Which one do you have? The lines are blurred, obviously, and sometimes the answer is not intuitive. If you have less freedom and more responsibility than ever, you might very well have a company. If you enjoy it, you certainly don’t have a job. And if you have visions of getting rich, you might very well have a hobby. Just kidding!
If you want to be taken seriously, you should have a company. And it doesn’t matter if you have no employees or dozens of them. But if you think of what you do as a business, you’ll do more planning, craft a compelling positioning for the marketplace, and think quite differently about the financial component of what you do.Read More
There’s a lot of confusion in the marketplace about hourly rates, and the bad practices in the past don’t deserve emulation now. Let’s think a little more clearly about the function of hourly rates at your firm.Read More
“If I could only change X about my business, I’d be fine.” You know what I mean, right? You’ve said these things.
“If I had a different client base.”
“If I had different employees.”
“If I were located in a different city.”
“If I didn’t have this partner.” Or “If I could find a partner.”
But here’s my favorite: “If we could just get a little bigger, add some employees, throw in a few great clients, we’d get past this hump and start to really make money.”Read More
A large percentage of the marketing community works at in-house departments within large corporations. The designers and illustrators and photographers and writers and strategists who choose to work in those settings do so for the opportunity, structure, benefits, predictable hours, career paths, and greater collaboration.
If you doubt that a large percentage of designers, for example, are not working for small firms, attend any conference in this field and just look at the attendee list. But in spite of their large numbers, they are underserved in some ways. All the craft topics are applicable, but there is very little advice on how to run a marketing department. How should it be structured? What systems will ensure good work that is also timely? How should that department be marketed?Read More
The notion to write about this comes from the fact that there’s been more merger/acquisition (M/A) activity in this field recently than I’ve ever seen in any six-month period. What’s especially notable is that it’s occurring in a difficult economic climate.
For background, over the last 15+ years I’ve been the lead advisor on nearly 150 transactions, crafting 700+ valuations in the process. (If you’d like to use the valuation formula in your buy/sell agreement, you are welcome to do so for free.)Read More
You really have no business starting a business and not making good money, eventually. Money itself is just a tool, for good or bad, but when you start a business you’re declaring your intent to be profitable (after paying yourself a fair wage). Hopefully you’ll make money in an ethical manner, fully understanding the power (for good) that it can have.Read More
There’s a lot you don’t know about marketing. Me either, and I’ve studied it exhaustively and consulted others on it all my adult life, from single person freelance folks working from their homes to some of the largest corporations in the world. Marketing is just not the tidy little package we’d like it to be, and if someone says otherwise, they are a lot smarter than anyone I’ve ever met (and soon to be richer than anyone I’ve read about). Or they’re a flaming liar.Read More
What will the next couple of years look like at your firm? Before answering that question, let me list my assumptions: that you are competent, that you are not working in one of the very few areas that is not doing well, and that you have entrepreneur’s disease.
If you’ve had your head down just getting things done, you may not have realized how well advertising, design, public relations, and interactive firms are doing these days. With very few exceptions, principals are finally getting back to the point where they can be pickier about what clients they work for.Read More
How do you keep key departing employees from hurting your business relationships? You could ask them to sign an agreement restricting their ability to compete for a specified period of time after they are terminated. These may be called Restrictive Covenants or Non-Compete Agreements.
There are two basic kinds of restrictive covenants. The traditional “non-compete” prohibits the employee from competing against the company in the same business in a certain geographic area for a specific period of time. The more limited “non-soliciting” or “non-servicing” covenant allows an employee to keep working in the same business, but prohibits the employee from soliciting business from or rendering services to the company’s clients for a specified period of time.Read More
Are you modelling your activities after the public companies in the news all the time? You might double check those business assumptions occasionally to be sure they are leading you in the right direction. We need to filter the steady messages that inform our actions to discard those that will take us in directions contrary to our own goals.
One example is the distinction between how publicly traded companies are run and how your privately held firm should be run. Not recognizing those differences can create heartache and confusion. Here are four assumptions you might want to avoid when emulating publicly traded companies.Read More