The COVID pandemic has opened up unexpected business opportunities for small PR firms. On the one hand, large organizations have laid off some of their PR staff to reduce overheads; on the other hand, this has created more available talent in PR agencies and consulting. This is because ex-staff have converted to working as freelancers or have joined small PR firms as staff members or partners.
As a result, the number of small PR agencies has jumped since 2020. For instance, in the UK, Wadds Inc. reported in May 2021 that “the UK agency market is saturated with more than 4,500 agencies” (based on the 2017 data in the table). The report showed that an overwhelming number of UK PR firms are small, as in the table below. Moreover, 83% of agencies have only 1-4 employees. Small firms, indeed! This number would be stable. The PR marketplace in other countries would also be undergoing these changes.
Image: Table from UK Public Relations Agency Startup Report, 2021, showing ONS 2017 data.
Virtual working improves the odds
COVID-19 has increased competition for startups and established small agencies against bigger ones. The UK PR Agency Startup report found that PR businesses have been able to create content and meet people in a way that wasn’t previously possible because video calls mean that everyone presents the same in new business meetings. This trend would be the case in other countries as well.
Small PR agencies need to distinguish themselves from competitors in this competitive business environment. Client trust and confidence in a small PR agency strongly depend on their perceptions and trust that the agency manages its business processes well. If handled effectively, these processes can be subtly conveyed to the client as being the sound practices of a more prominent firm developed from experience in the industry.
4 ways to make your small PR firm seem bigger
You can set into motion the below initiatives to make your small PR firm seem bigger.
1. Run a sound business
Business management. This factor is the foundation for a small PR firm’s business. Not only do you need to ensure the firm is well managed, but you need to present this effectively to the business world, especially prospective clients. If you ensure your overall business management is handled professionally, you will have a strong backdrop to your current and potential client work. If you want to maximize the value of your firm, you must understand how to read a balance sheet, profit & loss statements, and cash flow statements. Part of this is understanding how other similar PR firms compare for profitability and other performance measures. Don’t fall into the trap of overestimating the amount of your new-business generation!
Work with a realistic, solid budget based on the amount of revenue you could generate against the costs, such as staffing. You should allow for bonuses, taxes, and sufficient profit to reinvest back in the business. The processes and systems need to enable staff to be fully functional and productive. Decisions would be needed on what you could outsource and the skills you would need in-house. Other variables include employee training and business expenses such as purchasing new equipment.
2. Ensure fundamentals are in place
Business fundamentals are basic, but these are vital actions to take to increase your presence in the marketplace. These initiatives will enable your agency to appear as big and professional as larger firms:
- Credible business name and visual identity
- Good quality business promotion on social media, such as LinkedIn, Twitter, and Facebook.
- Network – actively maintaining good contacts will help positive perceptions from referrers and potential clients.
- Security – set up secure backups for your firm’s phone and laptops, and invest in a password manager and VPN.
Servicing clients. Your business depends on the way you service your clients. Interact with clients to make them feel up-to-date and well-looked after. Increase their satisfaction with your service by sending them copies of industry trend material from the media, relevant case studies within your industry, and regular progress reports. Your consultants need to be active and energetic with new and different ideas that add value for clients. Keep your client service productive, evaluated by referencing agreed measurements, and ensure top-quality client work. But don’t over-service the accounts. This is a major pitfall in the industry.
Client contact. Develop relationships with several levels of executives inside client organizations. You need day-to-day contact and access to the C-suite, including the CEO and chief marketing officer for strategy, vision, and direction. Remember that if your main client contact leaves their job or is moved internally, you need to have other influential internal contacts already established to rely on for advice on continuing the relationship (and to approve invoices!).
Review all your firm’s touchpoints with clients so every contact is conveyed professionally, as a larger firm would. Commit to responding to all communication within 24 hours on business days, although, usually, it is much quicker. When a client is confident you will respond quickly via phone, email, or text, they develop strong trust in your firm’s professional business management. They are less likely to fret over urgent responses when they know you have committed to a quick response time.
Your touchpoints even extend to your documentation. The correspondence needs to be prompt and sufficient. Clarify the types of activities for which your client will be invoiced and the payment terms. These should be clearly spelled out upfront in your initial expression of interest document, confirmation of contract, or, at the latest, in a letter confirming the contract. This will minimize any unpleasant surprises to the client about charges.
Prompt phone interaction is vital to make your small PR firm seem bigger. Your phone is the prime form of direct and immediate contact with clients. Larger PR agencies usually provide good phone service through a reception/support function, so small firms need to match up. In fact, the latest phone apps enable small firms to give very efficient phone responses.
