This morning I attended a small breakfast networking meeting hosted by a friend and client for 12 real estate and financing CEO’s. As always, I enjoy spending time with smart, successful people, and the most interesting quote I heard was from a hedge fund CEO who said “There’s no such thing as inventory or product.  Every single situation, vis a vis inventory and product, like never before, is an individual consumer.”  That’s a very scary statement for a marketer and means a lot more “hand-to-hand” combat when it comes time to market any product, whether property or loan.  It’s harder than ever when there’s no “box” in which to put the “buyer.”

Separately, in a late night religious course last nite, I learned that the average person’s brain has 60,000 thoughts every single day.  I found this fascinating and will continue to learn how to better process (and act upon) those thoughts.

Ronn Torossian

5WPR

For better or for worse, I have always been brutally honest.  I am hard working, I don’t know any other way. I only take on clients we can do great work for, treat people well and expect the same in return.  It’s sometimes painful being brutally honest in the service industry. 

Over the past 45 days, we invested perhaps 75 hours of work pitching a major company’s PR work.  The CEO personally approached me; we held countless meetings, and were continually promised that an agreement would be forthcoming. Then came two weeks of no replies and a meek email apologizing for budget constraints (which was of course the first question I asked when we got the initial call).  Nevertheless, the CEO promised we would build a relationship and that he had plans to work with us in the future. I built a relationship with these folks (or so I thought), carried out some impressive presentations and devised a strategy for them. The work was enjoyable and I felt I learned a lot from it.

That said, today was approached by a client who wanted to collaborate on a project with these folks. I said sure, I’d be happy to call and help establish a connection. I immediately got the CEO on the phone, who quoted me a price…which was more than what we had been quoted by a sales person who was unaware of a preexisting “relationship.”  Needless to say, we won’t be collaborating with these people…and I feel they took complete advantage of us.

In the service industry, time is money, and too often we don’t receive value for our time.  It’s not fair, and it’s not good business.  All we have is time and we value it. It’s how we make our living.  Value your own time in the PR business.

Ronn Torossian

5WPR

Yesterday I received a call from an old acquaintance of about 10 years, completely out of the blue, requesting a meeting. We spent considerable time together in 2003 when I first started 5WPR, which I remember vividly. We have spoken many times over the years, both personally and professionally, and he’s risen very rapidly in his industry. For someone my age, he has become very high profile, tremendously successful and, other than a few yearly emails, I have admired him from afar.

We met yesterday, simply for him to say “Congratulations” to me.  Someone had mentioned me to him earlier this week, we hadn’t connected in quite a while, and he said “You should be proud of what you have built. I am proud of you.”

We ended up spending quite a few hours together, we discussed the prospects of a future business venture. It was really nice to hear from him, and for me as an entrepreneur, it reminded me to thank people who do good things and who succeed. 

It’s rare for people to appreciate the success of others, and I vow to do it more. Be appreciative of people who succeed – Its much harder than it looks.

Ronn Torossian

5WPR

Sometimes in the midst of life’s daily madness, one overlooks how great it all is, and only in reflecting did I realize how special a day yesterday was.

It started with an 8 AM client breakfast at the Carnegie Deli (yes, its open for breakfast) with one of the country’s leading Evangelicals – An individual with daily access to some of the highest members of the GOP and major Republican influencers in the country; someone whose every word is carefully heeded by the media.  After the 1st hour of work talk, we ended up talking personal issues till 10:30 (I missed a planned conference call, occasionally a necessary sacrifice), and came to the office invigorated, if not late. 

Next - A mid-day new business meeting at one of the largest retail stores in the US.  We are in the running; it was fun and we are hopeful. From there I went straight to a publishing client who is a market leader to trade ideas, review progress and plan a conference. When I first started my PR agency, I would have stayed up hours pontificating on these meetings, but now I ran from place to place – prepared and certainly excited… but more routine.

My last meeting of the day (in between chats with staff, media correspondence and a quick internal financial meeting) was my sitting monthly meeting with one of the leading hairdressers in the US who is a client with whom we have had enormous success, and is someone who continually inspires me as an entrepreneur. 

Finally, I ran home quickly to change and shower, and then to meet a group of former clients visiting from Europe at the Four Seasons. 

Only this morning did it occur to me to stop and say “wow what a great and exciting day.” It was fun, great clients and great conversations – prosperous and something which when I started this business would have been an OMG moment… but now more regular. It’s important to sometimes just stop. Reflect. And be thankful.

This story would be more amazing if I were able to name names… but I can’t…. But it’s all exactly spot on… and whatever your lot is in life, take time and appreciate the great and special things.

Memoirs on this beautiful NYC day in May.

Ronn Torossian

5WPR

This week alone, three clients spoke with me about investing funds in “content creation.” The goal of these campaigns is to grab consumers with attention-grabbing content and subsequently buy their product.   With the changing media, smart entrepreneurs are hiring spokespersons and creating their own content. This gives them the freedom to define the news without losing control to the media’s agenda.

This concept, if done right, will trump trade media outlets and enhance a company’s SEO.  For example, General Electric recently launched an alternative media outlet, a type of hybrid between traditional online news and a blog. This allows them to create their own content, catering to an audience already interested in the material, and provides a forum for consumer engagement and conversation.

In an environment where brands aren’t spending money on advertising, brands have an opportunity to define their industry’s news and trends. For a fraction of the cost, brands can finance their own industry’s media machines. PR 2009.

