Agency and Entrepreneurship

• The provided text covers agency and entrepreneurship topics
• Includes self-promotion, agencies, job titles, corporate structures, business budgeting and ideas, freelancing, customers, and more

Self-Promotion

• Strategies and activities aimed at creative visibility and enhancing an agency's reputation among clients, partners, and the public
• Showcases expertise, achievements, and unique value
• Attracts business opportunities and improves market positioning
• Examples include networking and "about me" pages

Self-Promotion Examples

• Content Marketing: Sharing high-quality, insightful content related to expertise through blog posts, case studies, or white papers
• Social Media Presence: Developing a strong presence on relevant platforms for the target audience
• Speaking Engagements and Workshops: Participating in industry events as keynote speakers
• Awards and Certifications: Actively participating in industry awards and obtaining certifications to highlight strengths
• Podcasts can also be used

Agency Value

• Communication agencies offer added value compared to in-house communication departments

Advantages Agencies provide

• Specialized Expertise: Hiring specialists with a higher level of expertise in certain fields
• Broad Experience: Offering fresh and unbiased communication strategies
• Resource/Budget: More cost-effective by eliminating the need for full-time employees
• Scalability: Quickly scaling up or down for projects as needed
• Innovation and Trends: Access to tools and strategies for keeping up with communication trends, tech, and innovation
• Focus on Core Business: Allowing businesses to focus on core activities by outsourcing marketing
• Strategic Partnerships: Bringing strategic partnerships for long-term support
• Measurement and Analysis: Providing access to tools and methods for success measurement
• Crisis Management: Handling communication crises effectively due to experience
• Access to Wider Audience: Leveraging relationships with media, press, and stakeholders to enhance visibility

Types of Agencies

• Full-Service Agency: Handles all communication, marketing, digital, and media needs in one place
• Specialist Agency: Focuses solely on specific areas it excels in, such as crisis communication, PR, or SEO
• Some companies like Coca-Cola may use both types of agencies

Job Titles

• Titles are generic

C-Level Positions

• High-ranking executive positions within a company that make the decisions

Agency Roles

• Research and Strategy: Innovative thinkers who understand the connection between consumers and brands to fuel creative executions
• Media and Touchpoint: Handles the visibility and execution of client campaigns with a deep understanding of the media landscape
• Account Managers: Advocates for clients within the agency, bridging the gap between the company and client while offering strategic guidance
• Business Development: Brings sales and communication together to turn leads into closed deals, growing the agency with revenue
• Creative: Brings projects to life by interpreting the client's vision and crafting ideas
• Operations: Deals with internal and external business operations by coordinating client projects and internal affairs

Corporate Structures

Organizational Chart

• Also known as an organigram, it's a diagram that shows the structure of an organization, relationships, and ranks of positions

Functional Structure

• Used in single-program organizations, structured around different departments

Divisional Structure

• Groups each organizational function into a division, common in larger companies

Geographical Structure

• Organizes people by geographic location, creating specific divisions for each location

Matrix Structure

• Organized around multiple dimensions, requiring coordination, and seen in agencies and large-scale organizations

New Company Structures

• Mechanistic structures centralize power and create formal relationships
• Organic structures allow for cross-divisional collaboration and reduce the "gatekeeper" mentality

Circular Structure

• Cross functional collaboration between different departments

POD Model

• Cancels all account managers to allow direct communication between department and client in 4 single communication units

Hierarchy of Plans

Business Plan

• Outlines objectives, values, evolution, mission, and vision for the entire company

Marketing Plan

• Focuses on commercial objectives, target groups, and operational plans

Communication Plan

• Describes communication tools for a short-term period (max 1 year) to achieve desired objectives

Campaign Plan

• Shows paid media strategies, defines advertising goals, specifies advertising channels and budget, and includes KPIs

Business Budgeting

Business Plan Steps, know the 5 step guidelines.

