Tips for Agency Owners to Reach that $1 Million Mark
New agency owners have plenty of hoops to jump through and as they look around at other more established agencies they may wonder how in the world they can ever get to—and surpass—the $1 million revenue mark.
The Forbes Agency Council pulled together a handful of its experts to provide six tips to help these new owners reach that milestone, like identifying holes in skill sets across the agency and filling those holes with hot-shot talent that can get the job done and more.
Council member Jeffrey Erb of Healix suggests reducing the cost of business by partnering with another agency or company that complements your agency’s skills and will bring new talent and services into the fold for clients. The council also suggests looking deep into the well to find skill sets or services that differentiate your agency from all the others. Find a niche and play it up.
Another important tip is to demonstrate to clients why your agency services are worth top dollar, says Drew McLellan, leader of the Agency Management Institute. However, “you can’t just raise your rates and expect clients to happily comply. You’ll need to rethink some of your processes, your team structure and how you track results.”
McLellan suggests incorporating five strategies into your business model: Own the Data, Be more than the Brand, Work Messier, Get Your Team Ready and Prove Your Worth. (Get the details on his five strategies.)
“The landscape has changed, but that doesn’t mean you have to become a budget agency to remain competitive. Stand your ground, get more involved in the sales process, and use your expertise to demonstrate to clients why your services are worth what you charge,” he says.
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