Despite the warnings and predictions of doom provided to him from various quarters at the peak of the recession in late 2008, Elian Wiener decided to move ahead with plans to end a successful partnership with a global public relations firm and start Epic Communications - his own, homegrown operation.
While there is no doubt that the warnings about the recession were warranted, the success in 2009 of Epic Communications - a full-service public relations company specializing in the professional, financial, property, tourism and other business sectors - is proof that a new business venture can be launched and made to flourish in difficult economic conditions.
In just ten months, Epic Communications signed on fourteen retainer clients, including Old Mutual Corporate, Nedgroup, DuPont, University of Stellenbosch Business School and PPS Insurance. To service these clients, the staff contingent has grown to ten full-time staff members.
"Understanding our clients and the industries in which they operate is the key to effective public relations," says Wiener. "It is this ability, along with our strong content generating abilities and close relationships with leading journalists that sets us apart from other agencies, enabling us to deliver communications strategies that meet our clients' business objectives and provide them with a significant return on investment."
Wiener admits that it has not all been plain sailing and that there were times in the first few months when he seriously questioned his decision to go it alone. Wiener attributes Epic Communications' success to the following business principles and advises all aspiring entrepreneurs to adopt the same rules:
- Make sure you have enough capital to start your business - and to sustain it
When entering into a new business venture, many people make the mistake of underestimating their cash flow position a few months or years down the line. With the banks unable or unwilling to provide finance to most new small businesses, you need to make sure you have enough capital to keep the business going and for living expenses for at least a year. You also don't want to cut too many corners when it comes to IT and telecoms systems, furniture and staff as taking on inferior equipment. If you can't afford to do it properly, don't do it at all.
- Define your competitive advantage and stick to it
Right from the outset, I was 100% clear on what I wanted the company to be - and what I didn't want it to be. We are an issues and content-driven PR company with a focus on positioning our clients as thought leaders in their particular industries and helping them to engage professionally with the media. We are not a "champagne and balloons" agency. In fact, at all new business pitches, we emphasize to the potential clients from the outset that if this is what they are looking for, they have come to the wrong place. This has helped us to carve a niche for ourselves in the industry as the go-to-guys for our particular set of expertise.
- Get your staff mix right
This is probably the most important lesson I have learned so far. Like a well-oiled sports team, not only should each and every staff member be technically proficient at their job, but they need to gel as a unit. Every potential new recruit at Epic Communications is interviewed by the other staff members to ensure they meet the company ethos and will work well within the team.
If there is one area you don't want to scrimp on, it's staff. As the saying goes, if you pay peanuts, you get monkeys. Hire only the best and brightest, and pay them accordingly. Incentivising staff to attract and retain clients is also a great way to keep staff motivated and dedicated to growing the business.
- Keep an iron fist on your debtors book
With a service business, it's always tough to get money out of clients. In a recession however, it sometimes feels like drawing blood from a stone. However, letting your debtors book get out of control is the surest way to disaster. If you don't feel comfortable pushing clients for payment, then hire someone to do it for you - but be relentless and make it clear that no payment means no more work. Not only will clients pay, but they will respect you for it.
- Maintain a strong new business pipeline
You've just brought in three new clients. Time to sit back and relax, right? Wrong. While it is always important to have periods of consolidation and ensure you are delivering great service to your existing clients, maintaining a strong pipeline of potential customers is crucial. No matter how great your service is, you never know when something could go wrong with one of your existing clients, such as a change in strategy or a corporate failure.
- Keep delivering brilliant service
It may sound clichéd and obvious, but in the service industry, it is just about all that sets you apart from your competitors. While PR and advertising are important marketing tools for any new business, you simply can't beat positive word-of-mouth, particularly from existing clients. It is also important that clients see you as a partner in their business and not as just another service provider.
