As an agency owner, there’s one thing you learn quickly: It’s not necessarily how much money you make, it’s how much money you keep. And much of that has to do with having a tax strategy that works for you, your family and your agency.   “The money that matters most is the money you get to keep and spend,” says my guest Jason Blumer. Jason is a virtual CPA who specializes in working with agencies. He challenges his clients to grow their agencies while at the same time keeping more of the money they make. From tax strategies to employment benefit plans to the metrics that matter, Jason touches on all aspects of an agency’s financial life and some best practices for protecting what you’ve worked so hard to earn. Join Jason and I as we dig deep into small business and agency finances with: How Jason and his team got into the agency niche Mistakes agencies and agency owners make regularly Why going virtual doesn’t automatically save your agency money How to legally save your agency money in taxes in ways that make sense for your agency How to manage small business finances at your agency Employment benefit plans which benefit agency owners P&L and AGI numbers to know Why you shouldn’t be struggling to make payroll if you have a strong value proposition Why being a successful creative director doesn’t mean you should open your own agency Why you need to be willing to sacrifice services, clients, and your team How to know whether the metrics that you’re tracking are worth tracking Things most if not all agencies should track Why you should outsource your accounting Jason’s recommended resources Jason Blumer is [...]

What is your agency worth? How do you know? What’s involved in an agency valuation? Once you understand your agency’s value, you can decide what tactics you need to take to improve that number. Staffing, technology, training, expansion and compensation. These are just a few of the elements that play a role in the valuation of your agency. My podcast guest Henry Corona has been providing agency valuations, consultation on M&A deals and coaching agency owners on how to increase the value of their shop for decades.  He has an extensive knowledge of agency value and helps owners focus in on what they need to be looking at if they want to sell somewhere down the road.   Henry and I help you make sense of it all with: Henry’s transition from the film business to the advertising business Mistakes agency owners make that hinder their ability to sell their agencies Where agencies need to be investing Why tracking hours is critically important What to do about employees that cost your agency money Why your agency should have a profit sharing system Understanding your agency’s value and what it means AGI numbers you need to know What diminishes the value of an agency Charging brain surgeon prices vs. charging nurse prices Training clients so they don’t feel like they’re getting the “B Team” What agency owners can do right now to improve on the ideas from this episode Henry Corona graduated from Grinnell College in Iowa, moved to Los Angeles, and earned an MA in Economics from UCLA. He worked as an Economist for the Rand Corporation, and while at Rand, Henry earned an MBA in Finance & Marketing from USC. Upon graduating, he joined [...]

A lot of agency owners are accidental agency owners. Do you remember the day that you looked around and realized that you were running a business? For many agency owners, that wasn’t really the plan. And even if it was – we’re not prepared for it. We grew up in either the account service world or the creative world and avoided anything that even smelled of math or agency finance. But now, as agency owners, we need to have a handle on what is going on in our agencies from the financial side. Where do I stand financially and how can I improve my agency’s financial health?   My podcast guest, Donya Powell is a CFO who works with agencies both big and small, helping them with everything from succession planning and selling their agency to financial dashboards, budgets and tax strategies. In our conversation, Donya and I cover a lot of ground, including: Misconceptions agency owners have when valuing their business Donya’s spreadsheet for assessing your financial picture during retirement Understanding agency finance your agency’s normalized EBITDA (earnings before interest, taxes, depreciation, and amortization) Factors that severely impact your agency’s value in a negative way What you may need to change in your agency’s books Things on the financial statement that agency owners often ignore that they really need to pay attention to What financials agency owners should be looking at every week, month, and quarter Budgets: can modern, project-based agencies use them? Mistakes agencies make in regards to taxes and tax strategies to take advantage of How to know if your agency is structured as a corporation in the correct way Things to think about when planning the selling of your agency Factors [...]