RX Communications

Origins

Rx Communications was founded in 2000, with £5000 working capital, the promise of some future business and a commitment not to draw salary by the owner. The company started when there was a spate of mergers and acquisitions with clients resulting in considerable job shuffling and down-sizing. In a short period of time, the firm lost about 50% of its contacts in one major client company. This business is all about personal relationships, so it took a long time to build these back up. In addition, many of those company personnel who were made redundant set themselves up as communications consultancies and became competition. For its first year, the firms were struggling with cash-flow and no capital although there were some advantages in these challenges, in that they taught the firm to cope under extreme pressure, and made it put more effort into business development that it might otherwise have done. This meant that RX Communications had a wider client base than some of its competitors, and so have weathered the ups and downs with far less overall effect on its business.

Success Factor

Growth has come by keeping a very personal approach to clients. Despite the presence of large back up teams, clients have one main point of contact, and learn to rely on this person to answer everything. It may mean that the answer takes a little more time to supply, but clients prefer having one port of call. This has resulted in a member of staff being poached but this approach has given the firm a reputation for personal service that has really helped. The company ahs always developed systems and processes that enable relatively inexperienced, but dedicated, staff to learn safely without compromising client satisfaction. This means that projects can be handed over with little preparation, because standard methods are used. It also means that behind a single client contact, there can be a group of others working efficiently in the background, so our capacity then becomes unlimited. Finally, many clients trust the firm to manage their communications budgets in a cost-efficient way, so we all win. The improved cashflow means that Rx Communications can expand and grow faster than it would otherwise be able to, and it also gives clients the flexibility to adapt their projects with little administration on their part. The firm operates in a high-risk, high speed environment and so the more it can cut down on their paperwork, the better.

The Future

2005 has been a difficult year with the company setting up business with US clients, learning different ways of working, plus the collapse of two major drugs and associated client accounts. Three major challenges, following a year of moving premises and heavy investment in the company, has given the firm an interesting first half. Its short-term goals is to regain its previous level of business with new accounts and it should have achieved this by the end of the year. Its five-year goal is to be bought out and list the company on AIM as by this stage, the leadership team will be fully fledged and ready to take over. RX Communications will aim to expand into the US market and increase its presence there with a satellite office. It will continue a rapid rate of growth over the next few years, and will augment organic growth with acquisitions.