Mike and Debbie Bacon have won 52 Emmy awards since 1990, and their phones ring nonstop. And because their television production company’s hallmark is to do things faster, better and cheaper than the broadcasters, their burgeoning customer base necessitates more employees, more equipment and more space.
“What’s frustrating about growth is that it’s so capital intensive,” says Mike Bacon, vice president of Twinsburg-based Classic Teleproductions Inc.
Bacon launched Classic in 1980, working from his home as a free-lance producer.
“The Virgil Dominics of the world would seek me out because I would work like a dog for next to nothing,” he laughs. (Bacon began working with Dominic in 1981, and in 1997, Dominic became Classic’s president of new programming.)
Bacon says Classic grew by focusing on niche markets and matching its forte to the needs of the community.
“We found our niche in sports programming and broadcasting community events,” Bacon says, confiding that Classic earns about $1 million annually from lucrative contracts with television stations and community organizations.
“I never thought we would be this successful,” he says, crediting spouse Debbie, Classic’s president, and the firm’s 12 employees for the business’ success. “But when you grow, everything grows. As our customer base grows, so does their level of expectation. That calls for more investments,” which include high-end edit systems (their first was $100,000), nine broadcast cameras (about $40,000 each) and a digital production truck (worth about $750,000).
“You’ve got to have the equipment to be a player, and you’ve got to have good people to operate the equipment. We hire only the best and that takes a lot of money, too,” he says.
In 1995, Classic spent $200,000 for a 7,500-square-foot expansion and in 1998 purchased more space next door. The current 15,500-square-footage comprises a television studio, 7 edit suites, an audio studio, conference rooms and office space.
To manage growth and maintain profitability, the Bacons have sought good advice, bought wisely, fostered relationships and valued their employees.
“If I’m going to overpay for anything, it’s for good advice,” Bacon says, explaining that expert advice saves money in the long run.
In terms of purchasing, Bacon says many entrepreneurs jump to buy the latest equipment.
“Sometimes it’s better to wait for the second or third version of a product, after the bugs have been worked out,” he says. “You must also contrast the money you need to spend against what you could earn if you had a certain piece of equipment.”
Fostering professional relationships also pays off. “Make friends with your banker!” Bacon exclaims.
And don’t hesitate to do favors for professionals who can’t always afford first-rate prices for first-rate services.
“You’ve got two choices: reduced rate or favor. You’re a lot better off doing it as a favor because if you charge them, they remember that. But if it’s a favor, they become loyal clients when they do have money. But don’t treat it as a favor — give them the full service.”
Empowering employees is also important, Bacon says.
“If they know the ‘why’ behind a directive, and if you give them the authority to do what it takes to make your clients happy, they can respond faster and better to do that.”
How to reach: Classic Teleproductions, (330) 963-7763
