Get ready to supercharge your agency's growth! In episode 071, I sit down with Karl Sakas, a seasoned agency veteran and the mastermind behind Sakas & Company, where he helps agency owners "work less and earn more." We dive deep into the art of expanding your agency by introducing new services. Karl shares his expert insights on the telltale signs that it's time to innovate, from declining demand to shrinking profit margins, and why staying ahead of client needs is crucial for long-term success.

We explore the strategic factors you must consider before making the leap—like analyzing market demand, understanding industry trends, and ensuring you have the right resources in place. Plus, we discuss the importance of evaluating your current offerings, identifying what’s no longer serving you, and knowing when to pivot. Karl also reveals common pitfalls to avoid and shares actionable advice to help you navigate the challenges of growing your agency with confidence.

Don't miss this episode packed with practical tips and insider knowledge to help you take your agency to the next level!

Key Takeaways

• The need to add new services may arise when existing services become less popular or profitable, or when new industry trends emerge.

• It is important to be forward-looking and reserve time to explore new services and trends.

• Before adding new services, consider stopping outdated or unprofitable services.

• Evaluate the demand and supply of new services, and ensure that there is a profitable supply of people to fulfill the work.

• Avoid overcommitting and consider the potential pitfalls, such as fixed bid commitments for new services.

• Pay attention to existing clients and their needs when introducing new services.

• Don't let problems fester in your agency; address them head-on to prevent them from getting worse.

Bytes of Note

00:00 Introduction and Background

02:48 Topic: Growing an Agency by Adding New Services

03:13 Recognizing the Symptoms and Need for New Services

06:38 Considering Demand, Supply, and Industry Trends

09:15 Strategically Evaluating Existing Services

13:00 Avoiding Pitfalls and Overcommitment

15:21 Listening to Clients and Addressing Their Needs

Karl Sakas helps digital agency owners ‘Work Less’ and ‘Earn More’… while rewarding their best employees. Drawing on his background in agency operations, Karl has personally advised hundreds of agencies on every inhabited continent. An international speaker, he is the author of three books—including 'Work Less, Earn More'—and more than 400 articles on agency management. When he’s not helping clients, Karl volunteers as a bartender on an antique train.

Contact Karl:

Article: https://sakasandcompany.com/adding-new-services/

Freebies: https://sakasandcompany.com/free-resources-for-agencies/

Book: https://worklessearnmorebook.com/

Workshop: https://sakasandcompany.com/agency-lead-gen-training/

In episode 070, I got to dive into the world of agency mergers and acquisitions with Jonathan Baker, the head of the M&A practice at Punctuation. Jonathan uncovers the secrets behind successful deals in the marketing services industry, shedding light on common pitfalls like leadership changes and cultural mismatches that can derail even the most promising mergers.

Discover the key elements that make an agency stand out to potential buyers, including the power of recurring revenue and strategic positioning. Jonathan shares his expert insights on valuation and talks through the sellability index, a tool that helps agencies measure their readiness for acquisition.

We explore the latest trends in M&A, the art of succession planning, and why it's crucial for founders to delegate and step back from daily operations. Whether you're looking to buy, sell, or simply learn more about the dynamics of agency mergers, this episode is packed with valuable information and actionable advice.

Key Takeaways

• Factors that can cause deals to fail include leadership changes and cultural fit issues.

• Recurring revenue and positioning are important factors in making an agency attractive for acquisition.

• Valuation should be done annually as part of the business planning process.

• The sellability index can help agencies track their progress towards becoming sellable.

• Trends in M&A include a higher number of interested buyers than sellers.

• Succession planning should consider factors such as age, long-term goals, and the presence of a capable successor.

• Founders should delegate and extract themselves from day-to-day operations to enable growth.

• Personal goals and fulfillment should guide business decisions.

Chapters

00:00 Introduction and Background

02:11 Factors that Impact the Success of M&A Deals

05:59 The Importance of Recurring Revenue and Positioning in Agency Acquisition

08:41 Valuation and the Sellability Index: Tools for Agency Planning

19:58 Succession Planning: Considerations for Founders

22:38 Delegation and Growth: Extracting Founders from Day-to-Day Operations

25:02 Aligning Business Decisions with Personal Goals

Punctuation is a small advisory practice working exclusively with small- to mid-sized independent marketing services firms. Founded by industry veteran David C. Baker, Punctuation helps firms with positioning, lead generation, benchmarking, valuation, and succession planning.

Jonathan heads up the M&A practice at Punctuation. He has worked on dozens of deals both inside and outside the industry and brings a unique perspective as a fellow owner who has gone through the process himself.

He graduated from Emory University’s Goizueta Business School in 2005. His career began working at a small boutique marketing strategy consultancy. There, he was able to do marketing strategy and positioning work for many well-known Fortune 500 CPG companies.

In 2011, he left to start a craft brewery, Monday Night Brewing where his focus was on marketing, sales, and taprooms. After helping his business partners grow to 180+ employees and numerous locations, Jonathan stepped away from the day-to-day to head up the M&A practice for Punctuation.

He loves cocktails, music, and hiking, and lives in Atlanta with his wife, two kids, and entitled rescue Australian Shepherd, Oscar Snugs.

Contact Jonathan:

Website: https://punctuation.com/

https://www.linkedin.com/in/jonathandavidbaker/

Company LinkedIn: https://www.linkedin.com/company/wearepunctuation/

Podcast: https://punctuation.com/insights/

In episode 069, I had the pleasure of chatting with Taylor McMaster, the founder of Dot and Co. Taylor shares her inspiring journey from launching her own agency to revolutionizing it into a fractional account management service for other agencies. Her story is full of valuable insights and lessons for anyone in the industry.

