Let’s be brutally honest for a moment. The digital marketing landscape is absolutely littered with agencies that are one bad month away from closing their doors. It’s not because they’re rubbish at SEO, PPC, web development, or whatever service they’re flogging. It’s because they’re absolutely shocking at running a business.
I’ve spent over a decade watching technically brilliant people build agencies that eventually implode. The pattern is always the same: a talented specialist decides they’re fed up making someone else rich, strikes out on their own, wins a few clients through their network, and then hits a growth ceiling they can’t break through. Sound familiar?
The problem isn’t their technical skills. It’s that nobody ever taught them how to actually run a business. They’re trying to build a company using nothing but technical expertise and vibes. It’s like trying to perform surgery after only watching Grey’s Anatomy. Entertaining? Perhaps. Effective? Not bloody likely.
Here’s the thing most agency founders miss: there’s a massive difference between growing slowly and accelerating strategically. The former means you’re adding clients, revenue, and headcount in a plodding, reactive fashion. The latter means you’re deliberately building systems, leadership capacity, and strategic positioning that compounds your progress.
The average agency takes 7-10 years to reach £1 million in revenue. The top performers do it in 2-3. What’s the difference? It’s not talent. It’s not luck. It’s not even the market they’re in. It’s their approach to acceleration.
The slow-growth crowd spends years making the same mistakes: – Reinventing processes for every new client – Letting the founder become the bottleneck for every decision – Hiring reactively when they’re already drowning – Pricing based on what competitors charge rather than value delivered – Building no systems until they’re forced to by crisis
Meanwhile, the accelerators take a different path: – Creating scalable systems from day one – Developing leadership capacity across the team – Hiring ahead of the growth curve – Pricing based on value and client outcomes – Building an operating rhythm that doesn’t depend on the founder
As my grandmother used to tell me, “Less haste, more speed, Christopher!” Rushing about frantically doesn’t accelerate growth—it just makes you tired. Strategic acceleration comes from slowing down enough to build the right foundations, then systematically removing the friction that holds most agencies back.
This playbook exists because I’m tired of watching good agencies fail for entirely preventable reasons. Before I exit the industry, I want to drop the most comprehensive guide to building, running, scaling, and exiting an agency that’s ever been written. No fluff, no generic business advice repackaged for agencies, and absolutely no bullshit.
This isn’t for everyone. If you’re looking for a feel-good pep talk about how your agency is special and unique, you’ve come to the wrong place. This is for:
If you’re happy running a lifestyle business that pays the bills but never scales beyond you and a handful of people, that’s a perfectly valid choice. This playbook isn’t for you. This is for the ambitious ones who want to build something substantial, scalable, and eventually sellable.
This isn’t a bedtime novel. It’s a practical manual that should get dog-eared, highlighted, and referenced repeatedly. Each section is designed to be actionable, with clear frameworks and examples you can implement immediately.
The structure follows the natural lifecycle of an agency:
You don’t need to read it cover to cover (though it wouldn’t hurt). If you’re already established but struggling with a specific aspect of your agency, jump straight to that section. Each chapter stands alone while fitting into the broader narrative.
I’ve structured each section to follow a simple format:
Throughout the guide, you’ll find references to my other book, CTRL ALT LEAD, which dives deeper into the leadership and management aspects of running a digital agency. Think of this guide as your operational playbook, with CTRL ALT LEAD as your leadership companion.
The digital agency world doesn’t need another technical guide. There are plenty of resources teaching you how to do better SEO, run more effective PPC campaigns, or build prettier websites. What’s missing is the business layer, the operational expertise that turns technical skill into a thriving company.
I’ve built, scaled, and exited multiple agencies. I’ve coached dozens more. I’ve seen the same mistakes repeated so often I can predict them before they happen. And I’m frankly fed up watching talented people struggle unnecessarily because nobody taught them the business fundamentals.
The industry is full of dickheads who can do SEO or PPC or development, but few who can run a business. This playbook aims to change that. By the time you finish reading, you’ll have a comprehensive understanding of what it takes to build an agency that doesn’t just deliver great work, but also generates consistent profit, scales effectively, and eventually becomes an asset you can sell.
Let’s get started, shall we?
If you’re reading this, you’ve probably already decided to start an agency or you’re running one that needs a proper direction. Either way, you’re about to learn why most agencies end up as glorified freelancers with extra overhead rather than proper businesses.
The difference between agencies that plateau at 5-10 people and those that grow into proper businesses almost always comes down to vision and positioning. It’s not sexy, it doesn’t involve fancy tech, and it’s certainly not as fun as designing a logo or building a website. But get this right, and everything else becomes significantly easier.
Let’s start with the uncomfortable bit. Not everyone is suited to running an agency, and that’s perfectly fine. Technical brilliance doesn’t automatically translate to business acumen or leadership ability. Before you sink your life savings and sanity into this venture, let’s figure out if you’re actually ready.
The DISC profiler isn’t just another personality test to make HR feel important. It’s a genuinely useful tool for understanding your natural tendencies, strengths, and blind spots as a leader.
In simple terms, DISC measures four primary behavioral traits:
Why does this matter for agency owners? Because your DISC profile will directly impact:
For instance, high D/I profiles (dominant, influential) often build sales-driven agencies with strong new business pipelines but might struggle with delivery consistency and operational discipline. Meanwhile, high S/C profiles (steady, compliant) might build agencies with exceptional delivery quality but struggle with growth and business development.
Neither profile is inherently better, but knowing your profile helps you:
If you haven’t taken a DISC assessment yet, do it now. Not later, not when you have time, now. It’s that important. There are plenty of free versions online, but investing in a proper assessment with interpretation is worth every penny.
Before we go any further, answer these questions honestly:
If you answered “no” to more than one of these, you might want to reconsider whether agency ownership is right for you. There’s no shame in being an exceptional practitioner rather than a business owner. In fact, the world needs more brilliant practitioners and fewer mediocre agency owners.
Here’s a truth that many agency founders miss: being good at a service and running a business that provides that service are entirely different skill sets.
I’ve seen countless SEO experts, developers, and designers start agencies because they’re brilliant at their craft. Six months in, they’re drowning in admin, struggling with client management, and wondering why they’re working twice as hard for the same money they made as an employee.
Running an agency requires you to develop skills in:
If you’re not willing to learn these skills or hire people who have them, you don’t want an agency. You want a freelance practice with better branding. And that’s fine! But be honest with yourself about what you’re building.
The fastest way to create a forgettable agency is to be a generalist. “We do digital marketing for everyone” is not a positioning statement; it’s an admission that you haven’t done the hard work of defining who you actually serve.
Specialisation isn’t just marketing advice; it’s a fundamental business principle that affects everything from your profit margins to your ability to scale.
When you specialise, you:
The most common objection I hear is: “But won’t we miss out on opportunities if we specialise?” The answer is yes, and that’s the point. Strategy is about choosing what not to do as much as what to do. You’re deliberately excluding opportunities that don’t align with your focus so you can excel at the ones that do.
Not all niches are created equal. The ideal niche has:
To identify these niches, start by analysing:
Once you’ve identified potential niches, test them by:
The goal is to validate your niche before going all-in. A good niche feels like a perfect fit, not a forced constraint.
Even with careful selection, you might find that your chosen niche isn’t working out. The key is knowing when to pivot and when to persevere.
Consider pivoting when:
Double down when:
Remember, the goal isn’t to find a perfect niche immediately. It’s to make an informed choice, commit to it long enough to see if it works, and be willing to adjust based on real-world feedback.
Having a niche is only half the battle. Within that niche, you need a compelling reason for clients to choose you over alternatives. This is your Unique Value Proposition (UVP).
A strong UVP answers the question: “Why should I choose you, and why should I stay with you?” It’s not just about winning clients; it’s about keeping them.
The best UVPs are:
For example, “We help B2B SaaS companies increase trial conversions through data-driven UX optimisation” is far stronger than “We build websites that convert.”
Your UVP should be evident in:
When done right, your UVP becomes a filter that attracts ideal clients and repels poor fits, saving you time and resources.
A UVP isn’t something you create in isolation and then set in stone. It’s a hypothesis that needs testing and refinement based on market feedback.
To test your UVP:
The goal is to refine your UVP until it consistently attracts the right clients and sets expectations that you can exceed.
The digital agency landscape is crowded with lookalikes. Agencies that claim to be “data-driven,” “results-focused,” or “strategic partners” without any substance behind those claims.
To avoid becoming just another forgettable agency:
Remember, if you can swap your agency name with a competitor’s and your marketing still makes sense, you don’t have a distinctive position.
Finally, let’s talk about vision. Not the fluffy mission statement kind, but the practical “where is this business going” kind.
A clear vision answers questions like:
Without answers to these questions, you’ll make decisions reactively rather than strategically. You’ll chase opportunities that don’t align with your long-term goals. You’ll build a team that isn’t equipped for your intended future.
Your vision doesn’t need to be grandiose. It can be as simple as “Build a 20-person agency specialising in e-commerce UX that generates £2M in annual revenue with 20% profit margins, creating fulfilling careers for our team and measurable growth for our clients.”
What matters is that it’s specific, achievable, and genuinely reflects what you want to build.
Vision and positioning aren’t one-time exercises. They’re ongoing processes that evolve as your agency grows and markets change. The key is to start with clarity, test your assumptions, and refine based on real-world feedback.
Remember:
Get these elements right, and you’ll have a foundation for an agency that doesn’t just survive but thrives. Get them wrong, and you’ll join the ranks of forgettable agencies struggling to stand out in an overcrowded market.
In the next chapter, we’ll explore how to turn this vision and positioning into a proper business structure that supports your ambitions.
After establishing your vision and positioning, the next critical factor that will determine your agency’s success is leadership. Most agency founders focus exclusively on client work and operational systems while neglecting the human element that ultimately drives performance.
Let me be blunt: your agency will never outgrow your leadership capacity. You can have the perfect niche, brilliant positioning, and cutting-edge services, but if you’re a rubbish leader, you’ll build a rubbish agency. Full stop.
Ever wonder why so many agencies plateau at around 10-15 people? It’s rarely because of market conditions or service quality. It’s almost always because the founder has reached the limits of their leadership capacity.
The skills that got you to £500K in revenue won’t get you to £1M. And the skills that got you to £1M definitely won’t get you to £5M. Each growth stage requires a different leadership approach:
Most agency founders get stuck at the transition from small to medium because they can’t let go of direct control. They become the bottleneck for decisions, client relationships, and quality control. The result? Growth stalls, team members get frustrated, and the founder burns out.
As I discuss in more depth in CTRL ALT LEAD, this bottleneck is often more emotional than practical. It’s not that founders can’t delegate; it’s that they won’t. They’re afraid of losing control, afraid of others making mistakes, and afraid of becoming irrelevant.
One of the most powerful frameworks for agency leadership is the Situational Leadership Model developed by Paul Hersey and Ken Blanchard. It’s based on a simple but profound insight: different team members need different leadership styles depending on their development level.
The model identifies four development levels:
For each development level, there’s a corresponding leadership style:
The magic happens when you match your leadership style to each team member’s development level for specific tasks. Notice I said “for specific tasks” – someone might be a D4 in client communication but a D1 in financial analysis.
In practice, this means:
The most common leadership mistake in agencies is using a one-size-fits-all approach. Micromanaging experienced team members is as damaging as abandoning newcomers to “figure it out.”
For a deeper exploration of how to apply Situational Leadership in digital agencies, see Chapter 3 of CTRL ALT LEAD.
Another powerful framework is Action Centered Leadership, which focuses on balancing three core responsibilities:
Most agency founders excel at task needs (they’re often technically brilliant) but neglect team and individual needs. They focus on what needs to be done without considering how it should be done or who should do it.
The result? High turnover, team burnout, and a culture of overwork and underappreciation.
To balance these three areas:
The most successful agency leaders spend roughly equal time on all three areas, adjusting as needed based on the situation. During a client crisis, task needs might temporarily take priority. During team expansion, team needs might require more focus.
Beyond frameworks, there are four personal competencies that every agency leader must develop:
Empathy isn’t just a nice-to-have soft skill; it’s a business essential. In an agency context, empathy allows you to:
Practical ways to develop empathy include:
Respect goes beyond basic politeness. It’s about genuinely valuing the expertise, perspectives, and contributions of others. In agencies, respect manifests as:
To demonstrate respect consistently:
Integrity is the alignment between what you say and what you do. It’s the foundation of trust, and without trust, you can’t lead effectively. Integrity in agency leadership means:
To strengthen your integrity:
Trust is the culmination of empathy, respect, and integrity. It’s also the prerequisite for high performance. When trust exists:
To build trust within your agency:
Let’s talk about something agency founders rarely discuss openly: the emotional rollercoaster of scaling an agency. Growing from a solo operation to a proper business isn’t just a logistical challenge; it’s an emotional marathon.
As your agency grows, you’ll inevitably face periods of intense self-doubt. You’ll question whether you’re qualified to lead, whether you’re making the right decisions, and whether you’re just fooling everyone, including yourself.
This imposter syndrome is nearly universal among agency founders, but few talk about it openly. They put on a brave face while privately wondering if they’re out of their depth.
The truth? Everyone feels this way at times. The difference between those who push through and those who plateau is not the absence of doubt, but the response to it.
Practical strategies for managing imposter syndrome include:
As your agency grows, you’ll find yourself increasingly isolated. You can’t share certain concerns with your team. You need to maintain confidence even when you’re uncertain. You bear responsibilities that others don’t fully understand.
This isolation can lead to poor decision-making, increased stress, and burnout if not addressed proactively.
To combat leadership loneliness:
Perhaps the most challenging transition is the shift in identity from practitioner to leader. Many agency founders derive their self-worth from their technical skills. As the agency grows, they must increasingly focus on leadership rather than doing the work they originally loved.
This identity shift can trigger a sense of loss and resistance to growth. You might find yourself clinging to client work or technical tasks rather than embracing your leadership role.
To navigate this transition:
Remember, growing an agency isn’t just about building a business; it’s about personal growth. The challenges you face will force you to develop not just as a leader but as a person.
For a deeper exploration of the emotional aspects of agency leadership, see Chapter 8 of CTRL ALT LEAD on “Managing Stress as a Leader or Manager.”
Leadership isn’t just about personal qualities; it’s also about creating systems that enable effective leadership throughout your agency. As you grow, you need to move from ad hoc leadership to systematic leadership development.
To simplify this process, I’ve developed the OMG Leadership Framework, which focuses on three key elements:
Implementing these systems doesn’t happen overnight. Start with the elements most critical to your current growth stage, then build from there.
Leadership isn’t theoretical; it’s practical. Here are specific actions you can take immediately to strengthen leadership in your agency:
Remember, leadership isn’t about being perfect; it’s about continuous improvement. The best agency leaders are those who recognize their limitations and actively work to overcome them.
In the next chapter, we’ll explore how to translate your vision and leadership into effective business structures and systems.
So you’ve decided you’re cut out for agency life and you’ve got a clear vision of what you’re building. Congratulations, you’ve made it further than most. Now it’s time for the boring but absolutely critical bit: setting up your business properly.
I know, I know. You’d rather be designing your logo or building your website or doing literally anything else. But get this wrong, and you’ll be paying for it for years, possibly with interest and legal fees. Get it right, and you’ll have a solid foundation that supports your growth rather than hindering it.
The legal structure of your agency isn’t just admin faff. It affects everything from how much tax you pay to your personal liability if things go pear-shaped. It also impacts how you can raise money, distribute profits, and eventually sell the business.
For most UK agencies, there are three main options:
Sole Trader – Simplest to set up and run – No separation between you and the business – Unlimited personal liability (your house, car, everything is at risk) – All profits taxed as personal income – Limited credibility with larger clients
Limited Liability Partnership (LLP) – Good for multiple founders with equal standing – Some protection from personal liability – Profits taxed as personal income for partners – More complex accounting requirements – Each partner is responsible for their own tax
Limited Company – Separate legal entity from founders – Limited liability protection – More tax-efficient once profits exceed about £40K – More credibility with enterprise clients – More complex and costly to administer
For most growing agencies, a limited company is the right choice. It offers the best balance of liability protection, tax efficiency, and credibility. The extra admin is a small price to pay for not losing your house if a client decides to sue.
If you’re starting solo with modest ambitions, a sole tradership might make sense initially. Just be aware that you’ll likely need to convert to a limited company as you grow, which can be a faff.
LLPs are relatively rare in the agency world but can work well for partnerships where all founders are actively involved and want equal standing. They’re less suitable if you plan to raise investment or sell the business down the line.
If you’re setting up a limited company with multiple shareholders (even if it’s just you and a business partner), you absolutely need a shareholders agreement. This isn’t optional; it’s essential.
A good shareholders agreement covers:
Yes, it’s uncomfortable to think about these scenarios when you’re just starting out. It’s even more uncomfortable to deal with them without an agreement in place. Spend the money on a proper legal document now, or spend 10x more sorting out the mess later.
Beyond the legal shareholders agreement, you need what I call a “founders pact.” This is a more personal agreement about how you’ll work together and what you’re trying to build.
Have explicit conversations about:
These conversations are awkward. Have them anyway. The most painful agency breakups I’ve witnessed happened because founders assumed they were on the same page without actually checking.
Nothing kills agencies faster than poor financial management. You can be brilliant at your craft and terrible with money, and you’ll still fail. Here’s how to get the basics right.
Don’t wait until you’re making “real money” to set up proper accounting systems. Start as you mean to go on.
At minimum, you need:
Set up your accounting system to track:
This level of detail might seem excessive when you’re small, but it gives you invaluable insights as you grow. You’ll quickly spot which services are most profitable, which clients are costing you money, and where your overhead is creeping up.
Most agency forecasts are works of fiction that would make J.K. Rowling proud. They’re based on hope rather than reality, and they’re usually wildly optimistic.
Effective forecasting requires:
Your forecast should include:
Remember, the goal isn’t to predict the future perfectly. It’s to have a clear enough picture that you can make informed decisions and spot potential problems before they become crises.
Nothing is certain except death and taxes, and both require planning.
Tax Planning
Work with your accountant to:
Insurance
At minimum, you need:
Other Critical Admin
Don’t forget:
None of this is exciting, but all of it is essential. Skimping on these basics is like building a house without foundations. It might stand for a while, but eventually, it will collapse.
