Articles

An AMC Story: In My Own Words
AMC Section Council Newsletter (2008)

By Robert E. McLean, CAE

When I opened my company as an association consulting firm in 1996, I didn't even know about the term AMC. You could say I entered the business through the back door, when I was approached by a self-managed association whose board found the workload increasingly unmanageable. It was easy to see the value that comes from the predictability of a steady client, and I enjoyed starting and completing long-term projects. So, three years ago I decided to pursue my Certified Association Executive designation, re-branded the company as an AMC, and moved operations from my home to leased space.

Unexpected challenges

Like any new, small business, I faced a lot of challenges, many of which can apply to other young, small AMC firms, as well as those that are larger and more established.

Staffing

This is a constant issue. We're a small company that uses several part-timers and freelancers, so turnover occurs with some frequency. The recession, however, turned many association employees into entrepreneurs who are looking for the type of assignments we offer.

Technology

Clients want more technology than they can usually afford, forcing us to fit expectations with budgets.

Office space

Finding affordable office space is a recent concern because we lost our subleased space. Rents in the Washington, D.C., area have risen dramatically in the past two years, and small offices in a convenient location are often hard to find.

Client acquisition

Of course, the top challenge is finding new clients.

Although I believe I was reasonably well prepared to run a company, there have nonetheless been some surprises. You have to spend time marketing the company every week of the year, and when it comes to getting new clients, you have to have lots of patience (something I don't possess in abundance). The time lag between the first conversation with a prospective client and a signed contract can be excruciatingly long. The first conversation with our newest client occurred 18 months before the association accepted our proposal. Planning for staff, office space, and equipment is difficult under such circumstances. Having a line of credit with the bank when a new client signs on is usually essential.

Rewards realized

After some rough months in the first year, I'm starting to see several rewards as an AMC owner. The biggest is being my own boss and determining my life's direction, which was a long-held dream now realized. More specific to association management, because we are a small AMC working with small associations, we have a lot of client interaction. That allows us to develop strong relationships in a short amount of time. We know what has to be done to get things organized and that takes a big load off the board quickly, helping solidify their decision to choose an AMC over self-management or the creation of a stand-alone staff. Most days we see lots of smiles and hear many words of thanks.

Words of advice

The AMC business requires a mix of skills, some persistence, and a bit of luck, but it's a business I can recommend. You'll find it enjoyable, if you

• like wearing many different hats on any given day, including much of the work an assistant might have performed in your last job (you cannot afford that help early on);
• have a high tolerance for risk, because the wait for clients can be long and there's no guarantee if or when they'll show up;
• have some skill or experience in marketing; and
• have the tolerance to get through long hours in the difficult first year with little or no pay, because reinvesting in your young company, as an AMC colleague taught me, is the only way you'll beat the odds and survive to celebrate a 10th anniversary (eight down, two to go).

Here's one other recommendation, for those who get into the AMC business. To learn how to be a better association manager and a better company owner, I'm active in ASAE's AMC Section. It's a great way to meet colleagues, prospective employees, vendors, and clients. By getting involved with this group of remarkably generous colleagues, you'll be in a better position to understand the changing direction of the AMC industry, to find solutions to problems, and to share ideas.

Robert E. McLean, CAE, is president of REM Association Services, an association management company located in Arlington, VA (near the nation's Capitol). He is a former member of the leadership of the AMC Institute and is currently in a leadership role with the American Society of Association Executives. McLean is a registered lobbyist who trains more than 5,000 grassroots lobbyists annually. REM manages numerous nonprofits, including national associations, societies, and foundations. The AMC also has several consulting clients, frequently facilitating strategic planning programs.