• Executive summary
• Description and structure
• Market research and strategies
• Management and employment
• Budget

Margin

• The percentage difference between the selling price and profit
• Indicates the percentage of the selling price that is profit

Markup

• The percentage difference between the cost of a product and its selling price
• Determines how much is added to the cost price to reach the selling price

Agency Profit

• Agencies buy time at cost, add a markup, and sell that time to clients at a higher rate

Time-Related Costs

• Buy Time (Cost Rate): Internal hourly rate for an employee's work
• Add Markup: Apply a markup to the hourly cost to ensure profit
• Sell Time (Selling Rate): Charge clients a higher, marked-up hourly rate

Billable Hours VS Non-Billable Hours

• Billable: Hours you charge clients for direct work on their projects
• Non-billable: Work for the agency or yourself that can't be billed to a third party

Scope Creep

• Uncontrolled expansion of product or project scope without adjustments to time, cost, and resources

Business Ideas

• Start with a good idea
• Positioning statement
• Concept note
• Business plan

Business Idea Generation

• Start by thinking about problems you've encountered

Positioning statement

• A brief description of how a business or brand uniquely meets the needs of its target market and is differentiated from competitors

Concept Note

• A short, helpful document proving you've put time and effort into thinking about your business idea

Concept Note Steps

• Product brief: Define your service or product
• Problem statement: Define the problem of your customers
• Target audience: Define your audience
• Needs: Define customer needs
• Solution: Define the solution to the customer's problem

Business Plan Types

• Traditional business plan: Detailed and comprehensive, used externally for lenders and investors
• Lean startup plan: High-level and fast to write, used internally

Traditional Business Plan Steps

• Executive summary
• Company description
• Market analysis
• Organization and management (legal structure)
• Service or product line
• Marketing and sales
• Funding
• Financial projections

Company Description

• Provides detailed information about your company, including consumers, organization, or businesses you plan to serve and competitive advantages

Market Analysis

• Includes deep understanding of industry outlook and target market, competitor analysis, and trend watching

Organization Management

• Describes how the company will be structured, who will run it, and the legal structure

Service or Product Line

• Describes what you sell or what service you offer, how it benefits customers, and the product lifecycle

Funding Request

• Explains how much funding you need & what you will use it for

Financial Projections

• Convince the reader that your business is stable and financially successful

Freelancing

• A freelancer is self-employed under independent contractors, not necessarily committed to one employer, and engages in professional, creative, or technical services

Freelancing Advantages

• Freedom to choose own projects and clients
• Polyvalence
• Diversity
• Tax Deductible

Freelancing Disadvantages

• Financial instability
• Administration and payments
• No working atmosphere

Billing

• Gross pay: Wages before taxes are deducted
• Net pay: Wages after taxes are deducted

EBIT

• Earnings Before Interest and Taxes

Freelancing vs Self-Employment

• Freelancer: specific form of self-employment
• Self-employment: a broader definition including freelancers, business owners, consultants, and sole traders

Payrolling

• The process by which companies manage the financial aspects of their workforce, taking care of remuneration and assuming obligations and risks

Upgrading From Freelance to Agency

• Upgrade when you start losing money in non-billable hours due to administration and follow-ups

Blended Rate VS Non-Blended Rate

• Blended rate: Clients are charged a single, uniform rate regardless of which team members work on the project
• Non-blended rate: Each professional's time is billed at their specific hourly rate, which varies based on expertise, experience, and role within the organization

Pareto Principle

• 80/20 rule when it comes to billable vs non-billable hours

Changes to Remuneration System

• Shift from above and below the line communication with 15% agency commission to companies charging in hours or projects due to social media

Package Deals

• Includes sharing a rate chart on the website, easier cost estimation, upgrading options, and balance between billable vs non-billable hours

FTE (Full-Time Equivalent)

• Measures how many total full-time employees or part-time employees add up to full-time employees your company employs

Selling Techniques

• Ask open-ended, closed-ended, suggestive, control, isolation, binary, and counter questions

Budget

• Missing in a creative brief

Budget Breakdown includes

• Agency fee
• Production budget
• Media budget

Agency Fee

• Based on research, strategy, creative direction, and project management hours

Production Budget

• Based on the wishes of the client

Media Budget

• Based on the PESO model

Budgeting Methods

• Percentage of sales method
• Objectives and task method
• Competitive parity method
• Fund available method
• Expert opinion method

Chapter 10: Customers

Customer Service

• The assistance and advice provided by a company to those who buy or use its products or services

Account Manager

• The key liaison between clients and the agency, ensuring campaign alignment, managing budgets, and acting as an external spokesperson

Elements of good customer service

• Empathy
• Helpfulness
• Accessibility
• Reliability
• Friendliness

Complaint Handling

• Receive: Let the customer explain their problem
• Empathy: Apologize for the situation
• Problem solving: Take the initiative to propose a solution
• Thank customer