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February 6, 2006

Ad man | A chat with Fred O'Neil, founder of O'Neil Associates Inc. in Saco.

Founded: May 2005
Employees: One
Startup costs: $10,000
Projected revenues, year one: $250,000
Projected revenues, year two: $300,000
Contact: 282-4377
23 Hall Ave., Saco 04072

Tell me about O'Neil Associates.
In a nutshell, although it's basically a one-man operation right now, I'm running a full-service advertising agency. I can do anything from research to print advertising, graphic design, TV and radio production to media placement, you name it.

How long have you wanted to open your own advertising agency?
It has been in the planning stages for a couple of years. I've been [in the advertising business] since 1979 full-time, and it was something that was inevitable insomuch as I'm in my late 40s and was beyond the point of going to work at yet another agency. So I decided it was time to venture out on my own at the urging of a couple of clients who felt a strong allegiance to me personally.

Was it difficult to make that leap?
It was easier than I anticipated simply because as soon as I left my last job [at Warren Marketing Group in Portland] I had a client base already established, enough to ensure pretty much immediate cash flow. That had always been my biggest concern, that I'd start up a business and not see my first check for 60 or 90 days.

How did you finance the launch of your business?
I consulted with attorneys and my financial and tax advisors who all seemed to think that the best thing to do is become incorporated and take personal funds and loan them to the corporation. And because cash flow was sufficient I was able to pay that off inside 60 days of my startup, so I was in the black my third month.

Who is your competition and how do you differentiate yourself?
I guess my competition is the bigger ad agencies that have disenfranchised a lot of their clients. So, my competition is actually my best sales staff, insomuch as when a client is disgruntled or unhappy with paying an agency for every little thing I'm a lot more attractive. They get a lot more bang for their buck; they get personal attention and timely response. When somebody calls me and I answer the phone they're talking to the guy who's going to do everything, or at least supervise everything.

I think there are dozens of small companies like mine around, but most don't go the step of becoming a full-fledged corporation and ad agency and call themselves either art directors or graphic designers.

How do you market your business?
When I first started I decided to at least get the word out there, so I issued press releases [that] gained a little attention. My second step was running ads in the Business Tuesday section of the Portland Press Herald. Unfortunately, I ran for I forget how many weeks and received only a couple of phone calls. That's what drove me to direct mail.

I gained access to a mailing list of small-business owners, primarily retail and service-oriented businesses and small- to medium-sized industries in the greater Biddeford/Saco/Kennebunk/Scarborough area. I sent them an introductory piece that basically was a friendly letter introducing myself, letting people know about my services. My first mailing was for 300 names and the phone started ringing immediately. I believe I had a direct mail response of over four percent ˆ— very good ˆ— and I've landed well over half of those who responded as clients.

What are your plans for growth?
My plans for growth are to try to cement a couple more quality relationships with clients who can [each] provide me with annual billings of between $40,000 and $100,000 a year.

You've worked in the field for more than 20 years now. Do you still get excited when you see your finished product?
Yeah, I still get a charge out of it when I see something that I designed. I've become accustomed to keeping it to myself, though, because it drives my wife crazy. But I can remember back in the early 80s when I'd see a national or international brand I designed and I'd say to myself, "Man, I have made it!"


New Entrepreneurs profiles young businesses, 6-18 months old. Send your suggestions and contact information to wrichardson@mainebiz.biz.

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