Culpwrit

By Nick Kalm

In the summer of 2002, after a little more than five years at Edelman simultaneously running two successful practices, I was wrestling with making a change.

I had interviewed to run three other PR firms’ Chicago offices but passed on each. They seemed like smaller versions of the world I was looking to leave.

After long stints on both the client side and in agencies, I knew that agency was the right place for me, but there was a lot about the big ones that I didn’t like.

People had been encouraging me to start my own firm for several years, but, as anyone who has thought about it or done it, taking that entrepreneurial leap is a little scary – especially when you’re looking at walking away from a steady paycheck and having to supplement your income with debt or savings.

An important note: the experience I had gained to that point was invaluable.  I wouldn’t have been successful without the track record and contacts I had earned from many years in the working world.

Plus, I had fallbacks If it didn’t work out.  I knew I could get hired at another PR firm or back on the client side.  So, I took the plunge.

Almost immediately after starting my own firm, I discovered it was what I wanted to do for the rest of my career – and have been able to do so for 22 years and counting. I have also played a role in creating and furthering career journeys for dozens of others, too. What a blessing!

There have been a lot of good days and a few bad ones, but there has not been one day where I’ve regretted my decision.

Along the way, I’ve learned many things, but these things stand out today:

1. Don’t be afraid to take some risks. You need to be ready for an immediate steep drop in income until your firm finds traction.  That could take months or longer.  Do you have a plan for that?  If you have others who depend on your earnings, are they on board?  To be sure, walking away from a (relatively) secure job to start a business was risky, but I have taken numerous additional risks since then – some hires, structures, partners, acquisitions and offerings. Some have worked out; others, not so much. That’s okay. All have taught me – and moved me and/or the firm forward in some ways.  Just be smart about them – don’t be impulsive, consider the costs and worst-case scenarios, and what it will mean for your future if a move you make succeeds or fails.
2. What’s your niche?  Is your firm going to be one of the only or limited number firms to offer certain services in your market?  Or are there already dozens?  What’s going to make you stand out?  When a prospect asks you: “What makes you different from the other firms out there,” how will you respond? The answer needs to be substantive.
3. What’s your long-term plan? Don’t just have a plan for launching your firm. Have a plan for how you’re going to run it. Do you want to grow your firm as fast as possible and sell it?  Do you want to have it serve as more of a lifestyle firm – allowing you the flexibility to prioritize family or other personal desires?  Or do you want to build and run a firm for years to come?  None of them are wrong or right.  There are tradeoffs for each.  For me, it was always about the last category – I knew I never wanted to go back to being an employee.
4. Always do the right thing – by your people, clients, referral sources and friends. Develop, promote and fairly compensate your team. Let them share in the firm’s successes but don’t burden them when setbacks are out of their control. Give clients everything they expect in terms of effort and results – and more, and don’t be afraid to tell them what they need to hear. Don’t surprise them with fees or costs they didn’t anticipate or approve. And not only make your referral sources look good for having introduced you, but always look for opportunities to reciprocate.
5. It’s a business – run it like one. Never lose sight of the fact that you’re running a business. Whether you have one employee or dozens, people and families depend on you being a smart businessperson.  Benchmark everything from salaries, to benefits, billing rates and utilization.  If your operation is hybrid or in the office, make sure you don’t take on more office space than you need.  Have your proposals accurately reflect the time it takes to complete tasks.  Don’t overservice in an uncontrolled way.  Invoice – and collect – on a timely basis.
6. Culture is truly king. Think about how you’re going to create and preserve a good culture. If you’re going to be fully virtual, you can do it, but it’s harder than if you’re getting together in an office on a regular basis. Culture is one of those hard things to measure, but, if you have the right people and commitments, your culture can really sing – and become a huge competitive advantage.

Starting your own PR firm can be a great career move.  But do it for the right reasons, the right way, at the right time and with your eyes wide open.

Nick Kalm is Founder and CEO of Reputation Partners, LLC, a Chicago-based corporate and business focused public relations firm.