Smart Agency Masterclass with Jason Swenk: Podcast for Digital Marketing Agencies

Would you like access to our advanced agency training for FREE? https://www.agencymastery360.com/training

What is the best way to speak to your target audience? How can you make a compelling case to work with your agency? With proper storytelling techniques, you will reach your prospects and clients in a way the resonates with them. Every successful agency owner needs a persuasive "Who am I" narrative, along with educational and vision stories that speaks directly to potential clients. However, the task can feel overwhelming, leaving many owners unsure where to begin. Today's featured guest specializes in transforming scattered narratives into strategic stories that create meaningful connections.

She'll reveal the essential types of stories every agency owner should develop to attract clients, while emphasizing the power of simplicity—demonstrating why less truly is more when it comes to impactful storytelling. Tune in to learn the art of strategic storytelling that positions your agency as the obvious choice in a crowded marketplace.

Margot Black is a publicity expert and founder of Black Ink PR, an agency that takes clients' stories and turn them into winning strategies that produce strong results and elevate their business from established to extraordinary. She's also the author of Life's a Pitch, a masterclass in business, branding, public relations, and marketing that will teach you how to get what you want in business and life.

Margot shares her focus on the importance of storytelling in connecting with audiences, highlighting strategies for agency owners to effectively communicate their narratives, focusing on a number of stories that every owner should share with their audience and tools that will help you identify common denominators with your audience and understanding their problems.

In this episode, we'll discuss:

• Connecting with prospects by sharing compelling stories.

• The importance of mapping out your process.

• 2 essential stories every agency owner should tell.

Subscribe

Apple | Spotify | iHeart Radio

Sponsors and Resources

E2M Solutions: Today's episode of the Smart Agency Masterclass is sponsored by E2M Solutions, a web design, and development agency that has provided white-label services for the past 10 years to agencies all over the world. Check out e2msolutions.com/smartagency and get 10% off for the first three months of service.

Connecting with Prospects by Sharing Compelling Stories

Many agency owners struggle to craft a compelling narrative about their business. According to Margot, the first thing you need to do is connect to your audience by finding a common denominator. One of the most powerful things you can do to achieve this is demonstrate your understanding of their challenges by creating stories that say "I know what your problems are. I understand." These stories are always powerful because your audience feels seen.

Unfortunately, many entrepreneurs miss this opportunity by focusing too heavily on self-promotion ("let me tell you all about me"), neglecting the crucial element of empathy. When you demonstrate that you both understand and can solve your audience's problems, you've already won a significant part of the battle for their attention and trust.

Instead, Margot suggests framing your message around "how to" questions. For instance, "How to tell a better story so people will listen" or "How to find five people that need what you have." This approach not only positions the storyteller as an expert but also provides immediate value to the audience.

Pro Tip: Keep it Simple. With limited time and attention spans, your audience needs content that's easy to grasp and implement. Rather than overwhelming them with extensive offerings like a 123-lesson course, focus on digestible concepts: "I'll show you the four quadrants you need to dominate to attract more customers." You may think that the more you offer the better, but people have very limited time and attention to give in this ADHD era so make it easy for them to grasp the core concepts to enhance retention.

The Importance of Mapping Out Your Process

"How we do it" stories represent a powerful yet underutilized tool in agency communications. These narratives function as client roadmaps, clearly illustrating the processes and methodologies behind the agency's success. By transparently sharing these operational details, agencies demystify their work and provide potential clients with clear expectations. This structured approach significantly increases client confidence when deciding to partner with an agency.

Without process-focused stories, clients lack visibility into your working methods and can't anticipate how much involvement will be required from them. Margot specifically advises against giving clients "homework" as this creates additional burdens that often go uncompleted which leads to frustration and disengagement.

Instead, effective "how we do it" stories should clearly show the finish line—allowing clients to envision the end result before the partnership even begins.

Equally important is incorporating a "what's changing and where we're headed" element into your narrative framework. In today's rapidly evolving business landscape, clients seek reassurance that their agency partners understand how emerging changes affect their specific challenges. They want partners who not only recognize these shifts but also have developed clear strategies to navigate them successfully.

