Expansion may help small firm survival

When times are tough small businesses have to expand rather than dwindle to extinction.

"Small businesses in small towns need to think larger than their own town if they want to ride out the recession. The only way is to look forward, not looking back, carefully considering the risks but not shying away because of the risks."

That was the thinking behind Wanganui couple Renata Szarvas and Zoltan Kovacs' latest moves. They own Mainstreet Art & Framing in Wanganui's Victoria Ave and Downtown Art & Framing in Palmerston North.

The picture framing is done at the back of a shop in Wanganui's Guyton St.

Mr Kovacs also has two websites that sell product such as framing and pop art portraits, and the couple have just decided to move an expensive piece of machinery into the front of the Guyton St shop in order to do still more picture framing.

The two moved the display part of their Wanganui business to the Bridge Block of Victoria Ave about a year ago, because foot traffic was too sparse in Guyton St.

For the past four months Shayne Baron has occupied the front of the Guyton St shop with his X-Act Costume Hire & Repair business. He's now in the process of moving out, to make way for an industrial-sized frame moulding cutter.

Ms Szarvas and Mr Kovacs arrived in New Zealand from Hungary eight years ago, with only the contents of their backpacks to their names. They spent three years in Auckland, during which Ms Szarvas learned more about picture framing, then a year in Hawke's Bay.

They moved to Wanganui and bought the House of Art & Framing four years ago. The recession hit at the same time and they had to think of other ways to generate income.

When a prime retail shop came available a year later in Palmerston North Mr Kovacs started Downtown Art & Framing there, selling pictures, prints and automotive memorabilia. He started selling on the internet at the same time. He usually has 300 to 400 items for sale on Trade Me, and others at www.artandframing.co.nz and www.cultstore.co.

Meanwhile the Mainstreet Art & Framing shop sells local art on commission, and prints.

The two are working 60 hours a week each to keep their little empire going. The mixture of shops in two towns and an internet market is keeping them afloat.