What happens when a substantial portion of your agency’s income comes from just a handful of clients? Revenue concentration poses significant risks, especially if a major client leaves or market conditions change.

In this episode of The Agency Blueprint, we discuss the critical issue of revenue concentration that affects many agencies. We emphasize the importance of diversifying revenue streams to ensure financial stability and sustainability.

Listen in to learn strategies for reducing revenue concentration, such as leveraging existing client relationships, developing new business partnerships, and focusing on current and potential clients.

Key Questions:

• [00:44] Have you evaluated the level of revenue concentration within your agency and its potential risks?
• [02:10] How would your agency cope financially if one of your top clients decided to leave?
• [07:26] How does revenue concentration affect the valuation of your business from a potential buyer's perspective?
• [11:46] How are you maximizing opportunities with your existing clients to diversify your revenue streams?
• [15:03[ Have you explored strategic partnerships to generate new leads, recover lost leads, and diversify your client base?

What You’ll Discover:

• [00:44] Understanding revenue concentration, when revenue concentration occurs, and the risks it poses.
• [01:30] How to calculate your agency's revenue concentration to identify potential risks.
• [02:10] The danger of having top clients controlling a large portion of your revenue.
• [03:48] Real-life example of clients disregarding the risks and facing severe consequences.
• [05:54] How high revenue concentration leads to negotiation power issues, putting an agency in a vulnerable position.
• [07:24] How high revenue concentration can negatively affect the valuation of your agency during an acquisition.
• [10:37] How to calculate and identify revenue concentration using accounting platforms.
• [11:46] Strategies to expand revenue from existing clients instead of solely focusing on new business development.
• [15:03] The importance of building new business relationships and the value of strategic partnerships.
• [17:00] How to recover lost leads and previous clients as a method to expand your client base.

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Are you afraid of the risk of being replaced by AI as a creative? What if you learned that AI is far from replacing creativity and can instead be leveraged to enhance your work? The inherent AI predictability means it can assist with routine tasks, but the unique human ability to push creative boundaries remains irreplaceable.

In this episode of The Agency Blueprint, I’m joined by Ana Santhosh to discuss artificial intelligence (AI) and its implications for creative professionals. Ana is the founder of Kraft AI and is passionate about demystifying AI for leaders and organizations. She guides them through the strategic adoption of AI to drive innovation and empowers leaders to make informed strategic decisions through personalized guidance and practical exercises.

Don’t miss this episode to learn how to think outside the box and leverage AI's predictive capabilities to augment your creative processes!

Key Questions:

• [01:36] Are creatives going to be replaced by AI? Are they going to be out of a job in a couple of years?
• [05:56] What would be the most successful way to look at the AI adoption within an agency? And what would allow for an agency to be thinking about AI adoption to allow for it to be most successful?
• [11:14] What’s your advice on how to stay relevant and on top of what is adopting and becoming new today and how people are using it?

What You’ll Discover:

• [01:47 Ana clarifies misconceptions about AI and explains why it won’t replace creativity.
• [04:38] Why you should think outside of the box when creating to beat AI because, unlike the human mind, AI is predictable.
• [06:11] How AI can help agencies automate and augment to align with organizational goals effectively.
• [08:45] Understanding the role of well-crafted prompts in optimizing AI-generated content.
• [11:24] How to stay relevant and effectively integrate AI solutions by prioritizing user needs over technology trends.
• [14:51] Why you should shift your perspective around AI adoption and focus on specific business needs for optimal results.
• [17:24] Understanding AI as an augmenting tool rather than a replacement for your creativity.
• [20:19] Why you should avoid the one-size-fits-all approach to AI applications to make things easier.
• [24:50] Ana’s customized AI boot camp for businesses looking to harness AI effectively.

Connect with Ana:

• Email
• LinkedIn

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Are you making accurate financial projections and budgets to guide your business toward sustainable growth? Agency owners often overlook or avoid their financials, but understanding and managing these numbers is essential for long-term success and stability.

In this episode of The Agency Blueprint, we discuss how business owners can better manage their finances without needing a degree in accounting or finance. We explain the importance of accurate financial projections, budgeting, and the use of financial benchmarks to ensure a sustainable and profitable business.

Listen in to learn the significance of regularly reviewing financial statements, understanding key metrics, and maintaining a healthy cash reserve to navigate unexpected challenges.

Key Questions:

• [00:44] Are you paying enough attention to your business financials to ensure its health and growth?
• [01:57] How frequently do you review your financial statements, and do you understand the key ratios and percentages that impact your business?
• [10:01] How well do you understand your cost of goods sold, and what does it tell you about your pricing and operational efficiency?
• [12:57] How much are you investing in your own marketing, and does it reflect the standards you set for your clients?

What You’ll Discover:

• [00:44] The critical role of financial health in business success and the benefits of accurate financial projections and budgeting.
• [01:57] The importance of regularly reviewing financial statements and understanding key financial ratios and percentages.
• [03:34] The importance of daily self-improvement to understand the language of business and enhance business performance.
• [07:19] The importance of having adequate cash reserves to manage unexpected downturns or expenses.
• [10:01] Financial benchmarking – defining key metrics like the cost of goods sold and their impact on business health.
• [12:57] The importance of marketing investment, plus how the cost of goods can determine pricing and operational efficiency.
• [15:05] The peace of mind and security that comes from managing a business by the numbers.

