Why One Agency Closed and How to Avoid Their Mistakes

<p>Do you find that no matter how hard you work, you're just not profitable? Are you spending too much time on the wrong things? If you want to be successful, you need to evaluate your priorities and get rid of the stuff that's dragging you down. </p> <p>In today's episode, we'll cover:</p> <ul> <li>2 Lessons on reinvesting agency profits. </li> <li>Why investing in the right team is the key to growth.</li> <li>Why your agency must embrace change. </li> </ul> <p>Today I sat down for a really informative chat with Mark Bower, managing director of <a href="https://woven.agency/" target= "_blank" rel="noopener">Woven</a>, a brand engagement agency. After 20 years in the industry, Mark recently had to close shop on the agency he started. Now, with a new agency, he's here to share what he's learned and what he would have done differently to put his last agency in a better position. </p> <h2>2 Lessons on Reinvesting Agency Profits</h2> <p>When you're in the thick of building an agency, it's far too easy to become fixated on growth, growth, growth. You get so consumed with getting bigger and more successful you justify putting everything back in the agency to promote even greater growth. But if you're not careful, this approach can land you right where Mark was. He had a few really good clients, but nothing to show for it. So how do you avoid this?</p> <ul> <li><strong>Know where your profit is coming from:</strong> Sounds simple, right? The mistake Mark made was taking the profit from the larger, more successful clients, and reinvesting it into the ones that weren't doing so well. Watch out for this. Do an audit. If you're losing money because you're spending too much on clients that will never be profitable, know when to let them go. </li> <li><strong>Give yourself a rainy day fund:</strong> Mark says he took everything he earned and put it right back into the agency. When the agency began to fail, he had no way to bail them out. <a href="https://jasonswenk.com/agency-profit-first/">Take some of your profits</a> and p