How small business co. survive...
Well, I've been in business since 1998, first, started as a part time business and working part time so, the work I do pays the rent, and the money receive from my prod. co. is to upgrade myself. Back then, I only do referrals, I do not advertisement, back then, it was much easier to 'make it' then now, since now everyone (business alike) are trying their best to maximize their earnings while spending little as they can (even with national or international businesses that I've dealt with - museums, clinics, food products, etc).
A while back I posted here a list of some marketing/promotional ways I've done to maximize my visibility, mainly to survive, it takes several approach to get to 1 goal... which including branding yourself, and be careful how you do it to the degree that it also brands the company you represent. Back in 1998, I was branding more about my name, so MDI got 'lost' in the mix, people would say who's MDI again? Johnny's oh yeah... So like what Peter John Ross did (not many know of his name but everyone can associate SonnyBoo and the site)
The next thing is find a niche in your expertise, because everyone is out there doing what you do, and probably charging it less than you do (and most small and medium businesses, even large corporation) would go with them, the best is to, like everything else, be out there, network and tell them who you are, etc. Or find a niche that you do better than others.
For me, my niche (not as a director, because everyone CAN be a director), not as a writer or editor, as everyone of the newcommers got FCP and can easily claim they edit or writes better... so, for me, my niche is I happens to speak Chinese and Spanish plus I have a marketing background, which makes it very enticing to corporations that does business with Asia or South America. (which is why I managed to substain myself with work from these large corporations - doing promotional videos for overseas usage that brand/market their products).
As mentioned, having a niche doesnt mean much, you have to go out there, show yourself, most of the businesses I got was due to me in the right time and the right place that 1 business owner or marketing director happens to need someone of my experience... At the same time, since I've been out and about branding myself, these people feels that my voice weighs some valid points and although my price can be a bit more expensive than the average John Does or newcommers, they would go with me because they knew me.
Now, with television stations (locally here), it's a very very very different envrionment. IF you think making movies or getting into the film industry is difficult, wait when you try to get into the television networks. Unless you have or know someone from the INSIDE, the chances that you get a gig from them is 'minimal'. (sounds like what would happen to everywhere you go, but personally, it's worst in the tv world).
Because of economy, many TV stations are trying their best to 'bundle' commercial spots spread with the free 'shooting or editing' of such commercial... so they can rack in $10,000 or more and in return they throw you the commercial editing/shooting free. Imaging that, local/regional/small to medium and sometimes large corporations would agree to advertise with the benefit of they would shoot it as well, hence minimizing a production company's opportunity.
Museums are perhaps a good 'door in' many US museums have enough funding that they tend to, even though they have their internal media department, they would still 'want' to outsource to the best bidder, there's a simple reason: they need to 'justify' their nonprofit spending of $ so next year they can get the same amount of $ (grants, etc) and so if spent to their in-house people, it's harder to justify... but if you know their media department or their board of directors, you chances to get in increases...
Indie filmmaking, it's VERY hard to make some money from them, as everyone's broke

but you may bartel or work out some sort of deal...
Anyway, does this sound like what musicians are going through? yes. and it will get worst when the economy get worsen, because less people willing to pay, while many thinks having a basic video is good enough (or they think it's better).
These are some of the stuff I've experienced since being in business since 1998, doesn't mean it's right or wrong, but just areas that I've lived and learned.
Johnny Wu
www.mdifilm.com