Posts Tagged ‘agency’

4 Essentials to Sustainable Agency Growth

What does growth even mean? We find most agencies think growth is about adding more and more new clients to their portfolio. Other agencies believe growth is about long-term marketing efforts to build stronger awareness with prospective clients, and driving inbound new business. From our 15 years of experience working with agencies of every size and kind, we see two core things that successful agencies do well under the banner of “growth”. First and foremost, they focus on building success for clients with quality work and measurable impact in order to drive retention and organic growth. Second, they have a clear plan to drive new business through these 4 essentials to sustainable agency growth:

1. Have a workable, proactive sales process in place.

Without a structured sales process, you may take on any opportunity thinking it’s essential for the financial health of your agency. However, the cost of the client can sometimes be more expensive than the revenue it brings in. Taking on any and every opportunity happens when your sales team doesn’t have appropriate guidelines to work with. If a proper sales process is designed to help them drive quality leads, you’ll save time and money, allowing them to work more strategically and more effectively.

We find every great sales process includes:

  • Understanding the buyer’s journey and using it as your starting point to an approach based on the needs of your prospect.  
  • Clearly defining each stage of the journey and what activities are involved.
  • Identifying the value for your agency in each phase of the process.
  • Creating a strong connection between the marketing and sales team.
  • Finding the pain points of potential clients and highlighting your solutions in solving them – this is what makes your agency hard to dismiss.

2. Define your ideal client.

Buyer personas are not a new concept, but in today’s competitive agency landscape, it’s more important than ever to understand who your ideal client is, what their needs are, and whether your agency has a “right to win” with them. An effective buyer persona answers the following: 

  • What industry do they work in?
  • What is their company size?
  • Who are the key decision makers (and influencers)?
  • Where do they look for agency partners?
  • What are their key pain points?
  • Which services do they need?
  • What kind of budget are they working with? 

These questions will help focus your efforts and generate the opportunities you want.

3. Upsell and retain clients.

Many agencies are a bit passive when it comes to expanding scope with current clients. Account teams are not natural sales people, and are (rightly) focused on billable time and the business at hand. So how can your new business team help? Create a plan for each client that helps them understand other ways you can help their business. It’s an effective sales approach that benefits the client who has already experienced the quality of what you have to offer. And think about the energy and resources you’ll save as opposed to looking for new accounts. Focus on keeping current clients happy and identify new ways your expertise can bring even more value.  

4. Hone your unique selling proposition.

To understand your current unique selling proposition, ask your existing clients where they look for a new partner and how they found you. Most importantly, why they chose your agency and the measurable impact you have on their business. Your USP should not be centered on a philosophy or theoretical outcome, but rather a quantifiable one focused on your particular expertise. This is critical to differentiating yourself to prospects, helping your agency evolve, and supporting your growth. 

 

Creating, understanding, and working these 4 essentials to sustainable agency growth will create a sustainable pathway to revenue generating opportunities. We know it seems challenging to navigate the overcrowded, undifferentiated landscape at time. But by making these key areas a priority, your agency will be on the right track to repeatable, revenue generating opportunities. 

 

agency focus

Agency Myth: Narrowing Your Focus Results in Missed Opportunities

You hear it all the time – brands are moving more advertising and marketing functions in-house. From media buying to SEO to full service offerings, every day brings news of another brand deciding it’s better, and cheaper, to do it themselves. Brand experience is the same. As brands embrace experience-led thinking, they tend to hire internal experts who understand creative through the traditional experience lenses of activations, pop-ups and live events.

This leaves your agency with two options – either expand your offerings and cast a wider net for more opportunities or waste time going against the current. But moving out of your niche causes your agency to be spread too thin. As a result, you’ll find yourself relying on freelancers to fill in the gaps and run the risk of damaging relationships and reputations by underdelivering. We’ve also seen agencies start to create friction with clients’ internal agencies who are trying to protect their shrinking piece of the pie. Both approaches can create barriers to sustainable agency growth.

We suggest a third option for success. 

