How to Start a Media and Public Relations Business

Wednesday, June 19, 2013

How to Start a Media and Public Relations Business

Media and public relations firms are widely used by small and large businesses across various industries. From fashion designers and boutique owners to upscale restaurants and authors, media and public relations firms are hired to help spread positive news about their businesses, and attract the attention of their target markets and respective media outlets. They also work to keep negative press from damaging the brands they represent. "Entrepreneur" magazine's online portal suggests that start-up costs for a media and public relations firm could range from $2,000 to $10,000.

Step 1

Obtain skills necessary for running a successful media and public relations firm by securing a relevant education and experience. Coursework and experience in business writing, public and media relations, verbal communication, advertising and marketing are helpful. A degree is not required, but can help equip you with tools to effectively run your media and public relations business.

Step 2

Research the market to determine the future of careers in media and public relations services. Resources such as “The Occupational Outlook Handbook” provide in depth details on salaries, services, growth and trends. Investigate the local market you plan to serve to identify potential competitors and how your firm differs.

Step 3

Determine whether you want to operate your media and public relations firm from a home office or if you want to lease space. A small start up can easily be operated from home to reduce expenses.

Step 4

Decide which services you plan to provide clients. From writing press releases to creating media kits, public relations professionals offer a wide range of services, but not all firms are full-service. Determine whether you'll accept hourly payments, per project payments or operate on retainers where customers pay a fixed amount per month.

Step 5

Write a business plan for your media and public relations start up. Include information on how you will finance, manage and market the business. Your marketing plan should include ideas for attracting potential clients.

Step 6

Come up with a memorable name for your media and public relations business. Register the name with your state office as a legal entity. Register as a limited liability company to protect your personal assets and legal issues the business may face in the future.

Step 7

Purchase errors and omissions insurance from an agent to further protect your legal entity. This can protect you against clients who find an error in a press release and elect to sue you for the error.

Step 8

Work with a graphic and web designer to create visual representation for your business. Along with a logo, marketing collateral, including letterhead, business cards and brochures ,are essential. Develop an online presence by creating a website.

Step 9

Purchase office supplies, such as a desk, chairs, fax machine, computer and printer, as well as pens, pencils, notepads, computer paper, file folders and a filing cabinet for client files. Set up your office.

Step 10

Begin marketing your business to prospective clients based on the marketing plan you created.

Things Needed

Tip

Joining local business and professional associations are an ideal way to network with fellow business owners and potential clients.

References (5)

Resources (2)

About the Author

Miranda Brookins is a marketing professional who has over seven years of experience in copy-writing, direct-response and Web marketing, publications management and business communications. She has a bachelor's degree in business and marketing from Towson University and is working on a master's degree in publications design at University of Baltimore.

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Easy Tips and Ideas to Start Business

Although anyone can start a business, many people fail because of a bad product or improper research. If you want to start your own business, you can improve your chances for success before you even begin. In order to make your business successful, start strong and make sure that your idea will hold out for the long haul.

Have a Good Product

Ensure that you plan to sell something useful. Although you may think that your product is important or special, that doesn't mean the general public will agree. Ask friends, family and strangers what they think of your product. If they don't seem that interested, ask them why. With their suggestions, you can either improve the product or scrap the idea completely. According to Brad Sugars of Entrepreneur magazine, most small businesses fail because they sold a product that didn't have an adequate market. This also applies to small businesses that provide a service. A lawn-care business might be useful for part of the year in a northern state, but it is in-demand year-round in the south. Consider whether people will actually want to use your service and get constructive advice from those not afraid to give their opinion.

Research Local Businesses

Research local companies before starting up your own business. This will not only give you an idea of the amount of competition you will have, but it will also help you price your product or service. If you're looking to start a wedding photography business, you may find during your research that the market is over-saturated in your area. If not over-saturated, you should contact each business and ask them for a price list. Alter your prices so you can stay competitive with the competition in town. Researching similar local businesses will also help you decide where to locate your business location. Try not to start up a store or office close to another business of your type. If your small business is located away from similar business types, this will cause locals to choose you over businesses that are farther away from where they live.

Get Professional Advice

You may know someone who has started their own successful business. Ask him for advice and listen to his stories of how he started his company. You may gain useful advice on the good and bad ways to start a business. Local entrepreneurs can also introduce you to local product providers or advertisers that you may not have met without their help. Accept any advice with open arms, especially if the advice is coming from someone successful in the area.

How to Calculate Business Start Up Costs

Starting a business in no easy endeavor. It takes a great deal of research, perseverance and hard work. While sweat equity will make your small business more successful, you will most likely need real capital to get the business started. Before you start raising capital and/or investing your own funds, the first thing you need to do is determine the total start-up costs.

Step 1

Determine your costs of sales. For most small businesses this means inventory, the cost of raw materials, manufacturing equipment, shipping, packaging, and warehousing. However, not all businesses sell products. In this case, the cost of sales is primarily the direct labor involved in making the sale. For example, to open a small shoe business entails purchasing enough inventory ($10,000) to stock the store.

Step 2

Determine professional fees. Planning your business structure, i.e., limited liability corporation or general partnership, means hiring an attorney. There may also be the need to pay an attorney for help with establishing trademarks, copyrights, and patents. In this scenario, that puts total professional fees at an estimated $20,000.

Step 3

Determine technology costs. Technology can greatly reduce the cost of labor for small business if used effectively. Most small businesses require computers, printers, cell phones, website development, Internet access, software applications, information security, data storage, and outsourced information technology (IT) consulting. If the cost of technology is $10,000 to start, add an additional $5,000 a year for maintenance (hint: maintenance is not included in start-up costs).

Step 4

Determine administrative costs. This varies with business types and may include items such as business insurance, office supplies, product packaging, parking, rent, express shipping, desks, chairs, fax machines, phones, or anything else necessary to operate the business daily. A good estimate for start-up administrative costs would be $5,000 for the first six months.

Step 5

Determine initial sales and marketing costs. Now that you have your product, you need to let folks know about it. Sales and marketing costs generally include marketing materials for presentations, printing stationery, business cards, advertising, trade show events, and public relations. These initial sales and marketing costs can add up to $3,000.

Step 6

Determine the wages and benefits needed to secure a staff. This includes employee salaries, benefits, workers compensation, and payroll taxes. Let's put the cost of wages and benefits estimated at $20,000 for the first three months of business.

Step 7

Add all costs associated with starting the business for a total. Be sure to only include business start-up costs that will be incurred in the first three to six months of operations. For this example, the calculation is: $10,000 + $20,000 + $10,000 + $5,000 + $3,000 + $20,000 = $68,000.

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Wednesday, June 19, 2013