Question on How I Started My Business
I receive this question regarding starting an advertising company in the form of comment under one of the posting. My reply in bold
Name: kay | E-mail: ky_biz@yahoo.com | IP: 218.111.208.254
hi ken,
Hi Kay,
would you give me some insight on your company initial start up? I am currently freelancing for ad agency, and am thinking of starting up a small company offering designs and creative service with few frens.
Hope you could share your experience and give us some advice on:
1) how you founded the company
Just Media Pte Ltd started in June 2003 (incorporated in Sept 2003) in the mist of recession with an initial intention to support our sister company, Just E (an event company incorporated June 2003)) in the area of marketing communications. Meaning to say, the focus is on event business and Just Media was born as an in house function.
Back then, we started Just E and Just Media with 4 partners including myself where one of the ex-partner used to run a one man interactive design house. We were blessed that he has one existing client (Borneo Motor which distribute Lexus and Toyota). When we first started, I was still having a full time job in a Swiss financial information company because the businesses revenue could only support 3 directors, 1 staff and the over head. I took charge of Business Development for Just Media because I understood we cannot depends only on Event business to make money. With no prior experience and formal training in advertising, I venture into the advertising and marketing world. Nevertheless, I managed to secure a major website revamp contract with NTUCLink 2 months later and also some other small advertising projects. Maybe my street experience (I started working since 13 years old) did help. I am blessed.
Our first 1 1/2 years was tough. Our cashflow was tight, tension was high, pressure was mounting as we got business bills to pay every month. Interestingly, we never borrow money from anyone (forget about banks when you first start your business). In 2004, one ex-partner decided to seek other venture (Insurance trade) as he did not see any huge income coming in nearly after 1 year. Therefore, I quit my job in June 2004 and step into the business and took up the responsibility to head the JM team full time. There is no right or wrong. I respect his decision. It was quite ugly at first because we could not pay his share at that time, so we ask him to take away his equipments and computers. Not surprising, he took away our our largest client too. I remember I called our only designer staff to come back on a weekend and bought her a DELL computer online, asking her to configure the specification using my credit card paying by installement. I swore to make our business work!
Those were the low points of our business: Low cashflow, no major clients, no strong family backing (all our partners came from humble family), no strong brand name, low staff morale, existing partners need to be paid and not forgetting the monthly overhead! Sometime, I wonder how we managed to get through it. People took advantage of us, some clients delayed payment (one even decided not to pay!), peers and landlord sneer at us wondering how long we can last: There is one particular old class mate of ours who also run an agency told me straight into my face that he foresee that our business will be struggling after 3 years looking the way we run it (ironically, his business went bust last year and he was into huge debt after over spending while we prosper). We took all these in our stride. I believe that it is only time like this, we get to see true characters. I am also blessed for those who stood by and believe in us. Some of clients become close friends now. Well, we bite our teeth and survived through. Looking back, I was like a mad man out there scouting for business opportunities and my partners and staff worked till wee hours for months because we cannot afford to hire!
Are you hungry for success? Are you willing to give alot of things in life including your social life? Are you able to stand in the HEAT and still walk on when ALL ODDS in your face? If any of your answer is NO for the above, then I urge you not to start this ads agency. For me, it is not a “Nice to Have” to be successful, it is a “MUST HAVE”. I am totally committed to achieve success. If you or your team is not committed, don’t start. It is better to work for others and collect your pay check. I also learn to judge my success from the things I have to give up in order to achieve them.
Fast forward nearly 4 years later, we are growing financially and the reward is sweet. Every chairs, tables, machine, paper and pen etc belong to us 100% and I am extremely proud of it! We have a team of 14 (full time) currently with 3 offices and our portfolio is diverse with real market experience. In fact, we have a full bag of learning experience.
2) When startup, what are the combination roles ? such as AD, copywriter, CD, accounts and etc… Do all of you are on full time basis during startup, or start from part time turn into full times.
When we first started, everyone multitask with Primary and Secondary function. It is when the company become stable, we could start to hire and pass on certain responsibility. But one thing remain unchanged, all partners need to know HOW TO SELL. I see many company fold up because they depend only 1 partner to handle that function.
Allow me to ask you the truth with compassion: Why should client engage YOU or YOUR TEAM for marketing and advertising? Because if you have no USP, forget about starting this agency. And forget about those creative awards because the market now want REAL RESULT that is measurable. I might be wrong about this but if you put yourself in client shoes, you would want to know how much return the campaign will generate right? That’s one of the core reason why DDB is doing well. As for ourself, our Brand Promise is “Ideas That Sell”. Our thought, speech and action are geared toward this brand mission. In fact, this vision is in our cell and fibre and we drive ourselves toward this path in all our works and eventually we want to achieve MASTERY in it. Helping our clients to sell more products for more money frequently: Period.
