2010 Strategies: Casting a Wide Net

Peter Moir, proprietor of The Sign Depot Inc. (Kitchener, ON, Canada), has operated his shop for 15 years. Consequently, he’s seen several economic ebbs and flows, although the past 18 months of economic decline probably represent the roughest patch he’s seen to date. However, his business has remained steady, and in fact has managed modest growth. He said an aggressive approach helped him withstand the tide.

“Early in the year, I heard the same dire economic predictions as everyone else,” Moir said. “I decided to act instead of react. For a month, I contacted existing customers and cold-called potential ones. If you don’t seek work, it’s not likely to be handed to you. The early response helped us boost sales and stay steady through summer. It also helped that we’ve worked for so long to build a reputation as a reliable, capable and responsive company.”

He also noted the importance of maintaining a diversified operation. The Sign Depot plies its trade to retail entities, municipalities and educational institutions; partners with design firms for architectural-sign projects, and sells wholesale, carved signage to other shops. Moir is bullish about the municipal and educational markets in uncertain times because such work involves pre-approved budget allocations that ensure timely payment. Conversely, he said tough times have triggered declining entrepreneurial ventures, and independent-business startups have become increasingly scarce.

‘If we see one sector of my business suffering, I’ll shift my resources to areas that are less impacted,” he said. “It’s always a good practice to work ‘on the business.’ I often talk with my production department about how to produce signage more efficiently. We also shop around much more than we used to in search of a better deal on material costs. It’s easy to be comfortable with a single supplier, but not a good idea for the bottom line.”

Although business hasn’t dropped, Moir said payment sometimes lags. The company has always maintained a policy of collecting a 50% deposit at the beginning of a job, and is shifting towards receiving the balance of payment at project completion. He said, “We still sometimes extend terms for longstanding customer, but we’re moving away from that.”

Moir has always leased The Sign Depot’s facilities. However, given historically low interest rates and the abundance of vacant commercial spaces, he plans to purchase or build a new shop in 2010. Moir said, “We’re looking for a shop with a smaller footprint than our current space to help control overhead. We’re also hoping to find or build a space that can provide tenant opportunities for additional income, and the potential to grow if necessary.”
 

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