When in Doubt, Educate Your Clients

If you're at all confused about where to start, stories that teach provide an excellent starting point. These narratives offer significant benefits by sharing valuable knowledge and insights that empower clients to better understand and address their challenges. This educational approach accomplishes two critical objectives simultaneously: it establishes your expertise in your field while keeping the client firmly positioned as the central character of the narrative. The most effective stories always maintain this client-centric focus. Their journey, challenges, and ultimate success should drive the narrative forward.

For instance, a leader might share a story about how they overcame a common challenge faced by their clients. By detailing the steps taken and the lessons learned, they not only provide valuable information but also illustrate their understanding of the client's journey.

2 Essential Stories Every Agency Leader Must Tell

1. Who I Am — Every leader should develop a compelling "Who I Am" story. The best advice Margot has to improve it is to know where to start. People tend to start too early and tell you about where they went to college or even their childhood – details that rarely resonate with potential clients. Instead, focus your personal narrative on establishing relevant expertise that directly addresses client needs. Even though the Who I Am story is about you, it's still for your audience and should attract them.

2. Vision Story — Equally important is crafting a powerful "vision" story that articulates an inspiring future direction. These narratives provide clients with a clear roadmap to success—such as the eight pillars of agency ownership—and create a compelling framework for your relationship. A great historical example of an exceptional vision story is Martin Luther King Jr.'s "I Have a Dream" speech. This is one of the most powerful visions in American history that illustrates how powerful vision stories can mobilize and inspire action. Leaders who can paint a vivid picture of the future not only engage their clients but also empower them to envision their own success.

Do You Want to Transform Your Agency from a Liability to an Asset?

Looking to dig deeper into your agency's potential? Check out our Agency Blueprint. Designed for agency owners like you, our Agency Blueprint helps you uncover growth opportunities, tackle obstacles, and craft a customized blueprint for your agency's success.

Would you like access to our advanced agency training for FREE? https://www.agencymastery360.com/training

Are you focusing your energy on growing existing client relationships or acquiring new ones? Building strong client relationships requires a commitment to proactive communication from the very beginning, as today's featured guest clearly demonstrates.

Our guest runs a brand agency that prioritizes nurturing and growing client relationships through three key strategies: establishing clear expectations, maintaining proactive communication, and implementing careful qualifying processes to ensure they partner only with the right culture fits. This intentional approach has made her agency irreplaceable to clients.

Discover the specific strategies and insights that have contributed to her success in building lasting, valuable client partnerships that stand the test of time.

Charlene Coughlin is president and partner at Twist Creative, a thriving brand agency founded by a husband and wife duo who combined their talents in writing and design to create a unique agency focused on brand growth. She discusses how to excel at scaling client accounts by nurturing existing relationships and creating strong partnerships, why she stopped participating in RFPs, and more.

In this episode, we'll discuss:

• Nurturing relationships vs. landing clients.

• The art of proactive client communication.

• RFPs don't equal quality clients.

• Building trust through consistent communication.

Subscribe

Apple | Spotify | iHeart Radio

Sponsors and Resources

Wix: Today's episode of the Smart Agency Masterclass is sponsored by Wix Studio, the all-in-one platform designed to help agencies scale without the headaches. With intuitive tools, robust native business solutions, and low maintenance, Wix Studio lets your team focus on what matters most—delivering exceptional value to your clients. Ready to take your agency to the next level? Visit wix.com/studio and discover how Wix Studio can transform your workflow, boost profits, and strengthen client relationships.

Nurturing Relationships vs. Just Landing Clients

Many agencies get caught in the endless task of getting more and more accounts and don't spend nearly as much time on growing those accounts. For Charlene, the business has always been about relationships. She feels it's useless to have amazing creative if it won't get used because relationships go sour.

First and foremost, she recommends aiming to understand the client, their motivations, and goals to build a relationship based on really listening to them. By actively listening to clients and demonstrating authentic interest in their success, agencies can transform the traditional vendor-client dynamic into a true partnership built on trust and mutual understanding. This shift fundamentally changes how clients perceive the agency's role.

When this transformation occurs, agencies become irreplaceable strategic partners rather than interchangeable service providers. The relationship evolves from clients dictating specific deliverables to collaborative planning sessions where both parties work together on annual goals and budget development. This partnership approach not only secures long-term client retention but also creates opportunities for account growth that far exceed what's possible through constant new business acquisition.

The Art of Proactive Client Communication

Building strong client partnerships that grow over time requires intentionality from the very beginning of the relationship. Charlene's team implements this philosophy through a proactive approach to client communication that starts during the onboarding process. Rather than reactively waiting for clients to reach out with needs or concerns, they systematically initiate engagement, establishing a foundation of trust and collaboration that benefits both parties.