Focus. It’s not a dirty word. Go narrow, clearly identify where you excel, and make it your mission to be absolutely best in class in that area. All too often we see agencies who have a fear of focusing and differentiating themselves because they are afraid of leaving money on the table.

Brand marketers continue to turn to those who know a subject area, a target audience, a technology or tool, or a sub-discipline of marketing and advertising. They want genuine expertise over generalization.  This should resonate with you more than anything. Whether you are partnering with in-house teams or part of a multi-agent effort, in order to adapt to today’s landscape, narrowing your focus should become your new normal. While it may mean closing off certain revenue streams (in the short term), it ultimately future-proofs your agency by making you an ideal partner with valuable expertise.

But how do you narrow your agency focus? To get started, here are two things to consider.

Identify your strengths and weaknesses.

This one is trickier than most think. If may seem risky to lower the number of revenue generating avenues in front of you, especially when times get tough, but the truth is, expertise will always be valued. It is critical to assess what your agency does well, and strengthen in these areas. At the same time, be intentional about removing offerings that aren’t at the core of your business, or within the capabilities of your own team. Expertise will ultimately lead to increased trust and more honest, profitable relationships. 

Build relationships with trusted partners.

“It’s only by saying “no” that you can concentrate on the things that are really important.”
-Steve Jobs

We know you don’t want to say no to a prospect or client, but it doesn’t mean you should be quick to say yes. As you eliminate your non-essential offerings, reach out to partners that are experts in that field, and cultivate new relationships with them.

If clients ask you to take on something outside your narrow focus of expertise, suggest sharing the load with a trusted partner. The benefit of this is you keep your trusted relationship with the client while also building a strong relationship with partner agencies. As a result of this, there could be reverse opportunities as those partners begin recommending your team when in similar situations. It can feel risky to ask for help, but if you’ve laid a solid foundation, you should be able to avoid a situation where you underdeliver. 

Here are the benefits of narrowing your focus and finding your true point of difference. 

Fewer competitors.

When you offer everything, you’re really competing with everyone.

A few things happen when your agency finds the importance in narrowing your focus and becoming the best at your niche. You may notice your competition is virtually eliminated. The more you focus on your niche, the less other companies will offer what you offer. Once you determine your focus, your competition will be a fraction of what was there before, and you’ll realize only a handful of agencies are doing exactly what you are. 

More partners.

When you narrow your focus, your competitors can become partners. 

After eliminating thousands of agencies that were once your competition, you’ll find you now have many potential partners. You’ll also realize there are so many companies with complementary services to a similar client. This aspect of narrowing your focus could lead to the greatest amount of growth for your agency. Coming together with other partners who specialize in different skills in the same industry can help achieve the greatest outcome for clients. 

Improvement at a faster rate.

Practice one thing for hundreds of hours instead of hundreds of things for one hour. 

Once you eliminate the other things that were dividing your attention, you’ll soon realize your can spend so much more time learning and practicing on your area of focus. You will find you can keep up with the latest methods and trends within your niche that you never had time for before. A narrow focus helps you improve at a much faster rate. 

Higher value.

The most important benefit of narrowing your focus is the increased value you can bring to your client. When you provide a specific service for a specific industry, you are better and faster at solving problems. You’ll understand the needs of your client quicker with less of a learning curve on each new project. It may seem like you are eliminating potential clients once you find your niche, but remember how valuable you’re making your agency to the clients that are right for you. Ultimately, you’re growing your pipeline and your business. 

We are all living in a world of sameness that needs more specialists.

Think of all the revenue generating opportunities you will create when you excel in your uniqueness. A tight focus on your core expertise ensures your agency is easy to buy and difficult to dismiss. That’s what true differentiation is all about. 

Does Your Agency’s Thought Leadership Pass this Test?

 

 

 

 

 

 

Content marketing and thought leadership continue to be hot buzzwords. But, the market is flooded with blogs, white papers and infographics. Is any of this leading to new business for agencies?

It’s impossible to keep up with all of the webinar invitations, trend reports and industry news. With so much content out there today, yours needs to do more than simply demonstrate that you’re “smart.”

