understands that businesses sometimes have to go above and beyond to find ways of being unique. “You should continue to evolve technologically, so that you can be ahead of the game,” he said.
Even though an investment such as marketing or implementing Web-to-Go isn’t inexpensive, Meeks said he believes small businesses, like his, need to think and act ahead of the curve.
“You have to be consistent in marketing, even in economic times like these,” Meeks said. “If you can, that’s the time when you need to be aggressive. Advertising is one of the first things people cut out, but you have to step it up.
“When you launch something like this, you have to continue to promote it and market it. A small business like ours has to magnify marketing because there’s so much competition,” he said. “You have to stay at the forefront of people’s minds.”
Lott + Barber: Technology that Conserves
Lott + Barber was established in 1990 with a diverse platform of architecture, community planning and design, integrated project delivery, visioning technology and multi-media communications.
Principal Forrest Lott said sustainable design and technological advancements have been a big part of his small business’ efforts and have remained beneficial, even in tough economic times.
“We think it’s important to design in a sustainable way, and technology is (a key) part of what we do,” Lott said.
Lott and his colleagues build projects as three-dimensional files using online tools. This enables them to communicate ideas more clearly and quickly, without the hassle or environmental impacts of travel, shipping and printing.
“Better decisions are made earlier in the process, and changes can be made quicker. We, as designers, also have the time to consider projects more fully,” he said. “In my view, it allows us to work smart and efficiently.”
Lott said the company also has taken advantage of using Podcasts and Webinars to efficiently deliver information on the Internet. “Our clients are looking to succeed and reduce costs,” Lott said. We’re helping them do that.”
Lessons Learned
These four local businesses aren’t alone.
“There are a lot of people re-thinking and learning how to be creative with their businesses,” said Grant, whose Creative Coast Alliance recognizes such leaders with its annual Innovation Awards. “They’re thinking more creatively and trying to think of good things to come out of the tightening of the economy. They’re developing more efficient processes and are forced to think in ways they might not have thought about otherwise.”
To help small businesses find their way, Vos advises owners and managers to reflect on the basics.
“Every small business owner should be analyzing profit and loss statements and balance sheets to see what areas need attention,” she said, adding that small business owners need to “be monitoring their receivables as well as their sales, but what they don’t want to do is cut all their marketing in order to save money.
“This can have the opposite effect and cause a larger reduction in revenue versus savings in expenses. Owners need to stay in touch with their customers and be willing to go the extra mile to meet the customers’ needs,” she said.
Savannah’s Unique Future
In the midst of these tough decisions, Vos urged Savannahians to take heart.
“Although Savannah has felt and will continue to feel the effects of this economic downturn,” she acknowledged, “it has great diversity in its economic drivers, including the ports, the military, the local colleges, the manufacturing base, the medical community and tourism. This diversity will lessen the impact on our community and lead us to a faster recovery than other parts of the country."