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Do you show up authentically? What does it mean to be truly authentic in business? How can you ensure your actions reflect your deepest values? When you align authentically with your values, you find renewed energy for growth and other aspects of business.

In this episode of The Agency Blueprint, Guillaume Wiatr joins me to discuss the critical importance of authenticity in entrepreneurship. Guillaume is the creator of Strategic Narrative, the business strategy consulting and coaching methodology for entrepreneurial leaders and professional service firms. Through his company, MetaHelm, he steers experts, CEOs, and leadership teams to build a successful business they love by growing narrative power and the leadership ability to defy the normal when the normal is wrong.

Don’t miss this episode to learn about creating an authentic business narrative through a holistic approach, maintaining authenticity, practical strategies to remain genuine in leadership roles, and more.

Key Questions:

• [01:51] Can you share your thoughts and stories about authentic alignment in entrepreneurs and its impact?
• [09:52] Can you tell us more about your Strategic Narrative methodology and how it works to help people find authenticity?

What You’ll Discover:

• [02:00] Guillaume defines authentic alignment and discusses the complexities of staying true to one’s values.
• [04:30] The necessity of daily reflection and self-discovery for the ongoing journey of personal and professional authenticity.
• [05:44] How authenticity can be sensed personally and by others in the room and its impact on business connections.
• [10:01] Guillaume’s Strategic Narrative methodology and how it helps leaders create genuine business narratives.
• [11:27] How to run a holistic business with personalized business strategies rather than one-size-fits-all solutions.
• [16:45] Actionable ways for those interested in selling in a more authentic and less convincing way.
• [19:48] The importance of diagnostics in sales conversations and understanding clients’ true needs.
• [20:37] The challenge of balancing expert advice with clients' unique needs and preferences.

Connect with Guillaume:

• Website
• LinkedIn

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How often do you question the options in front of you and seek out creative solutions? By challenging the status quo and choosing 'Option C ', you can unlock your true potential and lead to a more fulfilling life.

In this episode of The Agency Blueprint, I challenge the belief that life only gives us two undesirable options and explain the power of choosing option C. I also explain the value of charting unique pathways that align with your personal values and aspirations.

Don’t miss this episode to hear real-life examples of individuals who challenged traditional dichotomies of choices and successfully created their own pathways.

Key Questions:

• [00:58] Are the choices you’re making in your agency truly aligned with your personal values and long-term goals?
• [03:45] Can you identify an "Option C" in a current dilemma that aligns better with your true desires?
• [04:45] What new perspectives and creative solutions can you explore to achieve true alignment with your personal and business goals?
• [08:41] Are you living according to your values or following someone else's path? How can you realign with your own values?

What You’ll Discover:

• [00:58] The importance of choosing options that align with personal values and agency goals rather than settling for what's presented.
• [03:45] The concept of creating a personalized pathway (option C) that aligns with individual desires and values.
• [04:55] How to overcome the fear and resistance of exploring new perspectives to achieve true alignment with personal and business goals.
• [08:41] The value of charting your own unique pathway for true success and fulfillment and the dangers of copying others.
• [09:46] Examples of individuals who challenged traditional dichotomies of choices and successfully created their own pathways.
• [17:49] Take time to explore option C and find a creative solution that’s the right decision for you.

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Are you focusing on the right financial strategies to benefit your agency? How do you mitigate financial risks and secure financial stability? A lack of financial planning can negatively impact your agency’s success. An agency generating revenue for its own sake is pointless; the ultimate goal should be maximizing profit.

In this episode of The Agency Blueprint, we delve into the financial risks that often arise in creative project management, such as underpricing services, mismanaging cash flow, and failing to plan for future expenses. We explain the importance of maintaining a healthy cash reserve and carefully planning new hires to avoid overextending resources.

Listen in to learn the importance of embracing the value of your creative work and charging accordingly for a sustainable business model.

Key Questions:

• [03:00] Are you setting the right price points for your services to ensure profitability?
• [11:22] How do you manage your cash flow? Do you have a system in place to track income and expenses effectively?
• [13:23] Do you have sufficient cash reserves to handle growth phases and unexpected expenses?
• [17:52] How do you manage planning hires in advance to avoid overextending your team?

What You’ll Discover:

• [01:47] The predominant financial risks in creative projects, from price points to cash flow and contracts.
• [03:00] Pricing strategy – how to overcome the fear of charging your work’s worth as your agency grows for sustainable profitability.
• [05:25] A real-life example of how undervaluing services can hinder agency growth and profitability.
• [08:58] A detailed breakdown of how to calculate appropriate billing rates to ensure profitability.
• [11:22] The importance of monitoring cash flow and having a mechanism to understand and manage it effectively.
• [12:26] Simple tools to help you track cash flow accurately, avoid the stress of unexpected expenses, and ensure timely payments.
• [13:23] The challenges of managing cash flow during growth periods and the necessity of maintaining cash reserves.
• [15:16] How to find resources or individuals who can help manage your cash flow efficiently.
• [17:52] Understanding when to hire and how to do it in advance to avoid putting deliverables at risk.
• [20:44] The importance of doing things differently to ensure your business choices don’t negatively impact your family life.

