How and why an SMB decided to grow in the midst of a shaky economy.
11.28.2008 — Scale back. Be especially conservative with every dollar. Don't make any sudden moves.
These are the pervasive sentiments of a challenged economy, but for Norwalk, Conn.-based Terra-San, a digital media management firm, now is the time for expanding.
Indeed, Terra-San, led by its CEO Joel DeGray, is moving its operation into a much larger facility. It has also invested in power enhancements and other tech upgrades.
"Our facility is probably the best in the country," DeGray says.
To DeGray, the expansion means stability. "We kind of put the mint on the pillow," DeGray says of his company. "Now, we have the resources, the growth to continue."
Why Now is the Right Time to Expand
The expansion of Terra-San is unique in a number of ways. Foremost, it comes as many small- to medium-sized business (SMB) owners are looking to pinch every penny.
"We're as nervous as other dealers are," says DeGray about the economy. "But we're still making this leap of faith."
Terra-San reports a 50 percent increase in its 2008 business over the previous year.
"Content loading is still growing strong," De Gray says. He concedes, however, that consumers are "still learning the difference between ripping and content management."
Nevertheless, Terra-San anticipates continued growth -- and with that growth comes the need for additional workspace.
That need's solution was unveiled, DeGray says, when a doctor's office in his building vacated.
So, really, it was a no-brainer. Terra-San needed larger accommodations, and those accommodations presented themselves down a single stairwell.
"It was really kind of perfect," DeGray says.
How Technology Made the Expansion Easier
Prior to Terra-San's expansion, DeGray says the company was incurring a monthly electric bill of about $1,800.
You read that right: a $1,800 electric bill -- "about the same as our rent," DeGray says.
"We've always used high-end servers," he says. "And four years ago, the technologies didn't exist. So, we had to build them." Those custom solutions used a lot of juice.
Earlier this year, Terra-San invested in quite a bit of new technology. "Quad-core processing tools allowed us to cut the bill by two-thirds," DeGray reports.
The company used that savings to help fund additional equipment and well as the expansion.
"Our server room has a second air conditioning unit. So, there is huge electrical cost there, too." DeGray explains that the new space provides an isolated server room with a redundant system.