This proactive communication extends even to prospective clients who are still evaluating whether to work with the agency. Through consistent follow-up and responsive answering of questions, potential clients develop clear expectations about the working relationship before making their decision. By the time they commit, the groundwork for effective collaboration has already been established.

Setting clear expectations from the outset is crucial to this approach. Charlene's team conducts candid conversations to understand what clients value in agency partnerships and what previous experiences have frustrated them. This transparency acknowledges that challenges will inevitably arise while emphasizing their commitment to navigating difficulties together.

Ultimately, ensuring that potential clients align with the agency's core principles will help you cultivate a more harmonious working relationship. This selectivity not only reduces friction but also enhances the overall experience for both the agency and the client, leading to more productive collaborations.

Protecting Your Agency's Culture by Prioritizing Healthy Client Relationships

Establishing client alignment from early on also helps agencies avoid the difficult relationships that arise with clients that are just a bad fit. These are the type of clients that will expect a response at any hour of the day and treat your team poorly. The stress and dissatisfaction that arise from such relationships overshadows the potential for creative opportunities, ultimately resulting in a toxic work environment.

For Charlene, these projects are just not worth it and usually require more time and effort than originally estimated. There was a time when her agency was willing to compromise its standards due to financial pressures. However, this mindset only leads to a cycle of negativity, where the agency finds itself mired in challenging relationships that drain energy and resources. By being willing to say "no" to clients who do not respect their team, agencies protect their culture and morale, allowing them to focus on meaningful partnerships that foster growth.

Why RFPs Don't Always Equal Quality Clients

Like many agencies, Charlene's team used to spend hundreds of hours on Requests For Proposals, putting a lot of effort into its content and correct format only to never hear back from these companies.

Additionally, the RFP process can inadvertently encourage agencies to engage in practices that undermine the value of their work, like the pressure to provide free spec work to stand out among competitors. This happened to Charlene and her team in 2018 with a project they really wanted to win. However, they only agreed to participate in this RFP after negotiating payment for their spec work. This way they not only got compensated for their time but also demonstrated the value they placed on their creative output.

Still, Charlene found that with RFPs the final decision tended to be based on budget more than what each agency offered, which made those clients the wrong fit for her agency. Therefore, they stopped spending time on RFPs altogether as she found this would actually save the agency time and money they could spend in finding actual qualified clients.

How Charging for Strategy Pays Off in the Long Run

Agencies that sell a Foot-in-the-Door project rather than pitching a big project gain more in the long run. A FIYD is an alternative where agencies propose smaller projects or consultations that allow them to demonstrate their expertise while fostering a collaborative environment. This strategy not only positions the agency as a trusted advisor but also creates a sense of ownership for the client, enhancing their investment in the relationship. It also provides more opportunities for conversations where the agency can find out more about the clients' issues and what they really need.

Creating a foot-in-the-door offer requires a shift to start charging for insights and strategy many are giving away for free. Clients may struggle with the transition from receiving complimentary advice to paying for it. However, this shift is crucial for establishing the agency as a valued partner rather than just a service provider. When clients begin to pay for strategic insights, they are more likely to engage deeply with the process, leading to better outcomes and a stronger relationship.

Building Trust Through Consistent Communication

In client relationships, anxiety typically arises when communication is lacking. This is why Charlene focuses on building strong connections that extend beyond merely addressing problems to fostering open dialogue. When clients feel comfortable reaching out, it reflects the solid foundation of trust and understanding she has established.

Charlene's agency implements a proactive communication strategy, sending regular status updates even when there is little to report. This consistent attentiveness reassures clients that they are valued and their needs are being addressed, creating a true sense of partnership.

The results of this approach are evident in client behavior. Not only do clients readily discuss business issues with Charlene, but they also seek her expertise on other matters. This pattern demonstrates how thoughtful communication cultivates relationships where clients feel supported, understood, and confident in the partnership.

Do You Want to Transform Your Agency from a Liability to an Asset?

Looking to dig deeper into your agency's potential? Check out our Agency Blueprint. Designed for agency owners like you, our Agency Blueprint helps you uncover growth opportunities, tackle obstacles, and craft a customized blueprint for your agency's success.

