Public Relations (PR) businesses are adept at using media to promote brands and products. According to Profitable Venture, successful PR firms must be well-versed in creative writing, journalism and reading group behavior pattern. The PR industry has witnessed tremendous growth in the last 10 years due to improved economic fundamentals and growth in marketing expenditure. The industry is valued at $14 billion and grew at the rate of 3% annually between 2012 and 2017. The country is home to over 44,000 PR firms employing over 100,000 people.
Steps of starting
When starting a PT agency, make sure it is registered and in compliance with all the legal requirements. According to TRUIC, here are the key steps of starting a PR business:
Step 1: Plan your business
During the business planning phase, you need to disclose your startup capital, target market and business name. You can start small and build on the subsequent gains. The initial expenditure should go towards printing business cards and letterheads; designing a company logo; developing a company website and copy-writing sales and marketing materials. The other basic expenses include utilities, taxes, rent and phone. These expenses will generally add to a few thousand dollars. Customers are normally charged; hourly rates, per project and monthly retainer.
Step 2: Create a legal entity
To prevent the risk of liability whenever the company is sued, you are best advised to establish an entity like an LLC. The other business structures to consider include the DBA and Corporations.
Step 3: Register for taxes
When registering for taxes, take time to learn the state rules and regulations regarding taxes. The first step is to apply for an EIN. This can be done via the IRS website, mail or fax.
Step 4: Open a bank account and set business accounting in motion
A business bank account is vital in protecting your business and personal finance against various risks. The measure will also make it easier to file taxes and manage business accounts. A dedicated credit card should also be obtained for the purposes of building business credit history. To measure progress and ease tax concerns, keep all the records of expenses and income.
Step 5: Obtain permits, licenses and insurance
The next step is obtaining relevant business insurance such as workers’ compensation. For the local and state business permit and licensing requirements, visit your city or town clerk’s office. A PR business also needs to provide service contracts or agreements to manage customer expectations, limit legal disputes and safeguard business interests.
Step 6: Position your brand
This is a crucial step to consider when establishing a PR firm because failure to obtain important permits and licenses could result in hefty fines and lead to business closure. This is an important time to define your brand based on what you offer. Creating a compelling position from the start will help your brand withstand competition.
The Do’s and Don’ts of starting a PR firm
The beauty of establishing a PR business lies in the opportunity to be own boss and a powerful influencer. Understanding the industry Do’s and Don’ts will help you overcome many pitfalls. According to the PR Week magazine, here are the most notable things to remember:
The Must Do’s
• The agency needs to be multi-faceted, but train its focus on the areas of strength
• Keep the financials in order, even it means bringing an accounting expert on board
• Hire only the best and respected talents to enhance creativity
• Embrace a new wave of thinking to grow the business
The Don’ts
• Choose your target audience wisely
• Maintain focus on the goals you want to achieve
• As you focus on profitability and bottom-line, do not overlook on the underlying importance of pro-bono work in building reputation and bank balance
The nascent PR industry has produced many towering figures. One such personality is Nancy Behrman. With over 20 years’ industry experience, Nancy is a PR pioneer and the CEO and Founder of the Nancy Behrman Communications. The company owes its success to a team of creative and strategic thinkers with extensive business and marketing experience. Nancy Behrman Communications is distinctly woman-owned and managed. Besides its CEO, the senior positions held by women include that of the Vice President, Assistant Vice President and Copy Director