Consider this maxim: Your thought leadership should be so valuable to your dream client, that they’d pay for it. If it’s not, it shouldn’t be out there.

The only difference between $1 and $100 is the message on the paper.

To capture and hold the attention of your dream clients, your content needs to share new insights from your agency’s unique point of view. Agencies with this content strategy are dramatically more likely to breakthrough, get meetings and win more new business.

Standing Out in a Content Crowd

The overuse of thought leadership as a marketing tool has created a real challenge for driving agency new business. Today, everyone is publishing and distributing content.

With such a strong belief in the need for content, agencies are falling into a trap. They’re regurgitating material that was already done … and often done well … by a competitor. What’s needed to stand out among thousands of agencies is to be a true thought leader, not a thought follower.

For agency new business, the challenge is figuring out how to stand out from among thousands of agencies.

Here is a scenario playing out among agency principals today:

We’re great at what we do, but we’re struggling to get that message in front of our dream clients.

Our emails and calls are going unanswered. Our website traffic hasn’t moved. We need more meetings, and we need them fast.

We’re producing thought leadership, but it’s not resulting in meetings or new business. We thought content marketing would lead to more inbound leads, but it’s merely been a few nibbles from unqualified prospects.

Why are we spending all this time and money on the creation and distribution of thought leadership if we’re not getting any results? It’s frustrating. It isn’t worth it unless we start getting a better return.

If we don’t start winning business, we might not make payroll, may need to downsize the staff or, even worse, close the agency. At a minimum, the outcome could be embarrassing. At worse, it could be a disaster.

Thought Leadership or Thought Follower?

Playing it safe does nothing to differentiate or create a meaningful competitive advantage.

The data backs it up. According to Forrester Research, 82 percent of buyers have viewed at least five pieces of content from a winning vendor. Among buyers, 74 percent select the sales rep that demonstrated insight and brought value.

Look at it from the buyer’s perspective. There’s lots of content written by experienced, smart and insightful experts. There’s a lot less time to consume it and react to it. Reading content that’s not truly insightful is underwhelming and feels like time wasted.

It’s no longer good enough to just have content. The successful agency’s thought leadership must provide new insight from a unique point of view.

That POV needs to be through a brand-driven lens through which all communications – particularly content – is delivered. The POV must reinforce the agency’s story in the marketplace and through its thought leadership. An agency’s content strategy has to align with its brand strategy. It needs to provide a roadmap for creating thought leadership that others are not providing.

Sharing new insights from your agency’s point of view is what differentiates between thought leadership and thought followship.

Avoiding the ‘Me Too’

New business is essential for economic viability of agencies. For professional services firms, thought leadership is one of the most powerful approaches to new business.

Yet content often fails to deliver. Why?

  • A lack of understanding about the intended audience
  • Failure to distribute content to the desired audience
  • Content lacks value via new insight from a unique POV.

Content that reproduces from another thought leader means the agency is saying “me too” instead of “me first.” It hinders an agency’s ability to differentiate or be seen as an authority.

That said, there is a place for calculated re-purposing, but only if it offers new interpretations, better insights and stronger solutions.

A Case Study

While working at Catapult, a client believed it was doing everything right. Experts within the agency were writing industry-specific content regularly. The website was robust. There was a targeted list of prospects, a CRM, marketing automation and people, including me, picking up the phone and sending emails.

But the thought leadership was not moving the needle. The few responses often were, “Thanks for sharing, no questions,” “Not interested” or “Appreciate you sending, but we’re already doing much of this.”

It became clear the content wasn’t adding enough value to their dream clients. The thought leadership was not sharing new insights from the agency’s POV.

While the agency had experts and a unique POV, in the haste to produce quantity, the content lost quality and value.

After some soul searching the agency started producing less content, but going deeper and sharing new insights from a point of differentiation.

Almost immediately, the dynamics changed. Dream clients were eager to meet and new business was soon thereafter won.

Are You Really a Thought Leader?

