James Hickey and Scott Keglovic managed to grow their integrated marketing communications firm by 15 percent a year as their contemporaries bemoaned the migration of customers to competing firms in other markets.
They chalk up their success to the company’s ability to meet the demands of their customers.
“The only reason accounts have left town is we, as an industry in this market, haven’t given them what they needed,” explains Hickey. “We want to make sure that we build our company in such a way that we can satisfy their needs, meet their objectives and there is plenty of opportunity for us here.”
Starting with two employees in the basement of the Keglovic home, The Arras Group now boasts 48 employees, a Cleveland headquarters and an ever-growing list of clients. The company has grown, Hickey explains, because he and Keglovic offer their customers expertise specific to their respective markets rather than cookie-cutter solutions.
“If you’re a hammer, every problem is a nail,” says Hickey. “That is contrary to our philosophy. We’re going to use the right tool for the job. Sometimes it’s a pair of pliers. Sometimes it’s a screwdriver.”
The philosophy has worked well for The Arras Group, which over the past few years has grown its client base through word-of-mouth referrals and by expanding existing customer relationships. That success, in recent years, has pushed the company’s annual growth rate to 25 percent. However, Hickey is quick to credit the company culture and his employees as another key driver of the company’s success.
In an age in which no one can escape the nation’s tight labor market, Hickey and Keglovic boast employee turnover that is half the national average in their industry. They have done this by successfully creating a culture in which employees always keep an eye out for what they can do to add to the firm’s success.
“We work hard, and they work equally hard, and get just as excited about gains as we do, about improvement that we do,” explains Hickey. “So there is a sense of mutual commitment that creates a really positive chemistry if you’re doing it right.”
As far as future growth, the burgeoning e-commerce industry is one way Hickey and Keglovic plan to build their company’s reputation in the industry. From building a Web page to building a brand, the pair of entrepreneurs is working diligently to make sure Web start-ups and VC firms are aware of The Arras Group’s capabilities.
Hickey and Keglovic’s efforts in building their business were recognized last year when The Arras Group was named a finalist in Ernst & Young LLP’s Entrepreneur Of The Year awards. With their continued success in the past 12 months, it is not surprising to see them back again this year as a winner in the category of Marketing and Communications. But, the attention has given Hickey the chance to get a handle on what he likes most about being an entrepreneur and what it means to be a successful one.
“One thing I really love about being an entrepreneur is that you’re not limited,” says Hickey. “You’re never pigeonholed. If you don’t like where you are, you just pick up and go in a different direction, and that’s not always true if you’re locked into a job or locked into a position or painted into a particular role or into a corner that defines you. Sometimes it’s hard to break out of that.”
But at the same time, Hickey is aware of the fact that being an entrepreneur means always being cognizant of the effect your decisions will have on the people on the company’s payroll. It is the thoughts of those people who have contributed to the success of The Arras Group that are never far from his mind.
“Being an entrepreneur, you have more independence and less freedom,” explains Hickey. “We can do what we want to do, but we are very much tied to and identify with our business. We go home every day and take 48 folks home with us, as well as their families.
“That’s something we take very seriously.” How to reach: The Arras Group, (216) 621-1601
Jim Vickers ([email protected]) is an associate editor at SBN.