Your service catalogue and pricing strategy are the engine that drives your agency’s profitability. Get them right, and everything else becomes easier. Get them wrong, and you’ll be working harder than necessary for less money than you deserve.
There are broadly three pricing models for agencies:
Time-Based Pricing – Charging by the hour or day – Easy to calculate and explain – Caps your earning potential – Creates misaligned incentives – Commoditises your expertise
Project-Based Pricing – Fixed fee for defined deliverables – Clearer for clients – Rewards efficiency – Requires accurate scoping – Still tied to inputs rather than outcomes
Value-Based Pricing – Fees based on the value delivered to clients – Highest profit potential – Aligns your incentives with client success – Requires deep understanding of client business – Can be harder to sell initially
The progression from time-based to value-based pricing typically follows agency maturity. Most start with hourly rates because they’re simple, then move to project fees as they gain confidence, and eventually adopt value-based pricing as they develop deeper expertise and client relationships.
The key is to move up this ladder as quickly as possible. Time-based pricing is a trap that limits your growth and profitability. It turns your expertise into a commodity and caps your earning potential at the number of hours you can bill.
Value-based pricing, on the other hand, ties your fees to the outcomes you deliver. If you can generate £500,000 in additional revenue for a client, charging £50,000 is a bargain for them and highly profitable for you, regardless of how many hours it takes.
The holy grail for agencies is a healthy base of retainer clients providing predictable monthly revenue, supplemented by higher-margin project work that adds variety and growth potential.
Retainer Benefits – Predictable revenue – Deeper client relationships – More strategic work – Lower sales costs over time – Better resource planning
Project Benefits – Higher margins (typically) – Portfolio diversity – New client opportunities – Team variety and development – Cash flow boosts
The ideal mix depends on your agency’s maturity and growth goals. As a rough guide:
Converting project clients to retainers should be a core strategy. The best approach is to start with a well-defined project that demonstrates your value, then propose a retainer to maintain and build on the results.
Effective retainers need:
Remember, retainers aren’t just about securing revenue. They’re about building deeper partnerships where you become integral to your clients’ success.
Revenue is vanity, profit is sanity. Your pricing strategy needs to focus on profitability, not just top-line growth.
To price for profit:
A simple formula for project pricing:
(Direct costs + Overhead allocation) ÷ (1 – Target profit margin) = Minimum price
For example, if a project has: – £5,000 in direct costs – £2,000 in overhead allocation – 30% target profit margin
The calculation would be: (£5,000 + £2,000) ÷ (1 – 0.3) = £7,000 ÷ 0.7 = £10,000
This £10,000 is your floor, not your ceiling. If the value to the client is higher, your price should reflect that.
For retainers, ensure you’re factoring in:
Finally, review your pricing regularly. At minimum:
Too many agencies set their prices when they start and never revisit them, even as their expertise and market position strengthen. Don’t be one of them.
Your technology stack is the backbone of your agency operations. The right tools make you more efficient, improve client service, and provide valuable insights. The wrong ones waste time, create frustration, and drain resources.
Every agency needs these core systems:
Project Management – Options: Clickup, Asana, Monday.com, Trello – Must-haves: Task assignment, time tracking, client access, file storage – Nice-to-haves: Automation, templates, reporting, integrations
Finance and Accounting – Options: Xero, QuickBooks, FreeAgent – Must-haves: Invoicing, expense tracking, bank reconciliation, tax reporting – Nice-to-haves: Time tracking integration, project profitability, forecasting
CRM and Pipeline Management – Options: HubSpot, Pipedrive, Salesforce – Must-haves: Contact management, deal tracking, email integration, task reminders – Nice-to-haves: Marketing automation, proposal generation, reporting
Communication and Collaboration – Options: Slack, Microsoft Teams, Google Workspace – Must-haves: Internal chat, file sharing, video calls, email – Nice-to-haves: Client channels, integrations, search functionality
Time Tracking and Resource Management – Options: Harvest, Toggl, Float – Must-haves: Time entry, project budgeting, reporting – Nice-to-haves: Scheduling, capacity planning, invoicing integration
Document Management – Options: Google Drive, Dropbox, Microsoft OneDrive – Must-haves: File storage, sharing, version control – Nice-to-haves: Templates, approval workflows, client portals
Choose tools that:
Remember, the goal is efficiency, not tool collection. Every tool should solve a specific problem or create a specific benefit. If it doesn’t, you don’t need it.
The power of your tech stack comes not just from individual tools but from how they work together. Prioritise these integrations:
Modern tools offer native integrations, API connections, or middleware like Zapier to connect systems. Invest time in setting these up properly; the efficiency gains are substantial.
Tool proliferation is a common agency ailment. You start with a few essentials, then add “just one more” repeatedly until you’re paying for dozens of subscriptions and your team is jumping between systems all day.
To avoid tool bloat:
Remember, every new tool adds complexity as well as capability. The productivity gains need to outweigh the cognitive load of learning and using another system.
Business formation isn’t the sexy part of agency life, but it’s the foundation everything else is built on. Get it right, and you’ll have a stable platform for growth. Get it wrong, and you’ll be constantly fixing problems instead of focusing on opportunities.
To recap the essentials:
With these foundations in place, you’re ready to focus on the next challenge: winning the right clients at the right price. We’ll cover that in the next chapter.
So you’ve got your agency set up properly with a clear vision, solid legal structure, and the right systems in place. Brilliant. Now for the part that actually keeps the lights on: winning clients.
This is where most agencies go wrong. They either take a completely passive approach, waiting for referrals to magically appear, or they go to the opposite extreme with desperate cold outreach that reeks of commission breath. Neither works particularly well.
What does work is a systematic approach to identifying, attracting, and converting the right clients for your agency. Notice I said “right clients,” not just “any clients.” One of the biggest mistakes agencies make is working with clients who aren’t a good fit, simply because they need the revenue. This is a short-term fix that creates long-term problems.
Let’s break down how to build a client acquisition machine that brings in the right kind of work at the right price.
Before you start selling, you need to know who you’re selling to and what they actually need. This sounds obvious, but it’s amazing how many agencies skip this step and jump straight to pitching.
Effective market intelligence starts with understanding:
To gather this intelligence:
The goal is to identify patterns and opportunities that others have missed. Maybe there’s a specific pain point that no one is addressing well. Or perhaps there’s a type of client that’s being overlooked because they don’t fit the typical profile.
Most competitor analysis is a waste of time. Agencies obsess over what their competitors are saying rather than what they’re actually doing. They end up with beautiful spreadsheets comparing website messaging that has little relation to reality.
Useful competitor analysis focuses on:
The best sources for this information are:
Remember, the goal isn’t to copy competitors but to understand the competitive landscape so you can position yourself effectively. Look for the white space where you can offer something distinctive.
Data-driven new business isn’t just for the big agencies. Even small shops can use data to focus their efforts and improve results.
Key metrics to track include:
This data helps you:
Start simple with a spreadsheet tracking these basics, then graduate to a proper CRM as your pipeline grows. The insights from even basic data analysis can transform your new business effectiveness.
Referrals are great, but they’re not a strategy. They’re too passive and unpredictable to build a business around. You need a mix of lead generation approaches that you can control and scale.
Inbound marketing works particularly well for agencies because you’re selling expertise, which can be demonstrated through content. But it needs to be done right.
Effective inbound strategies include:
The key is consistency and quality over quantity. One exceptional piece of content that genuinely helps your target clients is worth more than a dozen forgettable blog posts.
Distribution is just as important as creation. Your brilliant content is worthless if no one sees it. Develop a systematic approach to:
Remember, inbound is a long game. It typically takes 6-12 months to start generating significant results, but the leads it produces are often higher quality and easier to close.
Outbound gets a bad rap because most agencies do it terribly. They send generic pitches to unqualified prospects, then wonder why no one responds. Done properly, outbound can be highly effective, especially for reaching specific target accounts.
Better outbound approaches include:
The key is research and relevance. Before reaching out, understand:
Then craft outreach that demonstrates this understanding. Generic templates that could be sent to anyone will be treated like the spam they are.
A good outbound message:
It’s better to reach out to 10 prospects with highly personalised approaches than blast 100 with generic messages. Your response rate and conversion quality will be far higher.
While passive referrals aren’t a strategy, active partnership and referral programmes absolutely are. These create systematic ways to leverage relationships for new business.
Effective partnership strategies include:
To make partnerships work:
The best partnerships are those where both parties have a vested interest in each other’s success. Look for opportunities where your services enhance or extend what your partners offer, creating a better overall solution for clients.
Most networking is a waste of time. Generic business events filled with other people trying to sell their services rarely generate quality leads. But targeted events with the right audience can be goldmines.
Focus on:
The key is preparation and follow-up:
Remember, the goal isn’t to collect as many business cards as possible. It’s to have meaningful conversations with the right people that lead to ongoing relationships.
Having a consistent sales process is what separates professional agencies from amateurs. It creates predictability, improves conversion rates, and ensures you’re not wasting time on prospects who aren’t serious.
Many agencies overcomplicate their sales pipeline with too many stages or use generic CRM templates that don’t reflect how agency sales actually work. Keep it simple and practical.
A typical agency pipeline might include:
For each stage, define:
This clarity helps you identify where deals are stalling and where you need to improve your process. It also gives you more accurate forecasting based on where opportunities sit in the pipeline.
Not all prospects deserve your time and attention. Proper qualification ensures you’re focusing on opportunities that are worth pursuing.
A simple but effective qualification framework is BANT:
For agencies, I’d add two more criteria:
Be disciplined about qualifying early. It’s better to disqualify a prospect quickly than waste weeks on a proposal that has no chance of closing. And don’t be afraid to requalify throughout the process as you learn more information.
Most agency proposals are terrible. They’re either generic templates with the client name changed, or they’re bloated documents that no one actually reads. Effective proposals are concise, client-focused, and compelling.
The best proposals:
Structurally, keep it simple:
Remember, the proposal should contain no surprises. All key points should have been discussed and agreed upon in principle before the document is sent. The proposal is confirmation, not introduction.
The final stages of winning a client are often where agencies falter. They either give away too much in negotiations or fail to address objections effectively. Confidence and preparation are key.
Closing isn’t about high-pressure tactics. It’s about helping the client make a decision that’s right for them (which, if you’ve qualified properly, is to work with you).
Effective closing techniques include:
The key is confidence. If you believe in the value you provide, asking for the business should feel natural, not uncomfortable. And remember, if you’ve done everything else right, closing should be the easiest part of the process.
Not every opportunity should be pursued to the end. Knowing when to walk away preserves your resources, protects your margins, and maintains your positioning.
Consider walking away when:
Walking away doesn’t have to be confrontational. A simple “I don’t think we’re the right fit for this project, but here are some alternatives that might work better for you” maintains the relationship for future opportunities.
Remember, every client you take on shapes your agency’s future. Bad clients don’t just affect profitability; they drain morale, distract from good clients, and damage your culture. Sometimes the best deals are the ones you don’t take.
Price objections are inevitable, but discounting should be your last resort. It devalues your work and sets a precedent for future negotiations.
Better responses to price objections include:
The key is to never simply drop your price. Always trade value for value. If they need a lower price, what can be removed or adjusted to maintain your margins?
For non-price objections, use the feel-felt-found approach:
This acknowledges the concern, normalises it, and then addresses it with evidence rather than just assertions.
Winning clients consistently isn’t about individual tactics; it’s about building a systematic approach that generates a steady flow of qualified opportunities and converts them efficiently.
Your client acquisition machine should include:
Track key metrics at each stage:
Use these metrics to identify bottlenecks and opportunities for improvement. Is your problem lead volume, lead quality, or conversion? The data will tell you where to focus your efforts.
Remember, new business isn’t just about winning any client; it’s about winning the right clients at the right price. A disciplined approach to client acquisition is the foundation of a profitable, sustainable agency.
In the next chapter, we’ll explore how to deliver exceptional work to the clients you’ve won, turning one-off projects into long-term relationships.
Winning new clients is important, but the real profit engine of successful agencies isn’t new business—it’s expanding and extending relationships with existing clients. The math is simple: it costs 5-10 times more to acquire a new client than to grow an existing one. Yet most agencies focus disproportionately on new business while neglecting the gold mine sitting in their current client base.
In this chapter, we’ll explore how to systematically nurture, expand, and extend client relationships to increase lifetime value and create predictable revenue growth. This isn’t about account management as an afterthought—it’s about building a deliberate client expansion system that drives profitability and stability.
Most agencies treat client relationships as transactional: win the work, deliver the project, hope for more work later. This approach leaves enormous value on the table and creates the constant pressure to find new clients.
Instead of thinking about one-off projects, successful agencies map out the entire client journey and create systems to move clients through progressive stages of engagement. I call this the Client Lifecycle Framework.
The framework consists of five stages:
Each stage requires different approaches, communications, and team capabilities. The goal is to systematically move clients up this value ladder rather than letting relationships stagnate or regress.
For example, during Initial Engagement, you’re focused on exceeding expectations and demonstrating reliability. By the Strategic Partnership stage, you’re having proactive conversations about business strategy and bringing insights beyond your specific service area.
To apply this framework, start by mapping your current client base. For each client, identify:
This mapping exercise often reveals surprising patterns. You might discover that most clients never progress beyond Initial Engagement, or that certain services are more effective at leading to expansion than others.
Use this analysis to identify:
This portfolio view helps you allocate account management resources strategically rather than reactively.
To further refine your approach, I’ve developed the OMG Client Expansion Matrix, which plots clients based on two key factors:
This creates four client categories:
This matrix helps you make tough decisions about where to invest your limited account management resources. Not all clients deserve the same level of attention—strategic allocation based on value and potential yields better results than treating all relationships equally.
For a deeper exploration of strategic client relationship management, see Chapter 12 of CTRL ALT LEAD on “Building Strategic Partnerships.”
Hope is not a strategy, yet many agencies “hope” clients will give them more work rather than deliberately planning for expansion. Effective account planning creates intentional pathways to growth.
For your high-value and high-potential clients, develop formal account plans that guide relationship development. Effective account plans include:
The key is specificity. “Grow the account by 20%” isn’t a strategy; it’s a wish. “Introduce our social media services to the CMO by leveraging our successful SEO results” is a strategy with clear actions and ownership.
Review and update these plans quarterly to ensure they remain relevant and progress is being made. The discipline of regular review is often what separates successful account growth from stagnation.
Client relationships are actually networks of individual connections. Understanding and expanding this network is critical for account growth and retention.
For each key client, map:
For each person, identify:
This mapping reveals both vulnerabilities (e.g., single-threaded relationships) and opportunities (e.g., unexplored connections to other departments). Use it to develop specific plans for strengthening and expanding your network within the client organization.
Remember, client organizations aren’t monoliths—they’re collections of individuals with different priorities and perspectives. Your expansion strategy needs to account for these human factors, not just service offerings.
Expanding client relationships typically happens through cross-selling (adding new services) or up-selling (increasing the scope of existing services). Both require strategic approaches rather than opportunistic pitching.
Effective cross-selling strategies include:
Effective up-selling strategies include:
The key to both approaches is value justification. Every expansion should have a clear ROI narrative that explains why the additional investment makes business sense for the client. This shifts the conversation from cost to value, making approval more likely.
Client retention isn’t about luck or even just doing good work. It’s about creating systematic approaches to ensuring client success and satisfaction.
The client relationship trajectory is often set in the first 30-90 days. A strong onboarding process not only ensures initial success but also lays the groundwork for future expansion.
Effective onboarding includes:
Document your onboarding process and make it consistent across clients. This creates a reliable foundation for every relationship and prevents the common problem of starting strong but quickly losing momentum.
The onboarding period is also when you establish communication rhythms and reporting frameworks that will sustain the relationship. Getting these right from the start prevents many common client satisfaction issues.
Nothing kills client relationships faster than communication failures. Proactive communication is the antidote, creating transparency and trust even when challenges arise.
Implement systematic communication approaches:
Reporting should go beyond activity metrics to focus on outcomes and business impact. Connect your work to the client’s actual business objectives, not just the immediate deliverables.
For example, don’t just report on “10 blog posts published” but on “10 blog posts published, generating 5,000 new visitors and 150 qualified leads.” This outcomes-focused reporting builds perceived value and justifies continued or expanded investment.
Don’t wait for clients to tell you they’re unhappy—by then, it’s often too late. Implement systems to monitor client health and address issues before they become critical.
Effective health monitoring includes:
Create clear intervention protocols for different risk levels:
The key is early detection and swift response. Most client relationships don’t fail suddenly—they deteriorate gradually through small disappointments and unaddressed issues. Systematic monitoring catches these patterns before they become terminal.
As I discuss in CTRL ALT LEAD, this approach applies the principles of situational leadership to client relationships. Different situations require different leadership styles, and recognizing when to shift from a supportive to a more directive approach with struggling client relationships is crucial.
Clients continue and expand relationships when they clearly see the value you’re creating. Yet many agencies do poor job of demonstrating their impact, assuming good work speaks for itself. It doesn’t.
Different services require different approaches to value demonstration. Develop specific ROI frameworks for each service type:
For performance marketing services (SEO, PPC, etc.): – Revenue or lead attribution models – Cost per acquisition calculations – Return on ad spend metrics – Year-over-year growth comparisons
For creative and brand services: – Brand health metrics – Awareness and perception shifts – Engagement and interaction measures – Conversion rate improvements
For development and technical services: – Performance improvements – Cost reduction calculations – Error rate decreases – Capacity increases
The key is connecting your work to business outcomes the client actually cares about. This often requires looking beyond the immediate metrics of your work to understand its broader business impact.
Different stakeholders care about different aspects of your work. Tailor your value demonstration to each audience:
Create communication formats that serve each group’s needs:
Remember, value that isn’t communicated effectively might as well not exist. Be as intentional about demonstrating impact as you are about creating it.
Successfully completed work creates the platform for relationship expansion, but only if you deliberately leverage it. Create a systematic approach to using proven success as a springboard:
The timing of these activities is crucial. Plan them to coincide with natural decision points in the client’s planning and budgeting cycle, ensuring your expansion proposals align with their internal processes.
The way you structure your client teams significantly impacts your ability to grow relationships. The right team structure creates capacity for strategic thinking and relationship development beyond day-to-day delivery.
