This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

A Family Making Sweet Business Tunes

Paul Effman Music Service also established its first bricks-and-mortar instrument store in LaGrangeville, NY, through a partnership with a local piano studio.

More importantly, the company offers private lessons through the store, a revenue stream it wants to expand, especially where parents are willing to pay, like affluent areas of Long Island.

The LJHutchen instruments (named for Lucy, Jesse and Hutch) are designed to facilitate beginner-level music learning. The line is sold both directly through Hyson Music and through other retailers like Amazon (AMZN) and eBay (EBAY).

The instrument line was not born in the bad economy, though. "[It had] everything to do with the need for a less expensive instrument that we could service and support to sell to our students," Hutch says.

As the program expanded, many students were renting or purchasing poorer quality instruments, which may have been cheaper, yet were wrought with problems (tuning issues for instance). The situation led some students to get too frustrated when they couldn't master the lessons and quit or lose interest in the instrument.

What's next?

While Paul's risky decision to become a music entrepreneur paid off, it's the next generation that is solidifying the company's future.

"We want to continue to duplicate what we're doing in LaGrangeville. We want to set up a retail location on Long Island [where] we want to have more private lessons teaching kids. We're starting to do it here and there's an opportunity for us to do it here, but it means looking into other facility options," Hutch says.

"Hopefully, there are always going to be schools that need our services. We're always looking to service more schools and continue servicing schools that we already do. We're in the process of redesigning our online store and making that a more prominent part of the overall picture," he adds.

One downside to the Effmans' success is the potential for competition. The company already has the credibility, so now it will be important for the company to wrap up the market. Having a strong brand that customers will automatically refer to when they think of private music education and lessons is the key, says Thomas Shinick, president and CEO of Corporate Development Partners and a professor of small business management and entrepreneurship at Adelphi University.
3 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $118.03 -0.71%
FB $105.41 -0.31%
GOOG $748.15 -0.02%
TSLA $229.64 5.22%
YHOO $33.16 0.61%


Chart of I:DJI
DOW 17,813.39 +1.20 0.01%
S&P 500 2,088.87 -0.27 -0.01%
NASDAQ 5,116.1430 +13.3350 0.26%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs