Time for a Transformation?
We work with highly motivated agencies who are looking for the tactics they need to scale.
Their Goals
Two years before coming to us, the agency started moving away from its core offering to focus on areas in which they were not the experts. Their immediate goals were to move back towards their strongest areas so they could generate enough revenue to survive the next 90 days.
From there, the agency severely needed an overhaul in business efficiency and processes after long periods of stagnation in these areas. The leadership needed renewed focus, the team needed to get into alignment, and high-quality reporting was required to drive decision-making.
The Challenge
The agency’s key challenge was that it had not focused on revenue diversification. Approximately 85% of its revenue came from a single client, meaning the agency’s fate lay in the hands of that one client. If that client decided to switch agencies, our client would suffer greatly.
In fact, there were some hints that this type of change was coming. The agency’s client had already started moving some of its design and creative work in-house. In the end, my client lost about 75% of their business from this client practically overnight!
Beyond the lack of diversification, the agency also paid little attention to cash flow or profitability. During its heyday, the agency made so much money the people in charge never really needed to understand the specifics. However, it now found itself in a position where it constantly needed to rob Peter to pay Paul.
A change was needed.
Fast.
If it didn’t happen, the agency would have to close its doors within 90 days.
Their Goals
Two years before coming to us, the agency started moving away from its core offering to focus on areas in which they were not the experts. Their immediate goals were to move back towards their strongest areas so they could generate enough revenue to survive the next 90 days.
From there, the agency severely needed an overhaul in business efficiency and processes after long periods of stagnation in these areas. The leadership needed renewed focus, the team needed to get into alignment, and high-quality reporting was required to drive decision-making.
Our Solution
First, we worked with the agency to reorganize its debt. This simple step took the agency from being cash flow negative to positive while relieving the intense time pressure it had previously faced.
From there, we worked closely with them to create a detailed reporting system that identified their cash flow issues as they had wastage in both time and expenses. We worked with them to identify exactly what expenses to eliminate.
Then the focus switched to generating new business. With our help, the agency developed a sustainable lead generation process, gave its website a massive overhaul, and recrafted its offers to appeal specifically to its target market. We also helped develop a sales process that allowed its people to feel confident in their expertise, boosting morale enormously in the process.
The Result
The 90-day deadline came and went and the agency was still open for business.
That alone was an amazing achievement. However, the processes the agency put in place, with our help, transformed its entire culture. As a result, staff felt motivated and happy as the agency finally escaped the seemingly constant state of desperation it had been in.
Finally, our focus on reporting and expense waste elimination paid dividends.
This agency, which had just endured its worst year and was on the brink of closure, completely transformed its revenue generation activities.
Within six months, the agency achieved a remarkable 217% growth in net profit. This amounted to an additional $1,052,000 in annual net profit, with an additional $180,000 in gross profit per million dollars of revenue.
To put this in context, this was their best year in a decade.
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Net Profit Increase
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