Different team structures serve different relationship stages and growth objectives:
Match your team structure to the client’s current lifecycle stage and growth potential. Not every client justifies a strategic partnership team, but your high-potential relationships need more than just efficient delivery.
Strategic account management is a distinct discipline from project management or traditional account service. It requires different skills, mindsets, and performance metrics.
Effective strategic account managers:
Develop these capabilities through:
Many agencies make the mistake of promoting their best project managers to account management roles without providing the training and support needed for this different function. The result is efficient service delivery but limited relationship growth.
Your compensation and incentive structures powerfully influence how client teams behave. Align these structures with your growth objectives:
Avoid incentives that create unintended consequences, such as:
The best incentive structures balance individual rewards with team-based compensation, ensuring everyone is motivated to contribute to client success and growth.
Building a systematic approach to client expansion requires integrating these elements into a coherent playbook that your team can consistently execute.
The first 90 days are critical for setting relationship trajectory. Create a structured plan that includes:
Days 1-30: Foundation Building – Complete thorough onboarding – Establish communication rhythms – Deliver initial quick wins – Map stakeholders and relationships – Identify potential expansion areas
Days 31-60: Value Demonstration – Show measurable progress on initial objectives – Deepen relationships beyond primary contact – Begin educational marketing on additional services – Gather initial feedback and make adjustments – Identify specific expansion opportunity to pursue
Days 61-90: Expansion Groundwork – Deliver compelling results on initial engagement – Present formal success review – Introduce relevant case studies for additional services – Schedule strategic planning session – Present initial expansion proposal
This accelerated approach prevents the common pattern of relationships that start strong but quickly plateau. By creating expansion momentum in the first 90 days, you establish a growth pattern that can continue throughout the relationship.
Implement a structured Quarterly Business Review (QBR) process that goes beyond reporting to focus on strategic relationship development:
Make these reviews forward-looking rather than just backward-reporting. The goal is to use past performance as a platform for future growth, not just as a scorecard.
Involve senior leadership from your agency in QBRs for high-value clients. This demonstrates commitment to the relationship and brings additional strategic perspective to the conversation.
Align with your clients’ annual planning cycles to ensure your services are incorporated into their budgets and strategic initiatives:
Timing is crucial—start these conversations early enough to influence client planning rather than reacting to decisions already made. This typically means beginning annual planning discussions at least 3-4 months before the client’s fiscal year end.
By implementing these systematic approaches to client lifecycle management, you transform client relationships from unpredictable revenue sources to strategic assets that generate consistent growth and profitability. The result is an agency that grows more from existing client expansion than from constant new business pressure—a far more sustainable and profitable model.
In the next chapter, we’ll explore how to build and manage the team that delivers this client work, ensuring you have the right people in the right roles to support your agency’s growth.
Winning clients is one thing. Keeping them is another beast entirely. The sad reality is that most agencies are better at selling than delivering, which is why client churn is such a common problem. You can’t build a sustainable agency if you’re constantly replacing clients who’ve become disillusioned with your service.
Delivery excellence isn’t just about doing good work. It’s about creating a consistent, repeatable process that delivers results, manages expectations, and builds long-term client relationships. It’s the difference between being a flash-in-the-pan agency and building a business with genuine value.
Project management in agencies is often either completely chaotic (“we’re creative, we don’t do process”) or rigidly over-engineered. Neither works particularly well. You need a framework that provides structure without stifling the creativity and adaptability that clients hire you for.
Let’s be honest about methodologies. Pure Agile doesn’t work for most agency projects because clients want predictability on scope, timeline, and budget. Pure Waterfall doesn’t work because requirements inevitably change as projects progress. What works is a pragmatic hybrid approach.
A typical agency hybrid framework might include:
The key is being explicit about what’s fixed and what’s flexible. For example:
This clarity prevents the scope creep that kills agency profitability while still allowing for the adaptation that delivers the best results.
Project management tools are only as good as how you configure them. Clickup is particularly well-suited for agencies when set up correctly, with the right structure of Spaces, Folders, and Lists.
SPACE for Agency Functions
Create separate Spaces for major agency functions:
This separation keeps your workspace organised and ensures team members can focus on relevant areas without distraction.
Folders for Services and Sub-functions
Within each Space, create Folders for specific services or sub-functions:
In Client Services: – SEO – PPC – Web Development – Content Marketing – Social Media
In Operations: – Resource Planning – Quality Assurance – Process Improvement – Tool Management
This structure allows you to standardise processes within each service area while maintaining visibility across the agency.
Lists for Clients/Projects
Finally, create Lists for individual clients or projects:
In the SEO Folder: – Client A SEO – Client B SEO – Internal SEO Projects
Each List should follow a consistent template with: – Standard task types – Custom fields for tracking key information – Automations for routine actions – Views filtered for different team roles
This three-tier structure (Spaces, Folders, Lists) creates a scalable system that grows with your agency while maintaining consistency and visibility.
The single biggest cause of delivery problems isn’t technical failures; it’s misaligned expectations. Setting and managing expectations starts from the very first client interaction and continues throughout the relationship.
Effective expectation management includes:
The onboarding process is particularly critical. Create a structured onboarding sequence that:
Document this in a client welcome pack that serves as a reference point throughout the relationship. When questions or issues arise (and they will), you can refer back to these agreed parameters.
Remember, it’s always better to under-promise and over-deliver than the reverse. Clients remember the gap between expectations and reality more than the absolute level of service.
Quality assurance and reporting are where many agencies fall short. They either deliver work without proper QA, leading to errors and revisions, or they overwhelm clients with data that doesn’t demonstrate actual value.
Clients don’t care about activity; they care about outcomes. Your reporting should focus on the metrics that matter to their business, not the ones that make your work look good.
Effective reporting includes:
Avoid vanity metrics like: – Raw traffic numbers without conversion context – Social media followers without engagement or value – Rankings for low-value keywords – Activity counts (number of posts, ads, etc.)
The best reports tell a clear story: “Here’s where we started, here’s what we did, here’s the impact it had, and here’s what we’re doing next.” They connect your work directly to business results in a way that justifies continued investment.
Most agency reports go unread because they’re too long, too technical, or simply not valuable to the client. Effective reports are concise, visual, and actionable.
Structure your reports in layers:
Customise this structure based on who will be reading the report. A CMO needs different information than a marketing manager or a technical specialist.
Delivery format matters too:
Remember, the goal isn’t just to inform but to demonstrate value and guide decision-making. Every report should answer the question: “So what?”
Transparency builds trust, and trust is the foundation of long-term client relationships. This doesn’t mean sharing every internal detail, but it does mean being honest about what’s working, what’s not, and what you’re doing about it.
Practical transparency includes:
When things go wrong (and they will), transparency determines whether it damages the relationship or strengthens it. Clients are generally understanding of challenges if they’re communicated early, honestly, and with a clear plan to address them.
Create a culture where your team feels safe reporting problems rather than hiding them. The earlier you know about issues, the more effectively you can manage them with clients.
Communication frequency and format significantly impact client satisfaction. Too little communication leaves clients feeling in the dark; too much becomes noise they ignore.
The most effective client communication cadence for most agencies is weekly. This is frequent enough to maintain momentum and address issues promptly, but not so frequent that it becomes overwhelming.
A typical weekly loop includes:
Keep these updates concise, typically no more than a page or a 15-minute call. The goal is to maintain alignment and momentum, not to deep-dive into every detail.
Supplement these weekly loops with:
This layered approach ensures regular touchpoints while still creating space for deeper strategic discussions.
The difference between average and excellent client service often comes down to proactive versus reactive communication. Reactive agencies wait for clients to ask questions or raise concerns. Proactive agencies anticipate needs and address them before they become issues.
Proactive communication includes:
This approach positions you as a strategic partner rather than just a service provider. It demonstrates that you’re thinking about the client’s business beyond the specific tasks you’ve been assigned.
Create systems that support proactivity:
Remember, clients don’t know what they don’t know. Part of your value is bringing expertise and perspective they wouldn’t have otherwise.
Difficult conversations are inevitable in agency-client relationships. How you handle them often determines whether the relationship strengthens or deteriorates.
Common difficult conversations include:
Approach these conversations with:
The format matters too. Some conversations need to happen live (video or phone) rather than in writing. Email can escalate tensions by removing tone and immediate clarification.
When initiating a difficult conversation:
Remember, how you handle problems often has more impact on the relationship than how you handle successes. Clients expect things to go well; it’s how you manage when they don’t that builds lasting trust.
Case studies are powerful sales tools, but many agencies struggle to produce them consistently. The key is building a “case study machine” that captures successes systematically rather than scrambling to document them after the fact.
The best time to start creating a case study is when you’re still actively working on the project. The details, challenges, and results are fresh in everyone’s mind, and the client is (hopefully) excited about the outcomes.
Build case study creation into your project workflow:
This approach makes case study creation an ongoing process rather than a separate initiative that never quite happens. It also ensures you’re capturing the rich details that make case studies compelling.
Client approval is often the biggest bottleneck in case study creation. Make it easier by:
When seeking approval:
Remember, case studies benefit clients too. They showcase the client’s innovation and success, not just your agency’s capabilities. Frame the conversation around this mutual benefit.
Case studies shouldn’t just sit on your website; they should be actively used throughout your sales process to demonstrate capability and build confidence.
Effective case study usage includes:
Create different formats for different stages:
The most powerful case studies don’t just show what you did; they show how you think. They demonstrate your problem-solving approach, your ability to overcome challenges, and your focus on results that matter to the business.
When done right, delivery excellence creates a flywheel effect. Great work leads to client retention and expansion, which provides stable revenue and deeper client knowledge, which enables even better work, and so on.
This flywheel includes:
The goal isn’t just to deliver good work; it’s to create a system that consistently delivers excellent results while building long-term client partnerships.
Remember, it’s far more profitable to retain and grow existing clients than to constantly chase new ones. Delivery excellence is the foundation of sustainable agency growth.
In the next chapter, we’ll explore how to build the team that makes this delivery excellence possible.
You’ve got your agency set up properly, you’re winning the right clients, and you’re delivering excellent work. Now it’s time to focus on the people who make it all happen: your team.
Building a great agency team isn’t just about hiring people with the right skills. It’s about creating a culture where talented people can thrive, establishing systems that bring out their best work, and developing leadership that inspires rather than micromanages.
Let’s break down how to build a team that becomes your agency’s greatest asset rather than its biggest headache.
Most agency hiring is reactive and rushed. A client signs, you’re suddenly swamped, and you hire the first decent candidate you can find. This approach leads to poor fits, culture clashes, and eventual turnover.
A better approach is to create a hiring roadmap that anticipates needs before they become urgent.
The evolution of agency teams typically follows a pattern:
The key is knowing when to make each transition.
Generalists work well in early-stage agencies because they: – Can handle varied client needs – Adapt to changing priorities – Require less management – Provide flexibility as you grow
Specialists become necessary when: – Service quality demands deeper expertise – Client expectations become more sophisticated – Efficiency requires focused roles – You have enough volume in specific areas
A good rule of thumb: When a particular function (SEO, design, development, etc.) consistently takes up one person’s full time for 3+ months, it’s time to consider a specialist.
The mistake many agencies make is hiring specialists too early, creating silos and utilisation problems, or sticking with generalists too long, limiting the quality and scale of work they can deliver.
Your hiring roadmap should map out:
This forward-looking approach prevents the panic hiring that leads to bad decisions and allows you to develop internal talent for future roles.
Most agency job descriptions are generic, boring, and fail to attract the right candidates. They list required skills and experience without conveying what makes the role or agency special.
Effective role descriptions:
For example, instead of: “Seeking experienced PPC Manager with 3+ years experience managing Google Ads campaigns.”
Try: “We’re looking for a PPC Manager who loves turning data into strategy. You’ll manage campaigns that directly impact our clients’ growth, with the freedom to test new approaches and the support to keep developing your skills. Our team celebrates both creativity and analytical thinking, and we’re as serious about results as we are about having a life outside work.”
Be specific about what makes your agency different. If you offer flexible working, say exactly what that means. If you have a unique approach to client work, explain it. Generic statements like “we work hard and play hard” or “we’re like a family” are meaningless and often red flags.
Remember, the goal isn’t to attract as many applicants as possible; it’s to attract the right ones. Be honest about challenges as well as opportunities. The candidates who are excited by the real picture are the ones you want.
Many agencies underestimate the true cost of bringing on new team members, leading to financial strain and unrealistic expectations about how quickly new hires will contribute value.
The full cost of a new hire includes:
A typical agency employee costs 1.5-2x their base salary when all factors are considered. A £40,000 salary actually costs £60,000-£80,000 annually.
New hires also take time to reach full productivity:
During this period, they’re not only less productive but also require significant input from other team members, reducing overall team capacity.
This reality doesn’t mean you shouldn’t hire; it means you should hire with eyes open and plan accordingly. Build these costs and timelines into your financial projections and client commitments.
Consider alternatives when appropriate:
The right approach depends on your specific needs, growth stage, and financial situation. The key is making these decisions strategically rather than reactively.
Agency culture isn’t about perks or office aesthetics. It’s about the values, behaviours, and expectations that shape how people work together. Culture happens whether you design it or not; the question is whether it’s the culture you want.
Agency walls are littered with value statements that have zero impact on day-to-day operations. Effective values are specific, actionable, and actually influence decisions.
For values to matter, they must be:
For example, instead of “Excellence” (which no one would argue against), a more effective value might be “We prioritise quality over speed, even when it’s uncomfortable.” This provides actual guidance when facing trade-offs.
Test your values by asking:
If the answer to any of these is “no,” your values are wall art, not culture drivers.
Rituals are the regular practices that reinforce your culture and values. They create shared experiences and expectations that shape how people work together.
Effective agency rituals might include:
These rituals should reflect your values and reinforce the behaviours you want to see. If you value transparency, your rituals should include open sharing of information. If you value continuous improvement, regular feedback and learning sessions should be non-negotiable.
The key is consistency. Rituals that happen sporadically or only when convenient don’t shape culture; they undermine it by highlighting the gap between what you say and what you do.
How your team communicates day-to-day has a massive impact on culture, productivity, and wellbeing. Without clear norms, communication tools like Slack can become sources of distraction and stress rather than enablers of collaboration.
Establish clear guidelines around:
For example, your Slack norms might include:
These norms should be documented, shared with new team members, and regularly reinforced. They should also evolve as your team and tools change.
Remember, the goal isn’t control; it’s creating an environment where people can do their best work without unnecessary stress or distraction.
The pandemic forced agencies to embrace remote work, but now you have choices about your working model. The right approach depends on your specific circumstances, not industry trends or personal preferences.
Each working model has strengths and challenges:
In-house (fully office-based) – Strengths: Spontaneous collaboration, stronger culture building, clearer work/life boundaries – Challenges: Limited talent pool, commuting costs and time, office expenses – Best for: Agencies with highly collaborative creative processes, strong local talent pools, or clients who value in-person interaction
Remote (fully distributed) – Strengths: Wider talent pool, reduced overhead, flexibility for team – Challenges: Building culture, spontaneous collaboration, onboarding new team members – Best for: Agencies with independent work streams, technical focus, or international client base
Hybrid (combination approach) – Strengths: Flexibility with structure, balance of collaboration and focus time – Challenges: Creating equality between in-office and remote workers, managing space efficiently – Best for: Agencies with diverse work types, team members with different needs, or transitioning from in-house to more flexibility
The key is aligning your working model with:
Be intentional about your choice rather than defaulting to what’s familiar or trendy. And be willing to evolve as your agency and the broader work environment change.
If you’re embracing remote or hybrid work, the right tools are essential for maintaining productivity, collaboration, and culture.
Beyond the basics (project management, communication, file sharing), consider:
The key is choosing tools that solve specific problems rather than adding technology for its own sake. Each new tool should have a clear purpose and integration with your existing systems.
Equally important is establishing norms around how these tools are used. The best technology is undermined by poor implementation and inconsistent usage.
Remote and hybrid models require more intentional culture-building than traditional office environments, where culture develops through daily interaction.
Effective remote culture strategies include:
The challenge is creating genuine connection without forcing awkward “mandatory fun” or adding unnecessary meetings. Focus on creating opportunities for natural interaction around work and shared interests.
For example:
Remember, remote culture isn’t about replicating office culture online; it’s about creating new ways of building connection and shared purpose that work in a distributed environment.
Effective performance management is about developing people, not just evaluating them. It should be ongoing, constructive, and focused on growth rather than judgment.
The DISC profiler we discussed in the Vision and Positioning chapter isn’t just for founders; it’s a valuable tool for leadership development and team dynamics.
DISC helps leaders:
For example:
The goal isn’t to change people’s natural styles but to help them understand and adapt when necessary. This awareness creates more effective leadership and stronger team dynamics.
Annual reviews are largely useless for improving performance. By the time feedback is given, it’s too late to address issues or build on successes. Effective feedback is timely, specific, and actionable.
Create multiple feedback loops:
The most valuable feedback is:
Train your team in giving and receiving feedback effectively. Many performance issues stem from poor communication rather than lack of ability or effort.
Sometimes, despite best efforts, team members aren’t the right fit or aren’t performing at the level needed. Handling these situations poorly damages both the individual and the broader team culture.
Signs it might be time to part ways:
When you decide to let someone go:
The way you handle departures speaks volumes about your culture. Treat people well on their way out, and your remaining team will feel more secure and respected.
In an industry where your product is essentially your people’s expertise and creativity, your team is your most valuable asset. Investing in finding, developing, and retaining the right people isn’t a nice-to-have; it’s a business imperative.
A strong team creates a virtuous cycle:
This cycle is the foundation of sustainable agency growth. No amount of sales or marketing can compensate for a weak team or toxic culture.
Remember, your agency’s reputation is built on the quality of your work and the experience of working with you. Both depend entirely on the people you bring together and the environment you create for them.
In the next chapter, we’ll explore how to create the operational systems that support your team and drive agency efficiency and profitability.
You’ve got your agency vision clear, you’re winning the right clients, delivering excellent work, and building a solid team. Now it’s time to tackle the bit that most creative agency founders would rather ignore: operations and finance.
This is where many agencies fall apart. They do great work and have happy clients, but their operations are a shambles and their finances are, to put it kindly, creative in all the wrong ways. The result? Working harder than necessary for less profit than deserved.
Let’s break down how to build operational systems that support your agency’s growth rather than hindering it, and financial practices that ensure you’re actually making money, not just revenue.