Evaluate your content to decide whether it’s thought leadership. Does it meet the following?

Trait #1: It provides true insight.

Your content should add to what’s in the public domain. It needs to enrich an understanding and influence behavior. Does your content help people see things differently, provide new solutions, or find new opportunities?

Trait #2: It reframes.

Thought leadership gives the audience something to think about. It helps readers learn, seek information, and challenge accepted presumptions. It embraces new approaches. It shows your agency’s unique point of view.

Trait #3: It’s credible.

Thought leadership content needs validation. There needs to be evidence about how it was discovered, who discovered it and whether it’s been independently verified. Insights today can have short lifespans, so you need to confirm that the insights remain relevant.

Trait #4: It’s forward-looking.

Thought leadership must look forward. Good thought leadership does more than inform. It frames an idea, provides foresight and is bold. That notion can be risky because it means taking a stand and pronouncing that stand. But that’s the difference between leading and following.

What Happens Next

If your agency takes a bold approach to thought leadership, you’ll see results. You’ll feel back in control. Confident. It will lead to more meetings. And the dynamics of your meetings will change. Instead of selling, you’ll be teaching. You’ll be viewed as the expert that you are. You’ll close more business with your dream clients.

Does your marketing content pass the test? Before you publish your next thought leadership, honestly ask yourself, if you didn’t already have this information, would you have paid for it?

Setting your pace – Lead or Lag?

If new business is a race, would you say it’s better to spend your time looking forward or backward? Do you run with your head turned backward watching mile markers get further away? Or do you watch those mile markers in front of you get closer? I would highly suggest not looking backward whenever you are running, and the same goes for your new business planning.

As any agency approaches this process of planning, it’s important to note there are two different types of measurements that can change not only how you evaluate the race that is your new business program, but also predict your future success. Those two are Lag Measures and Lead Measures. Let’s break them down.

  1. Lag Measures – These are backward looking measurements of a result that has already happened.
  2. Lead Measures – These are forward-looking measurements that are predicting a result that will happen.

In 2018 your agency needs to be looking at Lead Measures and how they can help you forecast revenue, new clients, and staffing needs. Too often, I see agencies looking at only lag measures to determine how they are doing with new business. They look back at measures like number of leads created or revenue generated and then try to determine what will happen in the future based off of those results. Closing a new client in August has no bearing on September’s chances of closing a piece of new business, so why do we forecast this way?

The best example I have seen of an agency using lead measures was based on two factors. First, my agency measured the number of “engaged conversations” that they have each month. An engaged conversation was defined as one where they determine money, authority, and need from a prospect. They knew that if they had five of those calls a month, that would lead to enough pitches to hit their new business goals. The second measurement was based on lead score. Any great new business program will have a marketing automation built into it and that will include lead scoring capabilities. This lead scoring mechanism gave my agency the ability to judge just how effective their sales and nurture campaigns were and allowed them to prioritize prospects to go after. They set a score level of 25 points as the definition of a Marketing Qualified Lead (MQL). The goal was to create 15 MQLs a month, because if they got 15 MQLS, then they could have at least 5 Engaged Conversations. See how each of these begin to predict one another?


As your agency begins to set your new business goals for the year, take a look at all of the different ways that you measure the success of your program. Take those measurements and put them either in a Lag or a Lead bucket. The majority of those will probably fall into that Lag bucket, and it’s fine to track those, but we want to start prioritizing the tracking of those Lead measurements. If you can find two dependable Lead measures, then you have not only simplified what you need to report, but you can also begin to set realistic goals for 2018 that will actually drive you to more new business wins!

Before you hire your next Business Development Director make these commitments

If you were a baseball manager, would you send your best hitter to the plate without a bat? Everyday I see more and more agency principal doing just that thing. They hire a Business Development Director and then send them to bat without any of the tools or strategies needed to actually win and develop new business.