Many phone services these days are similar. The whole phone technology sector is developing rapidly. The latest phone apps are impressive in giving customers much more flexibility than in the past. For instance, the OpenPhone.co app enables people to handle business calls and personal calls via separate numbers on the same phone at a reasonable cost. The app can be easily based on either iPhone or Android systems, and business people can set a different message for callers making contact after business hours. Several employees can use the same number to answer business calls and text messages. Also, the option of having a toll-free number can make the small business appear larger and more professional. All of these are especially handy for freelancers.
3. Set expectations from the start
As with any relationship, you need to set expectations on what each party can expect and require from each other for a successful relationship. This means both large-scale and the details of communication and response.
Don’t oversell your services. Even though it is tempting to oversell your services to give a potential client more confidence in your firm, it will be disastrous if they find out you have sold them a dummy. Remember the advice: “If you have it, flaunt it. If you don’t, don’t.” Therefore, when you point to an “established” activity area, ensure you have enough staff and resources to deliver. A single person with experience (or several without experience) does not constitute a practice.
Building a culture and a core team. Obviously, it is essential to have a core team to keep the business moving. Aim at hiring people who are resourceful and self-starters – people who can find answers and enjoy the excitement of doing something new. Establish with your team a core set of values you want them to embrace and maintain and a set of remote work guidelines. Also, their working environment should help motivate them. Think of fun events in and outside the office, employee recognition, and professional development opportunities.
For a small firm, it is important to subcontract when extra resources are needed. This gives you much more flexibility for managing projects and also when heading for lean times. When a client sees a solid number of people on their account (they don’t have to know unless they ask), then a certain number are subcontractors.
4. Maximize efficiency through tools and technology
Impress by being efficient
One of the biggest difficulties for small PR firms is having enough resources to look as efficient and well-established as larger agencies. This applies to individual freelancers through to small-to-medium agencies. Therefore, you need to invest in efficient management tools for your business to make it look successful and even larger than it is. This will provide you with a solid foundation for success.
A core team can also comprise formal or informal “partners” in specialized areas, like graphic design, web design, video production, etc. You can call on these individuals to bring their expertise to a client project, thus impressing the client with the size of your resources.
To satisfy and impress clients, you need to invest in sufficient resources to produce a fully professional result, just as a larger agency would. For instance, a media release may not carry enough impact these days because journalists are catering to a multimedia audience. You must know how to create visuals, videos, and interactive content.
Media monitoring is essential
When used efficiently, a media database saves you a lot of time, energy, and work. Here’s what the tool can offer to find the right reporter for your pitch and maximize the use of your time. An advanced platform gives you the advantages of:
- Keeping track of journalists and influencers
- Using keyword search to target key journalists.
- Providing preliminary information on collected articles and social media activity.
The rise of remote working and its acceptance within corporate culture has led to the invention of many technologies. It’s not just about connectivity and communication but about using the best technology to be accessible and to present a professional ‘shop front’ that competes at the highest level.
Also, you don’t have to spend vast amounts to get the tools your PR firm requires. Google offers a variety of free cloud solutions. Here are a few examples:
- Drive enables staff members to create and share documents and spreadsheets online, erasing the necessity to download or print.
- Alerts can notify you when your pre-selected keywords appear on the internet.
- Calendar shares each team member’s schedule so your staff can better connect and collaborate.
Smart tools to ease your operations
Some of the smart tech tools that you can include, according to HR News in May 2021:
- Productivity tools: Some tools you can use to amplify your output include ZenWriter, Teux Deux, Password, or Toggl.
- Management tools: You can use Basecamp/CampFire, Trello, or Google Apps to manage your projects and track their progress.
- Email apps: You could use FollowUp.cc, SaneBox, or TextExpander to follow up on emails from clients, arrange your emails, and generate standard email templates.
- Networking tools: Because you need to gather more clients, you can utilize WordPress, Pluggio, or AWeber/MailChimp to network.
- Also, Presentation tools like Prezi and Join.Me can help you present to clients or hold a conference call with your team.
Measurement and analytics reporting software
PR pros continually struggle to prove their worth due to so many intangibles in their results, and the fight to show ROI can intensify for communication consultants or a digital agency trying to land that next big client account. Beki Winchel from PR Daily suggests using Adobe’s Marketing Cloud, social analytics software, Nuvi or Talkwalker, or a PR monitoring tool, such as Trendkite. These tools can gather analytics and data to help you make campaign decisions and measure your ROI to show your client how you’ve boosted their bottom line.
Free tools: If your budget is minimal, you can use resources such as Social Mention.