Most agencies approach SOPs in one of two ways: they either have none at all (“we’re too creative for processes”), or they create enormous documents that nobody ever reads or follows. Neither approach works.
Effective SOPs create consistency and efficiency without stifling creativity or becoming bureaucratic nightmares.
Creative professionals aren’t factory workers, and your processes shouldn’t treat them as such. SOPs for agencies need to guide without constraining, providing structure while allowing for judgment and creativity.
The key principles for agency SOPs:
For example, a client onboarding SOP might include tasks like:
This approach provides structure without micromanagement, guiding the process while allowing for professional judgment and adaptation to specific client needs.
The best SOP is worthless if no one uses it. Make your documentation accessible and valuable rather than a bureaucratic checkbox.
Effective documentation approaches:
Integrate documentation into daily work rather than treating it as a separate activity:
Remember, the goal isn’t documentation for its own sake; it’s creating shared understanding that improves consistency, quality, and efficiency.
The fear that processes kill creativity is misplaced. Well-designed processes actually enable creativity by handling routine aspects efficiently and creating space for genuine innovation.
Think of processes as the foundation that supports creative work, not constraints that limit it:
The right balance varies by agency type and service. A development agency needs more rigorous processes than a creative concept shop. Adjust your approach based on your specific needs and culture.
The key question isn’t “process or creativity?” but “how can process support creativity?” When team members spend less time on administrative chaos and reinventing routine work, they have more capacity for the creative thinking clients actually pay for.
Automation can dramatically improve agency efficiency, but only when approached strategically. Too many agencies either ignore automation opportunities or create overly complex systems that generate more problems than they solve.
Not everything should be automated. Focus on tasks that are:
Common agency automation opportunities include:
Start by mapping your current processes and identifying pain points. Where do things get stuck? What tasks do people complain about? Where do errors happen? These are prime candidates for automation.
Effective automation grows with your agency rather than requiring complete rebuilds as you scale. This requires thinking ahead while starting simple.
Principles for scalable automation:
For example, a client reporting automation might start with simply pulling data into templates, then evolve to include client portal access, automated distribution, and eventually AI-driven insights.
The key is building with expansion in mind without overengineering initial solutions. Each automation should deliver immediate value while fitting into your longer-term vision.
The temptation to add more tools and increasingly complex automations can lead to “automation debt” – systems that become burdensome to maintain and understand.
Signs of unhealthy automation:
To avoid these pitfalls:
Remember, the goal is reducing friction, not adding complexity. If an automation makes work more complicated rather than simpler, it’s not serving its purpose.
Many agency owners either ignore their finances until tax time or obsess over vanity metrics that don’t actually drive business decisions. Effective financial management requires focusing on the right numbers and understanding what they mean for your agency’s health.
These four metrics provide a comprehensive view of your agency’s financial health:
Track these metrics weekly or monthly, depending on your agency size and volatility. The goal isn’t just to know the numbers but to understand the trends and take action when they move in concerning directions.
The metrics above tell you where you are now. Leading indicators help you predict where you’re heading, allowing you to address issues before they become crises.
Key leading indicators include:
These indicators give you time to course-correct before problems impact your bottom line. The specific metrics that matter most will vary based on your agency model and growth stage, but the principle remains: look ahead, not just at current performance.
Beyond the high-level indicators, certain detailed metrics provide crucial insights into specific aspects of your agency’s financial health.
These include:
Track these metrics quarterly and compare them to both industry benchmarks and your own historical performance. Look for trends rather than fixating on specific numbers, and use the insights to inform strategic decisions about pricing, service mix, team structure, and growth investments.
Legal and risk management aren’t the sexiest aspects of agency life, but they’re among the most important. One major legal issue or security breach can destroy years of hard work and reputation building.
Many agencies use contracts that are either copied from others without understanding the implications or so client-friendly that they provide little actual protection.
Effective agency contracts should address:
Work with a solicitor who specialises in creative or digital businesses to develop contract templates that protect your interests while remaining commercially reasonable. The investment is minimal compared to the cost of a single significant dispute.
Review and update your contracts annually to address new risks and changing business models. Pay particular attention to emerging areas like AI usage, data protection, and cross-border considerations if you work internationally.
Data breaches and security incidents are increasingly common and can have devastating consequences for agencies, including financial losses, reputation damage, and regulatory penalties.
Essential data protection and security measures include:
Don’t assume you’re too small to be a target. Small agencies are often targeted precisely because they have valuable client data and typically weaker security than larger organisations.
Conduct an annual security audit to identify and address vulnerabilities, and make security awareness part of your regular team training. The goal isn’t perfect security (which doesn’t exist) but appropriate risk management based on your specific situation.
Beyond legal and security considerations, agencies face operational risks related to client relationships and project delivery. Proactive risk management can prevent many common problems.
Key risk management practices include:
Develop a risk register template that helps project teams identify and mitigate potential issues at the start of each engagement. Categories might include:
For each identified risk, assess both likelihood and impact, then develop specific mitigation strategies. This process doesn’t eliminate risk, but it makes it manageable and reduces surprises.
Many agency founders view operations as a necessary evil – administrative overhead that takes time away from “real work.” This perspective misses the strategic advantage that excellent operations can provide.
Well-designed operations:
The most successful agencies don’t just deliver great creative work; they have operations that support and amplify that creativity rather than hindering it. They recognise that brilliant work delivered inefficiently or unprofitably isn’t a sustainable business model.
Invest in operations as a strategic priority, not an afterthought. Allocate specific time and resources to operational improvement, and measure the impact just as you would marketing or sales initiatives. The return on this investment often exceeds more visible growth activities because it improves the profitability of all your work, not just new business.
Remember, clients rarely leave because an agency’s operations are too smooth or their finances too well-managed. They leave because of missed deadlines, quality issues, communication problems, or billing surprises – all symptoms of poor operations. Excellence in these areas isn’t just about internal efficiency; it’s a key component of client satisfaction and retention.
In the next chapter, we’ll explore how to scale your agency beyond its current size, building on the operational foundation we’ve established.
After establishing your agency’s vision, leadership approach, and operational foundations, it’s time to address a critical element that most agency owners overlook: your Business Operating System (BOS). This isn’t just another fancy term for processes—it’s the integrated rhythm and decision-making framework that ensures your agency runs smoothly and predictably, even when you’re not in the room.
Most agencies operate in a perpetually reactive state. They lurch from client crisis to client crisis, make decisions on the fly, and rely on heroic efforts rather than systematic approaches. This might work when you’re small, but it becomes increasingly unsustainable as you grow.
The signs of a missing operating system are painfully obvious: – Recurring problems that never get properly solved – Decisions that get made, unmade, and remade – Team members who don’t know what others are doing – Priorities that shift weekly or even daily – Founders who can’t take holidays without everything falling apart
A proper Business Operating System addresses these issues by creating predictable rhythms, clear decision-making frameworks, and accountability mechanisms that don’t depend on the founder being involved in everything.
The foundation of any effective Business Operating System is a well-structured meeting rhythm. But before you roll your eyes at the thought of more meetings, understand that I’m talking about focused, purposeful gatherings that drive decisions and accountability—not the soul-crushing time-wasters that plague most agencies.
The OMG Operating Rhythm consists of five meeting types, each with a specific purpose and cadence:
These ultra-short standups serve one purpose: coordination. They’re not for problem-solving or deep discussion.
Format: – What did you accomplish yesterday? – What are you working on today? – What obstacles do you need help with?
Participants: Functional teams (e.g., design team, development team)
Success looks like: Everyone knows what others are working on, obstacles get identified quickly, and the meeting ends on time.
This is where teams review metrics, address issues, and align on short-term priorities.
Format: – Scorecard review (5-10 minutes): Quick review of key metrics – Client/project updates (15-20 minutes): Status of active work – Issue identification (5-10 minutes): Listing problems to solve – Issue solving (30-45 minutes): Addressing the most critical issues – To-do recap (5 minutes): Clarifying who’s doing what by when
Participants: Functional teams or client service teams
Success looks like: Issues get resolved, everyone leaves with clear next steps, and recurring problems start to diminish.
This meeting focuses on one or two strategic topics that require deeper thinking and discussion.
Format: – Monthly metrics review (30 minutes): Deeper dive into performance – Strategic topic discussion (90-120 minutes): Focus on one major opportunity or challenge – Decision and action planning (30 minutes): Clear outcomes and next steps
Participants: Leadership team
Success looks like: Important but non-urgent matters get proper attention, strategic decisions get made, and the agency moves forward on key initiatives.
This session sets priorities and goals for the coming quarter.
Format: – Previous quarter review (60-90 minutes): What worked, what didn’t – Market and client trends (60 minutes): External factors to consider – Priority setting (2-3 hours): Determining 3-5 major priorities for the quarter – Resource allocation (60 minutes): Ensuring capacity for priorities – Individual alignment (60 minutes): Connecting team goals to quarterly priorities
Participants: Leadership team, with input from all staff
Success looks like: Clear quarterly priorities that the entire team understands and commits to, with resources allocated appropriately.
This extended session sets the vision and major goals for the coming year.
Format: – Previous year review (2-3 hours): Comprehensive performance assessment – Market and competitive analysis (2 hours): External landscape review – Vision and strategy refinement (3-4 hours): Adjusting the big picture – Annual priority setting (3-4 hours): Determining 3-5 major initiatives for the year – Quarterly breakdown (2 hours): High-level plan for each quarter – Celebration and team building (evening): Recognizing achievements and building cohesion
Participants: Leadership team, with key team members for specific sections
Success looks like: A compelling plan for the year that energizes the team, with clear priorities and a high-level roadmap for achievement.
For a deeper exploration of effective meeting structures in leadership contexts, see Chapter 4 of CTRL ALT LEAD on “Communication Skills.”
Beyond meeting rhythms, effective agencies need clear frameworks for making decisions. Without these, decisions either get bottlenecked with the founder or made inconsistently across the organization.
One powerful approach is the RAPID framework (Recommend, Agree, Perform, Input, Decide), which clarifies who plays what role in different types of decisions:
For example, a decision about a new service offering might look like: – Recommend: Service Director – Agree: Finance Director (for pricing and margin) – Perform: Service delivery team – Input: Sales team, existing clients – Decide: Managing Director
The power of this framework is that it can be applied to different types of decisions with different people in each role, creating clarity about who’s involved and in what capacity.
Building on RAPID, create a Decision Rights Matrix that specifies who has what authority for common agency decisions:
| Decision Type | Team Member | Team Lead | Department Head | Leadership Team | Managing Director |
| Client deliverables | Approve | Veto | Informed | – | – |
| Project timelines | Recommend | Approve | Veto | – | – |
| Hiring (team) | Input | Recommend | Approve | – | – |
| Hiring (leadership) | – | Input | Recommend | Approve | Decide |
| Spending (<£1,000) | Recommend | Approve | – | – | – |
| Spending (£1,000-£10,000) | – | Recommend | Approve | – | – |
| Spending (>£10,000) | – | Input | Recommend | Approve | Decide |
| New services | – | Input | Recommend | Approve | Decide |
| Pricing (standard) | – | Input | Approve | – | – |
| Pricing (exceptions) | – | Recommend | Approve | Veto | – |
| Client acceptance | Input | Recommend | Approve | – | – |
| Client termination | Input | Recommend | Approve | Veto | – |
This matrix should be customized to your agency’s structure and needs, but the principle remains: create clarity about who can make what decisions at what level.
A common challenge in agencies is balancing the need for informed decisions with the need for speed. The 40/70 Rule, popularized by former US Secretary of State Colin Powell, offers a useful guideline:
Make decisions when you have between 40% and 70% of the information you’d ideally want. Less than 40%, and you’re shooting in the dark. More than 70%, and you’re probably moving too slowly.
This rule acknowledges that perfect information is rarely available and that waiting for it often costs more in missed opportunities than making a reasonably informed decision quickly.
For agency leaders, this means: – Don’t make snap judgments without basic facts – Don’t wait for perfect certainty before deciding – Gather enough information to understand the key factors – Make the decision and adjust course as needed based on results
The 40/70 Rule pairs well with another principle: reversible vs. irreversible decisions. For easily reversible decisions, lean toward the 40% end of the spectrum and move quickly. For difficult-to-reverse decisions, aim closer to 70% and take more time.
The final component of an effective Business Operating System is a robust accountability framework. Without this, even the best plans and decisions fail to translate into consistent execution.
Accountability isn’t about punishment; it’s about creating the conditions for successful execution. The OMG Accountability Cycle consists of four elements:
Each element is essential—if any one is missing, the accountability system breaks down.
A practical implementation of this cycle is the Rocks and Scorecard system:
Rocks are 3-5 key priorities for each person each quarter. They should be: – Specific and measurable – Aligned with company priorities – Challenging but achievable – Completely owned by one person
Scorecards are weekly tracking mechanisms that measure: – Progress on rocks (on track, at risk, off track) – Key performance indicators relevant to the role – Critical activities that drive success
In weekly meetings, each person reports on their scorecard, highlighting areas that are off track and proposing solutions. This creates a regular rhythm of accountability without micromanagement.
Another powerful accountability tool is the 5-15 Report—a document that takes 15 minutes to read and 5 minutes to write (though in practice, these times often reverse).
Each week, team members complete a simple template: – What went well this week? – What challenges did you face? – What are your priorities for next week? – What help do you need?
These reports flow upward through the organization, giving leaders visibility into what’s happening without requiring constant check-ins. They also create a written record of commitments and progress that can be referenced in performance discussions.
The most uncomfortable but necessary part of accountability is consequence management—responding appropriately when expectations are or aren’t met.
Effective consequence management includes:
Positive consequences: – Public recognition of achievement – Financial rewards tied to performance – Increased autonomy and responsibility – Growth and advancement opportunities
Constructive consequences: – Private feedback on performance gaps – Additional support or resources – Adjusted expectations if needed – Performance improvement plans – Role changes or, ultimately, termination
The key is consistency and proportionality. Small wins get small recognition; major achievements get major celebration. Similarly, minor misses get minor corrections; major or repeated failures have more significant consequences.
Without this balance, accountability systems either feel punitive (focusing only on failures) or meaningless (ignoring performance issues).
Building an effective Business Operating System doesn’t happen overnight. It requires intentional design, consistent implementation, and ongoing refinement.
Start with these steps:
Remember, the goal isn’t bureaucracy; it’s creating a predictable environment where people can do their best work without constant firefighting and confusion.
A well-designed Business Operating System becomes a competitive advantage. While other agencies struggle with inconsistency and founder dependency, yours will execute reliably and scale smoothly.
For more on creating effective systems and processes in leadership contexts, see Chapter 10 of CTRL ALT LEAD on “Building a High-Performance Culture in Digital Agencies.”
In the next chapter, we’ll explore how to scale your agency beyond its current size, building on the operational foundation we’ve established.
So you’ve built a solid agency with good clients, a capable team, and operational systems that actually work. Congratulations – you’ve already achieved what many agency founders never manage. But if you’re reading this chapter, you’re probably wondering: what next?
Scaling an agency isn’t just about getting bigger. It’s about increasing revenue and profit without proportionally increasing time, stress, and overhead. It’s about building something that’s more valuable than the sum of its billable hours.
Let’s explore the key levers you can pull to scale your agency beyond its current limitations.
The most powerful scaling lever is evolving your service model away from time-based billing toward value-based offerings that can be delivered more efficiently while commanding higher prices.
Productised services transform your custom, time-based work into standardised packages with clear deliverables, processes, and pricing. They’re not products in the traditional sense, but they have product-like characteristics that make them more scalable.
Benefits of productised services include:
Examples of productised agency services:
To productise effectively:
Start with one service line and perfect it before expanding. The goal isn’t to productise everything but to create a mix of custom and standardised offerings that optimise both growth and profitability.
Retainers are just one form of recurring revenue. More sophisticated models can create greater stability while delivering more value to clients.
Advanced recurring revenue approaches include:
The key is shifting from “renting your time” to providing ongoing value that’s not directly tied to hours worked. This creates the opportunity for margin expansion as you become more efficient at delivering outcomes.
For example, instead of a traditional SEO retainer based on a set number of hours, you might offer:
Each tier has clear deliverables and outcomes, but the actual time required may decrease as you develop systems and expertise, allowing you to increase profitability without raising prices.
Many agencies start with tactical execution and gradually move upstream toward strategy and consulting. This evolution can significantly increase your average project value and position you as a higher-level partner.
Strategic services to consider adding:
These services command higher rates because they: – Impact broader business outcomes – Involve senior stakeholders – Require specialised expertise – Create foundation for long-term success – Often lead to implementation work
The transition to strategic services requires: – Developing new methodologies and frameworks – Building case studies that demonstrate strategic impact – Training team members in consulting approaches – Adjusting sales processes for longer, more complex cycles – Creating distinctive points of view on industry challenges
This isn’t about abandoning execution but adding a layer that increases your value and creates pull-through for implementation services. The most successful agencies maintain capabilities across the strategy-execution spectrum, using each to reinforce the other.
Many agencies try to scale by simply adding more people, creating a linear relationship between headcount and revenue. True scaling requires increasing the leverage of your existing team.
Think of your team structure as a pyramid with increasing levels of leverage:
As you move up this pyramid, the leverage increases. A practice leader who develops a new service offering that generates £500,000 in annual revenue has far more impact than an execution specialist billing £100,000 in client work.
The key to scaling is developing more people at the higher leverage levels while maintaining quality at the execution level. This requires:
Most agencies have too many people focused on direct delivery and not enough developing the systems, methodologies, and capabilities that create leverage. Shift this balance gradually by allocating specific time for higher-leverage activities, even for primarily execution-focused roles.
One of the most powerful forms of leverage is turning individual expertise into organisational knowledge that can be applied by multiple team members.
Approaches for knowledge scaling include:
For example, your SEO lead might develop: – A technical audit methodology that junior team members can execute – A keyword research framework that guides prioritisation decisions – Templates for common deliverables like site audits and content briefs – Training modules that build specific skills across the team – A library of successful tactics from past client work
This transforms their individual expertise into a multiplier that improves the work of the entire team. It also creates value that remains with the agency even if that person leaves.
Allocate specific time for knowledge development and sharing, treating it as an investment rather than overhead. The most valuable team members aren’t just those who do great work themselves but those who enable others to do great work too.
