5 Tips for Maximizing Profits at Your Marketing Agency
Once you’ve started to see some growth in your marketing agency, the next step is figuring out ways to maintain that growth and make your agency as profitable as possible. In today’s highly digital world there are more strategies than ever that you can employ to maximize your profits – but not all are created equal. Read on below to learn more.
1. Scalability of products and Services
Having processes and services you can scale up over time will make your team more efficient and make periods of growth significantly less onerous. You should have thorough processes in place for key aspects of your business including client onboarding, project management, invoicing and business development. The less time you need to spend on everyday operational tasks, the more time you’ll be able to put toward activities that can help you maximize your profits.
2. Exercising Restraint
You don’t have to say “yes” to every single project or client that comes to your company. If the job isn’t going to be a good fit with your services, your company culture or your vision, then don’t feel like you need to take it on. Jobs that aren’t a good fit take away time and resources from good accounts that fit very well with your company. It may be a business opportunity, but that doesn’t necessarily make it a net win.
3. Streamline business development
It’s helpful to have some processes in place that allow you to identify more quickly whether a prospect will be a good fit for your agency before putting together a proposal. Make sure quoting, presentation and closing processes are clear and ordered.
The more time you spend on development, the more you lose out on money from actual jobs, which reduces the profitability of the account, especially true for younger firms.
4. Build a strong brand identity and reputation
Charging higher prices is one way you can improve your profits, but you’ll have a hard time raising your prices if you don’t already have a brand that boasts a strong reputation. The more people know your brand and the quality of services you provide, the more you’re able to charge.
Therefore, it’s important to invest in your own marketing, using many of the same platforms and processes you use for your agency’s clients, including social media, content marketing and networking.
5. Invest in your entry-level talent
Invest in recruiting entry-level talent for your agency, and develop them into skilled professionals. Having highly qualified lower-level talent will offer greater value to your clients and maximize the profits you are able to achieve.
It doesn’t take massive overhauls to your agency’s structure or processes to maximize your profits—there are steps you can take almost immediately to see better margins. Contact us at Patin & Associates today for more information about steps your agency can take.