Running my PR firm has taught me a lot about the importance of efficiency, process and profitability. I also have good counsel (that I pay for) and thought I’d share what the past 17 years of ownership has taught me. Coupled with this is the fact that I’m being asked to speak more often on the subject of integrating social media with traditional marketing campaigns and how companies can track and measure their efforts. In my own business, I know that is important as investing in social takes time and people.

Last night, I had the opportunity to speak the Memphis chapter of FEI (Financial Executives International), an audience of mostly CPAs, CFOs and finance executives from a variety of industries. With an audience like that, ROI (Return on Investment) is surely a large part of that discussion. But I also caution people that ROI can also stand for “Risk of Ignorance,” meaning that you have to at least get familiar with social and listen to what people are saying as a minimal investment. So, as technology (mobile) and social continue to expand, how do we track what matters and how do we plan our strategies for the future? Use numbers as your guide regardless of what your business is:

• The average formula for productive team members selling a service such as ours is three times what you pay them: In service firms, you must evaluate team members by not only what they produce (bill) but also what they collect (cash in the bank). Average CPA firm managers and young lawyers are required by most firms to bill and collect 2,200 hours annually.
• Profitability and revenue are two different things: Just because you have higher revenue doesn’t mean you have high profit margins. Look at the margins of your business and see where you can cut low profit services and more importantly, add higher value that clients will pay more for. Crisis PR would be an example of higher value for our firm.
• Hire a good banker and CPA and listen to them: It’s the best money you will spend, as they should be looking for ways to improve your efficiency rates and cut costs.
• Never be afraid to make staff changes when the numbers tell the story: Too often business owners can put off needed changes because it’s easier and, hey, we’re busy trying to keep everything going. Productive team members are the ones who go the extra mile, understand the profit margins and want your company to grow and win. Change is painful but the math will help ensure that the best staffing decisions are made.
• On the point above: Share the formulas and strategy with your team: At Howell, we have a strong team of what I believe are long-term producers. We work as a team, we take up slack for each other when needed, and we all want the best possible outcomes for our clients. In doing this, we probably leave money on the table and are reviewing ways to increase fees for higher valued services. Our team also now understands this math. We review periodically what the production looks like and how each team member can be more productive. How can your team know what the expectations are if you don’t communicate them? As an owner and mentor, it’s my job to lead my team to actualize productivity.
• Invest in the technology that helps your team compete and excel: We’ve increased our technology budget but decreased our reliance on paper, printing, etc. We’ve bought iPhones, iPads, Apple computers and new compatible printers. We ditched the witch BizHub we were leasing—what a rip off! We use our iPhones remotely to post client news and monitor the social sites as well as talk to clients and to each other.
• Purchase vs. lease and rent back opportunity: Instead of leasing space, I bought a commercial office unit in the S. Main area of Downtown Memphis three years ago. Although smaller than my bigger offices out east, we are more efficient and I’m paying myself back over the long haul. I was able to cut my monthly spend by 50% and I’ll have an asset on the books when it’s paid off. My banker has also advised paying twice the principal due to increase payoff schedule.
• Constantly evaluate best practices in client service: What Twitter has done for me is provide introductions to my peers in other markets who gladly share success stories. I’m always benchmarking what we’re doing against my peers. Social media for provided “continuing education” on steroids.
• Be sure to charge enough for your services and the value that you bring: At Howell, we don’t do time sheets. With one exception (art and photography) we have managed to stay away from that tedious (hideous is a better word) process. I think my distaste for doing this stems from my work with law and accounting firms. I believe it cheapens the result for the client and ultimately encourages people to take more time (bill more time) to get work done, which can breed inefficiency. However, if you aren’t tracking time, you can quickly reduce your realization rate, which negatively impacts your bottom line. This is where our CPA helps us review what we charge against the average time spent. I have a confession: I hope we never have to do time sheets.
• Finally, review financials and do annual budgeting: Set goals, plan accordingly, create budgets and stick to them.

Math works. As my great banker, Dana Burkett (Commercial Bank & Trust) says, “Profit is king and revenue is ego.”  Words to bank on. Thanks for reading this and stay profitable!

I know that there is a lot out there about what it means to be an entrepreneur, including plenty of case studies and real-life examples. What I find most fascinating are the characteristics of people who excel as entrepreneurs. If you do some research, the word enterprise comes from the French word “entreprendre” or “to undertake,” dated as far back as 1852. The word defined means one who organizes, manages and assumes the risk of a business or enterprise—pretty true today. Each year, BusinessWeek publishes its list of “America’s Best Young Entrepreneurs of (insert year).” Each year I read these and think—if I had more time, it would be cool to track them and see if, long-term, they are successful.

As a relatively young entrepreneur starting my PR firm in 1996 (I am telling my age but I was 32 at the time with 10 years of corporate marketing under my belt) I have always considered myself a scrappy, resourceful, curious, strong and driven person. In my early career, it wasn’t uncommon for me to challenge status quo. A businessman who turned Harley-Davidson around by the name of Michael Kami supported that. He taught that in order to make change and money, you had to “risk your job every day.” What he meant was that if you had better ideas than your boss, you owed it to the company to present those. What I knew instinctively was this: it’s often good to challenge as long as you do so respectfully and with the right data/facts. It was also clear to me from an early age how important financials are and how a company drives revenue and more importantly, profitability. I studied the numbers, got to know the CFOs of the companies I worked for and listened. You can have the brightest marketing and PR program but if you don’t know how to drive revenue with it and you don’t understand the financial connection and return on the investment, you’re just another head they can cut. So, with that context in place, here’s a list of what I believe young entrepreneurs have in their DNA:

1. Insatiable quest for information and constantly curious: Most entrepreneurs I know wake up at night thinking of the things they don’t know or questions to ask. This insatiable quest applies across all boards: technology, world affairs, best practices, etc.