If you’re an agency principal and hiring a new Business Development Director is in your near future, make sure you commit to support them in the following ways before you bring them on board:

  1. Commit to financial investments beyond their salary. If you’re going to invest in new business than do it, for real. Hiring a person and then giving them zero dollars to invest in technology, data, process, or content is setting them up with failure at the very beginning. Yes, they should be able to use the phone and email, but expecting them to be able to do it at scale without a CRM, Marketing Automation, complete website, etc, is essentially tying their hands behind their back at the very beginning. This means that when you are committing to new business, you are committing to the financial cost of not only the human capital, but also the technology the profession demands.
  2. Commit to have a clear and differentiated agency promise. If you as the principle of an agency can’t describe your agency, what you do, and what makes you different in 1 sentence, then how can you expect your new hire to? Take the time to go through a positioning exercise with a professional and sculpt a unique position in your niche in order to help your new hire not only communicate to new prospects, but also find them easier. The clearer your position is the easier it is to drill down to exactly the types of prospects we should be chasing and ensure that we can better communicate with them.
  3. Commit to Always Be Creating. ABC. If you want them to Always Be Closing, you better Always Be Creating. This means they need thought leadership in the form of blog posts, white papers, or webinars. If you do amazing work for a client, actually track and get results so that the team can build a case study to share. There is nothing worse than having a great conversation with a prospect, the prospect is intrigued and asks the new business person for an example to see, and they have nothing tangible to put in front of them.
  4. Commit to set realistic timelines and goals. History comes into play here. If your agency has literally never won a piece of business from cold outreach, don’t give your new Business Development hire a three month runway to get a deal in. Set realistic KPIs based off of activity, engagement, proposals, and revenue. We all know that Business Development in our world takes time, so setting meaningful KPIs on each of those four areas allows them the comfort to know what is expected, shows your commitment to them for the long term, while also holding them accountable to performing the proper activities in order to build momentum. Transparency breeds positive interactions between sales and management.
  5. Commit to having an open mind. As an agency principal sometimes it is very difficult to defer to a new hire. A new hire often comes in with all sorts of ideas on positioning or process that may very greatly from how you initially set up the shop. My advice is that you don’t have to change anything just because they say you should, but you should be open to them being critical of how we have been positioned in the past and open to at least a discussion of how a prospect may view you. Their outside insight may be just the thing that helps you break into the minds of new prospects.

If you set out at the very beginning of the hiring process with these commitments in mind, you should have two very positive outcomes. First, the hiring process should be easier, because your position will be more attractive to any experienced new business pro. Second, that new hire will actually have every tool, process, and strategy needed in order to succeed. At this point, you have done your part, now they just need to hit the home run.

How groupthink just killed your agency new business goals

Two minds are better than one.  At least that’s how the old saying goes.  But what happens when those two minds (or three or four) get caught up in a groupthink cluster?  While the idea of working together to gain consensus around important growth driving topics (like new business positioning) might sound like a great idea, it’s important to steer clear of the potential dead end road groupthink can take you.

So why is consensus so dangerous, especially for agency new business?

Similar past, similar future

Many times agency executive groups that are setting out to develop unique positioning come from places of similar past experiences.  Most of our agency VPs and C Level execs started somewhere outside of new business.  Perhaps they started within Account Management or creative, and as such, they have very little experience within the new business world.  This then shapes our opinion of how new business is done, how it should be done, and what works and doesn’t work.  Often, they have faced new business failure in the past when they tried something new, and because we all are hesitant of repeating a mistake, we agree to steer away from that “new” again.

The problem with steering away from the “new” is that an agency can wind up repeating their mistakes again and again, because they never truly change.  True change comes from a holistic look at how you approach new business, not just purchasing one piece of new technology or a new website design.  While those pieces are important and can affect some of our experience and results, they won’t fully change your new business for the better.

Let’s look at a real life example:  ABC Agency’s executives have decided that their positioning is great… “we solve problems that can’t be solved”.  Because they all have the same experiences in the agency world, nobody stops to ask questions like:

  • Is this really interesting for new business?
  • Is this positioning true of what we have done in the past and want to go in the future?
  • Does this even make sense!?

