Why This Agency Decided To Shut Down Despite Having A Healthy Turnover

In a guest post Saurabh Parmar – Founder & CEO Brandlogist Communications write why he decided to shut down his agency even while it was doing good.

brandlogist agency

Editor’s note: The article has been cross posted with due consent from Saurabh Parmar – Founder & CEO Brandlogist Communications.

We are closing down Brandlogist Communications! It’s been on the cards for a while now but it’s one of those realities which as a founder is not the easiest to finalize.

Why?

Brandlogist was started with a twofold objective; can we use marketing-communication to build brands, adding value for clients and can we do that while building a great workplace. We had a good start but in the last year or so we realized that it wasn’t worth it.

I thought advertising was about building great brands, insights and creating something. But it increasingly felt that it was more about twitter trends, gimmicky campaigns & awards. It seemed strange that in a digital environment where it was becoming easier to understand what consumers wanted from brands we are more interested in pushing communication than evolving those brands.

Perhaps that’s what marketing is about. But that’s not what I joined it for.

Also it was becoming increasingly difficult to talk about flexibility to my colleagues when you are in an industry where decreasing margins and increasing hours present a different reality. I made a mistake in the last year to push my colleagues but it was difficult since we followed a boutique model. The model definitely adds value for clients but in a market where valuations and size play a key role, it is not the best model.

But perhaps the real issue is it doesn’t seem worth the price. We are fairly passionate about creativity and understanding brand-consumer interaction & hard work is typically not an issue. But after spending all those hours on ‘being creative & insightful’. Are we creating something new? Or are we just convincing, tweaking, adjusting to keep the system alive. I see some really smart people in advertising but how much of that information do we get to apply?

And it’s not just agencies, I have seen the smartest people on the client side at their best when they are talking about marketing concepts and writing articles but in their own workplaces the conversation suddenly moves from brand value, social crm to “yaar yeh trend kaise karaye“.

It seems strange to me that in the last few years I have had more conversations on what x brand would want to say to a customer 3 days from now on a Facebook post or a press release and hardly anything meaningful on how do we make our brand more relevant to customers or how do we genuinely use communication to connect better.

For something where we put in so much of our time I would want a little more.

Perhaps I am wrong and I know things will change in the next few years but meanwhile it doesn’t seem worth the price. I believe we can make better use of our time and passion.

We were very clear we wanted to do it a certain way. In our first blog I had said “But I promise you one thing, if we can’t… we will shut shop rather than just exist.”

Despite the end, it’s been a good journey.

I started this company with a total capital of 8k (Eight thousand Rs) & a few months savings for myself. In the last 2.5 years our total turnover has been 2.5 Crores without any external capital investment.

Despite being a B2B brand we got a lot of love. We actually received letters of appreciation on a regular basis, people knew us and some people even sent hate mails. (It takes time to write a hate mail)

Hindustan Times called us one of those promising creative hot-shops. Our clients appreciated us and some marketeers whose companies never even became our clients always encouraged & referred us. We still get regular leads.

But yes, its time to move on now.

Is this an end to our love with brands and marketing?

Not quite. I know that this will keep attracting us & though it’s a clear NO to build an ad agency, we will do something more in-line with our beliefs.

  • We may take up one or two projects which we enjoy and where we believe we can add value. But only if its one or two.
  • We would like to teach/train more. In fact we will be sharing some interesting insights on branded content soon.
  • And perhaps we will also make this crazy idea that we have a reality…

We would like to build a brand. Not as an agency but create our own consumer facing brand. It could be online or offline, it could be a product or service but whatever it is we will do it better, hopefully make the magic happen this time around.

Thanks everybody, it’s been quite a journey till now…

Image credit: Facebook