The changing face of businesses

By Simon Willis
Newsnight Scotland

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Surviving the storm

Just as it's harder to hit a moving target, so it seems one of the keys to surviving this recession is not to let your business stand still.

For the past year we've followed four new highland businesses for a series called Born In A Storm.

They set up just as the recession began to bite and, over the last 12 months, they've provided us with first hand experience of its impact on small enterprises; the battles with banks; the struggles with government agencies; and most of all, coming to terms with rapidly changing markets.

The good news is that all four are still in business.

The somewhat surprising news is that each has had to change their products or services to keep going. We'll report on two of the businesses in Newsnight Scotland, but here's an update on all four.

LISA MALONE - EQUUS RIDING CENTRE

Lisa Malone's riding school business is less than a year old

The holiday-at-home summer has been a huge, unexpected benefit for Lisa Malone's riding centre.

Not only are more people holidaying in Moray, more local people are staying at home too.

"I suppose naively I hadn't even considered that aspect of the business," she said.

She advertised beach pony trekking to attract these potential new customers and it is has developed into one of several new products.

These give Equus a range of revenue streams.

She has also started a weekly pony club where youngsters work their way through courses to achieve badges.

It teaches them good horsemanship and brings Equus a regular income.

Understanding her market and reacting rapidly to changes, has kept Lisa's business on track to make a profit.

DAVID DIGNAN - TECHNICAL SERVICES

Originally, David Dignan thought he would be providing technical project management to a range of industries.

David Dignan runs Dignan Technical Services

For now at least he has become a specialist in the timber industry.

He said: "Things were looking pretty slow and grim coming into the springtime, and then it all kicked off in a massive way for me and drove me in a slightly different direction."

He was hired to revive a struggling saw-mill and exceeded expectations.

Now he has been chosen, against competition from larger firms, to develop a key part of a £22.5m investment in a new saw mill near Lockerbie.

KEN WHITEHEAD - DIGITAL RECYCLERS

Kenneth Whitehead's business recycles computers

Part of Ken Whitehead's original plan had been to refurbish unwanted computers and sell direct to the public.

While that side of his business ticks along, the component recycling side has been even more successful.

The bank crisis pushed up the price of gold, and there is a considerable amount of gold in 20,000 computers.

With fewer washing machines and other white goods being scrapped, the price of many common metals has also risen.

So Ken Whitehead finds himself in the scrap metal business, as he responds to a fast changing market.

DAVID GRIER - KEATEK ENGRAVERS

Derek Grier engraves glassware which he sells through gift shops

Possibly the most-changed business of all four, Derek Grier started his business in his garden shed in Morar, engraving glassware for local businesses.

Believing he needed to be nearer a larger market, he moved to a factory unit near Oban.

He also took the bold decision to advertise heavily, and had his four-wheel drive vehicle 'wrapped' in vinyl advertising, turning it into a moving billboard.

Seeing the attention it drew, Derek diversified into making vinyl signs and banners himself, and even offers the car wrapping service which he outsources to another provider.

Like the other businesses, Derek has tried to keep one step ahead of a changing market and offer new products to draw new customers.

Watch Simon's report on Newsnight Scotland on BBC Two Scotland at 2300 BST on Tuesday 15 September.