So if your agency new business positioning discussion seems to be running uncomfortably smoothly with nobody challenging one another, think about applying some of these ideas:

  • Invite someone outside of your exec team to the positioning meeting. Maybe even invite someone from outside the agency to get an outsider’s feelings on your positioning.
  • If you’re the leader of the meeting, listen to other people’s ideas before expressing any of your own opinions. Leadership opinion can sway opposition opinion and accelerate groupthink.
  • Challenge any assumption that has 100% approval. You may find it is a solid assumption, but challenging it can also be a great way to identify a blind spot.

Those few steps can help ensure that your new business efforts won’t get self-sabotaged with groupthink consensus.  Having that outside perspective and the openness to challenge assumptions can ensure that your agency stands out among your competition.

Agency race

New business is a race: Don’t stop for a water break in the summer

Think of the calendar year and new business as a race.  January 1st is the starting line and you line up with 100 competitors.  Everyone is intent on proactively finding new business this year and tracking down their top prospects.  When the gun sounds and the race begins in January, we see tons of initial email and social media activity through February.  Then something happens:  Everyone slows down.  That Q1 sprint hits people hard and they begin to realize that this is actually a marathon, not a sprint.  Many come out of the gate too fast and burn themselves out and we see agency after agency begin to put their new business efforts aside.

Meanwhile, the strong (smart) agencies are still out here fighting after Q1 and tracking those prospects in Q2.  They have great content being distributed and a consistent stream of emails, calls, and social posts that will make up the base of their communications for prospecting throughout the year.   Around the end of Q2, we typically see 50% of the original 100 competitors have dropped from the race completely.  There are a myriad of reasons for why this happens, but the good news for you as a smart agency still running the race is that your competition is basically cut in half!

So your field of competition has been thinned out to just the strongest racers.  This means that the summer months and Q3 is more important than ever to not stumble and to actually ramp up your efforts.  Why ramp up our efforts?

Because your competition is at the water station taking a break.

Seriously!  Send an email to your friends in the agency world.  How many out of office vacation reminders do you get?  Our agency newsletter during the summer months sees a near 200% increase in vacation responders.  These are all agency new business people that are out enjoying their summer.   I envy them on the beach, but while they are there, my agencies are doubling their efforts to fill the void that prospects are feeling.

So what’s so wrong with taking a quick water break?  Momentum, consistency, and starting over.    It is really damn difficult to pick back up your content efforts at full speed when you’ve been at a stop.  Not to mention, every moment you aren’t talking to a prospect, I can guarantee that someone else is.  I choose to be the agency that is talking to them.

Of course, my agencies take vacations too.  Here is what we do to combat a lull during vacation, and avoid taking that water break:

  1. We build content in 2-3 month chunks. This means that we are always working ahead in order to have as much content planned, created, and scheduled as possible.  In order to better plan content like this in advance, you better have your audiences clearly defined and broken out, so that you can tailor each message as much as possible.  This is key for the next step.We utilize technology as much as possible. Marketing Automation is key to ensuring that even when you aren’t proactively making contact with prospects yourself, your new business machine is still running that race for you with content touch points.  This automation makes that audience and content exercise in step one even more important, since we are going to flip the switch to go and step away.
  2. We utilize technology as much as possible. Marketing Automation is key to ensuring that even when you aren’t proactively making contact with prospects yourself, your new business machine is still running that race for you with content touch points.  This automation makes that audience and content exercise in step one even more important, since we are going to flip the switch to go and step away.

There is nothing wrong with resting and recharging during the summer for the end of year push.  In fact, we encourage it.  But if you were smart, you would take advantage of this huge opportunity of quiet time from your competitors and fill the void with your own content in order to keep your name in front of those prospects that are most important to you.  Staying strong in the summer can get you to the finish line a whole lot quicker than your competition.

(Webinar) Mandatory Technology for Agency New Business

Most agencies are running their new business programs with as few human beings as possible. With fewer people, the need to be efficient and effective is paramount. Considering the martech space has expanded at an incredible rate, it can be difficult to know exactly which technologies will help and which will hinder your new business efforts. Agency efforts are different from other sales needs, so we wanted to concentrate on where your money and time is best spent to make technology your best tool to drive new business.