Strategic outsourcing and partnerships can extend your capabilities without adding fixed overhead, creating additional leverage for your core team.
Effective approaches include:
The key is being strategic rather than reactive. Develop relationships before you need them, create clear processes for collaboration, and maintain quality control throughout.
Consider creating a tiered partner model:
This approach gives you flexibility without sacrificing quality or creating dependency on any single external resource.
Remember, the goal isn’t outsourcing for its own sake but creating the right mix of internal capabilities and external resources to maximise both quality and scalability.
Organic growth has limits, especially in competitive markets. Strategic acquisitions can accelerate your scaling by adding capabilities, clients, and talent more quickly than you could develop them internally.
Acquisitions make the most sense when:
The decision framework should consider:
Acquisitions fail most often due to poor cultural fit and integration challenges, not financial or strategic issues. Be particularly careful about these aspects when evaluating opportunities.
The best acquisitions often come from existing relationships rather than broker-led processes. Start building connections with potential targets long before you’re ready to acquire.
Sources for potential acquisitions include:
When evaluating targets, look beyond the financials to assess:
Create a structured evaluation framework that weights these factors based on your specific strategic objectives. The “right” acquisition depends entirely on what you’re trying to achieve.
Many acquisitions destroy value rather than creating it because of poor integration. The key is preserving what made the acquired business valuable while capturing synergies where appropriate.
Effective integration approaches include:
Develop an integration plan before completing the acquisition, with specific milestones, responsibilities, and success metrics. Pay particular attention to:
Remember that integration is a process, not an event. The most successful acquisitions maintain a balance between respecting what made the acquired business successful and creating the synergies that justified the deal.
Geographic expansion can open new growth opportunities but also creates significant complexity. Approach international growth with clear strategy rather than opportunistic responses to individual client requests.
Not all markets offer equal opportunity, and the right entry approach varies based on both the market and your specific situation.
Factors to consider in market selection:
Common entry strategies include:
Each approach has different risk, investment, and timeline implications. The right strategy depends on your specific objectives, resources, and risk tolerance.
For most agencies, a phased approach works best:
This allows you to test the market and build relationships before making significant investments.
The operational challenges of international expansion often prove more difficult than the market entry itself. Effective management across borders requires both systems and cultural adaptability.
Key considerations include:
Develop specific approaches for:
The most common mistake is trying to simply replicate your home market approach. Successful international expansion requires finding the right balance between global consistency and local adaptation.
International operations create significant legal and financial complexity that must be managed proactively.
Key areas to address include:
Work with specialists in international business rather than relying solely on domestic advisors. The investment in proper structuring pays dividends in reduced risk and improved financial efficiency.
Develop a clear financial model for each market that includes:
International expansion can create tremendous growth opportunities but also significant complications. Enter new markets with eyes open to both the potential and the challenges.
Perhaps the most important scaling lever isn’t a specific strategy or tactic but a fundamental shift in how you think about your role and your business.
Scaling requires moving from:
This transition is challenging for many agency founders who built their reputation and confidence on their technical expertise. The skills that made you successful in building the agency are different from those needed to scale it.
Practical steps for making this transition include:
Remember that scaling isn’t just about size; it’s about creating a business that can thrive beyond the direct involvement of its founders. The ultimate test of your leadership isn’t what happens when you’re in the room, but what happens when you’re not.
In the next chapter, we’ll explore how technology and innovation can further accelerate your agency’s growth and differentiation.
In an industry that’s constantly evolving, technology and innovation aren’t just nice-to-haves; they’re essential for agency survival and growth. But there’s a world of difference between chasing every shiny new tool and strategically leveraging technology to create competitive advantage.
Most agencies fall into one of two traps: they either become obsessed with every new platform and gadget without clear purpose, or they stick with outdated systems long past their usefulness. Neither approach serves clients or profits particularly well.
Let’s explore how to develop a strategic approach to technology and innovation that actually drives agency value rather than just creating busy work and impressive-sounding pitches.
Innovation in agencies often devolves into chasing trends rather than creating genuine value. Strategic innovation focuses on solving real problems and creating meaningful differentiation.
Most agencies claim to be innovative but have no systematic approach to developing new capabilities or offerings. They rely on random inspiration or client requests rather than deliberate exploration.
A structured innovation approach includes:
For example, you might allocate: – 10% of each technical specialist’s time to capability development – 5% of annual revenue to R&D activities – Quarterly innovation sprints focused on specific challenges – Monthly review of emerging technologies and their potential applications
This systematic approach ensures innovation happens consistently rather than sporadically. It transforms innovation from a buzzword to an operational reality.
The key is balance. Too little investment in innovation leads to stagnation; too much creates distraction and financial strain. Start with modest but consistent allocation and adjust based on results.
The marketing technology landscape now includes thousands of tools, with new ones emerging daily. No agency can or should adopt them all. The challenge is identifying which ones actually matter for your specific situation.
Develop a structured evaluation framework that considers:
For each potential technology, create a simple scorecard rating these factors. This provides an objective basis for decisions rather than being swayed by hype or FOMO.
Remember that timing matters. Being first to adopt a technology has advantages but also carries risks and higher costs. Being slightly behind the bleeding edge often provides better ROI, allowing you to learn from others’ mistakes while still being ahead of mainstream adoption.
The goal isn’t to use technology for its own sake but to solve specific problems and create specific advantages. Always start with the problem or opportunity, then identify the appropriate technology, not the reverse.
When adding new capabilities, agencies face the classic build/buy/partner decision. Each approach has different implications for speed, control, cost, and differentiation.
Building in-house – Advantages: Complete control, potential IP creation, unique capabilities – Disadvantages: Time-consuming, requires specialised skills, ongoing maintenance – Best for: Core differentiators, unique methodologies, proprietary approaches
Buying existing solutions – Advantages: Faster implementation, proven functionality, predictable costs – Disadvantages: Less differentiation, potential integration challenges, ongoing fees – Best for: Standard functions, well-established needs, non-core capabilities
Partnering with specialists – Advantages: Access to expertise, shared risk, flexible scaling – Disadvantages: Less control, partner dependency, potential conflicts – Best for: Specialised capabilities, emerging areas, variable demand
The right approach depends on the specific capability and its strategic importance. Consider:
Many agencies default to building custom solutions when existing tools would serve perfectly well, or try to develop in-house capabilities that would be better accessed through partnerships. Be honest about your core competencies and focus your building efforts there.
Innovation that clients can see and experience directly has particular value. It demonstrates your forward thinking while creating practical benefits they can immediately appreciate.
Proprietary tools and methodologies create tangible differentiation and can significantly enhance both client outcomes and agency margins.
Effective proprietary development focuses on:
Examples might include: – Custom analytics dashboards that visualise data in unique ways – Proprietary audit frameworks that structure complex evaluations – Specialised research methodologies for specific industries – Custom tools that automate common client challenges – Unique workshop formats that facilitate specific outcomes
The development process should include: – Client input to ensure relevance – Pilot testing to validate effectiveness – Documentation for consistent application – Training for team members who will use it – Marketing materials to communicate the value
Remember that proprietary doesn’t necessarily mean technological. A unique strategic framework or workshop methodology can be just as valuable as a custom software tool, often with lower development and maintenance costs.
Beyond your own capabilities, helping clients navigate their technology decisions creates significant value and positions you as a strategic partner rather than just a service provider.
Effective technology advisory includes:
This approach positions you as a trusted advisor rather than a vendor with something to sell. It creates value even before any implementation work begins and often leads to additional service opportunities.
The key is maintaining objectivity. Your recommendations must be based on client needs, not your preferences or partnerships. This might sometimes mean recommending solutions you don’t implement, but the trust this builds creates more value in the long run.
Develop a structured methodology for these roadmaps that you can apply consistently across clients. This creates efficiency while ensuring comprehensive analysis. Document your approach as a proprietary framework that becomes part of your agency’s intellectual property.
Involving clients in the innovation process creates better outcomes and stronger relationships. Structured workshops and co-creation sessions transform innovation from something you do for clients to something you do with them.
Effective approaches include:
These sessions deliver multiple benefits: – Better solutions through diverse perspectives – Stronger buy-in through participation – Deeper understanding of client challenges – Relationship building beyond day-to-day work – Differentiation from traditional agency approaches
Develop specific formats and facilitation approaches that you can repeat across clients. Document these as proprietary methodologies that become part of your agency’s value proposition.
Remember that the process is as important as the outcomes. Even when sessions don’t produce breakthrough ideas, they build relationships and demonstrate your commitment to the client’s future success.
Innovation that improves your internal operations can be just as valuable as client-facing innovation, often with more immediate impact on profitability.
The hype around automation and AI creates both opportunity and confusion. The key is focusing on practical applications that deliver real value rather than futuristic concepts that sound impressive but deliver little.
Practical agency applications include:
When evaluating potential automation:
The most successful automation initiatives often target mundane, repetitive tasks rather than trying to replace complex creative or strategic work. Look for the “low-value, high-time” activities that consume significant resources without adding proportional value.
Remember that automation isn’t just about reducing costs; it’s about reallocating human effort to higher-value activities. The goal isn’t fewer people but more impactful work from the same team.
Agencies often make decisions based on gut feeling rather than data, leading to suboptimal resource allocation and missed opportunities. Building data capabilities creates both operational advantages and potential client offerings.
Key areas for data-driven approaches include:
Developing these capabilities requires:
Start with a specific business question rather than general data collection. For example, “Which types of projects are most profitable for us?” provides clear direction for what data to gather and how to analyse it.
Remember that data should inform decisions, not make them. The goal is augmenting human judgment with objective information, not replacing experienced perspective with algorithms.
Innovation isn’t just about breakthrough ideas; it’s also about consistently making small improvements that compound over time. Systematic approaches to continuous improvement create significant value through incremental gains.
Effective continuous improvement includes:
Implement specific practices like:
The key is making improvement a regular part of operations rather than an occasional initiative. Small, consistent gains compound dramatically over time and often create more value than occasional major changes.
Create recognition and rewards for improvement contributions, not just client work. This signals that operational excellence is valued alongside client service and encourages everyone to look for enhancement opportunities.
In a crowded agency landscape, genuine innovation creates sustainable differentiation that’s difficult for competitors to replicate. It transforms your agency from a commodity service provider to a unique partner with proprietary value.
Strategic innovation focuses on:
The most valuable innovations aren’t necessarily the most technologically advanced. They’re the ones that solve real problems in distinctive ways that align with your strategic positioning.
Develop an innovation portfolio that balances: – Short-term vs long-term potential – Client-facing vs internal applications – Incremental vs transformative approaches – Technology-based vs methodology-based initiatives
Remember that innovation is a means to an end, not an end in itself. Every innovation initiative should connect clearly to your agency’s strategic objectives and deliver measurable value, whether through improved client outcomes, operational efficiency, or market differentiation.
In the next chapter, we’ll explore how all these elements come together in planning for an eventual agency exit, whether through sale, succession, or other approaches.
You’ve built a successful agency. You’ve got good clients, a strong team, efficient operations, and a clear market position. Now it’s time to think about the end game. Not because you’re planning to leave tomorrow, but because the best exits are planned years in advance.
Most agency founders avoid thinking about exit until they’re burned out or facing a crisis. By then, it’s too late to maximise value or ensure a smooth transition. Whether you plan to sell to a third party, transition to internal leadership, or simply wind down operations, preparation makes all the difference.
The most successful agency founders don’t just build businesses; they build assets with optionality. This means creating an agency that gives you choices about how and when to exit, rather than forcing you into a single path.
Regardless of your eventual exit path, three fundamental pillars determine your agency’s value:
These pillars apply whether you’re selling to a strategic buyer, transitioning to an internal team, or converting to a passive income source. The stronger each pillar, the more options you’ll have and the better your outcomes will be.
The best time to start building exit value was when you founded your agency. The second best time is now. Even if exit seems distant, adopting a value-building mindset immediately improves your business and creates future options.
As I often tell agency owners in my mentoring sessions: “Run your agency as if you might sell it tomorrow, even if you plan to keep it forever.”
This approach means:
These practices make your agency more profitable and less stressful to run today while building value for tomorrow. It’s a win-win approach that improves your business regardless of your long-term plans.
One of the hardest but most important aspects of building agency value is learning to let go. As I discuss in Chapter 16 of CTRL ALT LEAD, “Letting Go and Allowing Others to Take Responsibility,” founder dependency is the single biggest value destroyer in agency exits.
The emotional challenge is real. Your agency is your baby. You built it from nothing. You know how everything works. You have relationships with key clients. Stepping back feels risky and uncomfortable.
But here’s the brutal truth: an agency that can’t function without you isn’t worth much to anyone else. And it’s not really an asset for you either—it’s just a job you’ve created for yourself with extra administrative headaches.
The process of letting go typically follows these stages:
This progression doesn’t happen overnight. It requires intentional effort, appropriate systems, and the right team members. But each step increases both your agency’s value and your personal freedom.
When agency founders think about exit, they typically default to selling to a larger agency or holding company. While that’s one valid option, it’s far from the only path—and often not the most rewarding, either financially or personally.
Your exit options are more varied than you might think, each with different implications for timing, value, and your ongoing involvement:
The right option depends on your personal goals, the nature of your agency, and market conditions. There’s no universally “best” exit strategy, only the one that best aligns with your specific situation and objectives.
To help agency owners evaluate their exit options objectively, I’ve developed the OMG Exit Readiness Framework. This tool assesses your readiness for different exit paths based on key business and personal factors.
For each potential exit option, rate your readiness on a scale of 1-5 in these categories:
Business Readiness Factors: – Financial Performance: Profitability, growth, revenue predictability – Operational Systems: Processes, documentation, technology infrastructure – Team Development: Leadership depth, succession options, retention – Client Relationships: Transferability, concentration risk, contract terms – Market Position: Differentiation, reputation, competitive advantage
Personal Readiness Factors: – Financial Needs: Liquidity requirements, ongoing income needs, risk tolerance – Timeline Flexibility: Urgency of exit, transition period availability – Legacy Concerns: Importance of preserving culture, name, team – Future Involvement: Desired ongoing role, if any – Next Chapter: Clarity about post-exit plans and activities
The highest-scoring exit option may be your most viable path, though other factors like market conditions and specific opportunities will also influence your decision.
This framework helps you identify gaps in readiness and create specific action plans to address them. For example, if you score low on Team Development for an MBO, you can prioritize leadership development and succession planning.
Understanding what drives agency valuation helps you build value intentionally, whether you’re planning to sell soon or simply want to create future options.
Agency valuations typically range from 4-8 times EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) for established agencies. Understanding what drives these multiples helps you focus your value-building efforts.
Factors that push you toward the higher end of the spectrum include:
Focus on improving these metrics 2-3 years before your planned exit. Buyers typically look at 3-year trends, so temporary improvements right before sale have limited impact.
Different types of buyers value different aspects of your agency:
Financial buyers (private equity, investors) focus on: – Predictable cash flow – Profit margins and growth potential – Operational efficiency – Market stability – Return on investment calculations
Strategic buyers (other agencies, holding companies) focus on: – Capabilities and service offerings – Client relationships and sector expertise – Talent and leadership team – Geographic presence – Strategic fit with their existing business
Understanding these differences helps you position your agency appropriately and identify the most likely buyer types. It also informs which aspects of your business to emphasize during the sale process.
For example, if you’re targeting strategic buyers, investing in proprietary methodologies and specialized capabilities may yield better returns than squeezing out an extra percentage point of margin.
Many agencies reach a certain size and then plateau, becoming what I call “lifestyle businesses with overhead.” They generate good income for the founders but have limited value to potential buyers because they’re too dependent on the founders themselves.
Signs you’re in the founder trap include:
Escaping the founder trap requires deliberate effort to make yourself progressively less essential to day-to-day operations. This doesn’t mean becoming disengaged, but rather shifting your role from doer to leader, and eventually from leader to strategist or advisor.
As I explore in depth in CTRL ALT LEAD, this transition is as much emotional as practical. It requires confronting fears about loss of control, identity, and purpose. But it’s essential for building transferable value and creating exit options.
The most successful exits are planned and prepared for years in advance. A typical timeline involves at least three years of intentional preparation before the actual transaction.
Three years before your target exit date, focus on building the fundamental elements that create transferable value:
Leadership Development: – Identify potential successors for key roles – Create development plans for high-potential team members – Begin delegating strategic responsibilities – Consider external hires for critical gaps
Operational Systems: – Document core processes and methodologies – Implement robust project and financial management systems – Develop clear metrics and reporting – Create client management protocols
Financial Optimization: – Clean up accounting practices and reporting – Analyze and improve service line profitability – Address client concentration issues – Begin building recurring revenue streams
Strategic Positioning: – Refine market positioning and differentiation – Develop thought leadership and reputation building plan – Consider strategic acquisitions or partnerships – Evaluate service mix and future market trends
This foundation-building year focuses on addressing fundamental weaknesses that could limit your exit options or reduce valuation.
Two years before exit, focus on accelerating value creation and generating evidence of transferable success:
Leadership Transition: – Reduce founder involvement in client relationships – Give leadership team more autonomy and visibility – Implement formal succession planning – Consider equity or profit-sharing for key team members
Operational Refinement: – Test systems by reducing founder involvement – Gather and act on efficiency metrics – Implement quality control mechanisms – Develop intellectual property and proprietary tools
Financial Growth: – Focus on increasing recurring revenue percentage – Improve EBITDA margins through efficiency and pricing – Ensure clean financial records and reporting – Begin preliminary valuation assessments
Market Position Strengthening: – Increase industry visibility and thought leadership – Build case studies demonstrating results – Deepen specialization in target sectors – Consider strategic hires that add capability or credibility
This year focuses on generating evidence that the business can thrive with reduced founder involvement and has a clear growth trajectory.
In the final year before your target exit date, focus on specific preparation for the transaction process:
Advisor Assembly: – Select experienced M&A advisors – Engage accountants for financial preparation – Consult with tax specialists on structure – Retain legal counsel with relevant expertise
Due Diligence Preparation: – Conduct internal due diligence review – Address any identified issues or risks – Prepare data room materials – Develop compelling growth narrative
Team Stabilization: – Secure key team members with retention agreements – Clarify post-transaction roles and expectations – Prepare for cultural integration challenges – Develop communication strategy for the transition
Buyer Identification: – Research potential strategic and financial buyers – Develop relationships with key targets – Prepare customized value propositions – Consider timing relative to market conditions
This final year focuses on specific transaction preparation while maintaining business performance and addressing any remaining value detractors.
