July 5, 2004
Ads and advice | A chat with Andrew Newman, managing partner of ADMedia Communications LLC in Portland.
By Dorothy Ogrodowczyk
Founded: January 2004
Projected revenues, 2004: $120,000
Address: 400 Commercial St., Portland
Phone: 774-7351
Web: www.admediacommunications.com
Describe what your company does.
We provide a broad range of advertising and design services, including advertising in print, packaging, brochures, flyers and newsletters. We also do logos and corporate identity items.
How many employees do you have?
Currently, it's just my business partner [David Sullivan] and myself.
Describe the company in three words.
Creative, results-driven and affordable.
When did you first get the idea for the company?
The idea started to form about this time last year. I had spent 17 years in corporate management, mostly in sales and marketing, [and had begun] concentrating on website design and development. My partner was working in the graphic design field. We decided that if we were to join forces, we could put together a firm that would offer a broad base of services.
What was the biggest challenge going from idea to reality?
The biggest challenge was getting new clients. My partner and I have known each other for about 10 years, so the personalities were not a problem. We had not worked together, but knew each other's work, and so forming ideas on how to run the business came pretty easily.
How did you finance the launch of your business, and what did it cost?
[We used] personal funds. I estimate the cost to be between $22,000 and $24,000.
What was your first day in business like?
Our first day in business was the two of us moving into the office with paint buckets and brushes. It was not what we were expecting for the first day.
What have you achieved since then?
I'm very pleased with how far we've come in this short amount of time. We've increased our client base from just a few [clients] that each of us were able to bring with us [from our former positions], and now we're up to 14-15 ongoing clients.
What could stop you?
The nemesis of any startup company is always cash flow. It's something that I manage very, very closely, but if a business is going to fail in the early stages, it's going to be the result of cash flow.
How do you differ from your competition?
We're not looking for big accounts. We're much more comfortable working with small businesses, where we can have personal relationship with the owner. Because of my business background, I'm able to offer services that you wouldn't expect from an ad agency, like [helping businesses] develop a sales team and marketing plan, and implementing those plans within the organization. That goes beyond just putting out an advertisement.
What are your plans for growth?
The short-term plan is about getting and satisfying new clients to grow our client base. Long-term, we're looking to develop a staff and offer more services.
What resources have proven most useful?
Our experience. My background is in corporate management, not design, so I tend to approach projects from a business perspective. My partner comes to this with 20 years of graphic design and art direction experience, so he's looking at it from the creative perspective.
Describe a mistake you've made and what you've learned from it.
Early on, we didn't spend enough time setting expectations, both for us and for some clients, and in a couple of cases it cost us. We have cleared that up a lot by setting more formal guidelines as to who will do what and when.
If you were given $500,000 toward your business, what would you do with it?
I would protect cash flow, and I would spend some of it on marketing. Those are the two things that would help us to grow the company.
The summer movie season is upon us. Which do you prefer, blockbuster action or lowbrow comedy?
Forget about those things. It's all about Shrek!
Projected revenues, 2004: $120,000
Address: 400 Commercial St., Portland
Phone: 774-7351
Web: www.admediacommunications.com
Describe what your company does.
We provide a broad range of advertising and design services, including advertising in print, packaging, brochures, flyers and newsletters. We also do logos and corporate identity items.
How many employees do you have?
Currently, it's just my business partner [David Sullivan] and myself.
Describe the company in three words.
Creative, results-driven and affordable.
When did you first get the idea for the company?
The idea started to form about this time last year. I had spent 17 years in corporate management, mostly in sales and marketing, [and had begun] concentrating on website design and development. My partner was working in the graphic design field. We decided that if we were to join forces, we could put together a firm that would offer a broad base of services.
What was the biggest challenge going from idea to reality?
The biggest challenge was getting new clients. My partner and I have known each other for about 10 years, so the personalities were not a problem. We had not worked together, but knew each other's work, and so forming ideas on how to run the business came pretty easily.
How did you finance the launch of your business, and what did it cost?
[We used] personal funds. I estimate the cost to be between $22,000 and $24,000.
What was your first day in business like?
Our first day in business was the two of us moving into the office with paint buckets and brushes. It was not what we were expecting for the first day.
What have you achieved since then?
I'm very pleased with how far we've come in this short amount of time. We've increased our client base from just a few [clients] that each of us were able to bring with us [from our former positions], and now we're up to 14-15 ongoing clients.
What could stop you?
The nemesis of any startup company is always cash flow. It's something that I manage very, very closely, but if a business is going to fail in the early stages, it's going to be the result of cash flow.
How do you differ from your competition?
We're not looking for big accounts. We're much more comfortable working with small businesses, where we can have personal relationship with the owner. Because of my business background, I'm able to offer services that you wouldn't expect from an ad agency, like [helping businesses] develop a sales team and marketing plan, and implementing those plans within the organization. That goes beyond just putting out an advertisement.
What are your plans for growth?
The short-term plan is about getting and satisfying new clients to grow our client base. Long-term, we're looking to develop a staff and offer more services.
What resources have proven most useful?
Our experience. My background is in corporate management, not design, so I tend to approach projects from a business perspective. My partner comes to this with 20 years of graphic design and art direction experience, so he's looking at it from the creative perspective.
Describe a mistake you've made and what you've learned from it.
Early on, we didn't spend enough time setting expectations, both for us and for some clients, and in a couple of cases it cost us. We have cleared that up a lot by setting more formal guidelines as to who will do what and when.
If you were given $500,000 toward your business, what would you do with it?
I would protect cash flow, and I would spend some of it on marketing. Those are the two things that would help us to grow the company.
The summer movie season is upon us. Which do you prefer, blockbuster action or lowbrow comedy?
Forget about those things. It's all about Shrek!
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