I live just outside of Saratoga Springs, NY – a beautiful city where horseracing plays an integral role in the culture and economy. The summer and Triple Crown seasons have begun to generate anticipation which energizes the city as the racing meet nears. However, the current economic state has jeopardized our great tradition.
The group that manages the track is running out of money and may not have the capital to continue operating much longer. This is a result of questionable fiscal management augmented by the national economic challenges. Fortunately they have a plan which will generate over $300 million in revenue and get them back on their feet. This plan will also provide significant contributions to the state education department at a time when our schools need funding. Sounds good right? Right!
The only caveat is that the state government has to choose a partner for the racing company and has been unable to do so for several months. The governor’s office recently shared a new cost cutting measure saving the industry $20,000 per day, while a file with a $1,000,000 per day solution collects dust. This is like gloating over saving money on pens while not returning a call to your landlord who is offering you discounted rent.
Before this becomes a political rant – sorry if it is too late – let’s compare this situation to the challenges agency principals and managers currently face across the country. Many agencies are struggling to grow while waiting for the economy to improve (and possibly for the market to harden). I speak with agency owners, producers and marketing executives daily and hear the struggles they face. Many have had to trim expenses to stay profitable. One area that is often cut is marketing – cutting back the ad or lead gen campaign to balance the budget. Sounds good right? Wrong!
I remember watching a Warren Buffet interview where he discussed his successes using the concept of “when there’s blood in the street, buy real estate.” He may only be the world’s 3rd richest man, but I still think he is right. If you want your agency to survive the challenging economic times, you must be willing to invest in growth initiatives even when you see blood in the streets outside your office window. Focusing on saving money on office supplies is ok – but not when you have a marketing proposal collecting dust on your desk that just might turn around your business!
My wife and I have lived in the Saratoga Springs, NY area for the past 4 years. Each summer, the historic Saratoga Race Course opens for 6 weeks of fun and excitement. I am an avid horseracing fan, and like to attend every Saturday if not more. However, my wife has typically had her fill after the first or second visit. This causes a little strain as I would prefer to spend my Saturdays with her, but do not want to miss my beloved Saratoga meet.