Mandatory technology for agency new business from Catapult New Business on Vimeo.

In our latest webinar, we set out to give our agencies insight around technology that we see as the most effective for new business. Matt Chollet, EVP of Agency Growth at Catapult New Business, discussed which types of technologies that you need and then offered suggestions from our extensive experience with different brands.

What we covered:

  • The best technology stack for agency new business
  • Small staff? Where technology can make you more efficient
  • Where to best spend your tech budget for more leads
  • Specific technology reviews used in agency biz dev

 

Why Agencies Need to Live By The 40% Rule

Every well-run agency is consistently looking at their mix of clients and where their revenue is coming from.  The better understanding you have of your current revenue forecast, the better prepared you will be for any bump or turn on the road ahead.  During a previous webinar (Driving Agency Growth and Building Value Before the Sale) we discussed navigating this winding road by making sure your agency is following the 40% rule.  The rule is simple:  No more than 40% of your agency’s revenue can come from one client.

Now I know there are a lot of small agencies out there that got their start by landing one big client that contributes most of the revenue to your overall agency, and naturally, we all want more clients.  While it’s easy for me here to say “diversify!” I fully understand that it is entirely something else to put into practice.  There are so many reasons why you need to live by this 40% Rule and do everything you can to make sure your agency isn’t in this typical position, but here’s a few:

A wide building is sturdier than a tall one.

  • I would much rather have 10 equal size clients, rather than 2 super clients because turnover happens.  It does not matter how great your service is, how good your ROI is for your client, or how much the client loves you as a person, they are going to turnover at some point.  It’s a lot easier to manage turnover from a revenue and employee standpoint if we have 10 clients, rather than 2.

Having to cut employees because of a lack of work is simply the worst.

  • It breeds resentment and negativity in those employees that get to stay, and it’s an all around un-fun part of business.  If we can mitigate that need by having 10 smaller clients rather than 2 large, we can not only give our employees peace of mind, but we can show them that we are doing everything we can to give them stability and room to grow.

We aren’t beholden to bad deals.

  • I’m sure we have all at some point left an initial fee negotiation, in the beginning, feeling like we made a good deal, only to find out that this client is way more work than we bargained for.  We then either need to change the scope of the work or raise the fee.  This normally goes over like a lead balloon, so we need to be able to walk away from a bad deal, and by having the account only represent 10% of your revenue verse 60%, you give yourself the ability to actually walk away if necessary.

It makes our agency more valuable.

  • Charles Fallon of SI Partners talked specifically how when acquirers are evaluating agencies and looking at their value multiplier, that number goes up if client diversity exists.  This means that any acquirer is willing to pay you more money for your agency if they can see a larger range of clients by revenue and type.  More money is a good thing, right?

If you find yourself in a position of being over that 40% threshold, it’s probably time to begin thinking about your new business development plans.  Waiting for referrals will get you killed, so putting a new business process in place that can consistently generate new clients for your team should be an absolute priority for any agency that wants to be more stable, more predictable, and more valuable.

(Webinar) Driving Agency Growth and Building Value Before the Sale

As an agency executive, it’s important to always have options for the future. If 2017 is the year you’re looking to increase the value of your agency, either for agency growth or a potential sale, this webinar will show you just how to do that. We’ll be co-hosting with Charles Fallon at SI Partners, a worldwide expert on all things Agency M&A. Whether you are looking to sell your agency now, or simply want to understand the options available, Charles will break down the steps required to strategically grow your agency and attract premium value.

We’ll cover specific topics like:

  • What the acquirer landscape looks like, and how it’s evolving.
  • Investors types and new market entrants.
  • The different types of acquisition deals available today.
  • What you need to do to attract a premium offer.
  • How to find a strategic growth partner.

Driving Agency Growth and Building Value Before the Sale from Catapult New Business on Vimeo.