The actual transaction process typically takes 6-9 months from initial discussions to closing. Understanding this timeline helps you prepare mentally and operationally:
Months 1-2: Preparation and Outreach – Finalize marketing materials and valuation expectations – Identify and contact potential buyers – Sign non-disclosure agreements – Share initial information
Months 3-4: Initial Offers and Selection – Receive and evaluate initial expressions of interest – Select buyers for detailed discussions – Conduct management presentations – Receive and negotiate letters of intent
Months 5-7: Due Diligence and Negotiation – Provide detailed information for buyer due diligence – Negotiate definitive agreements – Address issues and concerns – Finalize transaction structure and terms
Months 8-9: Closing and Transition – Obtain necessary approvals and consents – Complete final documentation – Announce the transaction – Begin integration or transition process
Throughout this process, maintaining business performance is critical. Many deals fall apart because the agency’s performance declines during the transaction process, often because the founder becomes distracted by the sale.
The most overlooked aspect of exit planning is preparing for what comes next. Many founders focus entirely on the transaction without considering how their lives will change afterward.
Agency founders often experience a profound identity crisis after exit. For years, your identity has been tied to your role as agency founder and leader. When that role changes or disappears, it can trigger a period of disorientation and loss.
As I discuss in CTRL ALT LEAD, leadership roles become deeply intertwined with personal identity. Stepping away from these roles requires intentional preparation and development of new sources of meaning and purpose.
To prepare for this transition:
The goal is to develop a clear vision for your post-exit life that’s as compelling as your vision for the agency has been.
Financial preparation for exit goes beyond the transaction itself. Work with financial advisors to:
Even with a successful exit, adjusting to a different financial structure requires planning and sometimes behavioral changes. The shift from regular income to managing a lump sum or different income streams can be challenging without proper preparation.
If your exit includes an earn-out period (as most agency sales do), prepare specifically for this challenging transition:
The earn-out period is often the most difficult part of an agency exit. You’re no longer fully in control but still responsible for results. Clear expectations and agreements are essential for navigating this period successfully.
Exit planning can seem overwhelming, but breaking it down into manageable steps makes it achievable. Use this checklist to guide your preparation:
18-36 Months Before Target Exit: – [ ] Clarify personal goals and preferred exit options – [ ] Assess current agency value and identify value gaps – [ ] Develop leadership team and succession plans – [ ] Document key processes and intellectual property – [ ] Address client concentration and contract issues – [ ] Optimize financial performance and reporting – [ ] Begin reducing founder dependency
12-18 Months Before Target Exit: – [ ] Select advisory team (M&A, legal, accounting, tax) – [ ] Conduct preliminary valuation assessment – [ ] Prepare for due diligence process – [ ] Identify potential buyers or successors – [ ] Implement retention strategies for key team members – [ ] Address any significant business weaknesses – [ ] Develop personal plan for post-exit life
6-12 Months Before Target Exit: – [ ] Finalize growth story and marketing materials – [ ] Begin outreach to potential buyers if applicable – [ ] Prepare data room and due diligence materials – [ ] Develop communication plans for team and clients – [ ] Ensure strong financial performance continues – [ ] Refine personal financial plans for post-exit – [ ] Prepare mentally and emotionally for transition
Remember, the best exits are those that feel like natural evolutions rather than abrupt changes. By planning ahead and building value intentionally, you create options that serve both your business goals and personal needs.
In the next chapter, we’ll explore the practical tools and templates that can help you implement the strategies we’ve discussed throughout this guide.
Throughout this guide, we’ve covered the strategies and principles for building, running, and exiting a successful digital agency. Now it’s time for the practical resources that will help you implement these ideas in your own business.
This chapter provides templates, checklists, and frameworks that you can adapt and use immediately. They’re not theoretical models but practical tools that have been tested and refined in real agency environments.
Effective strategy doesn’t have to be complicated, but it does need to be structured. These templates will help you develop and document your agency’s strategic direction.
Use this canvas to clarify and articulate your agency’s market position:
AGENCY POSITIONING CANVAS
TARGET CLIENTS
————-
Industry/Sector:
Size/Scale:
Common Challenges:
Decision Makers:
Budget Range:
SERVICES & CAPABILITIES
———————-
Core Services:
Secondary Services:
Unique Methodologies:
Key Technologies:
Delivery Approach:
COMPETITIVE LANDSCAPE
——————-
Direct Competitors:
Indirect Alternatives:
Our Key Differences:
Their Advantages:
Market Gaps:
VALUE PROPOSITION
—————
Primary Value We Deliver:
How We’re Different:
Why Clients Choose Us:
Evidence/Proof Points:
Elevator Pitch:
STRATEGIC DIRECTION
—————–
Growth Focus Areas:
Services to Develop:
Markets to Enter/Exit:
Capabilities to Build:
3-Year Vision:
Complete this canvas annually and review quarterly. It should inform all marketing, sales, and capability development decisions.
This structured worksheet helps you develop a compelling and actionable vision for your agency:
OMG VISION WORKSHEET
PART 1: CURRENT REALITY ASSESSMENT
——————————-
Agency Strengths:
–
–
–
Agency Weaknesses:
–
–
–
Market Opportunities:
–
–
–
Market Threats:
–
–
–
PART 2: FUTURE VISION (3-5 YEARS)
—————————–
Scale Metrics:
– Revenue Target: £_______
– Team Size: _______
– Client Count: _______
– Office Locations: _______
Service Portfolio:
– Core Services: _______
– Emerging Services: _______
– Discontinued Services: _______
Market Position:
– Target Industries: _______
– Geographic Focus: _______
– Competitive Positioning: _______
– Brand Perception: _______
Team & Culture:
– Leadership Structure: _______
– Core Values in Action: _______
– Team Composition: _______
– Working Model: _______
PART 3: STRATEGIC PILLARS
———————
Pillar 1: _______
Key Initiatives:
–
–
–
Pillar 2: _______
Key Initiatives:
–
–
–
Pillar 3: _______
Key Initiatives:
–
–
–
PART 4: VISION COMMUNICATION
————————
Vision Statement (25 words or less):
_______________________________
Key Messages for Team:
–
–
–
Key Messages for Clients:
–
–
–
Key Messages for Market:
–
–
–
PART 5: VISION EXECUTION
——————–
Critical Success Factors:
–
–
–
Potential Obstacles:
–
–
–
Resource Requirements:
–
–
–
Measurement Approach:
–
–
–
This worksheet combines elements from the strategic planning approaches discussed in CTRL ALT LEAD with agency-specific considerations. Complete it with your leadership team during an offsite session, then refine and share the results with your broader team.
This template helps you translate strategy into actionable quarterly priorities:
QUARTERLY PRIORITY PLANNER
QUARTER: _____ YEAR: _____
BUSINESS METRICS
————–
Revenue Target: £_______
New Client Target: _______
Profit Margin Target: _______%
Other KPIs: _______
TOP 3 PRIORITIES
————–
1. _______________________________
Success Measure: _______________
Key Actions:
– _____________________________
– _____________________________
– _____________________________
Owner: ________________________
2. _______________________________
Success Measure: _______________
Key Actions:
– _____________________________
– _____________________________
– _____________________________
Owner: ________________________
3. _______________________________
Success Measure: _______________
Key Actions:
– _____________________________
– _____________________________
– _____________________________
Owner: ________________________
RESOURCE ALLOCATION
—————–
Priority 1: ____% of available resources
Priority 2: ____% of available resources
Priority 3: ____% of available resources
BAU Activities: ____% of available resources
DECISION CRITERIA
—————
When trade-offs are required, we will prioritise:
1. _______________________________
2. _______________________________
3. _______________________________
Limit yourself to three major priorities per quarter. More than that typically results in diffused focus and limited progress on any of them.
Your leadership approach and team capabilities are critical success factors. These tools help you develop both.
Based on the Situational Leadership Model discussed in the Leadership chapter and CTRL ALT LEAD, this assessment helps you identify your natural leadership tendencies:
LEADERSHIP STYLE ASSESSMENT
For each scenario, select the response that best matches what you would typically do:
1. When a team member is new to a task:
a) Provide detailed instructions and closely monitor their work
b) Explain the task and ask if they have questions
c) Let them figure it out but check in regularly
d) Trust them to complete it and be available if needed
2. When making an important decision:
a) Make the decision yourself based on your analysis
b) Gather input from the team but make the final call
c) Facilitate a team discussion to reach consensus
d) Delegate the decision to the appropriate team member
3. When a project is falling behind schedule:
a) Take control and direct specific actions to get back on track
b) Work with the team to develop a recovery plan
c) Ask the team what support they need from you
d) Trust the team to resolve the issue and adjust as needed
4. When implementing a new process:
a) Create detailed documentation and training
b) Explain the rationale and provide guidance
c) Outline the objectives and let the team develop the details
d) Set the outcome and let the team determine the approach
5. When a team member makes a mistake:
a) Provide specific correction and monitor closely
b) Discuss what went wrong and how to improve
c) Ask them to reflect on the mistake and suggest solutions
d) Trust them to learn from it and adjust accordingly
6. When setting goals for your team:
a) Set specific targets and define the path to achieve them
b) Propose goals and collaborate on the approach
c) Ask the team to suggest goals and provide guidance
d) Establish outcomes and let the team set their own goals
7. When conducting team meetings:
a) Follow a structured agenda and keep tight control
b) Have a planned agenda but allow for discussion
c) Set broad topics and facilitate team-led discussion
d) Let the team determine the content and flow
8. When a team member shows improvement:
a) Acknowledge progress but continue close supervision
b) Recognize achievement and gradually reduce oversight
c) Celebrate success and ask how you can support further growth
d) Acknowledge their capability and give them more autonomy
SCORING:
Count your responses:
A = ____ (Directing Style)
B = ____ (Coaching Style)
C = ____ (Supporting Style)
D = ____ (Delegating Style)
Your dominant style is the one with the highest score.
INTERPRETATION:
Directing: High direction, low support – Best for team members who are new to tasks
Coaching: High direction, high support – Best for team members with some experience but still developing
Supporting: Low direction, high support – Best for capable team members who may lack confidence
Delegating: Low direction, low support – Best for highly capable, motivated team members
DEVELOPMENT PLAN:
Your least used style: _______
Situations where you should use this style more:
– _______________________________
– _______________________________
– _______________________________
Actions to develop this style:
– _______________________________
– _______________________________
– _______________________________
Have all leaders complete this assessment and discuss the results as a team. The goal isn’t to change your natural style but to develop flexibility to adapt your approach based on team members’ needs.
Use this matrix to map team capabilities and identify gaps:
TEAM SKILLS MATRIX
SKILL AREAS | Team Member 1 | Team Member 2 | Team Member 3 | etc.
————|————–|————–|————–|—–
Skill 1 | □ 1 □ 2 □ 3 | □ 1 □ 2 □ 3 | □ 1 □ 2 □ 3 |
Skill 2 | □ 1 □ 2 □ 3 | □ 1 □ 2 □ 3 | □ 1 □ 2 □ 3 |
Skill 3 | □ 1 □ 2 □ 3 | □ 1 □ 2 □ 3 | □ 1 □ 2 □ 3 |
Skill 4 | □ 1 □ 2 □ 3 | □ 1 □ 2 □ 3 | □ 1 □ 2 □ 3 |
Skill 5 | □ 1 □ 2 □ 3 | □ 1 □ 2 □ 3 | □ 1 □ 2 □ 3 |
etc. | | | |
SKILL LEVELS:
1 = Basic understanding
2 = Competent practitioner
3 = Expert/can teach others
CRITICAL GAPS:
– _______________________________
– _______________________________
– _______________________________
DEVELOPMENT PRIORITIES:
– _______________________________
– _______________________________
– _______________________________
SUCCESSION PLANNING NOTES:
– _______________________________
– _______________________________
– _______________________________
Update this matrix quarterly and use it for resource planning, professional development, and recruitment prioritisation.
Use this template to clearly define roles before recruiting:
ROLE DEFINITION TEMPLATE
ROLE BASICS
———
Title:
Department:
Reports To:
Direct Reports:
Salary Range:
ROLE PURPOSE
———-
Primary Objective:
Key Responsibilities:
Success Measures:
Strategic Importance:
REQUIRED CAPABILITIES
—————–
Essential Skills:
Desirable Skills:
Required Experience:
Required Qualifications:
Personal Attributes:
ROLE PARAMETERS
————
Decision Authority:
Budget Responsibility:
Client Interaction Level:
Team Leadership Expectations:
Growth Trajectory:
WORKING PATTERN
————
Location Requirements:
Hours/Flexibility:
Travel Expectations:
On-call Requirements:
Complete this template before beginning recruitment to ensure clarity about what you’re looking for and why. It should inform job descriptions, interview questions, and onboarding plans.
Strong client relationships don’t happen by accident. These tools help you systematically develop and maintain profitable client partnerships.
Use this checklist to ensure consistent, thorough client onboarding:
CLIENT ONBOARDING CHECKLIST
PRE-KICKOFF PREPARATION
——————–
□ Contract signed and filed
□ Welcome email sent with next steps
□ Internal team briefed on scope and objectives
□ Client questionnaire sent
□ Project set up in management system
□ Client access credentials created (if applicable)
□ Initial invoice sent per contract terms
KICKOFF MEETING
————
□ Agency team introductions
□ Client team introductions
□ Project objectives and success metrics confirmed
□ Scope review and clarification
□ Timeline and milestone confirmation
□ Communication protocols established
□ Roles and responsibilities defined
□ Next steps and immediate actions agreed
POST-KICKOFF SETUP
—————
□ Kickoff meeting notes distributed
□ Project plan updated based on kickoff
□ Regular meeting schedule established
□ Client added to appropriate communication channels
□ Team access to relevant client systems confirmed
□ Client-specific processes documented
□ Internal kickoff debrief completed
FIRST DELIVERABLE PREPARATION
————————-
□ Initial deliverable scheduled
□ Quality review process confirmed
□ Client feedback mechanism established
□ Success criteria for first deliverable clear
□ Risk assessment completed
Customise this checklist for different service types, but maintain a consistent core process that ensures nothing falls through the cracks.
Use this scorecard to regularly assess client relationship health:
CLIENT HEALTH SCORECARD
CLIENT: _______________ DATE: _______________
RELATIONSHIP METRICS
—————–
Strategic Alignment: □ 1 □ 2 □ 3 □ 4 □ 5
Communication Quality: □ 1 □ 2 □ 3 □ 4 □ 5
Decision Efficiency: □ 1 □ 2 □ 3 □ 4 □ 5
Trust Level: □ 1 □ 2 □ 3 □ 4 □ 5
Team Chemistry: □ 1 □ 2 □ 3 □ 4 □ 5
DELIVERY METRICS
————-
On-Time Delivery: □ 1 □ 2 □ 3 □ 4 □ 5
Quality of Work: □ 1 □ 2 □ 3 □ 4 □ 5
Scope Management: □ 1 □ 2 □ 3 □ 4 □ 5
Budget Adherence: □ 1 □ 2 □ 3 □ 4 □ 5
Results Achievement: □ 1 □ 2 □ 3 □ 4 □ 5
COMMERCIAL METRICS
————–
Profitability: □ 1 □ 2 □ 3 □ 4 □ 5
Payment Timeliness: □ 1 □ 2 □ 3 □ 4 □ 5
Growth Potential: □ 1 □ 2 □ 3 □ 4 □ 5
Reference Value: □ 1 □ 2 □ 3 □ 4 □ 5
Strategic Importance: □ 1 □ 2 □ 3 □ 4 □ 5
OVERALL HEALTH SCORE: ___ / 75
ACTION PLAN
———
Top 3 Issues to Address:
1. _______________________________
2. _______________________________
3. _______________________________
Specific Actions:
– _______________________________
– _______________________________
– _______________________________
Responsible: _____________ Deadline: _____________
NOTES
—-
_______________________________
_______________________________
_______________________________
Complete this assessment quarterly for all clients and monthly for key accounts or those showing signs of trouble. Use the results to drive proactive relationship management.
Building on the Client Lifecycle Framework from the Client Lifecycle and Expansion chapter, this template helps you develop comprehensive plans for your most valuable clients:
STRATEGIC ACCOUNT PLAN
CLIENT: _______________ DATE: _______________
RELATIONSHIP OVERVIEW
—————–
Current Lifecycle Stage: □ Initial Engagement □ Value Demonstration □ Relationship Expansion □ Strategic Partnership □ Advocacy
Client Since:
Annual Revenue: £_______
Services Currently Provided:
Account Team:
Renewal/Review Dates:
CLIENT BUSINESS ANALYSIS
——————–
Industry Trends:
Business Objectives:
Key Challenges:
Competitive Situation:
Strategic Initiatives:
Budget Cycles:
STAKEHOLDER MAP
————
Decision Makers:
– Name: _____________ Role: _____________ Relationship: □ Strong □ Neutral □ Weak
– Name: _____________ Role: _____________ Relationship: □ Strong □ Neutral □ Weak
Influencers:
– Name: _____________ Role: _____________ Relationship: □ Strong □ Neutral □ Weak
– Name: _____________ Role: _____________ Relationship: □ Strong □ Neutral □ Weak
Users:
– Name: _____________ Role: _____________ Relationship: □ Strong □ Neutral □ Weak
– Name: _____________ Role: _____________ Relationship: □ Strong □ Neutral □ Weak
Potential Allies:
– Name: _____________ Role: _____________ Relationship: □ Strong □ Neutral □ Weak
– Name: _____________ Role: _____________ Relationship: □ Strong □ Neutral □ Weak
RELATIONSHIP GOALS
————–
Target Lifecycle Stage (next 12 months):
Revenue Target: £_______
Relationship Development Priorities:
– _______________________________
– _______________________________
– _______________________________
EXPANSION OPPORTUNITIES
——————-
Opportunity 1:
– Service/Solution:
– Business Case:
– Decision Maker:
– Estimated Value: £_______
– Probability: _____%
– Target Close Date:
Opportunity 2:
– Service/Solution:
– Business Case:
– Decision Maker:
– Estimated Value: £_______
– Probability: _____%
– Target Close Date:
Opportunity 3:
– Service/Solution:
– Business Case:
– Decision Maker:
– Estimated Value: £_______
– Probability: _____%
– Target Close Date:
RELATIONSHIP RISKS
————–
Risk 1:
– Description:
– Impact: □ Low □ Medium □ High
– Mitigation Strategy:
Risk 2:
– Description:
– Impact: □ Low □ Medium □ High
– Mitigation Strategy:
Risk 3:
– Description:
– Impact: □ Low □ Medium □ High
– Mitigation Strategy:
ACTION PLAN
———
Immediate Actions (Next 30 Days):
– _______________________________
– _______________________________
– _______________________________
Medium-Term Actions (30-90 Days):
– _______________________________
– _______________________________
– _______________________________
Long-Term Actions (90+ Days):
– _______________________________
– _______________________________
– _______________________________
REVIEW SCHEDULE
————
Next Review Date:
Review Participants:
Success Metrics:
Develop these plans for your top clients quarterly and review progress monthly. They should drive account management activities and inform resource allocation.