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Is selling your agency the right move for you? What personal goals and circumstances might influence your decision? Your unique goals and circumstances should influence the decision to sell your agency or hand it over to a successor.

In this episode of The Agency Blueprint, Jonathan Baker joins me to discuss the misconceptions and realities surrounding the sale of an agency. Jonathan is the head of the M&A practice at Punctuation, a small advertising practice that works exclusively with small—to mid-size independent marketing service firms on various facets of business management and growth.

Don’t miss this episode to learn valuable advice from an expert for agency owners considering whether to sell or continue growing their firms!

Key Questions:

• [01:43] What and when is the actual goal and the idea behind selling an agency?
• [03:37] What does a typical deal structure look like in your experience for an agency owner in a small to mid-size agency?
• [06:15] What steps should you take to evaluate whether to sell or continue growing your agency?
• [09:09] What other options are there for agency owners beyond potentially selling?
• [13:37] In the two potential inevitabilities where someone is looking to sell, and someone isn't looking to sell, what would provide for the highest amount of money in the founder's pocket?
• What gross and net profit margins should agency owners target to ensure their firm's financial health and attractiveness to potential buyers?

What You’ll Discover:

• [01:51] Jonathan on the multiple triggers that cause selling an agency and why selling an agency should be a personalized goal.
• [03:47] The typical deal structures for small to mid-size agencies and the impact of different types of buyers on deal structures.
• [06:26] Why you should focus on your personal goals and the agency’s profitability when evaluating whether to sell or not.
• [09:24] The challenges of running a creative agency with an absentee owner and the importance of having a solid number two person.
• [11:45] Options for agency owners who want to retain flexibility while continuing to grow their agency.
• [14:03] Main ways to maximize profitability to appeal to buyers or run sales mechanisms and business development.
• [16:41] The importance of targeting the right type of buyer based on the strengths and weaknesses of your agency.
• [19:03] Gross and net profit benchmarks for agencies and the importance of maintaining profitability while ensuring sustainable growth.
• [20:23] How to take control of your destiny and plan your future strategically as an agency owner at a crossroads.

Connect with Jonathan:

• Website
• LinkedIn

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Profitability Accelerator Call - If you're looking to make a change today schedule your profitability accelerator call to define what is possible for your agency in the next 90 days.

What are your marketing and lead generation strategies? Where are you concentrating your marketing efforts? A well-balanced marketing and lead generation approach will help you manage resources effectively, build a sustainable pipeline, and steady growth.

In this episode of The Agency Blueprint, I share various tactics to ensure your marketing and lead generation strategies balance your short-term, mid-term, and long-term goals. I explain when to focus on short-term goals and when to shift the balance to more mid-term and long-term strategies.

Listen in to learn about some mid-term and long-term lead generation methods, how to evaluate potential partners for networking, misconceptions about paid advertising, and more!

Key Questions:

• [02:05] How do you allocate your efforts between short-term, mid-term, and long-term lead generation strategies?
• [03:50] Are you diversifying your lead generation methods to avoid relying too heavily on one tactic?
• [05:55] Have you tailored your lead generation strategy to fit the specific needs of your target audience?
• [12:09] How do you evaluate potential partners for network marketing to ensure productive relationships?

What You’ll Discover:

• [01:41] The different types of strategies for sustainable growth based on timeframes: short-term, mid-term, and long-term.
• [02:05] How your agency’s leads volume should guide your focus on short-term, mid-term, and long-term goals.
• [03:50] The importance of diversifying lead generation methods to avoid relying solely on content creation/social media for immediate results.
• [05:08] How to track lead sources and evaluate the effectiveness of different strategies to maintain a balanced approach.
• [05:55] The importance of having tailored lead generation strategies for your target audience instead of copying others.
• [08:12] Understanding the dangers of jumping between tactics without commitment and the importance of concentrating efforts for success.
• [08:53] Misconceptions about paid advertising being a short-term strategy, plus the time and financial investment needed for effectiveness.
• [10:12] How to set minimum metrics and timelines for new initiatives to evaluate their success and make informed decisions.
• [11:43] Some mid-term oriented lead-generation strategies and tips on maximizing their effectiveness.
• [12:09] How to evaluate potential partners in network marketing to build meaningful and productive relationships.
• [14:39] Some long-term lead generation strategies, how they require time, and should only be pursued once short-term needs are met.
• [15:21] The importance of balancing marketing efforts across different timeframes to ensure sustainable growth.
• [16:30] Recognize that not all lead generation tactics are top-of-funnel and understand their place in the buyer's journey.

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Profitability Accelerator Call - If you're looking to make a change today schedule your profitability accelerator call to define what is possible for your agency in the next 90 days.