One of the biggest threats to your agency’s profitability and long-term existence is giving away the farm by over servicing clients, bad estimates, not issuing change orders and allowing clients to change the rules mid-game without any penalty or cost.
Don’t get me wrong – I think it’s okay and smart to over-service certain clients on certain projects. I’m not suggesting you put military order into your agency. But conservatively — I believe most agencies can put another 10% to their bottom line if they rein in scope creep. The good news is — it’s easier to fix than you might think.
I explored how scope creep happens and how agencies can contain it in a recent article for Hubspot. Take a look and see if you can find a strategy or two that you can implement in your shop to help you slow down the bleed.
The article contains several concepts that I teach in the Advanced AE bootcamp as well. Your account executives should be managing their clients’ budgets and profitability. That means they need two things — the financial data to know how they’re doing AND the tools/knowledge of how to manage both the clients and your internal team so that they aren’t writing time and money off every job.
Our next Advanced AE bootcamp is in September (September 9 & 10 in Chicago) and you can register your AEs here.