Communication and advertising agency. (Santa Monica)

Growth Rate 177%

Executive:

Renee Fraser, president and founder

Early Days/Financing:

I started my own ad agency because I felt there was a niche for boutique agencies at the senior level for big companies. Senior people would be involved with a strategic plan and bring junior people in on a day-to-day basis. I started with two employees and the smartest thing I did was sublet from another ad agency so I could buy additional services. I deliberately went after the accounts and was able to build the business successfully. I used my own money and borrowed some from my parents. In the beginning I didn’t take a salary.

Big Break:

1-800-Carsearch was the first big account in 1992. Toyota was a very important win as a national account in 2004. I had been setting my sights too low. In 2000, I realized I needed to go after accounts in the $10 million to $20 million range. I had to take a risk. We compete with the big guys so we needed to step up to the plate. Hence, I invested in reaching out to Toyota.

Biggest Challenge:

The biggest challenge is to make Internet more involved and an organic part of the firm. It’s using the Internet effectively for our clients. It’s not about banner ads. We have to add content, and have ECRM (electronic customer relationship management). It’s the best way to reach people. Internet needs to be what you lead with. From an ad dollar perspective, you see big increases among large advertisers and it’s going to be the most important vehicle.

Secret of Success:

It’s always about focusing on what’s going to build the client’s business, not the advertising. We contribute on a higher level. It’s made us genuine partners with our clients. The point of difference is that we use strategy and research to make communications more effective. We’re “media diagnostic”. It’s about the idea, not just the media.

What’s Next:

We want to grow at a 30 percent rate. I’m hoping to achieve $100 million in sales in five years. Growing to that size with one huge account is a huge risk. You have to be judicial in strategic growth. Three $20 million accounts are better. We’re also looking into China for companies who want to target American audiences.

Wise Words:

Being socially responsible is very important for me. I believe in karma. If more people find ways to give back to the community it will benefit you in business.