In this challenging business climate, principals of creative services companies are just as concerned with how to run their businesses as they are with the creativity of their product. Whether we work on the creative, production, technical or business side of our industry, chances are most of us are here out of a love for the product. To be sure, if it were only about money, the financial services industry might be a better place to build a fortune. Nevertheless, all the awards in the world wouldn’t matter if an organization cannot remain solvent.
Without a doubt, the recent economic downturn has put unusual stress on companies’ bottom lines. Yet, in addition to market conditions, maturation is also a reason why some companies eventually hit a wall in the growth process. And although the economy may be gaining some positive momentum, cli-ents will remain conservative with budgets in the near future. So these challenges should be met head on with aggressive, tenacious and solid business practices, especially when it comes to sales and business development.
Many companies were launched by people with specific technical expertise from creative, production or technical backgrounds—people who love the work and wanted, admira-bly, the independence of their own companies. During the good times, it was sometimes easy to do well even without completely knowing why. However, as every business owner eventually realizes, attention, focus and knowledge of each area of business management is essential for survival. This isn’t to say everyone has to have an MBA just to own a business, but a chief executive/sole proprietor needs to make sure each area of his business is being managed optimally. Having a strong idea of what’s going on in each of these areas is a necessary thing, as well.
So for those people who are graphic designers by trade and now own a business, some kind of formal, regular attention needs to be given to sales and business development, even if those areas have historically been distasteful. Similarly, the killer producer with her own company must also stay invested in major accounting issues such as accounts receivable. It certainly may be more fun producing a dynamic live-action spot, but it can kill you if a few large clients each owe you $50,000 for six months, and you accept the status quo because seeking creative collection solutions is intimidating.
When we work with a company, we cover everything from strategic planning, sales and marketing through financial issues, operations, client services and employee relations. It’s important to have a thorough handle on all internal issues in order to present the best possible image to the marketplace. Time must also be spent on sales and business development. New business is obviously the life-blood of any organization. Even if a company cannot afford its own sales staff or an outside rep firm, it is imperative that the principal or partners dedicate adequate time and effort to sales because someone has to do it. Sales must be approached with enthusiasm, energy and absolute tenacity.
Great work, happy clients, solid internal and external relationships, profitability and a decent life are the goals. With proper attention and commitment, every one is possible. Those owners who have them all are to be highly respected. They’ve made it their business to attend to all the issues, and have kept their eye on the ball. For those who might be lacking in one or more of these goals, with appropriate focus and energy, you can be right where you want to be, as well. And certainly consider the benefits of an outside advisor who can help you clarify critical issues, develop appropriate action plans and then help you stay on track to fulfill these strategies.
In general, just keep in mind that it’s all about balance—balancing the production of great work with the need to view the world through the eyes of the clients; entertaining and moving the viewing audience while creating killer sales vehicles to support the clients’ business objectives.
If you give the key areas the appropriate thought and consideration, you will fulfill your business objectives, increase profit margins and make life easier for yourself in the process.
