Agency Management Institute partnered up with Orbit Media to do a quick poll of agency owners to find out what the initial impact of the coronavirus had been on their agency. Since everything seems to be changing hourly – it’s important for you to know the time frame that this data relates to. Most of us in the states started working from home between March 10 and March 16th. We launched this poll on March 25th and closed it a couple days later. Our goal was not to conduct proper research, obviously, but instead just to take a pulse on how things are going out there. I also wanted to compare how the general population of agencies were faring on comparison to the 250 or so AMI agencies that I’ve been communicating with on a daily basis. Our survey was completed by 122 agency owners or leaders. There was an almost even split between agencies that were all B2B, all B2C and mixed and the agency offerings were equally mixed as you can see in the chart below. One thing is certain – every agency’s work level is being affected by the coronavirus, but I think it’s important to point out that almost half (42.93%) are having either a net neutral or positive effect. I think it’s incredibly tempting and easy to only see the doom and gloom in all of the news stories, conversations and most dangerously – what we tell ourselves. Less than 20% of agencies reported a very negative or near disaster impact. So far. That perhaps that is the key phrase at this stage. But, we have to control our lens on this situation or we'll be paralyzed. [...]
I think agency leaders and owners are incredibly generous people. I’m always astonished at how you take care of your people, often to your own detriment. You give to them in ways that mean you get a little less. It’s just who you are. So as I thought about this week’s message, I decided I might be able to help you scratch your natural tendency to show your gratitude in this crazy season we find ourselves in. Odds are you’re pretty good at saying thank you directly to your people. But I’m going to suggest you try a different tactic. Identify one of your super stars and take a few minutes jotting down what they do that is so valuable to you. If you can, capture a story of something that really illustrates their talent and value to you. Now, take that story and write a letter of gratitude to their spouse, kids, parents or whoever you think would be most proud to hear it. Tell them how awesome your employee is and acknowledge the sacrifices (missed dinners, Mom out of town, etc.) the family has made to allow your employee to thrive. Thank them for their willingness to let your team mate give their best to the agency and your clients. If you want to — include a gift card so they can all celebrate how amazing your employee is to you and for them. Don’t tell your employee you’re going to send the letter. Let it be a surprise. I think you’ll be stunned at the impact your letter has — both short and long term. It’s a gift they will cherish for a long time, as will their family members. And honestly [...]
One of the more interesting takeaways from the research we have done over the years is the juxtaposition between two beliefs that our clients have about account executives. The first was that about a third of the respondents felt that AEs were too pushy when it came to sales and that was off-putting. But that same group of clients expected (not wanted) their account exec to bring them new opportunities. How our AEs sell matters. When they go at a client in the context of their business challenges and an opportunity that their business can take advantage of — it’s welcome. When they go in talking about agency services or new “stuff” that we can make for them, it feels like a pushy sales effort. I know that you know the difference. I know that you can have that level of conversation. But you can’t be the only person in your shop who is capable of doing that. How are you helping your AEs learn the language of business? Are you encouraging them to spend time on the factory floor, so to speak? (You can’t always bill for this time but it always comes back to you) Are you sending them to your client’s big industry trade show so they can listen to the speakers, walk the exhibit floor and absorb the business? Are you surrounding them with the trade pubs your clients are following? Are you having these sorts of strategic discussions in your one-on-one meetings? This level of learning will not happen by accident. And while some of your account execs will intuitively understand they need to do this work, others will not. You’re going to have to not only show them what [...]
What’s that old adage — nothing kills a business like growth? I’ve seen agencies get way too close to the edge more than once. Managing growth is no easy task and scaling your business requires something that many agency owners struggle with — getting out of the way. Entrepreneur Magazine asked me to offer some tips for successfully scaling your business. I’d love to hear any additional ideas or life lessons you’ve learned around this topic. As business gets better — more and more of you will be faced with this potentially treacherous opportunity. Another challenge that comes with a stronger business is dealing with the financial implications including operating your agency for maximum profit, using the right structure, operating systems, and staffing to make it all possible. We will be covering all of these topics and more in our Running Your Agency for Growth, Profit (and a little sanity) workshop this March. This workshop is built for principals only and it can be especially valuable for agency principals that came up through the agency ranks and would benefit from additional knowledge about how to build and operate a profitable agency. I hope you can join us. This was originally published in the weekly AMI newsletter. To subscribe, click here.
I live in the Midwest and as a result, I am fascinated by farmers. They can do everything right and in the blink of an eye — a hail storm, too much rain or on the flip side, a drought can wipe out all of their efforts. It seems like the riskiest and most frustrating business model in the world. But I can’t deny that our world of agency life has some similarities. Agency owners and leaders work their tails off to chase down new clients, to keep the clients they have, to attract and grow the right team members. But then we make mistakes that either erode or completely eliminate all of the effort and the potential profits from those efforts. I identified some of these money mistakes in an article for Hubspot Mistakes that Will Bankrupt Your Agency. Check it out and put a plan in place to eliminate those mistakes from your agency’s SOP before you pay too great a price. If you know that your agency could use a tune-up (right structure, operating systems, staffing, actually making a double-digit profit, etc.) why not spend two days with us talking about these topics? Our workshop, Running Your Agency for Growth, Profit (and a little sanity) is designed for agency owners and we will pepper you with best practices, practical tips, and hacks that will help you make more and keep more of what you make. This was originally published in the weekly AMI newsletter. To subscribe, click here.