Ronn Torossian

5WPR

So, today I was quite pleased to learn that we were ranked as the 23rd largest PR firm in the U.S. in the just released 2009′ PRWeek Agency Rankings, a public relations industry magazine.  5WPR, for their 6th full year of operations ranked 23rd in the U.S., with $11,919,546 in revenues.

One of the 25 largest PR firms in the US, Inc. Magazine fastest growing companies, fastest growing PR firm in the US 3 years in a row – These are all accolades we have had in only our 1st 6 years of business.

Am very very proud we rank as one of the 25 largest PR agencies in the U.S.

Ronn Torossian

5WPR

In the last few weeks, I’ve noticed that entrepreneurs and small- to mid-sized businesses are making a lot fewer decisions by committee.  Wreckage from layoffs has pushed lean, mean, smart business people to stand up and take more responsibility for the activities in their companies (no government bailouts there).

Even amongst our clients with up to 100 employees, CEOs are much more involved in smaller issues and are making each and every decision.  These CEOs are taking on a greater share of responsibility, making direct, quick decisions that they would never have made a year ago.  Yes, companies are smaller, but they also realize that decision by committee is too cumbersome in these uncertain, fast-moving times. CEOs are leading, for better or for worse.

One of the people I respect most in the world said to me today that new horses will begin to emerge from the economic rubble – people ready to lead, because the old guard is tired and beat up from the last few months, which have been very tough on all of us.  The new horses will emerge and lead.  I think we are starting to see the inkling of those horses.

Ronn Torossian

5WPR

An interesting discussion this morning with a start-up CEO prompted me to pinpoint  a few guidelines I learned for small businesses to follow, especially in a struggling economy. Gathered from years of personal experience, as well as lessons relayed by fellow entrepreneurs, these simple tenets can  be helpful.

I started my agency, 5W Public Relations, in 2003.  Since then, it has grown to become one of the 25 largest independent PR agencies in the U.S., ending 2008 with nearly $12 million in revenue.  We have no debt, pay vendors on time, and have always had a profitable business, as we work very hard and deliver results.  We don’t accept complacency: we demand and deliver.  We have never had a line of credit, don’t carry credit card balances and pay our bills on time.

One of the hardest parts of running a business and being an entrepreneur is extending credit to companies and managing cash flow. To this day, in our seventh year of business, when I look at my accounts receivable and see seven figures outstanding, it’s terrifying. It’s one of the biggest differences for me between owning a business and having a job.
 
Anyone who owns a business has been stiffed. The question isn’t “if,” but “how much and how often.”  Additionally, as AdAge says, asking agencies to wait “as long as 120 days to be reimbursed” is “putting a painful burden on some shops.” There’s not much one can do other than understand that cash is king and good clients pay their bills.  In this economy many agencies will merge or fold, as they simply can’t afford to keep their doors open.  The small businesses that are having trouble managing cash flow (or lack thereof) will have no choice.

My small business guidelines to live and breathe by:

1. There are basic cardinal rules that seem simple but shouldn’t be violated, especially during these unique times: Don’t spend what you don’t have (cash is king, not credit). Sweat the small things.

2. Keep overhead as low as possible. If you currently have office space, now is the time to act quickly and look at options to renegotiate your current lease. If you are a new business looking for office space, there are many companies that are currently renting extra space.

3. Hire strategically, because the growth of any new start-up will be affected by new government policies, from matching employees Medicare tax rates to the added burden of paying extra commercial real estate taxes.

Food for thought.

Ronn Torossian

5WPR

I clipped an advertisement from a magazine today, and as I was getting ready to dial the number to inquire about the service , I saw the contact said to call a Chief Revenue Officer (CRO).  I couldn’t help but think, as a customer, can I get the best deal possible dealing with the CRO or is he only about maximizing revenue (as his title implies)?  And shouldn’t every single employee be all about maximizing revenue?

From a marketing (and sales) perspective I really don’t like the title and would advise against using it.

Ronn Torossian

5WPR

One of the most enjoyable aspects of owning a public relations agency (and working in PR in general) is the ability to meet a multitude of interesting people.  I have regularly met billionaires, fascinating entrepreneurs, celebrities and politicians over the years.  Today, I met the rare honest politician, and he very much impressed me.  These meetings reaffirm the beauty of working in PR and touching a variety of different industries.

Today, with many clients and friends of the agency in attendance, 5WPR hosted a speech by Nir Barkat, the just elected Mayor of the most magical city in the world, Jerusalem.  I met Barkat a few years ago and have spent time with him since then both in Jerusalem and here in the U.S.  He truly is the quintessential non-politician, and as his friend, I am proud to have been his first host in NYC during his first official visit as Mayor.  He discussed Jerusalem’s relationship with the American community, and he said, “I propose a partnership where those worldwide who care about the future of Jerusalem participate in the city’s development.  Under my leadership, the city of Jerusalem will build relationships, and we will do business together.”

Barkat spoke of public-private partnerships that allow overseas individuals who aid in Jerusalem’s development to meet the cream de la crème of Jerusalem’s business community.  I have always believed government should encourage business and that people who meet with mutual interests (even non-business related) will end up being beneficial to one another (and Barkat specifically mentioned sports, which I agree drives deep bonds).

Barkat, who is a self-made multi-millionaire through his entrepreneurial ventures, is truly a special individual.  I believe he will do great things in, and for, Jerusalem.  If there were more politicians worldwide like him, I believe more cities would thrive financially.

Video of Barkat at 5WPR

If you may be interested in attending future events here at the agency, please email me and let me know.  They are excellent ways to meet business contacts.

Ronn Torossian

5WPR

photo credit: Shahar Azran