2. A good grasp on financials, venture capital and the global investment-banking world: Entrepreneurs know that they have to self-educate here. Many take classes and get degrees they know will simply help them down the road. Fortunately for me (although I didn’t know it at the time), my work for lawyers, bankers and CPAs was fertile ground for learning this stuff.

3. Complete and enviable drive and energy that can often drive other people crazy: It’s a blessing and sometimes a curse to possess this trait—mostly a blessing. It takes this drive and energy to be a risk taker, manager, creator, and leader. I would also bet that most entrepreneurs get up early, read everything and still have time to get to the gym. Medical evidence says that exercise is good for the brain. I’ve always been a big believer of this.

4. Passion: Perhaps the most important trait of any entrepreneur. Passion for the work is what sells to the VCs, the banks, and the boards. It is also contagious. I’ve had people tell me that they want to work with me because they want to love their job like I love mine. Big compliment but passion is not transferable. You either have it or you don’t—hence, the DNA.

5. Agility and flexibility: When one door closes, instead of hoping another will open, entrepreneurs see four or five that could open. Having a never ending “what if” and “why not” ability to be flexible and see around obstacles is a gift that I think one is born with. Entrepreneurs don’t like the word “no.” They are the kids in school who when the teacher says you can only go to your locker one time during the day, they figure out how to get a locker that goes everywhere with them.

6. Intolerance for mediocrity: This goes with point number three, but what I mean by this is that in addition to drive, entrepreneurs don’t like the mediocrity, status quo or wasting of time and resources. Further, they will challenge it or go around it to get the result they need. Employers, if you have an entrepreneur you want to keep, you should consider a different set of expectations and let them go to it (in other words, don’t make them conform to meetings & mediocrity).

7. Last on this list (but certainly not least) is the feeling like other people don’t get it: It is this deep down voice that says stay quiet while other people are talking and you don’t understand why. And by this, I mean in business. I have been in so many corporate meetings where mid-level managers are talking and literally, my inner voice is screaming to say, “What in the Sam Hill are you meaning to say?” Some call it red tape or bureaucracy but entrepreneurs have other words. I’d love to hear other examples like this!

Thanks for reading this and I’m sure I missed some DNA traits. I’d love for you to share yours.

Image Source: Entrepreneur Solo

If you’re in a regulated industry like banking, health care or finance or law, this seminar is for you.

Howell Marketing Strategies is pleased to announce that their senior social media strategist, Glen Gilmore, will delivering the keynote presentation at the Memphis Daily News Social Media Seminar, on Thursday, February 9. Gilmore, a former prosecutor who served eight years as mayor of New Jersey’s seventh-largest city, Hamilton, will be discussing “Social Media Landmines – What Businesses, Marketers, Corporate and Legal Need to Know.” It’s crucial for businesspeople to understand what the ground rules are so that they do not do something innocently that can create a problem for themselves or for their company.

Thursday’s program will last about 90 minutes with a cocktail reception to follow. The cost is $25. While seating is available, those interested are encouraged to register as soon as possible.

To register, visit www.memphisdailynews.com/seminar.

Howell Marketing Strategies also recently announced that Gilmore, its senior social media strategist, just ranked seventh in a newly released list of “Top 50 Social Media Influencers” prepared by Forbes. Gilmore, who lives in New Jersey, has worked with the Howell firm for the last three years, traveling and staying in Memphis often.

Gilmore has played a key role on the Howell Marketing Strategies team for over three years and serves as Amy Howell’s official Social Media Advisor for social media for law, banking and healthcare.

Read the article in the Memphis Daily News, Social Media for Regulated Industries to be Discussed.

Read the article in the Memphis Daily News, Glen Gilmore To Headline TDN Seminar.

About Glen Gilmore:
Glen serves as the senior social media advisor to the Howell team, working directly with Amy Howell on client related social media projects that integrate traditional PR with digital marketing, online reputation management, compliance, and crisis communications. Glen is in Memphis frequently for client meetings, training and speaking events for the Howell team.

With over 100,000 followers on Twitter, Glen D. Gilmore is a recognized leader in the field of Social Media. He has been included in the Top 100 of the “Twitter Elite” ranking provided by Twitter Grader and The Memphis Daily News has written that “Gilmore is well-versed in all things Web-related.”

An Adjunct Professor with Rutgers University, Glen creates and delivers customized digital marketing executive training for Fortune 100 companies, among others, on topics ranging from social media marketing to social media law. He has also helped to create and deliver crisis leadership programs with Texas A&M University funded by the US Department of Homeland Security.

His blog, SocialMediaVoice.com, addresses a wide range of social media topics.

Social Media Strategist
Practicing Attorney, former Prosecutor.
TIME Magazine “man of action”
Former Mayor of New Jersey’s 7th Largest City.

For an expanded bio, please visit: Gilmore Business Network.

The full list of  “Who Are The Top 50 Social Media Power Influencers?”  by Forbes.

Glen’s recent input,  “Super Bowl becoming the social media event of the season for advertisers” on MSNBC