Sound financial management is essential for agency success. These tools help you monitor and improve financial performance.
Use this dashboard to track key financial metrics:
AGENCY FINANCIAL DASHBOARD
MONTH: _______________ YEAR: _______________
REVENUE METRICS
————
Monthly Revenue: £_______ (___% of target)
YTD Revenue: £_______ (___% of target)
Revenue by Service Line:
– Service 1: £_______ (___%)
– Service 2: £_______ (___%)
– Service 3: £_______ (___%)
MRR (Monthly Recurring Revenue): £_______
Average Project Value: £_______
PROFITABILITY METRICS
—————–
Gross Profit: £_______ (___% margin)
EBITDA: £_______ (___% margin)
Utilisation Rate: ____%
Realisation Rate: ____%
Revenue Per Employee: £_______
CASH FLOW METRICS
————–
Operating Cash Flow: £_______
Cash Balance: £_______
Cash Runway: _____ months
DSO (Days Sales Outstanding): _____ days
Upcoming Major Expenses: £_______
CLIENT METRICS
———–
Active Clients: _____
New Clients This Month: _____
Client Churn Rate: ____%
Top 5 Clients % of Revenue: ____%
Client NPS: _____
PIPELINE METRICS
————
Qualified Pipeline Value: £_______
Pipeline Coverage Ratio: _____x
Proposals Outstanding: £_______
Weighted Pipeline Value: £_______
Review this dashboard weekly with leadership and monthly with the broader team. Use it to identify trends and make data-driven decisions.
Use this calculator to estimate and track project profitability:
PROJECT PROFITABILITY CALCULATOR
PROJECT BASICS
———–
Project Name:
Client:
Project Type:
Start Date:
End Date:
REVENUE
——
Fixed Fee: £_______
Time & Materials Estimate: £_______
Contingency/Change Orders: £_______
Total Revenue: £_______
DIRECT COSTS
———-
Role 1: ___ hours × £___ rate = £_______
Role 2: ___ hours × £___ rate = £_______
Role 3: ___ hours × £___ rate = £_______
Freelancer/Contractor Costs: £_______
Other Direct Costs: £_______
Total Direct Costs: £_______
GROSS PROFIT
———-
Gross Profit: £_______ (___% margin)
Target Gross Profit: £_______ (___% margin)
Variance: £_______ (___%)
RISK ASSESSMENT
————
Scope Clarity: □ Low □ Medium □ High Risk
Timeline Pressure: □ Low □ Medium □ High Risk
Client Experience: □ Low □ Medium □ High Risk
Team Experience: □ Low □ Medium □ High Risk
Technical Complexity: □ Low □ Medium □ High Risk
PROFITABILITY LEVERS
—————-
Potential Efficiency Gains:
– _______________________________
– _______________________________
Upsell Opportunities:
– _______________________________
– _______________________________
Risk Mitigation Strategies:
– _______________________________
– _______________________________
Complete this calculator during proposal development and update it throughout the project lifecycle to monitor profitability and identify issues early.
Building on the pricing concepts discussed throughout the guide, this matrix helps you implement value-based pricing:
VALUE-BASED PRICING MATRIX
SERVICE: _______________
CLIENT VALUE ASSESSMENT
——————-
Direct Financial Impact:
□ Low (< £10K) □ Medium (£10K-£100K) □ High (£100K-£1M) □ Very High (> £1M)
Strategic Importance to Client:
□ Low □ Medium □ High □ Critical
Time Sensitivity:
□ Low □ Medium □ High □ Urgent
Alternative Solutions Available:
□ Many □ Several □ Few □ None
PRICING TIERS
———-
TIER 1: BASIC SOLUTION
– Core Deliverables:
– _______________________________
– _______________________________
– _______________________________
– Value Narrative:
_______________________________
– Price Range: £_______ to £_______
– Target Clients:
_______________________________
TIER 2: STANDARD SOLUTION
– Core Deliverables:
– _______________________________
– _______________________________
– _______________________________
– Enhanced Value Elements:
– _______________________________
– _______________________________
– Value Narrative:
_______________________________
– Price Range: £_______ to £_______
– Target Clients:
_______________________________
TIER 3: PREMIUM SOLUTION
– Core Deliverables:
– _______________________________
– _______________________________
– _______________________________
– Enhanced Value Elements:
– _______________________________
– _______________________________
– Premium Value Elements:
– _______________________________
– _______________________________
– Value Narrative:
_______________________________
– Price Range: £_______ to £_______
– Target Clients:
_______________________________
VALUE CONVERSATION GUIDE
——————–
Discovery Questions:
– _______________________________
– _______________________________
– _______________________________
Value Articulation:
– _______________________________
– _______________________________
– _______________________________
Objection Handling:
– _______________________________
– _______________________________
– _______________________________
Create one of these matrices for each core service offering. They provide a structured approach to value-based pricing while maintaining flexibility for specific client situations.
Planning for eventual exit requires specific tools to assess readiness and build transferable value.
Based on the OMG Exit Readiness Framework from the Exit Strategy and Value-Building chapter, this assessment helps you evaluate your agency’s exit preparedness:
EXIT READINESS ASSESSMENT
BUSINESS READINESS FACTORS
———————–
Financial Performance:
– Revenue Growth (3-year CAGR): _____%
– EBITDA Margin: _____%
– Recurring Revenue %: _____%
– Client Concentration (top client %): _____%
– Score (1-5): _____
Operational Systems:
– Documented Processes: □ None □ Some □ Most □ All
– Technology Infrastructure: □ Basic □ Adequate □ Advanced □ Leading
– Quality Control: □ Ad Hoc □ Basic □ Systematic □ Comprehensive
– Score (1-5): _____
Team Development:
– Leadership Depth: □ Founder Only □ Limited □ Solid □ Comprehensive
– Key Person Dependency: □ High □ Moderate □ Low □ Very Low
– Retention History (annual turnover): _____%
– Score (1-5): _____
Client Relationships:
– Average Client Tenure: _____ years
– Client Satisfaction (NPS): _____
– Contract Terms: □ Poor □ Adequate □ Good □ Excellent
– Score (1-5): _____
Market Position:
– Brand Recognition: □ Low □ Moderate □ Strong □ Leading
– Competitive Differentiation: □ Weak □ Moderate □ Strong □ Distinctive
– Market Trend Alignment: □ Poor □ Adequate □ Good □ Excellent
– Score (1-5): _____
PERSONAL READINESS FACTORS
———————-
Financial Needs:
– Required Exit Value: £_______
– Current Estimated Value: £_______
– Gap: £_______
– Score (1-5): _____
Timeline Flexibility:
– Desired Exit Timeframe: _____ years
– Willingness to Extend: □ None □ 1-2 Years □ 3-5 Years □ Flexible
– Score (1-5): _____
Legacy Concerns:
– Importance of Name Continuation: □ Low □ Medium □ High □ Critical
– Importance of Culture Preservation: □ Low □ Medium □ High □ Critical
– Importance of Team Retention: □ Low □ Medium □ High □ Critical
– Score (1-5): _____
Future Involvement:
– Desired Post-Exit Role: □ None □ Advisory □ Operational □ Leadership
– Duration of Involvement: □ None □ <1 Year □ 1-3 Years □ >3 Years
– Score (1-5): _____
Next Chapter:
– Clarity of Post-Exit Plans: □ None □ Vague □ General □ Specific
– Preparation for Transition: □ None □ Limited □ Moderate □ Extensive
– Score (1-5): _____
EXIT OPTION ASSESSMENT
——————
Based on your scores, rate the viability of each exit option:
External Sale:
– Business Readiness Score: _____
– Personal Readiness Score: _____
– Overall Viability (1-5): _____
Management Buyout:
– Business Readiness Score: _____
– Personal Readiness Score: _____
– Overall Viability (1-5): _____
Employee Ownership Trust:
– Business Readiness Score: _____
– Personal Readiness Score: _____
– Overall Viability (1-5): _____
Partial Sale:
– Business Readiness Score: _____
– Personal Readiness Score: _____
– Overall Viability (1-5): _____
Earn-out Conversion:
– Business Readiness Score: _____
– Personal Readiness Score: _____
– Overall Viability (1-5): _____
Orderly Wind-down:
– Business Readiness Score: _____
– Personal Readiness Score: _____
– Overall Viability (1-5): _____
PRIORITY IMPROVEMENT AREAS
———————-
Based on your assessment, identify the top 3 areas to improve exit readiness:
1. _______________________________
Action Plan:
– _______________________________
– _______________________________
– _______________________________
2. _______________________________
Action Plan:
– _______________________________
– _______________________________
– _______________________________
3. _______________________________
Action Plan:
– _______________________________
– _______________________________
– _______________________________
Complete this assessment annually to track progress toward exit readiness and adjust your strategy accordingly.
This template helps you systematically reduce founder dependency, a critical factor in building transferable value:
FOUNDER DEPENDENCY REDUCTION PLAN
CURRENT DEPENDENCY ASSESSMENT
————————-
Client Relationships:
– % of clients where founder is primary contact: _____%
– % of revenue dependent on founder relationships: _____%
– # of clients who specifically request founder involvement: _____
Operational Involvement:
– Hours per week spent on operational tasks: _____
– # of decisions requiring founder approval: _____
– % of projects requiring founder review: _____%
Knowledge Concentration:
– % of key processes documented: _____%
– # of people who can perform founder’s key functions: _____
– Critical knowledge areas only founder possesses:
– _______________________________
– _______________________________
– _______________________________
DEPENDENCY REDUCTION TARGETS (12 MONTHS)
———————————–
Client Relationships:
– % of clients where founder is primary contact: _____% (Target)
– % of revenue dependent on founder relationships: _____% (Target)
– # of clients who specifically request founder involvement: _____ (Target)
Operational Involvement:
– Hours per week spent on operational tasks: _____ (Target)
– # of decisions requiring founder approval: _____ (Target)
– % of projects requiring founder review: _____% (Target)
Knowledge Concentration:
– % of key processes documented: _____% (Target)
– # of people who can perform founder’s key functions: _____ (Target)
CLIENT TRANSITION PLAN
——————
Priority Client Relationships to Transition:
1. Client: _____________ To: _____________ By: _____________
Approach:
– _______________________________
– _______________________________
2. Client: _____________ To: _____________ By: _____________
Approach:
– _______________________________
– _______________________________
3. Client: _____________ To: _____________ By: _____________
Approach:
– _______________________________
– _______________________________
DECISION AUTHORITY DELEGATION
————————
Decisions to Delegate:
1. Decision Area: _____________ To: _____________ By: _____________
Parameters/Limits:
– _______________________________
– _______________________________
2. Decision Area: _____________ To: _____________ By: _____________
Parameters/Limits:
– _______________________________
– _______________________________
3. Decision Area: _____________ To: _____________ By: _____________
Parameters/Limits:
– _______________________________
– _______________________________
KNOWLEDGE TRANSFER PRIORITIES
————————
Priority Knowledge Areas:
1. Knowledge Area: _____________
Transfer Method:
– _______________________________
– _______________________________
Recipients:
– _______________________________
– _______________________________
Timeline: _____________
2. Knowledge Area: _____________
Transfer Method:
– _______________________________
– _______________________________
Recipients:
– _______________________________
– _______________________________
Timeline: _____________
3. Knowledge Area: _____________
Transfer Method:
– _______________________________
– _______________________________
Recipients:
– _______________________________
– _______________________________
Timeline: _____________
FOUNDER ROLE EVOLUTION
——————
Current Time Allocation:
– Client Work: _____%
– Team Management: _____%
– Business Development: _____%
– Strategy/Planning: _____%
– Administration: _____%
– Other: _____%
Target Time Allocation (12 Months):
– Client Work: _____%
– Team Management: _____%
– Business Development: _____%
– Strategy/Planning: _____%
– Administration: _____%
– Other: _____%
Role Transition Milestones:
– 3 Months: _______________________________
– 6 Months: _______________________________
– 9 Months: _______________________________
– 12 Months: _______________________________
PROGRESS MEASUREMENT
—————-
Review Frequency: □ Monthly □ Quarterly
Key Metrics to Track:
– _______________________________
– _______________________________
– _______________________________
Success Definition:
_______________________________
_______________________________
This plan should be developed with input from your leadership team and reviewed regularly to ensure progress toward reducing founder dependency.
The templates and tools in this chapter are starting points, not final solutions. Adapt them to your specific agency context and needs. A few guidelines for effective implementation:
Remember, the value of these tools comes not just from their content but from the disciplined thinking and systematic approach they encourage. They’re designed to help you move from reactive management to proactive leadership, building an agency that’s both more profitable today and more valuable tomorrow.
In the next chapter, we’ll explore real-world case studies that illustrate how these principles and tools have been applied in successful agencies.
Throughout this guide, we’ve covered the principles and practices of building, running, and exiting a successful digital agency. Now let’s see how these concepts apply in the real world through detailed case studies of agencies at different stages of development.
These anonymised examples are based on real agencies I’ve worked with, with identifying details changed to protect confidentiality. They illustrate both successes and challenges, providing practical insights into how the strategies we’ve discussed play out in practice.
Size: 12 people
Age: 4 years
Services: Originally “full-service digital marketing”
Challenge: Struggling with low margins and client churn
Digital Momentum started as many agencies do – a talented practitioner (in this case, an SEO specialist) struck out on his own, picked up a few clients through his network, and gradually added team members and services as client demands expanded. Within four years, they’d grown to 12 people offering everything from SEO and PPC to social media, content marketing, and basic web development.
On the surface, things looked fine. Revenue was growing year-on-year, they had an impressive client list, and they were winning industry awards for their work. But beneath this veneer of success, serious problems were brewing:
The founder was working 70-hour weeks, constantly firefighting, and watching his take-home pay shrink despite growing revenue. He approached me when he was seriously considering closing the agency and returning to employment.
The fundamental problem was a complete lack of positioning. They were trying to be everything to everyone, competing with specialists in each service area while lacking the scale to deliver full-service work efficiently.
This manifested in several specific issues:
The founder had fallen into the classic trap of following client requests rather than developing a strategic direction. Every time a client asked “Do you also do X?”, he’d say yes and figure it out later, gradually expanding into areas where they had neither expertise nor efficient delivery capability.
After a thorough analysis of their client base, capabilities, and market opportunities, we developed a repositioning strategy focused on e-commerce SEO for mid-market retailers – an area where:
The repositioning involved:
This wasn’t an overnight change. We developed a 12-month transition plan that allowed them to maintain revenue while shifting their positioning, team capabilities, and client mix.
Two years after beginning the repositioning, the results were dramatic:
The founder’s work week dropped to a manageable 45-50 hours, and his compensation more than doubled despite taking a lower percentage of profits to reinvest in the business.
Perhaps most importantly, the agency developed a genuine market reputation in their niche. They became known as the go-to experts for e-commerce SEO, with the founder regularly speaking at industry events and their content being widely shared among e-commerce marketing leaders.
This case illustrates the principles we discussed in the Vision and Positioning chapter. By making clear strategic choices about who they served and what they offered, Digital Momentum transformed from a struggling generalist to a thriving specialist.
Size: 28 people
Age: 7 years
Services: Branding and creative campaigns
Challenge: Growth plateaued with chaotic operations
Creative Collective had built an impressive reputation for innovative branding and creative campaigns. Founded by two former advertising agency creatives, they’d grown steadily for their first five years, reaching about £2.2M in annual revenue with a team of 28 people.
Their creative work was genuinely outstanding, winning industry awards and attracting prestigious clients. But for the past two years, they’d been stuck on a growth plateau, unable to break through to the next level despite a strong market reputation and consistent inbound interest.
The symptoms of their challenges included:
The founders approached me when they realised they were working harder than ever but seeing diminishing returns. They had plenty of opportunities but couldn’t seem to capitalise on them effectively.
Creative Collective suffered from a classic case of operational debt. They’d grown based on the founders’ creative talent and client relationships, but never developed the operational infrastructure to support their size and complexity.
Specific operational issues included:
The founders had maintained the working style of a much smaller agency despite having grown to a size that required more formal systems and processes. They feared that adding structure would stifle creativity – the very thing that had made them successful.
We developed a comprehensive operations overhaul that added necessary structure while preserving creative freedom. The approach focused on:
The implementation approach was critical. Rather than imposing a rigid system all at once, we:
The founders were initially skeptical that they could add structure without losing their creative edge. The breakthrough came when we reframed operational systems not as constraints but as enablers that would free up more time and mental space for creative work by reducing administrative chaos.
Eighteen months after beginning the operational overhaul, the results were transformative:
Perhaps most significantly, the founders were able to step back from day-to-day firefighting and focus on strategic growth and creative leadership. One founder commented, “I’m doing more actual creative work now than I have in years, because I’m not constantly putting out fires.”
The agency was also able to attract more experienced talent who had previously been deterred by their reputation for chaotic operations. This further accelerated their capability development and growth.
This case illustrates the principles we discussed in the Operations and Finance chapter. By developing operational systems that supported their creative work rather than hindering it, Creative Collective was able to break through their growth plateau and build a more sustainable, profitable business.
Size: 45 people
Age: 9 years
Services: Custom software development and digital product design
Challenge: High turnover and recruitment difficulties in a competitive talent market
Tech Partners had built a solid business developing custom software and digital products for mid-market clients. In a field dominated by either huge consultancies or tiny boutiques, they’d carved out a valuable middle ground with a team of 45 people and annual revenue of around £4.8M.
