One would think from the state of the recent global media reports that capitalism has become a four-letter word. What has become of simple entrepreneurship?

This weekend, I spent an evening with a nightlife impresario and after we visited a number of nightclubs, was simply amazed at how packed they were. (I haven’t been spending much time out in the past few months; I need the extra minutes at the office.) I made a note of the crowded spaces especially because most of my closest friends are similarly young and successful entrepreneurs — people who generally spend a lot of “leisure” money but, like me, have cut back tremendously on leisure spending due to the state of the economy. As I looked around the clubs, I instantly noticed that almost all of the patrons were “millenials,” members of Generation Y – a young age group that has recently joined the workforce. Even stranger, these clubs, which I generally frequent, are usually filled with people in their 30s and 40s — the men, at least. I will admit that one of the few people I saw of that “older” generation that evening was Jay-Z.

Throughout the work week, I often marvel at the millennial generation’s behavior, which is so much different from my mentality even though I missed the age cutoff by only a few years. The millennials seem to make freedom a number-one priority and are always searching. It’s almost like a generation of young Europeans. I found this article educational.

And, separately, to quote this Forbes.com post:  “Morley Winograd and Michael D. Hais, who co-wrote Millennial Makeover: MySpace, YouTube and the Future of American Politics, have observed that millennial “mellowness” can be traced to child-rearing patterns marked by feel-good toddler shows like Barney (“I love you, you love me”, etc.) Moreover, they add, millennials seem devoid of an impulse to fight and prove their superiority over others — not a surprising outcome when everyone gets a trophy.”

Owning a business is a constant adventure – a continual learning process that never ceases to be fun and different.  Millennials, huh?
Ronn Torossian

5WPR

When you own a PR agency and are pitching clients to the media on a daily basis, obviously there’s a need to read the papers and be up on current events. But I admit it’s become much harder to read the papers in light of the continuous stream of depressing news. The fear that erupts naturally as a result of negative media is palpable.  Whether it’s the madness of Marc Dreier (whom we represented in the past), or the madness of $50 billion scammer Bernard Madoff (do we have any clients who invested with him? And what will the tremendous repercussions and fallout be for businesses everywhere from his dishonesty?), these are incredible times we are in. With the terrible state the publishing industry is in, is it possible that a major magazine or newspaper focused solely on good news during this time period could actually thrive and benefit, similar to how Fox News changed the name of the game 10-plus years ago? I state this in a serious manner: They’d succeed, I believe.

This environment is most dangerous because it creates a sense of paralysis, which inhibits any sort of growth. I am someone who believes tremendously in the power of positive energy, and in this environment, it’s impossible to absorb any positive energy whatsoever from watching TV or observing the news. I especially noticed this during a near-two-hour run on the treadmill today. I just kept flipping channels — nothing good.

As the rabbi I follow says, there are Jewish teachings that say that every effort we make, every word we speak, every good deed we complete gives birth to an angel. It’s a sophisticated Jewish mystical view that all of our efforts are energy, give birth to energy, and set into motion energy (malachim in Hebrew), also known as angels. I believe very much in the power of energy for all — in business and in life — and during times like these people need to find their positive energy because it’s just not around. If you don’t want to run away or be paralyzed, you need to act and move. Positive energy allows you to succeed and focus. It’s all about mindset.

Ronn Torossian

5W PR

Yesterday’s New York Times article, “A Good Power Broker Is Getting Harder to Find,” was an interesting read.  I believe tremendously in the value of continually leading people to people.  Today, the best PR firms are often hired because of access to a certain community or decision maker.  Of course, access doesn’t guarantee the “right” answer, but in the best cases, it does mean a “straight” answer.

I think the point that the NYT missed is that the world today is much more divided, yet much more open than it ever was before.  It’s a new world, in which someone can be immensely successful in a certain field or arena, but not need anything in the city where they live, because the decision makers are thousands of miles away.  And of course, instantly blackberry accessible.

Every industry has its own power brokers.  With ethnic, racial and age lines so different than they used to be, it’s harder for anyone to be a “universal” power broker.  So many more relationships are required today, and so many more doors are available.  The game has changed.  It’s not just Harvard MBAs changing the world, or old money; it’s immigrants with dreams, HS dropouts and simple hardworking folks.

Years ago, I don’t believe there were many people like Goldman Sachs Chairman Lloyd Blankfein, whose father was a postal worker, or people like Phil Knight, who sold sneakers out of his car for years, or the many multi-millionaires throughout the world who came from nothing and are now power brokers.  The world has changed in so many ways.

It’s why I hold my own networking meetings at least two times a month, with 20 high-level attendees from a variety of industries.  The purpose is to introduce everyone to each other to talk business, with the premise of: “Put smart successful people in a room together, and they will figure out a way to make money.” To me, it’s one of the keys to winning at public relations.

Ronn Torossian

5W PR

On a few occasions today, I witnessed the difference between a person who owns a business and one who works at a business.

Even employees should have the attitude of caring, passion and emotion.  Certainly, my best employees do.  It’s about taking ownership, right or wrong, and caring.  Passion shows, especially in the service industry (like a PR agency).  Even employees can take ownership and think like a business person.

The following article is a great read on the subject: http://www.synarticles.com/entrepreneurialism/business-owner-mentality.html

Ronn Torossian

5WPR

I have a major client who buys significant advertising space in a slew of magazines and newspapers.  He insists on telling the reporters we deal with on a daily basis about the ads he purchases in their publications.  He refuses to accept (from them and us) that the newsroom is independent from the advertising department, and insists on increased coverage based on his buys.  With all of the layoffs in the media business recently, and tremendous advertising cutbacks, will there be a further blurring of “church” and “state”?

I write this in the midst of reading The Oligarchs: Wealth and Power in the New Russia by David E. Hoffman, an amazing book about the rise of oligarchic wealth in the former Soviet Union.  (We represent a number of oligarchs and have a joint venture with a Russian/Ukrainian company).  In many countries throughout the world, the concept of a “free” media isn’t held as highly.  I remember trying to explain to a billionaire oligarch that hiring us meant paying us a monthly retainer, but that we couldn’t guarantee him positive media coverage.  He simply couldn’t fathom it, as he kept saying, “I don’t care what it costs….”  He couldn’t understand the concept of not being able to buy positive media coverage.

In the midst of this recession, will the scarcity of advertising dollars lead to an increasingly blurred line between ads and PR?  At what point does protecting shareholders take precedence over “independent journalism”?

Simply food for thought during fascinating financial times.

Ronn Torossian

5WPR