I’m a big fan of the book Traction by Gino Wickman. It’s a business parable that outlines a systematic way (EOS or the Entrepreneurial Operating System) of running any business. It’s incredibly well suited for agencies, because it forces a discipline onto a leadership team that is often plagued with wearing too many hats, running from fire to fire every day, and a tendency to get distracted by squirrels and shiny objects. The result of the hats, fires, squirrels and shiny objects is that many internal projects (how long did it take you to deploy your agency’s last website) get delayed or never get done. At AMI, we weave a lot of Traction’s elements into our coaching and when our clients look back over the previous twelve months, they are astonished at how much they accomplished. The EOS methodology leverages the power of focus and shared accountability and man, does it work! If you haven’t read it, I’d highly recommend it, especially if you’ve had internal projects (revising processes, an employee handbook, updating your website, improving your agency’s marketing or business development efforts, etc.) that are dragging on and on. We'll be talking about some of the Traction principles at our Running Your Agency for Growth, Profit (and a little sanity!) workshop and how they intersect with you making more money every month/year. It’s designed for agency owners and we will pepper you with two full days of learning the tricks and tips on how to operate your agency for maximum profit using the right structure, operating systems, and staffing to make it all possible. This was originally published in the AMI weekly newsletter. To subscribe, click here.
I have had several phone conversations recently with agency owners who have sales pipelines that have dried up. They’re frustrated and scared. I get it. We’ve all been there. But when I asked them about their business development activity, they all admitted that they’d taken their foot off the pedal. Sure — they all had great reasons why they didn’t do the follow-up or initiate the new tactic. You know what I’m going to say because you’ve said it to yourself. There will always be another reason/excuse. There’s always a fire to put out or something to be done internally. You have to carve out the time to work your new business plan and protect it like it’s your favorite kid’s birthday. It’s too easy to slide backward and once you lose the momentum, it’s back to the starting gate. Like exercise, it’s a lot easier if you work the muscle on a regular basis. By the way, this is never going to happen by accident or wishing. If you don’t calendar it out, your day is never going to suddenly free up. In our Best Practices of Agency Owner’s workshop, Running Your Agency for Growth, Profit (and a little sanity!) in March, we’re going to show you some strategies for actually controlling your days so new business happens on a consistent basis. We’re also going to walk you through how to construct a business development plan that is actually sustainable and successful. Be sure to grab a seat if you think it would be helpful! This was originally published in the AMI weekly newsletter. To subscribe, click here.
We’ve all heard about or been accused of being helicopter parents by now. The results of helicopter parenting (aka a parent who takes an overprotective or excessive interest in the life of their child or children) often show up in the workplace. You might recognize the employees who need a ton of praise for seemingly simple accomplishments, require direction/instruction as opposed to being self-directed, and/or seem moody and anxious and have no real goals or sense of direction. I am not suggesting for a minute that all employees of any age group fit this description. But I talk to enough of you to know that odds are good that you have one or two in your shop. What I want you to consider for a moment is if you’re actually making it worse. Ideally, every employee would come to you in perfect condition, not needing any mentoring or education. Let me know if that ever happens. Until then — you are responsible for molding them into the team member you’re hoping for. Here are some of the ways I see agency owners/leaders helicopter their employees, stunting their growth and productivity. You own their growth: How many times have you had an employee walk into your office and ask what their career path was? You can coach them through mapping out a plan but they should drive it. If you tell them what they want to be when they grow up — odds are, you’ll get it wrong and they’ll get disenchanted and leave. You handle the details: Is your employee traveling on behalf of the business? Do you still make all their travel arrangements? Let them at the very least, make a few recommendations or [...]
Most agencies struggle with sales. Honestly, I think one of the challenges of business development is that many agencies blur the lines between marketing and sales. Many agencies are getting better at marketing. Technology and social media, and all of that make it easier for you to create content or do an e-newsletter, or have a Facebook page. The challenge with that is — it’s not sales, it’s marketing. It feels like you have a new business program when really you have marketing activity. In some ways, the fact that agencies are better at marketing makes some even worse at sales. All of that marketing “stuff” makes them feel as though they can check the box of new business activity. But really that’s just erroneously putting two things in the same box that should be in separate boxes. Many agency owners say to me, “If we can get across the table from someone, we can make the sale.” And what that says to me is: A) they’re probably punching below their weight class because nobody wins all the time. B) they’re waiting for opportunities to present themselves as opposed to going out and creating an opportunity that really is the right kind of client, the right fit, the right industry, and the right size. Take a good look at your business development efforts. Do you really have a sales program or are all of your marketing activities blurring your vision? If you’re waiting for luck and referrals to completely fill your pipeline — is that helping you grow the agency you actually want to build?
No one buys homeowners insurance because they actually expect to have a fire at their house. But they know if they wait until there’s a fire, it’s too late. So, on the very first day of homeownership — they buy the insurance as well, hoping they never have to use it. For some reason, agency owners don’t always apply this same logic to their business. If you have any sort of partner (minority, silent, 50/50, etc.) you need to have insurance in case that partnership goes south. Hopefully, it will never happen but an illness, a divorce, a midlife crisis or a myriad of other things could put your business in harm’s way. Without the proper partnership documents that outline how you handle any threat to the agency — you can be left holding the bag. I’ve had many conversations with owners over the years who find themselves in a position they’d have sworn could not happen. And yet it did. A good partner will welcome this conversation and exercise. After all, they’re at risk if you’re the one who gets sick, goes off the deep end or has personal issues that trickle into the agency. If you’re a 50/50 partner, your documents should also outline how to settle disputes when the two of you are on opposite sides of an issue and neither is budging. Don’t be the person standing on their lawn, watching their house burn to the ground, all the while wishing they’d purchased the insurance. Protect your partnership now — when there are no issues, problems or worries. It’s a much easier conversation to have when you can’t imagine ever needing it.