While writers are on strike and studios are shutting down production, who will most be affected? Small business. Like most industries, entertainment relies heavily on small businesses for many of the elements required to produce films and television shows.
According to the Los Angeles County Economic Development Corp. (LACEDC), on a “mid-budget” film ($17 million), 304 direct and indirect jobs are created and $1.2 million state sales and income taxes are generated. For a “large budget” film ($70 million), 928 direct and indirect jobs are created, while $10.6 million in state taxes are generated.
The bulk of these jobs are independent contractors and employees of small businesses. There are a myriad of companies that cater “on-set,” rent out lighting and camera equipment, provide locations for shoots, and perform virtually every function a production needs. Some will survive the strike but others will not.
Whether you are in entertainment or any other industry here’s how you can practice attraction in order to thrive in a difficult market:
Connect with Super-users – Think non-traditional sales and marketing. Most broad advertising doesn’t work and traditional selling pushes more people away than it attracts. Identify a highly targeted audience and use the Internet, content malleability, affiliate and alliance relationships to dominate it.
Destroy and Rebuild -Use this targeted audience to help define the re-engineering of your products and services. Introduce innovation in everything you do. This is a good time to experiment with new approaches. Focus on getting the best people and creating the best product.
Create Standards and Systems – Developing systems allows you to maintain tight control of every area of your business while you are re-engineering. For example, establish a system for tracking and forecasting cash. This metric is more important than your profit and loss statement. Many companies can operate at a loss for years if they’re able to manage their cash position. Know your projected flow at least 3 months from now. If you have a solid grasp on your income and expenses, you have a much higher chance of survival!