Managing in a renewing economy (part two)
Agency management can be a challenge as the economy teeters back and forth between recovery and residual crud. Things feel like they're getting better and according to all the agencies we're talking to -- they are. But it's not all blue skies yet. I'm not trying to go all Eyeore on you...but let's stay careful. We've developed 25 helpful agency management steps you should consider as you move your agency through these turbulent waters. Last week, we posted the first 13 steps and here are the final 12. Demonstrate to clients and suppliers that you are thorough, organized and committed to best business practices. Know where the agency's "breakeven" point is, and make sure you include the full salary and benefits of the owners. You'd best know where the worst case and best case scenarios are hidden. Continue to be aggressive and persistent in your Accounts Receivable. Call on all overdue invoices and let AEs help on collections that are coming up on 60 days old. If you have extra space created by a shrinking staff over the past year or so, think about renting the extra space out to a business partner, like your web coder or PR group. Tighten policies that were too casual, and don't get too liberal with your budgets for supplies or services. Keep costs under control. Economic hardship taught you to institute tight financial control over costs. Don't let up. If you are still going to pursue getting mark- ups on outside purchases, make sure they are spelled out in advance. If stated "up front" it rarely is a problem. Check your banking relationship. If you borrowed during these past tough times, go to the bank and review your performance, [...]