Would you like access to our advanced agency training for FREE? https://www.agencymastery360.com/training

Would you consider a merger or acquisition as a growth strategy? What does it look like to acquire another agency? How can you ensure success for the buyer, seller, and existing clients? Today's featured guest demonstrates how this approach can be highly effective when executed thoughtfully. He started his agency after realizing he would never get the recognition he deserved while working for somebody else, which drove him to establish his own agency where he now thrives.

Recently, he expanded through the strategic acquisition of three agencies, focusing primarily on their client portfolios. His acquisition strategy emphasizes the importance of relationship continuity, specifically seeking arrangements where previous owners remain involved during the transition period, allowing his team to gradually build trust with the inherited client base. Learn from his valuable insights on entrepreneurship and the strategic use of acquisitions for agency growth.

Luke Szkudlarek is a founding partner of What., a Zurich-based consultancy and growth hacking group focused on helping SMEs and startups with growth, digitalization, and product development. He'll share the pivotal moment that sparked his decision to pursue entrepreneurship after an encounter with his boss, highlighting the importance of ownership and recognition in the workplace.

In this episode, we'll discuss:

• Spotting trends that lead to agency success.

• The mind shift needed to break the glass ceiling on growth.

• Using agency acquisition as a growth strategy.

• Ensuring a smooth merger and acquisition for agency clients.

Subscribe

Apple | Spotify | iHeart Radio

Sponsors and Resources

E2M Solutions: Today's episode of the Smart Agency Masterclass is sponsored by E2M Solutions, a web design, and development agency that has provided white-label services for the past 10 years to agencies all over the world. Check out e2msolutions.com/smartagency and get 10% off for the first three months of service.

How a Dismissive Boss Sparked an Agency Journey

Luke's entrepreneurial journey began in Zurich with what seemed like a straightforward 'easy' role helping an agency acquire new clients. As he sharpened his skills he soon started working with giants like Nestle and Victoria Knox.

After closing a few lucrative deals, Luke approached his employer about receiving company shares as compensation for his valuable contributions.

His boss's dismissive response—offering a spa treatment instead of equity—became a key moment in his career. Rather than viewing this as a setback, he recognized it as a sign that it was time to venture out on his own. Confident in his ability to attract and maintain relationships with major clients, he started to plan his next move with a colleague. Six months later they were ready to start building their own business.

Spotting Trends as the Secret to Early Success

While many startup agencies start out relying on referrals, Luke attributes his success to an ability to identify and capitalize on emerging market trends. Firstly, he benefitted from starting out in a market where growth hacking was still relatively unknown, allowing his firm to establish itself as a pioneer in its niche. Rather than simply focusing on website visibility, they differentiated themselves by creating valuable digital assets for their clients.

Luke was also quick to spot the benefits of having a hybrid team, which gave him access to talent from all over the world. It also allowed him to undercut the competition with lower prices, and he had a hybrid structure already set when the pandemic hit.

Furthermore, while many agencies still thought that working with startups was a waste of money, Luke focused only on these businesses. Bigger agencies had no interest in working with a $50,000-$60,000 budget, but it was just what his agency needed to start building their brand. This led to many obscure projects, but as one of few agencies working with startups it was pretty easy to jump from an initial project to a much larger one and opportunities to build relationships with investors.

Outsourcing Tasks as a Strategic Growth Plan

One of the critical decisions that significantly influenced his agency's growth was delegating administrative tasks. Neither Luke nor his partner are very fond of admin work and didn't want any part of the invoicing. However the invoicing process is a fundamental one in an agency and a focus when it came to a basis for success. They recognized their strengths lay in selling and project delivery, not in repetitive administrative work so that was the first choice when it came to start hiring to delegate.

This approach is about more than offloading work, it is a strategic decision with significant advantages. By outsourcing administrative tasks, it frees up valuable time and resources, enabling founders and key team members to focus on strategic planning, client engagement, and product development.

The Mind Shift to Break the Glass Ceiling to Real Growth

Many founders find themselves trapped after hitting a glass ceiling, unsure of how to break through to the next level. You need a fundamental mindset shift before you can get past this stage.

This mindset shift requires you understand that growth is not solely about increasing revenue or expanding service offerings. Instead, it requires a clear vision and the ability to communicate that vision effectively to the entire team. Founders must ask themselves not just where they want to go, but how to empower their teams to make decisions that align with that vision.

