I was in a FB group for agency owners today and someone posed the question “what is your number one tip for people starting their agency up?”
I said, “Understand agency math and set up your financials and dashboards does you ALWAYS run a profitable shop.” To which, of course, someone asked me to elaborate.
Given that we teach a 12 week course for newer agencies (which is currently running as I write this) and hold an entire two day workshop on all things agency math/money, I was trying to figure out how to sum up some of the core lessons quickly. I decided I’d share some short videos I’ve done on the topic and a free ebook resource.
So…what do I mean by understanding agency math so your financials and dashboards are correct and will help you always stay profitable? Here you go:
- AGI defined
- AGI per FTE
- Your top line is not the only way to grow your bottom line
- Is your boat at risk? (Overstaffing costs)
- Why timesheets matter
- Billability versus utilization
- What are you leaving on the table?
Hope these help!