Welcome to the Agency Health Podcast, where we dig deeper into key agency topics – the what, why, and how – mining actionable insights to help build a better firm.

This episode is part of a mini-series on beginning with the end in mind. As we’ll find, building for your exit from the start helps create a thriving agency that delivers great value for you, your team, and your clients.

On this episode, I’m talking to Peter Kang of Barrel Holdings about optionality and the lessons from his experience building multiple agencies and now a holding company.

The agency he and his co-founder started in 2006 has grown into a holding company actively incubating, acquiring, and growing agencies. Peter has written extensively about his agency journey for years, sharing a wealth of in-the-trenches insight and perspective.

Key Insights:

• Starting an agency holding company gives you a chance to put your agency experience to work, developing other leaders, with more skin in the game than consulting or coaching (4:00)
• Independent agencies (vs. divisions) can help leaders move faster and adapt decisions and priorities more fully to the unique needs of that group and its strategy (9:00)
• Select leaders for proactivity, speed, and ability to organize, then empower and trust them (9:55)
• Align your leaders’ compensation directly with the mid-term goals for the agency. (15:17)
• Not all companies can achieve a life changing exit; you may still be able to make a healthy amount and reinvest your earnings in other places while continuing to run your firm (16:00)
• A holding company enables you to help others reach their full potential and pursue their goals, co-creating the future with your agency leaders. (20:50)
• Make space to invest in your leaders; set a deliberate example, make space for weekly coaching, quarterly time with all your leaders to share challenges and knowledge, and facilitate helpful connections for them (22:10).
• Horizontal positioning may sometimes be an easier place to begin, adding a vertical position as your portfolio develops and you see opportunities emerge (27:15)
• Acquisitions are something you can get better at with practice, just like running an agency.
• An attractive acquisition has tail winds and momentum, good client retention, not too much founder reliance, and potential for synergy with acquirers. (31:41)
• To build relationships, act in ways that benefit others expecting nothing in return. Take an interest in their success, reach out when they come to mind. Reach out to a few people every week. You get out of it what you put in. (35:20)
• Maintaining long-term engagement comes from a meaningful mission and balanced living. (37:50)

References:

• Barrel-Holdings.com
• AgencyHabits
• PeterKang.com (including newsletter sign up)
• Peter Kang on LinkedIn

If you haven't yet, take a look at the other 3 episodes in this mini-series on Beginning with the End in Mind.

Next up will be a conversation between Arlen and Piotr (Agency Partners co-founders) shedding more light on what we're cooking up and why, then a new mini-series to follow on effective agency marketing with some special guests. Subscribe so you don't miss out!

If you have questions or comments about this episode, a topic you’d like covered, or an agency owner or relevant expert we should invite as a guest, we’d like to hear from you! Email [email protected]

Subscribe to our newsletter to stay in touch or follow Arlen on LinkedIn.

Thank you for listen