I’ve just been reading in PR Week about the wisdom or otherwise of starting up a PR agency in a recession. Hmmm, I think I’ve come across this theme before, probably in 1991 – or was it 1982?
The story goes something along the lines of: new agency is keen to build a credible client base by offering rock-bottom rates. The clients they’ve targeted are only too happy to benefit from high calibre PR expertise at recession-busting prices.
This does of course make perfect economic sense. I would also venture that start-ups bring more to the table than low prices to sustain their initial appeal and keep their more established competitors at bay.
The hunger to prove a point probably gives a new agency a head start with things like client service and innovative problem solving. Fresh ideas are priceless and if PR creativity is called for, then start-ups will be more likely to tick all the boxes.
There’s a danger that complacency may set in with typical client-agency relationships. Some would argue that this is a comfortable environment in which personal chemistry can thrive. Others might say that no-one wants to rock the boat when all standard PR procedures are being followed. A new agency, on the other hand, has a blank canvas on which to introduce a raft of new ideas and follow them through with enthusiasm.
For this is the life-blood of any new business. Enthusiasm will carry all before it when sustained and supported by true expertise and service. The new agency’s stock will soar when everything is going well. Needless to say, the initial rock-bottom fees will take on a value-for-money aura that no other agency can hope to shift.
There’s an intrinsic momentum with a new PR agency, a self-perpetuating energy that harnesses business opportunity with a need to succeed. The fact that they’re operating against a backdrop of economic recession lends the whole process its own unique frisson.