This letter was submitted to PR Week by Cliff Crown in his official capacity as head of Vantis' Media Group. It appeared in PR Week on 29 November 2007.
Dear Sir,
I read with interest your article entitled Starting Your Own Agency – Checklist For Success (PR Week 14 November]. While the article was full of valuable advice, I feel the directors omitted one of the most important aspects of starting your own agency, and that is to prepare a business plan, create forecasts which are achievable, and monitor them throughout the first twelve months. As head of the Media Group at Vantis, the AIM listed accounting, tax and business advisory group, I have experienced the trials and tribulations of watching clients start and develop their businesses over the last twenty years – and can guarantee that this is one area where many start-ups fail.
Statistics show that 50% of businesses do not survive their first year, and micro managing the financials during that initial period is vital to the ongoing success of the business.
For clients in this sector, understanding break even position is critical, as is awareness of the cash flow implications of not getting paid on time.
Whilst it is easy to advise not to ignore your work/life balance, historically I think you will find that the majority of successful business people have had no choice but to ignore their work/life balance during the first few years of the development of their business. It’s a time when entrepreneurs will be busy not only applying their own skills and experience to the business, but learning new skills – such as bookkeeping and administration – which is doubly time-consuming.
I would urge anyone starting out in such a traditionally creative sector to understand their own skills and, perhaps more importantly, their limitations. If you’re not good with figures, bring in an expert to do it for you. Focus on what you’re good at and the business should grow. Let yourself become bogged down in areas you feel uncomfortable with and you’re likely to become one of the unfortunate 50% that don’t make it past the first 12 months.
Yours faithfully,
Cliff Crown
If you would like to discuss any of the points raised in this letter please contact Cliff Crown.