We were lucky to catch up with Christine Barney recently and have shared our conversation below.
Christine, looking forward to hearing all of your stories today. How did you scale up? What were the strategies, tactics, meaningful moments, twists/turns, obstacles, mistakes along the way? The world needs to hear more realistic, actionable stories about this critical part of the business building journey. Tell us your scaling up story – bring us along so we can understand what it was like making the decisions you had, implementing the strategies/tactics etc.
o The first step in scaling up was making the choice to grow. It doesn’t happen just by wishing or working harder, you need a strategy. We had plateaued at about $3 million in billings in year four and realized that if the agency didn’t grow, neither would our up and comers and we would lose them. So, we crafted our first strategic plan and decided to put discipline in our growth. o One of the most meaningful moments was when we decided who we wanted as clients. 1) we would work for clients who saw us as a partner, not a vendor and that meant annual contracts, transparent relationships and treating our team with respect. 2) We resigned from a business that didn’t meet criteria number 1 or that was below the threshold of billings we knew made for a successful relationship. We didn’t believe in just giving “less service” to small accounts. Resigning accounts is a strange way to grow, but by reshaping our client roster rbb’s organic growth exceeded 60%.
o The next step was to recognize the industry was changing and that rather than building up new services from scratch, smart acquisitions would add revenue and grow our skillset significantly faster. Most small businesses feel acquisitions are too difficult or expensive, but we’ve found many like-minded souls who were eager for a home at rbb. Through acquisition, we added digital and creative services that amounted to 20% of billings in year one. We changed our name to rbb Communications (from rbb PR) to better reflect our diversification.
o The most important part of scaling up was to carefully manage the money. We monitor Accounts Receivables weekly, bill clients in advance at a fair rate and pay our vendors on time. The result is less than 5K of bad debt in any year of the last 20, solid relationships with clients and trusted vendors (and advisors) who go out of their way to deliver for us.
o Did we make mistakes along the way? Probably. But we have no regrets. Every mistake is a learning opportunity. Lastly, you can’t “grow” it alone. Growth comes faster and easier when it is supported by everyone on the team. Share responsibility, encourage entrepreneurialism and reward initiative.
Great, appreciate you sharing that with us. Before we ask you to share more of your insights, can you take a moment to introduce yourself and how you got to where you are today to our readers
o My career in communications resulted from a series of random events. I originally hoped to be a Broadway singer. That dream fell apart due to vocal cord injuries and as I flailed about for a next step a friend suggested I might enjoy a career in TV/radio. I worked in the industry for a few years and found it unfulfilling. During a live remote from a 4H festival in NY where I was watching a man carve an ice sculpture with a chain saw in zero-degree weather, I said “this is not what I want to do”. I moved back to NYC, went to a headhunter and did a series of communication-based interviews with film companies, record companies, ad agencies and PR firms. A global pr firm was the first to offer me a job so I took it and found my calling. It was the perfect blend of strategic thinking, using my creative writing and presentation skills. An ex-husband was the impetus behind a move to Florida where I found my entrepreneurial passion working with an independent firm I would eventually take over. (I stayed in Florida, he didn’t) Today rbb Communications is the champion of Breakout Brands and a triple threat in PR, digital and Creative advertising. We drive leads for businesses, foster stakeholder engagement, protect reputations and craft beautiful and effective content. We represent a wide range of clients including Hilton, DHL Express, Burger Fi and Disney on Ice. What sets us apart is our employee-driven workplace. We’ve empowered people to work whenever; however, and wherever they like since our founding in 2001. With a client tenure of 9 years and a staff tenure of 6, even after the great resignation, we think it’s working well for everyone.
Let’s talk M&A – we’d love to hear your about your experience with buying businesses
• rbb did it’s first acquisition in 2010. I’ve always believed in publicizing our needs. The more people who know we are looking for good team members and good firms to acquire, the more likely we are to find qualified leads. This first one occurred after I did an article about our growth plans and a rival PR firm saw the piece and called me to discuss it. This firm was a major competitor known for its talented team and strong B2B client base. The owner was looking for an exit strategy in under three years due to health issues. We created an earn-out that allowed the owner to immediately reduce admin responsibility, continue to profit from her book of business and allow her team to grow. The most important part was doing a plain English agreement of what we both wanted to see happen. Once we agreed on that, we let the lawyers do the legal part and the deal was done in under three months. The integration was well-thought-out, clients were informed and excited about the change and of the original seven people who came on board, three of them remain with us today, two are equity partners, they still have some of the clients they brought with them and the original owner continues to refer us business.
How’d you build such a strong reputation within your market?
o This one is easy. We have become the largest firm in Florida (even though only 30% of our clients are in the state and the rest are national) because we give back to our community. We don’t just join groups, we lead. I have served as the first small business chair of the Greater Miami Chamber of Commerce, President of the PRSA Miami Chapter, the founding chair of the South Florida Business Council, sit on the executive committee of the Beacon Council, on the Board of the Orange Bowl and the list continues. My partners do the same. The old adage, give and you shall receive is very true. When you help others, you are remembered as a trusted resource. The proof is in this email I received earlier this month:
“Dear Christine, I and The Education Fund owe you and your team a million words of gratitude for creating, at almost a moment’s notice, the TD Ready Challenge video submission that helped The Education Fund win the $1 Million USD TD Ready Challenge grant. As you know, when we heard we were 1 of 6 finalists for the grant, we also learned we needed to create a professional video to submit IN THREE WEEKS TIME – with one of these weeks being Thanksgiving week! I called a number of people to ask for help. YOU were the only one to come to the rescue! And not only did you agree, Tom, Gus and your entire team created a winning video, working long hours and during the holidays. I have always known rbb Communications as a nationally recognized communications firm. And, I knew that you have given of your time to the community to chair the GMCC, which is no small feat. Thus, I am not surprised that when The Education Fund truly needed a partner with a commitment to the community, you and your team agreed. If there is ever any way I or The Education Fund can help you, your team, or rbb, please reach out. Again, many thanks from all of us at The Education Fund for your work and for your dedication to helping make a better world. – Linda Lecht President of the Education Fund.”
Contact Info:
- Website: rbbcommunications.com
- Linkedin: https://www.linkedin.com/in/cmbarney/
- Twitter: @cmbarney
Image Credits
rbb Communications