I was recently a guest on B2B Growth’s podcast discussing how agencies can still prosper during COVID-19. I hope you take a few minutes to look at the overview of this podcast and listen to the full episode soon. I look forward to hearing what you think!
Working from home is changing how our industry functions every day. I have seen agencies gain more clients or working time as a result of COVID-19, but I have also talked to agency owners who have lost close to half of their clients because their specific market is no longer needed during this pandemic. There are also some agencies that fit right in the middle, who have not seen any loss or gain. In all of these scenarios, working from home during a pandemic is altering how our industry functions and who is coming out for the better.
Right now, each agency is like a ship that is getting pummeled in a storm. For some of us, it’s the roughest storm you have sailed through; others have been through worse. Our goal is to make it to calm waters alive. To do that, we must remain calm, confident, and compassionate while surrounded by chaos. Unfortunately, we will have to make sacrifices in one way or another. Some clients will leave, and some employees might be unsatisfied with their amount of work right now. Remember that we are all going through challenges right now, and we must show up as strong leaders.
Let’s focus on metrics, specifically your Adjusted Gross Income (AGI). Fifty-five percent of that goes to loaded payroll, 25% is spent on overhead, and the last 20% should be profit. For those who are losing clients right now, twenty percent might not be feasible right now. But keep in mind that those clients who pressed pause during the pandemic will come back and need you more than ever when it’s over. Keep watching your numbers. This is not the time to stop looking at your financials.
Think about your business development (biz dev) right now too. This is not hard sell or cold calling time. Nurture your current and former clients, but do not try to sell them. Be there to be helpful, plant helpful seeds in their minds, and they will think of you when they need your services again. This could be a quick phone call, just spitballing ideas free of charge, and tell them you look forward to seeing them again when it is safe to do so.
AMI has resources on our website that will help agencies get through this time. Go to our website here to find tools on how to ask your landlords for rent reduction or how to ensure your employees have proper health care during this time. We at AMI are here to support you and your employees right now and always.