You will make more money (potentially much more) if you commit to doing these four things... and I can help you do all of them.
Both as an agency CEO and consultant, I’ve helped agencies to increase profitability at current income levels by:
1. Significantly increasing compensation by current clients when warranted by presenting well-reasoned and documented
support for being paid more. (I've negotiated more than $3,000,000 in incremental income by doing this.)
2. Accurately calculating your true cost of providing service (including all overhead), adding a reasonable profit margin, more accurately tracking staff time for each account and using these very real numbers as the bedrock for every contract negotiation with every client.
3. Creating higher financial awareness and accountability throughout the agency by regularly sharing your P&L, improving the
accuracy of financial projections for each account, setting departmental goals and achieving employee buy-in.
4. Ruthlessly enforcing adherence to the systems and procedures which are fundamental to making money... and ruthlessly
eliminating the systems, procedures, organizational structures, meetings, reports and bureaucracy which are not.
There are at least three more ways to increase profits without adding business. Just call me and we'll talk about them.
Both as an agency CEO and consultant, I’ve helped agencies to increase profitability at current income levels by:
1. Significantly increasing compensation by current clients when warranted by presenting well-reasoned and documented
support for being paid more. (I've negotiated more than $3,000,000 in incremental income by doing this.)
2. Accurately calculating your true cost of providing service (including all overhead), adding a reasonable profit margin, more accurately tracking staff time for each account and using these very real numbers as the bedrock for every contract negotiation with every client.
3. Creating higher financial awareness and accountability throughout the agency by regularly sharing your P&L, improving the
accuracy of financial projections for each account, setting departmental goals and achieving employee buy-in.
4. Ruthlessly enforcing adherence to the systems and procedures which are fundamental to making money... and ruthlessly
eliminating the systems, procedures, organizational structures, meetings, reports and bureaucracy which are not.
There are at least three more ways to increase profits without adding business. Just call me and we'll talk about them.
Fewer, bigger clients - The quantum leap to higher profits.
The best way to really improve profitability is to execute a targeted new business
prospecting plan, recognize that all clients are not worth having and have the self-
discipline (and patience) to evolve your account list to fewer, bigger clients. Focus
your talent, time, money and resources on pursuing larger accounts that you truly
want to work with and, just as importantly, have a right to win. Pitch less often, be
choosier... and increase your agency's new business batting average.
It can be just as time-consuming and expensive to win a small account as a big one. Larger accounts are often more professional too. They already know how to work with agencies and better understand the agency’s need to make a reasonable profit on their business. Contrary to popular opinion, you also often have more creative freedom with larger advertisers.
Finally, larger accounts with well-known brand names help you to recruit and retain more talented people. Top talent prefers to solve bigger problems for bigger companies. And don't we all want our friends, families and business associates to recognize the brands to which we devote our working lives? It’s not very rewarding to keep hearing “Who? Never heard of ‘em. Sorry.”
THINK FEWER. THINK BIGGER. It's the path to growth and higher profitability.
The best way to really improve profitability is to execute a targeted new business
prospecting plan, recognize that all clients are not worth having and have the self-
discipline (and patience) to evolve your account list to fewer, bigger clients. Focus
your talent, time, money and resources on pursuing larger accounts that you truly
want to work with and, just as importantly, have a right to win. Pitch less often, be
choosier... and increase your agency's new business batting average.
It can be just as time-consuming and expensive to win a small account as a big one. Larger accounts are often more professional too. They already know how to work with agencies and better understand the agency’s need to make a reasonable profit on their business. Contrary to popular opinion, you also often have more creative freedom with larger advertisers.
Finally, larger accounts with well-known brand names help you to recruit and retain more talented people. Top talent prefers to solve bigger problems for bigger companies. And don't we all want our friends, families and business associates to recognize the brands to which we devote our working lives? It’s not very rewarding to keep hearing “Who? Never heard of ‘em. Sorry.”
THINK FEWER. THINK BIGGER. It's the path to growth and higher profitability.