Agency Finance 101: Insights from the CFOs
Like many digital agency owners, I didn’t start my agency with a well-thought out financial model or plan. The plan was simple: keep enough money in the bank to pay my people and pay myself.
And that was good enough…until it wasn’t.
About a year in, we were growing quickly, so I was hiring quickly and expenses were piling up. There were plenty of clients, but they were paying me after work was completed (sometimes 60 or 90 days after), so I quickly ended up in a situation where more money was going out than I had coming in.
I remember waking up in the middle of the night and checking my bank balance incessantly to see if a payment was going to come in before I had to make payroll the next week.
That month was when I realized I needed to get serious about my agency’s finances if I was going to keep this thing going for the long-term.
Most agency owners I speak to are just as blissfully unaware of how important a strong financial function is in an agency, and likely just one mistake away from feeling a cash crunch like I had.
You don’t have to have an MBA or degree in finance to follow along, but you do have to put some basic measures in place, so let’s dive in...
Scaling a Strategy-Driven Agency with John-Henry Scherck
This has been one of my favorite podcast episodes to record thus far because John-Henry Scherck and I couldn't be more different in the way we've designed our agencies, and yet his method works just as well.
Scaling strategy is hard, but listen to this one for insight from someone who's currently doing it.
5 Lessons Interviewing Successful Service Business Owners Taught Me
I've interviewed over 20 digital service business owners for my podcast, Retained Trust, so far this year.
Here are 5 lessons that keep coming up...
On Success and Focus
The top tier of successful people know how to focus their time and energy.
Saying no is the default...
Strategy is 10% of Your Time, but Accounts for 90% of Results
There are two parts to successful marketing: ✌️
- Strategy (10% of time)
- Consistent Execution (90% of time)
You need a solid strategy to ensure that you're investing time in the right tactics, but you probably don't need a full-time marketing strategist in the early days.
So, how do you invest your money for growth? Let's dive in...