Taylor dives into the importance of proactive communication and strategies for expanding client accounts. She sheds light on the often daunting task of hiring and training account managers, revealing the incredible advantages of outsourcing this crucial role. Her advice to agency owners? Hire individuals who complement your weaknesses rather than those who mirror your strengths.

But it's not all business! Taylor also shares her passion for golfing and how she recently integrated a fractional sales director into her company, adding a new layer of expertise to her team.

Join us for this exciting conversation with Taylor McMaster, filled with actionable tips, personal anecdotes, and a fresh perspective on agency growth and management.

Key Takeaways

• Proactive communication is crucial in account management to keep clients informed and satisfied.

• Outsourcing account management can help agency owners focus on other aspects of their business and achieve a better work-life balance.

• Hiring account managers who complement your weaknesses can lead to a more well-rounded team.

• Golfing can be a fulfilling hobby and a way to relax and recharge.

• Bringing in a fractional sales director can provide expertise and support in growing your business.

Chapters

00:00 Introduction and Background

02:49 Starting Dot and Co and the Genesis of the Fractional Model

08:31 Integrating Account Managers into Agency Culture

11:36 Stepping into Existing Systems and Optimizing Processes

22:26 Personal and Professional Insights

25:06 Rapid Fire Questions

27:39 Valuable Business Advice

Taylor McMaster is the founder of DOT & Company where she and her team help digital marketing agencies keep their clients happy—and keep agency owners focused on what they do best—with full-service client account management (CAM) services.

Taylor leads a team of Client Account Managers at DOT & Company, training the CAMs to work with different agencies. To date, they have helped dozens of digital marketing agencies free up their time to prioritize the money-makers in their businesses, while the DOT & Co. team ensures their client experience is smooth like butter.

She is also the host of The Happy Clients podcast, where she interviews top names in the industry, diving deep into what makes clients happy in the agency world.

Contact Taylor:

Press: www.dotandcompany.co/press

Email: taylor@dotandcompany.co

Website: www.dotandcompany.co

Podcast: www.dotandcompany.co/podcast

Facebook: https://www.facebook.com/dotandcompany

Linkedin: https://www.linkedin.com/in/taylormcmaster/

Instagram: https://www.instagram.com/dot_and_company/

YouTube: ​​https://www.youtube.com/channel/UC9_2hri1R1uaNTGeZr0Oyxg/

Twitter: ​​https://twitter.com/CompanyDot

In this episode I have a great conversation with Selena Thiele, the founder of Office Mercenary, about why the key to winning is delegation. She discusses the concept of virtual assistants and the benefits they bring to businesses. She shares her own experience of feeling overwhelmed as a small business owner and how she started Office Mercenary to provide specialized support to entrepreneurs. Selena emphasizes the importance of finding the right virtual assistant and building long-term client relationships. She also highlights the challenges of delegating tasks and setting boundaries. Selena provides insights into the types of tasks Office Mercenary handles and the role of standard operating procedures (SOPs) in effective delegation. She concludes with valuable business advice, including the importance of letting go of perfectionism and striving for good enough.

Key Takeaways

• Virtual assistants can provide specialized support to overwhelmed small business owners.

• Building long-term client relationships is beneficial for both the client and the virtual assistant.

• Delegating tasks and setting boundaries are essential for effective collaboration with a virtual assistant.

• Standard operating procedures (SOPs) can streamline delegation and ensure consistent quality.

Chapters

00:00 Introduction and Background

01:02 The Concept of Office Mercenaries

02:23 The Impact of the Pandemic on the Virtual Assistant Industry

03:08 The Importance of Finding the Right Virtual Assistant

04:06 The Benefits of Long-Term Client Relationships

04:49 The Transformation After Delegating Tasks

06:16 The Types of Tasks Office Mercenary Handles

08:42 The Challenges of Delegating and Setting Boundaries

11:05 The Importance of Letting Go and Accepting 85% Quality

13:03 Low-Hanging Fruit for Delegation

15:44 The Definition of a Good Virtual Assistant

17:54 The Role of SOPs and Systems in Delegation

19:59 Misconceptions About Virtual Assistants

22:57 Rapid Fire Questions

25:35 Invaluable Business Advice

In this episode, Wayne Pelletier, founder of Resonant Pixel Co, discusses the process of productizing agency services and the benefits it brings. He shares his journey from being a marketing assistant to launching his own agency and explains why he chose to focus on Squarespace as the platform for his services. Wayne emphasizes the importance of niching down and serving a specific audience, as well as the mindset shift required to transition from a project-based model to a subscription-based model. He also highlights the challenges and rewards of productization and the potential for scalability and growth.

Key Takeaways

• Productizing agency services involves niching down and focusing on a specific audience or platform.

• A subscription-based model can provide more predictable revenue and eliminate the feast and famine cycle of project-based work.

• Choosing the right platform, such as Squarespace, can offer stability, scalability, and the ability to hire predictably for talent.

• Productization requires a mindset shift from being a designer to being a business owner, focusing on access to expertise and lifetime value.

Chapters

00:00 Introduction and Pronunciation

08:10 Transitioning to a Subscription-Based Model

12:54 The Benefits of Productization and Lifetime Value

23:04 Serving Small Businesses and Providing Relief