Most founders complain about the rollercoaster ride that pervades agency ownership.
The ups and downs of running an agency often seem more pronounced than other types of businesses, although I doubt it’s really true.
The cycle of winning and losing client business is a major contributing factor in becoming a STANDSTILL agency.
Winning more and losing less is an obvious solution, but your business strategy can also hold the key to flattening the roller coaster ride. If your business model is skewed to project work, then you can guarantee you’re in for a white knuckle experience.
It’s easier for some agencies than others, but to be a STANDOUT agency, you must have regular recurring revenue in addition to project work. Ideally you want contracted retainers, but to secure them you first may need to think about your offer. What do you offer clients that they need to come back to you for again and again? If the answer is limited, then you need to create some new revenue streams.
Unless you are comfortable with, and enjoy the variety of, continuous project work, you should aim to secure enough recurring revenue to cover all your monthly business expenditure.
Project work can then form the higher margin revenue on top that can deliver both a profit and variety of work your team may need for motivation and satisfaction.
Liked this post? Want to see more? Connect with me!
#StandoutOrDie #StandoutSecrets #AgencyGrowth