In a nutshell, I am in the business of supporting my clients to generate commerical result. I am not in the advertising business. This is our Clarity. What’s yours?
3) How to go to look for customers, or join in for pitching.
When we first started, we alot of pitches and uses alot of resources. After 4 years, we cut down on pitching unless it is really a big account that worth it. Please do not pitch for any kind of job. Idea is not free in our trade, especially good one.
In regards to where to look for customers, shouldn’t advertising professional like ourself know how to look for clients since we are suppose to help our clients to look for clients?
4) The steps on doing costing such as fee, salary, and shareholding of the company formed.
If possible, no partner. Yup, you heard me right.
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Clive Tan said,
February 1, 2007 @ 3:45 pm
Ken,
As I read your initial experience in starting up Just Media and Just E, I realise that what I’m going through is also a test of my strength in character and a stage that almost every entrepreneur will have to go through.
Thank you for sharing your experience and it gives me more strength and clarity in my own business. There were many times when I think about whether we have enough money to carry on with the business, times when it seems that every incident that happen is against us (from HFMD sickness which keep on recurring to staff turnover to customer dissatisfaction and turnover to and yes, regarding the banks…..), times when I wonder if we should just give up, enough to make me wonder why my wife and myself gave up our comparatively cushy and comfortable teaching jobs in the first place.
Nowadays, I just give thanks for every experience that come my way, knowing that it is either a learning experience or a rewarding one. Although I’m still not in the clear yet at this moment, I know that I am just a little distance away from success and success is a MUST, for myself and my wife, for our stakeholders, for our employees, for our children and their parents.
Clive Tan
kay said,
February 2, 2007 @ 2:49 pm
hi ken,
thank you so much for the sharing.
a question on your final reply: Why against partnership?
A lot of people told me to get partners, and show me the example of great companies always begins with partners.
For me, partner also serves as an insurance for the client and synergy in creatives. When i am starting up. if i did everything myself, and some accidents happen. the client may be end up in trouble, whereas if i got a partner, he/she still could follow through.
ken said,
February 2, 2007 @ 4:44 pm
Hi Kay, I am not against partnership. If possible, no partners. If you can’t, max not than 3.
It is the dynamic of partnership that are unpredictable unless all of you have clear alignment and deep connection. Even so, you need to communicate so frequently to ensure alignment of personal and professional lives. Hence, alot of precious time and resources are used.
Sometime, business need to make fast decision because of many factors and partnership hinder that. On the other hand, partnerships can give great leverage and benefits too.
It is your choice.
You “Ken” Do It!
Penny Chow said,
February 3, 2007 @ 5:49 pm
HI Ken,
Thank you for sharing your experience. It just makes our experience seem like part of the ‘growin’ phase in business. I would like to seek you opinion on this. Do you think you could have grown much faster with the help of business consultants such as Michael Gerber or Action International? Does business coaching help?
Adrian Flory, said,
February 5, 2007 @ 9:16 am
Hi,Ken.I agree with you 100%.If Humanly possible keep away from partnerships especially a partnership with any family member.I guarantee it will end in tears.
ken said,
February 5, 2007 @ 2:41 pm
Hi Peggy, in my own humble opinion, mentoring does help. However, nothing beats getting real experience, learn and grow from it instead of thinking to avoid it totally.
Secondly, I choose my mentors carefully as there are many out there with “Theory”. I will usually ask for their own business results first just like financial planners who want to market their financial products to me. The best mentor is to find someone successful in your trade and learn from them.
There are many who came to me and ask for mentoring which I turn down because I have no experience in their fields and I cannot add values!
Hope this help.
Lots of love and support,
Ken Chee
Chin Chang said,
February 6, 2007 @ 11:29 pm
Hi Ken & Kay,
Just got round to reading this blog. I want to say that I agree with Ken. I started a new business in interior design 2 years ago with 2 partners. Our core objectives and expectations did not align. I have since left that partnership and set up my own sole proprietorship and been operating for almost 1 year already. Much greater peace, freedom of decisions and certainly more healthy returns! (I was actually a “one-man show” even at my former partnership, so it didn’t make any sense to continue with sleeping partners right?)
Thanks Ken for all your insight and sharing!