…But I’ve never seen anything like this.”

By George Foster
Chief Executive Officer

This year is the 40th anniversary of Foster Marketing and we picked a doozie to celebrate. With the coronavirus and the collapse of the oil and gas industry I thought I’d seen it all.

We’ve survived (and occasionally prospered) through one oil bust after another (“stay alive ‘til ’85”, low points in the late ‘90s and the Deepwater Horizon disaster). We’ve weathered the storm(s) – Andrew, Katrina, Rita, Ike and Harvey. And, we’re still here working away!

Someone once said that, “experience is what you have left after you’ve lost your ass.” Well, load up the wagon.

Some the things I’ve learned through the years; many the hard way:

Minimize Debt

In the early ’80s when we opened in Lafayette, La., the oil and gas industry was booming. The New York Times ran a story on the offshore oil and gas boomtown and as best as I can recollect, the article stated that the “streets were paved with gold and there was a millionaire on every corner.”

It was a good time to start a business even if you didn’t know what you were doing. There were three advertising agencies in Lafayette that started in the late ‘70s and early ‘80s and all of us are still here today. That’s good management, good clients and good people.

However, interest rates were exorbitant. The federal funds rate, which was about 11% in 1979, rose to 20% by June 1981 and the prime interest rate eventually reached 21.5% in June 1982.

When capital is that expensive you can’t make it. Especially, when the oil and gas industry crashed in the mid ‘80s. But we did.

Lesson learned: Keep debt to a minimum.

Mentors

When I started the business, I was a journalist, not an ad man. But I could write, which will take someone far in any business. I didn’t know about the advertising business or really running a business in general.

However, I was smart enough to reach out to advertising agency owners who gave me great advice on who to target (B2B, not B2C; oil and gas service companies) and on creative (“This concept works because you don’t have to explain it”). Some of my first employees guided me along as I learned to work with creative folks and they taught me how to sell creative.

But the biggest boost in my business was when I joined an advertising agency network of owners from all over the country, the Innisbrook Group. We met twice yearly at various locales (my wife and I saw every part of the country). We shared financials, discussed problems and trends. That Group lasted for 25 years and helped me survive. They are among my best friends to this day.

There have been other consultants who have been instrumental in our success. Even now, during the coronavirus, I’m listening to a least one webinar or session per week on surviving the pandemic, how to handle the PPP loan, etc.

Lesson learned: Find and cultivate mentors.

Folks

I use that term because we are a familial business. We have always cared for our employees even during the tough times. That’s not to say I haven’t had to make tough personnel decisions through the years, but they’ve been rare.

We’ve had tremendous talent through the years and many have gone on to start their own agencies, become successful corporate marketing executives and mothers. Yes, we’ve had a dozen or more births during our 40 years.

And, many of our employees have stayed. A majority of our employees have been with Foster Marketing more than 10 years. That’s not to say you don’t lose some when you attract and hire talented young people. Three of our former employees have gone on to become President of the Business Marketing Association (now ANA/BMA) chapter in Houston. Our staff is constantly pouched by industry. I used to be bummed about that until someone said, “You should be proud because you hire great people.”

Lesson Learned: Hire good people (and keep ‘em as best as you can).

Outside Sources

In the late ‘90s (after a rough patch) I had contemplated contracting out creative services as we performed so many tasks that didn’t require artwork (public relations, strategy, event planning). In 1995, our senior Art Director announced she was pregnant. Now was the time to cut the umbilical cord. And we did.

We began using free lance designers (although it wasn’t free) to develop concepts, including our new born mother. We’ve never looked back. It was a good move.

This was about the time computers were coming into play so it didn’t matter where the creative talent was. We could use talent from all over the world to fit the job needed. Not just the talent we had on staff.

This concept modeled our clients as the oil companies farmed out assignments to different service companies as consultants.

Finally, using contract creative allowed us to control the cost of a project, eliminating the overhead and personnel costs of someone on staff. It’s this same concept that will help us get through the coronavirus pandemic.

Lesson Learned: Don’t be afraid to find great talent outside your firm.

Forward Thinking

For any business to grow, a leader has to be a forward thinker. I’ve quoted my friend Ian Ord of Fifth Ring many times when he was asked about setting up a new office overseas. “We had to make a decision,” he responded. “Do we want to be a lifestyle business or a legacy business? We wanted to be a legacy business.” Amen brother!

At Foster Marketing we want to be a legacy business so practically all our decisions are based on growing the business – even during this pandemic.

I’m a glass half full (or more) kind of guy. Thus, I’m looking for opportunities even in these turbulent times – managing our business better opportunities, hiring opportunities, merging opportunities, new business opportunities.

This pandemic too will pass. We’re poised because of the lessons learned above to make it through this period even stronger. Helping our clients make it through stronger is our challenge and we’re up to it.

Lesson Learned: Stay the course, think ahead and come out stronger.

Foster Marketing is here to help ... as we have been for the past 40 years. Call 281-448-3435 or email us today.

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