Sometimes you've just got to say, what the.....

It is one of those movie scenes you never forget.  The one in Risky Business.  Now, not Tom Cruise in the underwear singing Bob Seger.  The other one.  The one with the interview with the Princeton guy when the party is going on.  The one that changes Joel's life.  (click on the box and remember)

Starting and running a small business is all about taking risks.  Just the act of starting a business is a risk all to itself.  You can manage it conservatively, adding business and people along the way.  We have great respect for our friends and peers in Richmond who have done it, whether it was at about the time when we did, like the folks at Elevation Advertising, or more recently when John Sarvay opened up his facilitation practice called Floricane.

In the past seven years for my business partner (the unflappable Josh Dare) and me at THP, that "adding the people" time usually comes about mid-year each year.  We look at our book of business, how hard people are working, our physical space and then we bite the bullet.

The cumulative effects have been positive.  We have grown in revenue and in people each year.  Most of our clients at least don't hate us, we do good work, and aside from the strange issue of employees' husbands dragging them off to Seattle (long stories), we've had little turnover and great people, our employees, watching our backs.

Three years ago we became partners in a building that allows for expansion (more on that to come), so we have room to grow.

This year, things are feeling a bit different, and that annual risk taking moment is a very different one, one I think that will change our business in many potentially exciting and scary ways.

First, is this expansion of traditional public relations into the social marketing realm.  While this is leading to many great opportunities for us, there is no guarantee that this trend will continue or that we will figure out its magic formula, although initial returns look promising.

Second, rumor has it that the economy is not exactly solid, although business for us has been good and the forecast is promising.  We are always big believers in never taking the foot off the new business pedal and that has served us well. 

Third, we have maxed out in our first floor space and while we can expand to the second floor, this will trigger a major commitment financially, some immediate investments and some over time.  The payoff will be great but the road getting there more than bumpy.

Finally, we may decide that one hire is not enough.  This may be the time to take the quantum leap.  I have talked about content fueling the social marketing engine and we will need at least one content provider and equipment to create the content.  We also need some account management support at both senior and junior levels.  This will have an additional cultural impact in the business that we're not taking lightly.

I created this blog as a diary of sorts to record my journey from traditional public relations to a new PR or social marketing or marketing across the board world.  Part of that world is growth.  Some of that growth might be frightening and some exciting.

I frankly don't know what our final decisions on all this will be.  I can tell you that when we make them, we usually do them without regrets and without looking back.  It is the only way we know, and we have been successful that way.  This decision may change things at our agency geometrically and things may never be quite the same in both good and not-so-good ways.

My sense is however, that it is time to take the risk, to play offense when others are playing defense.

If we're successful our business will be different next year than it is now, maybe very different.

If we're not, its probably "University of Illinois."

Would love to get some advice and thoughts.

Comments

[John Sternal]

Congrats, Jon, on a very promising future. You may think you haven't yet figured out certain aspects of the SM space, but I think you have. At a time when companies are doing nothing but shrinking (mostly because of a lack of business planning and direction), it's great to her things are going well for you. Smart decision to always focus on two of the most important things in running a business - new biz development and, of course, people.

[Jon Newman]

Thanks John,

It's great getting solid advice and support from folks like you that I've met on Twitter.

Everyone, please follow @sternalpr on Twitter.

Jon

[John]

Jon -

Thanks for the plug (from the third commenting John, which I just realized made me sound like a pimp walking past with something smart to say).

My sense echoes yours -- this is a space where you either roll the dice and charge ahead, or you sit on your cards and pray. Either option is going to be bumpy, but with the first you get to retain some illusion of control. I launched my business on the first of the year knowing that 2009 might just be the worst possible time to enter the consulting space, but also that it was the only right time for me to do so. Good relationships, good fortune and a modicum of talent have served me well -- you guys at Hodges have all three in spades.

I had a very talented woman in DC tell me right after I stepped off the ledge in January to "grab as much real estate as I could possibly handle, and then some" and to do it soon. She explained, as we talked -- and I think this is as true in PR as in facilitation and strategy work (it's all the same, really) -- that by mid-summer there would be 40 or 100 or 300 people like me who had lost their jobs, been unable to find new ones in a shifting economic landscape and would be setting off on their own. "Position yourself to hire them for a fourth of your own hourly rate," she said. "If you own the business, they'll come to you for work."

Not a good time to be risk averse, I suppose. Can't wait to see where the next chapter takes you, Josh and your team.

[Jon Newman]

Thanks John, (totally confusing people now)

Great get to know and partnering with you and Floricane.

Jon

[stacey]

Sounds like the decision is about made - you say you aren't sure, but I think you are.

BTW, I don't think I count as "turnover." Maybe just someone who appreciates a good thing the second time around even more...

[Jon Newman]

Stacey,

As Yogi used to say, "it's never over till it's over."

Should have used a different word than "turnover," maybe hamantashen would have been more appropriate. :)

Besides you couldn't help it and we are so glad you decided to come back.

Jon

[Kelly]

Nice post Jon. And quite right about it being a good time to go on offense. When so many are cowering, retrenching or frozen in place, it's a great time to hit the accelerator. Is this risky? Of course, but what we've all learned is that the things that used to seem safe (like working as a middle manager for a large bank) are more risky than we thought. Security is only an illusion.

Kelly

[Jon Newman]

Kelly,

Thanks for the great observations and kind words.

And congrats on your new responsibilites at the VCU Brandcenter.

Best of luck,

Jon

[Deborah Usry]

Reflective post Jon, and I think it's rock solid. Your focus is a steady one -- on the bigger picture. Yes, SM is critical, but it's only a part of the bigger picture. The vision of THP from 30,000 feet should be the driving force.

Deborah Usry