Moreover, it's about hiring strategically to build a team that can take the agency further than you can done by yourself, while also working on improving yourself to set the vision and be the face of the agency. Luke has recently started working with coaches to get inspiration and it has made a big different in his goal of getting to the next level.

Acquisition as an Agency Growth Strategy

By now, Luke's agency has acquired three other agencies and continues to learn about these transactions. All three processes were different, with the first one being a merger with an agency that initially came in as a strategic partner and the last two being more asset purchases focused on their client portfolios.

According to Luke, it's quite difficult to convince Swiss clients to leave their agency, even if you present an opportunity to save them a lot of money because personal relationships often hold more sway than the merits of a compelling pitch or a well-crafted campaign. Consequently, it's easier in his view to acquire the portfolios to start a relationship with those companies. This approach not only facilitates expansion but also enhances the value proposition offered to clients, ultimately driving profitability and market presence.

How to Ensure a Smooth M&A Transition for Agency Clients

In agency acquisitions, understanding the seller's post-sale intentions is crucial for establishing a successful transition. Try to get a clear response of what they're hoping to get from the sale.

Do they want to completely separate themselves from the agency and do something else? Do they prefer staying and focus on sales and growth? Or maybe focus on profitability and growth? There are scenarios where each of those options could work but there needs to be a clear understanding from the beginning for it to work for both parties.

Luke's approach to acquisitions specifically acknowledges the relationship-based nature of agency businesses. He personally prefers for the founders to stay for a while as he works to earn clients' trust. If a seller walks away immediately, the client list becomes worthless since their relationship is with the previous owner. Until the trust is built, it's best to keep sellers on board.

Do You Want to Transform Your Agency from a Liability to an Asset?

Looking to dig deeper into your agency's potential? Check out our Agency Blueprint. Designed for agency owners like you, our Agency Blueprint helps you uncover growth opportunities, tackle obstacles, and craft a customized blueprint for your agency's success.

Would you like access to our advanced agency training for FREE? https://www.agencymastery360.com/training

Are you prepared to sell your agency if the right opportunity presents itself? Making your business sale-ready requires more than just financial preparation—it demands emotional readiness and the ability to set ego aside.

With pleasure, we are featuring a long time mastermind member on the show who, after recently selling his agency, now describes himself as a "recovering agency owner". It was an unexpected opportunity that turned into an amazing deal for the seller and buyer. Jordan discusses the way he took control of his agency's future by pursuing the sale, what he'd change about the process, and the importance of having a plan for post-sale integration.

Our guest is Jordan Choo, a recovering agency owner who previously founded, built, and sold Kogneta, a digital marketing firm focused on helping local businesses grow effectively. He is a longtime friend of the podcast who was mastermind member for sixy years before selling his agency. He is here to talk about the acquisition process, which began through an introduction from another agency owner rather than a typical unsolicited acquisition offer.

In this episode, we'll discuss:

• Turning a potential partnership into an acquisition

• If you want to sell, leave emotions and ego at the door.

• Overcoming 2 common agency owner struggles.

Subscribe

Apple | Spotify | iHeart Radio

Sponsors and Resources

FREE Training: Feeling stuck in your agency? You're not alone. Running an agency can be isolating, overwhelming, and downright exhausting. But it doesn't have to be. At Agency Mastery, we've been there—which is why we now offer free training resources to transform your agency from a liability to an asset.. Check out our FREE RESOURCES on Lead Generation and Sales Systems. No strings attached. Just the tools you need to grow smarter, not harder. Get started today at agencymastery360.com/training. Don't let your agency hold you back. Let's build the future you deserve.

Turning a Potential Partnership into an Agency Acquisition

If you run an agency, and especially if you've grown beyond a certain point, you should be really clear about your why and what you have in mind for the future.

There's a chance you started as a lifestyle business. In that case, there isn't much to worry about beyond maintaining profitability. However, if you started it with the intention to grow that business to eventually sell, then that will dictate how to grow your agency.

At some point, most agency owners have gotten the typical pitch email expressing interest in buying their business. In Jordan's case, it all started with an introduction from another agency owner. The contact wasn't specifically looking to purchase his agency, but for a white label partner to provide marketing services in order to expand their value to clients.

