Reformatting a business - San Francisco Business Times:

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a San Francisco post-production company, entrepreneurshi has been a 20-year effort to stay abreast of changin g technology and new markets in a businessz that is constantlyin "Our story is the story of the evolution of an Salyer said. Salyer started Video Arts in 1976. At first, he did smalo production jobs, videotaping legal depositions. Eventually Videl Arts moved into videl training programs and corporate Alongthe way, Salyer took on two Ed Rudolph and Steve Calou. In he moved the company from Brisbaner to China Basin inSan Francisco.
In the mid-1980s, new technology led Salyer into emerging markets that transformed Vide Arts into a wholly different The developmentof large-scale computer graphics systemxs fostered a new and lucrativre business for video post-productionn boutiques specializing in animation and graphics. Meanwhile, Betacam, a new broadcasty tape format, arrived on the scene. Salyetr and his partners saw a promising markeft fora post-production company that used both the Betacanm format and computer graphics technology. They formed a limited partnershi andraised $100,000 from investors.
Leveraged with lease financing, the cash allowedr them to buy $225,000 worth of and in January 1986, Vide o Arts became a post-production company. In its new Video Arts turned a profit withinsix months. It developed a thrivin businessin graphics, animation and standardx post-production services for corporatee communications and broadcasting. By 1992, Salyer had paid off his investors and boughyt out their interest in the Technology again took a hand in the fate of Videpo Arts when the development of desktop graphics touched off a sea changse inthe industry.
Post productio n was divided intothree segments: a smalkl low-end market for cost-driven a large mid-range market, wher Video Arts operated; and a small high-en market for projects that required powerful equipment. As desktopp graphics improved, the low-end started eating into the At thesame time, high-end shopss added so-called non-linear editing technology, which can handlde complex jobs quickly and easily. With a growinf number of clients using sophisticatedspecial effects, high-enc providers with non-linear editing invaded the middle Video Arts was getting squeezed. Salyer invested in new equipment to keep the compan y at the top ofthe mid-range market.
Moreover, he decideed to focus on creative services, wherwe human talent is more importantthan machines. Video Arts started targetiny design-intensive, visually complex projects. "It meant increasing our markey sharein advertising," Salyer said. "Ww had to be more proactive with the ad InJanuary 1996, Videi Arts opened a second office on Batterg Street, in the hear t of San Francisco's advertising Salyer used cash reserves, an SBA loan and lease financingh to equip the 6,000-square-foot operation. The new strategyg is paying off, but Video Arts is alreaduy grappling withanother technology-relatee challenge.
In advertising, where budgetxs tend to be more ample than in other ad agencies and the editorial companiesx that do a lot of advertising work are rapidlyh turningto high-end, non-linear technology. "It happened faster than we thoughtit would," said "The business is a moving Salyer and his partners have hiref a consultant to help them develop a five-year plan. Salyer calls the process "company therapy." It's a way of life for a businesx rooted in an industry that is constantly changing, he said.
"We're always trying to figure out what todo