April 15 – “Tax Day” – evokes mixed feelings. Five years ago today, following a soul-searching huddle around a tiny table in an empty hotel bar, my partners and I formed SHIFT Communications. Although I’m not a big fan of the taxman, generally the good feelings win out. I love this agency – as you’ll learn if you can stomach the schmaltzy post that follows.
We started SHIFT by buying-out the assets of the agency we’d previously worked at, where each of us had been a senior exec. Given that this was at the absolute nadir of the Dot-Com Crash, there weren’t many assets left: the former firm had gone from approximately $14M to less than $3M, in the span of 18 months, and the problems weren’t over yet. This was one helluva gamble.
But we had about 30 happy clients left in the portfolio, serviced by 30 anxious but kick-ass PR pros (down from 150–odd during the hey-day). My partners and I simply loved “what was left” and gambled our homes, our savings, and the funds of several munificent friends & family members, to launch the new venture from within the shell of the old firm.
As a direct result of launching in a horrific recession, we set one major ground rule for ourselves: No single client could be allowed to account for more than 10% of annual revenues.
We never wanted to face the prospect of firing a beloved, loyal staffer just because we’d lost an account. We didn’t want to live in fear anymore, nor ever again.
A happy side-benefit to this reckless decision: our staffers felt more free to tell clients what they needed to hear, instead of what they wanted to hear. You can be more bold when you don’t have a mortgage payment riding on whether or not a client likes your counsel. Best of all, this approach led to extended client relationships; we could act like partners rather than vendors.
Anyway, the economy recovered, and we did okay. We’ve gone from 30 people to 100, from under $3M to over $10M. We’re debt-free. We’ve worked (or still work!) with companies like Novartis, RealNetworks, Oakley Sunglasses, Shimano, Akamai, Travelocity, Quantum, RSA Conference and Yelp. We launched a groundbreaking approach to re-thinking the humble Press Release. I’ve spoken before groups as diverse as Emerson College undergrads to The Conference Board.
It’s been a wild, incredibly fulfilling ride. Knock-wood, it’ll continue to be as exciting and fruitful over the next 5 years.
If we do continue to find success, it will only be because of the kind-hearted, hard-working, whip-smart people of SHIFT. This post is really for them. Thank you, all, for your continued support and good humor. As we continue to assail the mountaintop, it’s nice to know we can do it while laughing!
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A happy side-benefit to this reckless decision: our staffers felt more free to tell clients what they needed to hear, instead of what they wanted to hear.
When you can be honest with clients, you can do what works for them, which in the end run is more beneficial to the relationship and to the client.
What a story and a start!
Congratulations SHIFT team!
Happy Birthday to one of Boston’s finest
Congrats to you and your colleagues at SHIFT, Todd.
Here’s to the next five years.
Congrats. It has been fun to watch and learn about you and Shift over the past year and I’m looking forward to more int he future.
Raising a glass (actually a cup of coffee) and toasting you and the team for another five years of success.
Congratulations to SHIFT, to well deserved success and another terrific five years!
/kff
Congratulations, Todd! That’s big stuff, and you deserve all of the success!
Happy birthday SHIFT!
Congrats. I’d be interested in a post talking about how this blog has helped your business since the start.
Bravo sir. Great to hear a bit of the story. Even greater to hear the outcomes are good. Good things happen to good people. Congratulations on five and here’s to 50 more.
Congrats to you and your excellent team! Good luck with the shoulder.
@warrenss
As one of those original 30 PR pros who was hired in the “hey-day,” let me say it’s been a fantastic ride! Let me also say “thanks” to you, Todd, Jim and Ed. Your gamble has made this place the best Agency to work for in my humble, yet biased, opinion. You not only took a risk five years ago, but also in the years since with ideas, programs and initiatives all designed to make each SHIFT employee a better PR professional.
Your commitment to making this a fun, energetic environment that people look forward to coming to every day has not gone unnoticed!
Congrats on a five years of success in the toughest business on the planet!
Congratulations on the five years of success. Great advice on “10%” rule for client revenue. We almost got burned in our first year when one client 40% of revenue and they left. Ouch!
Great post, Todd, you’ve really encapsulated here much of what makes SHIFT an amazing place to work and thrive professionally. I love the fact that I can be a partner to my clients and be 100% honest with my counsel.
I couldn’t be prouder to be a SHIFTer!
Thank you, all, for the outpouring of compliments and good wishes!
Now, gotta go mail that check to the IRS! (Sigh.)
Congratulations and best wishes for more success in the future. I’ve learned a lot reading your blog and I look forward to many more thoughtful and entertaining lessons as you continue to build your business and your reputation.
Congrats Todd. Great risk, but great reward.
I can’t say how much I love every member of my SHIFT team without sounding sappy. Y’all rock and I hope your next 5 years bring even more success.
Todd… I celebrate April 15 for a different reason. Having been married to a CPA/tax manager for 30 years now, it’s the day I get my bride back!
But this line from your post is one I’ll send my students today:
“A happy side-benefit to this reckless decision: our staffers felt more free to tell clients what they needed to hear, instead of what they wanted to hear.”
An important attribute of the effective PR counselor is courage. And you are right: when the mortgage payment is riding on whether the client “likes it,” we tend to get way too cautious.
Congrats to you and your partners for seeing this from Day One.
Congrats T, Jim & Ed! Hard work, good common sense & the balls to make hard decisions; what a combo for success. It all seems so easy looking back, I know differently. I wish you all continued success; that way I can look forward to a comfortable retirement. Dad
Todd, if only more companies would tell their stories the way you did above (humble beginnings) - it’s inspiring, real and heartfelt. I appreciate the openness.