After a few conversations with this agency, Jordan realized it would make more sense for them to acquire his agency rather than getting into a longtime partnership. It was a pretty good fit in terms of their cultures and how their agencies were structured. Hence, he was encouraged to bring the matter up and ask them their thoughts about a potential merge.

What started as Jordan's curiosity about the buyer's serious intentions evolved into meaningful discussions about merging the businesses. The organic nature of these conversations led to a deal that benefited both parties, with the entire process—from initial talks to signing a formal letter of intent—taking approximately five months.

Selling Your Agency? Leave Ego and Emotions at the Door

Understanding that ego can be a deal-breaker in business transactions, Jordan approached his agency's sale by being pragmatic and emotionally detached. He established a realistic valuation range and minimum acceptable offer before negotiations began. Fortunately, his expectations aligned well with the buyer's assessment, which streamlined the negotiation process.

In the best case scenario, both parties are adequately educated on how the business should be fairly valued. But for that to happen, you need to separate the part of your identity that is closely linked to the business and have a clear path for what comes next after the sale. What are you looking for to doing post sale? Do you have plans to start a new business or follow a new interest? If you can't answer these questions, maybe it's not your time to sell.

In his case, Jordan wants to rest, take some time off, and then go back to focusing his time and energy on growing a brand, instead of focusing on several brands at the same time, like he used to do with his agency.

Overcoming 2 Common Agency Owner Struggles

Reflecting on his agency journey, Jordan identified two critical challenges that influenced his business's growth trajectory: team building and role transition. In the early stages, he struggled with making effective hiring decisions and came to realize that the team you choose defines how quickly or slowly you grow.

He also understands building the right team requires absolute clarity about the business's objectives. Without a clear vision, you cannot guide your team in the right direction and build the right foundation so they can make decisions without you. By investing time in the hiring process and ensuring alignment with the agency's values and goals, owners can cultivate a team that is competent and motivated to drive growth.

As the agency expanded, Jordan faced another common challenge: the difficult transition from working IN the business to working ON it. While he was naturally drawn to sales activities, his role as owner demanded focus on strategic initiatives like business growth planning, marketing strategy, leadership development, and creating standard operating procedures (SOPs) for effective delegation.

This all goes back to delegation, a common struggle often stemming from a fear of losing control. Delegation, in this sense, should be not just about offloading work but about strategically positioning the right people in the right roles to achieve collective success.

Why You Shouldn't Skip the Integration Plan

Jordan has no regrets about how the acquisition went down. In fact, he wouldn't change anything about the negotiation process. However, he does wish he would've spent more time structuring an integration plan. To him, the first 90 days post sale should be laid out and planned for to ensure a smooth transition.

For agency owners considering a sale, Jordan recommends thoroughly understanding the buyer's motivations and intended use of the acquired agency. This understanding is crucial because it directly impacts the post-sale relationship. He advises against committing to lengthy employment agreements if the acquiring company doesn't have a clear need for the owner's continued involvement.

In his case, Jordan treated the purchase agreement and the employment agreement as two separate entities and two separate negotiations, which proved to be the best course of action.

Do You Want to Transform Your Agency from a Liability to an Asset?

Looking to dig deeper into your agency's potential? Check out our Agency Blueprint. Designed for agency owners like you, our Agency Blueprint helps you uncover growth opportunities, tackle obstacles, and craft a customized blueprint for your agency's success.

Would you like access to our advanced agency training for FREE? https://www.agencymastery360.com/training

Could an internal succession be the right choice for your eventual agency exit? What could that sort of deal structure look like in order to ensure you're leaving the agency in the best hands possible? As one agency owner transitioned to out of the agency day-to-day, an unexpected result was an organic exit from the business with an employee buyout.

A shining-star employee with the potential to be a great owner was the buyer in mind. Now the challenge was helping him get to a place where he could make the purchase. Listen to the inspiring story of adaptability and structuring the right deal to sell your agency to the right person.

Eric Holter is the CEO of Cuberis, a specialized web development firm focused on the museum industry. He shares his journey from studying traditional illustration to working in web development and launching his first web company, the reasons he decided to sell and follow other dreams, and how he ended up owning another agency years later.

Eric is also the author of Blazing the Freelance Trail, a roadmap for creatives just getting started that will walk them through five main principles: money, minutes, management, marketing, and motivation and explains their role in creating and running a business.

In this episode, we'll discuss:

• Client diversification for agency survival.

• Building a bridge from employee to ownership.

