Starting an agency will make or break you
In this guest post, Poem’s Rob Lowe reflects on the tough business of building your own agency from scratch.
Six months ago, myself and my business partner Matt Holmes, left the relative safety of the career ladder to launch our own PR agency called Poem. Taking that first step was possibly the most daunting thing either of us has ever done, but it has also been the most rewarding.
Below is our advice to anyone in the industry thinking of going out on their own.
Handing in your notice will be the scariest thing you do (until you make your first hire)
You forgot the biggest one of all. It’s called cash flow and I’d recommend any start-up to put 10% of revenue into a rainy day account. You’ll thank me
Raw and honest. An inspiring piece. N.
Great post, wholeheartedly agree with all this.
Also don’t forget about the ability to cut out the crap, endless meetings and nonsensical briefings.
Great piece. I would add, if you are an indie of any nature, to focus on being efficient, and continuously try to get better at that. It means you can take more Friday afternoons off!
Hey Rob, think you have summed it up really nicely.
It is slightly scary, but less so than you probably think its going to be, definitely do things differently otherwise what’s the point, be ready to feel the highs and lows more viscerally, and there really is a coalition of independent business people who are happy to help that you just don’t know about when you’re in a network agency.
It also probably helps that progressive clients now seem much more happy to leave the safety of the bigger agencies in search of something more nimble and offering better value.
Hope things keep going well.
Great post … I thought we were the only crazy’s doing such a thing- start from scratch are you mad they say… one year on we are still here .
Particular like ” Undeniably the best part of running your own business is having the freedom to get off the hamster wheel when you need to.” Oh the Gen X guilt of not making sure everyday is a 10 hour + one.
Also note to self , have to refresh the website!
Thx Rob ..
Nice one Rob…i started my PR agency from scratch almost 3 years ago – no partner. Never needed to share space (thank goodness)…Will be great to see an update with more then 6 months under the belt.
I thought because he was good looking in PR, this would be all fluff. But thanks for the short, snappy insights and the honest and wise words.
Don’t forget Delivery and Service – two things which seem to be lacking in many agencies who do work for my main client.
Too many smaller agencies focus on getting the business – the big sell, lots of puff, lots of hype – in order to win the work.
Then, once they have the business, their client is given a junior person to take care of their needs, who takes ages to get back to them, delivers work that’s poor and has lots of excuses.
Great article and great tips Rob – thanks! Esp useful since I’ve just started my agency – Haus of Comms.
Nice one Rob. Thanks. We started DD8 almost three years ago and still feel like newbies. Interested to hear more about the ‘usership’ staffing model. Do you mean with freelancers or full timers? We find we drown in the high cost of freelance staff and so few good creatives want to commit to full time as they can earn more freelancing & also keep their ‘freedom’. We’re looking at ways to give those who do commit a great experience.
Not trying to be snarky one bit, but did you guys set the whole thing up or did Special buy a share of your business / help out in some way?
It’s hard getting enough cashflow to fund two partners off the bat, let alone make a significant hire, so I’m just curious as to whether or not you did it with your own money or someone elses?
Another point – is Amanda K a snarky piece of work or just comes across that way?
‘Will be great to see an update with more then 6 months under the belt.’
Snarky snark.
Thanks for the support and comments both here and on social. And congratulations to those who’ve done or are doing the same.
@Legit, it’s a legit question – funding and a founding client is important. Fortunately we’re 100% independent and self-funded.
Congratulations. Fortune favours the brave, as we all know – but many less of us actually do anything brave.
Thanks for being generous enough to share.
People are everything in this business and attracting the best talent is hard. Win there. HR and a future talent map is important. Things can move very fast. I hope it does for you guys.
So boring to say it, but cash flow is key – you can have all the client jobs in the world, but many businesses, even large companies drag the chain here in payment – be diligent, have a plan B.
And PR! Tick 🙂
On a different tangent, Australia needs to champion the bold and start to think differently about ‘failure’, if we are truly to be a nation of innovators. I’ve just returned from three months in San Francisco – we have a lot to learn regarding the mindset of truly embracing failure, whilst wishing everyone the greatest success.
Good luck guys.