How to Open Your Own PR Firm
Marketing has many factors such as advertising, connecting with your target audience and strategizing ways to capitalize on trends. However, there’s one marketing aspect that can make or break a business: public relations (PR). PR is when someone creates and maintains a positive image for themselves or another company. This one factor is so important, there are entire firms dedicated to ensuring reputations remain in a positive light.
Perhaps you’re looking to open your own PR firm and need a little help doing so. If so, then you’re in the right place; opening a PR firm is a wonderful decision, but it’s not as easy as it sounds. There’s a lot you need to consider, plan for, and invest your money in. In this article, we’ll be providing everything you need to open your own PR firm.
Craft Your Business Plan
As with any kind of company, you’ll start by creating your own business plan. You probably already have strategies to reach your goals but you will need a specific, laid out plan for the business as well. A business plan is a comprehensive document that houses every detail pertaining to your firm. The first thing your business plan should include is the executive summary. The executive summary is a short version of what your business is ultimately about. The points you must include are as follows:
- The name of your firm and what it’s all about
- What you currently have planned
- How those plans will be brought to fruition
- Why your PR firm will be successful
Other important parts of your business plan should include a description of the company, a detailed analysis of the market, in-depth research on your competition and your contingency plan.
Figure Out Your Finances
Opening your PR firm is going to cost you plenty of money. There are quite a few expenses you need to invest in before you can open for business. Here are the expenses you need to pay for:
- A domain name for your website
- The proper software and tools
- The required permits and licenses
While these may seem like only a small handful of expenses, you also need to consider your personal finances as well, specifically your credit. Your credit will play a very important role in acquiring the necessary funds needed to pay for your business expenses. But with poor credit, you’ll have a difficult time taking out business loans when necessary. You need to have a decent credit score before anything else. Granted, there are some financial milestones you can reach before you even establish your credit. It can be taking out a student loan, paying for a vehicle or even purchasing a house. But there are those who are credit invisible, which means they don’t have one. This can greatly complicate matters as you need your score up to standards. If you’re someone who’s credit invisible, now’s the perfect time invest in it and build a strong score.
Set Yourself as an LLC
LLC, or limited liability company, is a type of business structure that allows you to legally operate, save on taxes, and handle legal issues accordingly. You might be wondering why we’re suggesting an LLC specifically and not the other structures. The other structures include sole proprietorship, partnership, and corporation. You’re free to ultimately choose any structure you want. But each structure works differently and isn’t as beginner friendly as an LLC. LLCs combine the best aspects of the other three into a single package. You have the ownership of a sole proprietorship; you can employ anyone just like a partnership and you’ll have the protection of a corporation.
Figure Out What Rates You’re Going to Set
Now we’re going to tackle one of the most important aspects of a PR firm: your potential revenue. Owners of PR firms can make quite the annual salary. While everyone’s revenue is different, it’s not uncommon for PR owners to earn over $200,000. There are firms that bring in double, if not triple, this amount. However, it all depends on what you set your rates to. Maintaining a public image is hard work to say the least. Since you’re new to the field, you don’t want to charge too much because it can greatly decrease your chances of receiving a call back. You want to start off small, but once you see enough success, you can increase your rates. As for how you can set rates, you can charge your clients an hourly rate, be a monthly retainer or charge per project.
If you want to be seen by your target audience quickly, you need to advertise yourself, and thanks to social media, getting noticed has become easier than it used to be. It used to be that people had to use their phone book to find a company they want. Social media and the internet as a whole made this huge list of contacts obsolete. Use platforms, like TikTok and Instagram, to broadcast your services.