Hi and welcome to the OWN IT podcast, where we celebrate the growing number of (women and non-binary) ad agency owners and talk about buying out of the boys’ club of advertising, one agency at a time.
I’m Christy Hiler, owner of Cornett and in this episode, I’m talking to Lyn Rundell, the co-founder and retired CEO of HERO Marketing. Lyn not only shares her path to ownership and perspective on helping close the gap for women owners, but shares some amazing wisdom on succession planning for those that are, or will be, agency owners one day.
I was so excited to talk to Lyn. I know you will take away some great learnings. Enjoy my conversation with Lyn Rundell.
Be sure to see the agency’s great work at heromarketing.com and, though she is retired, you should still connect with Lyn on LinkedIn because she is still very active in the industry.
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When competing with large companies, especially in high-cost areas, small agencies can differentiate themselves by offering generous "soft benefits." These include flexible schedules, remote work options, generous PTO, and profit-sharing, which can attract and retain talent who value work-life balance and a supportive culture over just high salaries.
Early on in an agency's growth, it's common for owners to prioritize employee payroll and agency growth over their own compensation. However, it's crucial to set a plan and timeline to start paying yourself your "street value" to ensure the agency is a sustainable long-term career option for the owners. Delaying this indefinitely can lead to burnout and questioning the viability of the venture.
In a 50/50 partnership, where there's no tie-breaker, it's essential to establish clear agreements upfront, not just on operational aspects but also on individual goals, definitions of success, and how to resolve disagreements. This includes anticipating scenarios like one partner wanting to leave or retire, ensuring a smooth transition and maintaining the health of the business.
Succession planning should begin years in advance (at least two) and involve transparent communication with partners and the entire team. This proactive approach allows for thorough exploration of options (selling, merging, internal buyout), ensures all stakeholders are considered, and helps maintain team morale and continuity during the transition.
Women often negotiate against themselves or undervalue their contributions. It's crucial for women to build confidence, stop apologizing, and actively advocate for their worth, whether it's asking for a raise or pursuing a higher-level role. Being assertive, preparing a plan, and clearly articulating one's value can lead to significant career advancements.
