Owning a digital agency can be a rewarding experience. But sometimes, it can be very overwhelming. Exiting your digital agency may be the best decision for you, your clients, and your business. In this article, we will explore the reasons why you might want to exit your digital agency, how to find a suitable successor, how to prepare your clients for the transition, and how to establish a post-transition plan.
Reasons to Exit Your Digital Agency
Lack of Time
Being the big boss in a digital agency is a demanding task that requires a significant investment in time and energy. Finding that kind of energy is very difficult when you’re juggling clients and staff, as well as trying to keep up with life outside of work… When you start to question whether you simply don’t have the time to try and balance everything, it may be time to re-evaluate your involvement in the agency and consider whether you still have the capacity to continue running it effectively. If you find that you no longer have the time or energy to devote to your agency, it may be best to consider hanging up your boots.
Running a digital agency can be expensive! If you are struggling to make ends meet or in constant churn, it may be time to consider calling it a day and exploring your options.
If you are unhappy with the quality of work you are producing, compared to what you used to produce, it may be time to hand the reigns over to somebody else.
Sometimes, new opportunities arise in life that is too good to turn down. Sometimes, we must consider what is best for ourselves and how that will affect our time with our current workload. If you have been presented with a new opportunity that you think would be a better fit for you, then it might be time to sit down and have a cup of coffee and a good old think about the future! At the end of the day, it’s about what’s best for you and your agency.
Finding a Successor
Identifying Qualified Candidates
Identifying a candidate isn’t exactly a simple process. However, you want to leave your digital agency in capable hands and with someone who understands the current culture of processes in your agency. It’s so important to take the time to research potential candidates and make sure they have the necessary experience and know-how in order to run your agency. Look for people with a track record of success and who understand the complexities of running an agency. It’s also worth considering reaching out to industry professionals, colleagues, or former employees who may know potential candidates. You never know, one of your LinkedIn connections may be your potential buyer who fits the criteria! Also, don’t forget to look within your own team to see if anyone is ready for the challenge.
Once you have identified potential candidates, it’s important to vet them thoroughly before making a final decision. This will help ensure that only qualified applicants are considered for the role. Ask each applicant about their experience in managing digital agencies, as well as their strategies for agency growth. At the end of the day, you want your agency to be left in capable hands!
Drafting a Buyout Agreement
Okay, so you’ve got the person you want… It is important to draft a buyout agreement. This agreement should outline the terms of the sale, including the purchase price, payment terms, and any other pertinent details. This part is vitally important, so make sure to do this properly and thoroughly to ensure both parties are happy with the deal. If you’re unsure, then ask one of our exit agency experts.
It is also important to consider the impact of the buyout on your existing team. An acquisition can be hard on some staff, especially if they have no idea what’s going on. Depending on the size of your agency, you may be hiring new employees or re-assigning roles. It’s important that everyone is properly informed and knows their role in order to ensure a smooth transition.
Additionally, it’s important to consider the tax implications of the acquisition. You may have to pay capital gains or other taxes depending on the transaction structure. Make sure you are aware of all tax laws and obligations before signing any buyout agreement. You should definitely seek some expert advice if you’re unsure about the whole process!
Gathering Necessary Documents
Before you can hand over the keys to your agency protege, you will need to gather all the necessary documents and paperwork. This includes contracts, financial statements, and other documents related to your agency. Make sure this information is well organized and easy to understand so it will be easier for the new owner to take over.
You should also provide an inventory of all digital equipment and software used in running your digital agency. Along with these items, you may need to transfer domain names, hosting contracts, or website licenses. You will want to check your contracts carefully for details about transferring ownership or cancelling services. This part is vitally important, so make sure to take your time when you’ve got to this stage!
Finally, make sure to include detailed instructions on how processes are handled within your agency. This includes customer service policies, billing procedures, and other administrative tasks. Your successor should understand how to saddle the agency in order to carry on BAU!
Preparing Your Current Clients for the Transition After You Exit Your Digital Agency
Setting Clear Expectations
Your clients are like water to a seed. You need clients in order to grow. That’s why it’s important to communicate the details of the transition and provide them with a timeline of when they can expect to receive services from the new owner. Establish a plan for how the current services will be transitioned to the new owner, as well as any additional changes in service delivery or support that may occur.
Then, discuss the financial details of the transition with your clients before it occurs. Set expectations about when payments should be made and if there are any outstanding fees that need to be paid or refunds due. Furthermore, make sure to express any remaining commitments that you have to your clients so they know what kind of support they can expect.
Implementing a Smooth Transition
The key to a successful transition is to implement a smooth transition process. Make sure to provide your successor with all the necessary documents and paperwork, as well as a detailed overview of your current clients and their needs. Provide the new owner with clear instructions about how to manage your current clients (some clients require more time than others), as well as any contacts that have been made over the years. It is also important to provide a timeline and plan for transitioning each client smoothly.
Communication is integral during this process. Proper communication between yourself, the new owner, and any affected clients should be maintained throughout the transition period. Make sure all parties involved are aware of changes in ownership and expectations so there are no surprises or confusion. Keep all relevant stakeholders informed of progress on the transition and be transparent about any issues that may arise.
Finally, make sure you leave enough time for training and familiarising the new boss with your current operations.
Establishing a Plan Once You Exit Your Digital Agency
A few million dollars sound nice at the time, right? (Depending on how much you’ve agreed to sell the agency for). But it is important to create a financial plan for yourself after the transition has taken place. Make sure to set aside enough money to cover any expenses you may incur during the transition and create a budget that will help you manage your money effectively. Furthermore, assess your current financial situation to determine if you will need any additional financing options. Make sure to compare different investments and loan options so that you can make an informed decision. Additionally, try to anticipate any upcoming expenses that may be related to closing shop or starting a new venture. Lastly, create an emergency fund in case of unforeseen circumstances that could affect your finances. Having a financial plan in place can ensure that the transition is less stressful and more successful.
Also, consider having regular check-ins with a financial advisor or tax professional who can help guide you through the entire process. A qualified professional can provide sound advice on how best to manage your money during this transition period as well as what investments are best suited for your needs. It’s important to not let money get to your head!
Creating a Network of Resources
Once the transition has been completed, it might be worth creating a network of resources that you can rely on in the future. This should include people who can provide you with advice and guidance, as well as professionals who can help you with legal, financial, and other matters.
Furthering Your Career After You Exit Your Digital Agency
Finally, it is important to consider furthering your career after the transition has been completed. Explore new opportunities and consider taking on new roles that can help you grow professionally. You may even want to take on additional training or education that can help open new doors and increase your chances of success. Consider networking with other digital professionals and leveraging their knowledge and experience to assist in developing key connections. This will be beneficial as you look to create opportunities for yourself in the future.
Making the decision to exit your digital agency isn’t easy, but it can also be a rewarding and liberating experience. By following the tips outlined in this article, you can ensure that the transition is smooth and successful. Make sure to identify qualified candidates, draft a buyout agreement, prepare your clients for the transition, and establish a post-transition plan. With the right plan in place, you can ensure that your digital agency is in good hands and that you can move on to the next stage of your career.
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