Their technical capabilities were strong, and they had a stable client base with several relationships extending beyond five years. However, they faced a critical challenge that threatened their continued success: talent management.
Specific symptoms included:
The founder, a technical leader himself, was baffled by these challenges. They paid competitive salaries, offered good benefits, and had interesting client work. Yet they were losing talent to both larger companies and smaller startups, and struggling to attract suitable replacements.
Tech Partners had a fundamental misalignment between their talent approach and market realities. They were operating with an outdated talent model in one of the most competitive hiring markets in the digital economy.
Specific issues included:
The founder had built the company with a traditional employment mindset: competitive compensation, decent working conditions, and interesting projects should be enough to attract and retain talent. This approach had worked when the company was smaller and the market less competitive, but was failing in the current environment.
We developed a comprehensive talent revolution focused on creating a genuinely distinctive employment experience aligned with the specific needs of technical professionals at different career stages.
Key elements included:
The implementation required significant cultural change, particularly from the management team who were accustomed to more traditional approaches. We developed a phased rollout plan that:
Two years after beginning the talent revolution, the results were remarkable:
The financial impact was substantial. Despite increasing their overall compensation spend by about 12%, the reduction in turnover, recruitment costs, and productivity losses delivered a net positive impact of approximately £380,000 annually.
Beyond the numbers, the company developed a genuine reputation as an employer of choice in their region. They began attracting inbound applications from senior talent who previously would only have considered larger or more prestigious companies.
This case illustrates the principles we discussed in the Building the Team chapter. By developing a talent strategy that genuinely addressed the needs and aspirations of technical professionals at different career stages, Tech Partners transformed their employment experience and solved their talent challenges.
Size: 32 people
Age: 11 years
Services: Marketing analytics and data strategy
Challenge: Founder looking to exit but struggling to find the right approach
Data Driven had established itself as a respected specialist in marketing analytics and data strategy. The founder, after 11 years building the business, was ready for a new chapter and wanted to exit the company while ensuring its continued success.
The agency was in a strong position: – £3.6M annual revenue with 18% EBITDA – Stable client base including several Fortune 500 companies – Strong team with capable leadership below the founder – Specialised positioning in an increasingly valuable niche – Consistent growth of 15-20% annually for the past three years
The founder had initially assumed he would sell to a larger agency or holding company. He’d had several informal conversations with potential acquirers, but none felt like the right fit. Some were primarily interested in acquiring clients rather than maintaining the team and culture, while others proposed earnout structures that seemed designed to extract maximum value while minimising purchase price.
He approached me to help evaluate his options and develop an exit strategy that would: 1. Provide fair financial value for his years of building the business 2. Ensure continuity for clients and opportunities for the team 3. Preserve the company’s approach and values 4. Allow him to gradually transition out rather than leave abruptly
Data Driven was an attractive acquisition target, but the founder’s goals weren’t well-aligned with a traditional agency acquisition. Specific misalignments included:
The founder was approaching exit with a false binary: either sell to another agency/holding company or keep running the business indefinitely. He hadn’t fully explored the range of exit options available to him or clarified his own priorities beyond a general desire to “move on.”
We began by helping the founder clarify his personal priorities through a structured assessment process. This revealed that:
Based on these priorities, we explored several exit options beyond traditional acquisition:
After thorough evaluation, we determined that a management buyout (MBO) by the existing leadership team offered the best alignment with the founder’s priorities. The company had three senior leaders who had been with the business for 5+ years and were interested in ownership.
We structured an MBO with the following key elements:
The implementation involved: 1. Preparing the management team for ownership through training and coaching 2. Strengthening systems and processes to reduce founder dependency 3. Developing detailed transition plans for client relationships and key functions 4. Creating clear governance structures for the post-acquisition period 5. Securing appropriate financing and legal structures
The MBO was completed successfully with the following outcomes:
The founder successfully transitioned to his Chairman role, reducing his time commitment from 50+ hours weekly to about 15 hours, primarily focused on strategy and key client relationships. This allowed him to pursue personal interests while maintaining connection to the business he’d built.
The management team thrived with ownership responsibility, bringing new energy and ideas while maintaining the core strengths that had made the company successful. They expanded into adjacent service areas that the founder had been hesitant to pursue, accelerating growth beyond initial projections.
This case illustrates the principles we discussed in the Exit Planning chapter. By thoroughly exploring options and aligning the exit approach with his personal priorities, the founder achieved an outcome that balanced financial reward with legacy preservation.
Size: 18 people growing to 65
Age: 5 years
Services: Content marketing for SaaS companies
Challenge: Managing rapid growth without losing quality or culture
Content Engine had found product-market fit with a specialised offering: content marketing specifically for SaaS companies. After three years of steady growth, they hit an inflection point when several enterprise SaaS companies became clients almost simultaneously, creating both opportunity and challenge.
Within 18 months, they needed to grow from 18 people to 65+ to service demand, while maintaining their quality standards and distinctive culture. The founders were determined to seize the growth opportunity but concerned about:
They’d seen other agencies grow quickly only to lose what made them special, resulting in client churn, team turnover, and eventual contraction. They were determined to avoid this fate but unsure how to manage such rapid scaling.
Content Engine faced the classic scaling challenge: systems and approaches that work well for a small team often break down at larger scale. Specific scaling pressure points included:
These approaches had worked well at smaller scale but were already showing strain at 18 people. They would completely break down at 65+, leading to exactly the quality and culture issues the founders feared.
The fundamental challenge was transitioning from a founder-centric operation to a systems-driven organisation without losing the special qualities that had driven their success.
We developed a comprehensive scaling framework focused on systematising the founders’ expertise and approach rather than simply adding management layers. Key elements included:
The implementation approach was critical to success. Rather than waiting until they reached 65 people to implement new systems, we:
A particularly important element was the pod structure, which created “small agencies within the agency.” Each pod maintained the intimate, collaborative environment of the original team while the overall organisation grew. Pods had significant autonomy but operated within consistent frameworks that ensured quality and cultural alignment.
Over the next two years, Content Engine successfully scaled to 72 people while maintaining their quality standards and distinctive culture. Specific outcomes included:
The pod structure proved particularly effective, creating career development opportunities for team members while maintaining close-knit working groups. Several early employees stepped into pod leadership roles, reducing the need for external hiring at senior levels.
The founders successfully evolved their roles from direct delivery and management to system development and strategic leadership. They remained deeply involved in the business but in a more leveraged capacity, focusing on areas where they added unique value.
This case illustrates the principles we discussed in the Scaling Levers chapter. By systematising their expertise and approach before major growth, Content Engine was able to scale rapidly while maintaining the quality and culture that had driven their initial success.
These case studies illustrate how the principles and practices we’ve discussed throughout this guide apply in real-world situations. While each agency’s circumstances are unique, certain patterns emerge across these stories:
As you apply these lessons to your own agency, remember that improvement is iterative. None of these agencies transformed overnight. They made consistent, strategic changes over time that compounded into significant results.
Start with the areas most relevant to your current challenges, implement changes systematically, measure results, and adjust as needed. The path won’t be perfectly straight, but with persistence and the right approach, you can build an agency that delivers exceptional work, generates healthy profits, and creates value beyond billable hours.
In the final chapter, we’ll provide a glossary of key terms and recommended resources for further learning in specific areas of agency management.
Throughout this guide, we’ve covered a wide range of concepts and terminology related to building, running, and exiting a digital agency. This final chapter provides definitions of key terms and recommended resources for deeper exploration of specific topics.
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation): A measure of a company’s overall financial performance, commonly used as a valuation metric for agencies. It represents operating profitability before accounting for non-operational expenses.
Gross Margin: The percentage of revenue remaining after direct delivery costs (typically staff time and project-specific expenses). For agencies, healthy gross margins typically range from 50-70%.
Net Profit Margin: The percentage of revenue remaining after all expenses, including overhead, taxes, and other costs. For agencies, 15-25% is generally considered healthy.
Utilisation Rate: The percentage of available time that billable staff spend on client work. Typically measured against a standard working week (e.g., 37.5 hours). Target utilisation varies by role but often ranges from 70-85% for delivery staff.
Realisation Rate: The percentage of recorded billable time that is actually billed to clients. This accounts for write-offs, discounts, and other adjustments. Healthy realisation is typically 90%+.
MRR (Monthly Recurring Revenue): Predictable revenue generated each month from ongoing client retainers or subscriptions. A key metric for agency stability and valuation.
Client Concentration: The percentage of revenue coming from top clients, often measured as the percentage from the top 3 or top 5 clients. High concentration (e.g., >40% from top 3) represents risk.
Burn Rate: The rate at which a company uses cash, typically measured monthly. Important for startups and agencies experiencing rapid growth or challenging periods.
Runway: The amount of time a company can continue operating before running out of cash, assuming no additional revenue. Calculated as cash reserves divided by burn rate.
Working Capital: The difference between current assets and current liabilities, representing the capital available for day-to-day operations. Agencies typically need sufficient working capital to cover 2-3 months of operating expenses.
Retainer: An ongoing agreement where clients pay a fixed monthly fee for a defined scope of services. Provides predictable revenue for agencies and consistent service for clients.
Project-Based: Work scoped and priced as discrete projects with specific deliverables and timelines. Typically has a defined start and end date.
Time and Materials: Billing based on actual time spent and resources used, often with an estimated budget but no fixed price. Provides flexibility but less certainty for both agency and client.
Value-Based Pricing: Setting prices based on the value delivered to clients rather than time spent or costs incurred. Often includes performance components tied to specific outcomes.
Productised Service: A standardised service package with fixed scope, process, and pricing. Combines the margin benefits of products with the customisation benefits of services.
Managed Service: Ongoing responsibility for a specific function or system, typically including both strategic guidance and day-to-day operations.
White Label: Services provided to another agency or intermediary who presents them to end clients as their own.
Scope Creep: Uncontrolled expansion of project scope without corresponding adjustments to timeline, budget, or resources. A common cause of reduced profitability.
Change Control: Formal process for managing changes to project scope, timeline, or deliverables. Typically includes documentation, approval, and pricing adjustments.
Traffic Management: The process of allocating and scheduling resources across multiple projects and clients. Critical for optimising utilisation and preventing bottlenecks.
Resource Planning: Forward-looking allocation of team members to projects based on skills, availability, and project requirements. Typically covers 1-3 months.
Capacity Planning: Longer-term forecasting of resource needs based on projected business volume. Used for hiring decisions and growth planning. Typically covers 3-12 months.
Project Post-Mortem: Structured review conducted after project completion to identify successes, challenges, and lessons learned. Also called retrospective or debrief.
SOW (Statement of Work): Formal document defining project scope, deliverables, timeline, and terms. Forms the basis for client agreement and internal planning.
KPI (Key Performance Indicator): Measurable value that demonstrates how effectively an agency or project is achieving key objectives. Common agency KPIs include utilisation, client satisfaction, and profit margin.
OKR (Objectives and Key Results): Goal-setting framework that defines objectives and the specific results that indicate achievement. Used for strategic planning and performance management.
Account Manager: Primary client relationship owner responsible for client satisfaction, growth, and retention. May also handle project management in smaller agencies.
Project Manager: Responsible for planning, executing, and closing projects within scope, time, and budget constraints. Focuses on delivery rather than client relationship.
Traffic Manager: Coordinates resource allocation across multiple projects and teams. Ensures appropriate staffing and prevents bottlenecks or conflicts.
Creative Director: Leads the creative vision and output of an agency. Typically oversees design, content, and other creative functions.
Technical Director: Leads the technical strategy and implementation. Typically oversees development, engineering, and technical operations.
Operations Director: Responsible for internal systems, processes, and efficiency. Focuses on how the agency functions rather than what it delivers.
Pod Structure: Organisational approach where cross-functional teams (pods) serve specific client segments or service areas. Creates “small agencies within the agency.”
Matrix Structure: Organisational approach where team members report to both functional managers (e.g., Head of Design) and project or account managers. Common in mid-sized agencies.
Earnout: Portion of acquisition payment contingent on future performance, typically over 2-3 years post-acquisition. Common in agency acquisitions.
Multiple: Valuation factor applied to financial metrics (typically EBITDA) to determine agency value. Agency multiples typically range from 4-8x EBITDA depending on various factors.
MBO (Management Buyout): Acquisition of a company by its existing management team, often with external financing. Common exit route for agency founders.
EOT (Employee Ownership Trust): Structure where company ownership is held in trust for the benefit of employees. Provides tax advantages and succession options.
Acqui-hire: Acquisition primarily for the talent rather than clients, technology, or other assets. Common in specialised or technical agencies.
Roll-up: Strategy of acquiring multiple similar businesses to create scale and synergies. Common approach for private equity in the agency sector.
Holdco (Holding Company): Parent company that owns multiple agency brands. Major examples include WPP, Publicis, and Omnicom.
Due Diligence: Comprehensive investigation of a business prior to acquisition or investment. Typically covers financial, legal, operational, and commercial aspects.
“Positioning for Professionals” by Tim Williams
Comprehensive guide to positioning professional service firms, with specific application to agencies. Covers both the strategic and practical aspects of developing a distinctive market position.
“The Business of Expertise” by David C. Baker
Explores how expertise-driven firms can leverage their knowledge for better positioning, pricing, and profitability. Particularly relevant for agencies transitioning from generalist to specialist.
“Built to Sell” by John Warrillow
While not specifically about agencies, this book provides valuable insights into creating a business that can thrive without the founder – a critical challenge for many agency owners.
“The Win Without Pitching Manifesto” by Blair Enns
Challenges traditional agency new business practices and offers alternative approaches focused on expertise and value rather than competitive pitching.
“Managing the Professional Service Firm” by David H. Maister
Classic text on managing client relationships, team development, and firm economics in professional services. Though not agency-specific, the principles apply directly.
“Value-Based Fees” by Alan Weiss
Detailed guide to moving from time-based to value-based pricing models. Particularly useful for agencies looking to improve profitability and client alignment.
“The E-Myth Revisited” by Michael E. Gerber
Essential reading on systematising business operations. Helps founders transition from working in the business to working on it – a critical agency challenge.
“Traction” by Gino Wickman
Introduces the Entrepreneurial Operating System (EOS), a comprehensive framework for running a growing business. Many agencies have successfully implemented this approach.
“Financial Intelligence for Entrepreneurs” by Karen Berman and Joe Knight
Accessible guide to understanding financial statements and making better business decisions. Particularly valuable for creative founders without financial backgrounds.
“Radical Candor” by Kim Scott
Framework for effective feedback and team development. Particularly relevant for agencies where direct feedback is essential but often challenging.
“Drive” by Daniel H. Pink
Explores what truly motivates knowledge workers, with direct application to agency talent management and retention strategies.
“The Five Dysfunctions of a Team” by Patrick Lencioni
Identifies common team challenges and provides practical approaches to building more effective teams. Particularly relevant for agency leadership teams.
“Scaling Up” by Verne Harnish
Comprehensive framework for growing businesses, covering people, strategy, execution, and cash. Many successful agencies have applied these principles.
“The Automatic Customer” by John Warrillow
Guide to developing subscription business models. Valuable for agencies looking to create more predictable revenue streams.
“Good to Great” by Jim Collins
Classic study of what enables companies to achieve sustained excellence. The principles of disciplined people, thought, and action apply directly to agency growth.
“The Art of Selling Your Business” by John Warrillow
Practical guide to preparing for and executing a business sale. Includes specific considerations for service businesses like agencies.
“Finish Big” by Bo Burlingham
Explores how entrepreneurs can achieve successful exits that align with their personal and business goals. Particularly relevant for founder-led agencies.
“Valuation” by McKinsey & Company
Comprehensive guide to business valuation. While broader than agency-specific valuation, provides essential understanding of how buyers assess value.
Agency Hackers (agencyhackers.co.uk)
Community and events specifically for UK agency owners. Offers peer learning, benchmarking, and practical advice on agency management.
The Agency Collective (theagencycollective.co.uk)
Support network for independent agencies in the UK, providing resources, events, and peer connections.
Bureau of Digital (bureauofdigital.com)
Community, events, and resources specifically for digital agencies. Known for Owner Camp and other leadership-focused programmes.
Econsultancy (econsultancy.com)
Research, training, and analysis for digital marketing and agencies. Provides industry benchmarks and best practices.
Enterprise Nation (enterprisenation.com)
Support network for small businesses in the UK, with specific resources for service businesses.
Xero Small Business Guides (xero.com/uk/resources/small-business-guides)
Practical financial guidance for small businesses, including cash flow management and financial planning.
GOV.UK Business Support (gov.uk/business-support-helpline)
Official UK government resources for business owners, including regulatory guidance and support programmes.
LinkedIn Learning (linkedin.com/learning)
Extensive library of courses covering agency-relevant topics from client management to technical skills.
Google Digital Garage (learndigital.withgoogle.com)
Free training in digital marketing and business skills, useful for agencies and their clients.
HubSpot Academy (academy.hubspot.com)
Free certification courses in marketing, sales, and service – valuable for agencies offering these services.
DMA (Data & Marketing Association) (dma.org.uk)
Trade association for the UK marketing industry. Provides legal guidance, research, and networking.
BIMA (British Interactive Media Association) (bima.co.uk)
Digital industry association offering events, awards, and professional development.
IPA (Institute of Practitioners in Advertising) (ipa.co.uk)
Professional body for advertising, media, and marketing agencies in the UK. Offers training, research, and advocacy.
Creative Industries Federation (creativeindustriesfederation.com)
Membership organisation for the UK’s creative industries, providing policy advocacy and industry connections.
Building, running, and eventually exiting a successful digital agency is a marathon, not a sprint. The landscape will continue to evolve, presenting both challenges and opportunities. The most successful agency leaders commit to continuous learning and adaptation.
As you apply the principles and practices we’ve covered in this guide, remember that there’s no single “right way” to run an agency. The best approach is the one that aligns with your vision, values, and goals while creating sustainable value for clients, team members, and owners.
I hope this guide serves as both a practical handbook for immediate challenges and a strategic roadmap for long-term success. The agency journey isn’t always easy, but it offers unique rewards – the chance to build something meaningful, to do work that matters, and to create opportunities for others along the way.
Best of luck on your agency journey. May it be profitable, purposeful, and perhaps even occasionally enjoyable.