When we're doing valuations, whether we're actually part of the transition or the succession plan or not, one of the things that I think many of you really underestimate is the power of how you compensate yourself and what that does to the valuation of your business. One of the larger factors in valuation is what we call owner compensation. And what we mean by that is every way that the owner gets value out of the business.
The project management (formerly traffic manager) role is critical in most agencies today. But...how do you justify the expense? Easy. They should be 90% billable!
So many agency owners give away equity in the agency they've poured their heart into building only to find the gift didn't result in the outcome they'd hoped.
A healthy agency will get 60-70% of its net new revenue from existing clients. This ratio is even more critical in 2023.
Your employees want you to see them for more than just your employee. They want a genuine connection with you that goes beyond work.
Employee loyalty and longevity are two of an agency owner's greatest gifts. How do you reward your team members on significant anniversaries with your agency?
Rituals are an important element in creating a culture. You can use them to celebrate, connect, and create memories. What rituals would your team say are vital to your agency?
We should not assume that everyone is motivated by the same things that we are. The golden rule isn't enough.
Just a reminder not to assume what you believe your team, clients, or partners know or understand. Better to overcommunicate!
Tis the season for setting goals and making resolutions. I have a twist on the age-old habit that I’d like to suggest.
If you didn't find what you were looking for, try a new search!