• The five roles of a CEO.

Subscribe

Apple | Spotify | iHeart Radio

Sponsors and Resources

E2M Solutions: Today's episode of the Smart Agency Masterclass is sponsored by E2M Solutions, a web design, and development agency that has provided white-label services for the past 10 years to agencies all over the world. Check out e2msolutions.com/smartagency and get 10% off for the first three months of service.

Going from Freelancer to Agency Owner, Twice!

Eric first entered the advertising world as an illustrator using the traditional methods. He was looking for something new after freelancing for a while and knew his skills in letterpress printing and wood engraving wouldn't pay the bills.

However, in 1995 he was quick to adapt to the new era brought by the internet and started his first business. Back then, all his clients were just scrambling to get a website for their businesses. Finding clients was as easy as sending them an email offering his services. This agency grew quickly to 12 employees and then was hit by two major events throughout the years: the dotcom bubble burst and 9/11, prompting a dramatic downsizing.

Though the agency gradually recovered, Eric ultimately decided to sell in 2013 looking for a fresh start doing some consulting work. He wanted to help business owners learn how to run their business.

One of his clients was Cuberis, whose (then) owner needed guidance in managing the business. What began as a consulting relationship evolved into an unexpected opportunity and Eric eventually purchased the agency. With this, round two of agency ownership began.

Learning to Diversify Clients as the Key to Agency Survival

That first blow during the dotcom bubble burst helped Eric see the initial model of direct client engagement was no longer viable. Whereas before the referrals just poured in as everyone tried to beat the competition to get a brand new website, he now needs to forge strategic alliances allowing him to continue generating business.

He also needed to rethink his focus, so far marked by working primarily with small, brick-and-mortar clients. Instead, the experience gained during several difficult times and subsequent economic downturns taught him that a diverse client base can serve as a buffer against market volatility.

An Unexpected Exit: What Decisions Led to Selling the Agency?

Eric's decision to sell his agency emerged organically from a series of strategic decisions that began in 2000 when he hired an consultant to enhance his business management skills. In hindsight, investing in professional guidance was the beginning of a journey he hadn't anticipated.

Following the consultant's advice, Eric started transitioning from an active role in his agency to developing a resilient organizational structure and empowering employees to operate independently.

Initially, this move didn't have an exit strategy in mind—just sound business practices aimed at improving the agency's efficiency. However, by 2008 he felt there wasn't much for him to do at the agency, which made him restless.

While he contemplated changing up things in the agency to satisfy his entrepreneurial drive, he knew it would just divert from the things that were already working. Ultimately, it became clear that instead of introducing changes just to scratch his entrepreneurial itch, it would be better to sell and move on to new things.

Building a Bridge from Employee to Agency Owner

When Eric decided to sell his agency, he identified an employee with the ambition and capability to take over the business. The challenge then became structuring a deal that would make the purchase feasible for this successor.

The plan was a five-year buyout with an element of owner's financing. Basically, Eric increased the employee's salary so that he could take a portion of this new salary each month and buy shares according to a distribution schedule. Over a five-year period he continued to buy shares as his equity increased. Once he hit a 45% ownership, he would buy the rest all that once through a loan.

This structure not only provided the employee with a clear pathway to ownership but also allowed him to acclimate to the responsibilities of ownership without the pressure of an immediate buyout. He was able to learn about the business and develop his leadership skills under Eric's mentorship. For him, the key to succeeding with this type of structure is to take your time with the process.

Ultimately, this was the best decision for the agency and for himself. Eric knew the business was in good hands and he also knew there were other things he wanted to do. He wanted to focus on helping other people run their businesses more efficiently.

Not Your Time to Sell? Here are the 5 Roles of a CEO

For Eric, not working in the business and feeling isolated from the work being done helped him realize he wanted to sell and move to other things. However, this doesn't have to be the case for all agency owners. You can successfully make the transition from owner to CEO and find meaning in your new role as long as you understand what that role is. The 5 roles of a CEO are:

1. Grow and mentor the leadership team.

2. To be the face of the company.

3. To set vision and direction.

4. Manage the financials.

5. Be available for key relationships.

Whatever you're doing, make sure they are part of these five roles. If it's something outside of these, you need to assess whether or not you are the one that should be doing it.

If this is something you're ready to do for your agency, then selling is not the right move and you can continue being part of the business growth. If not, and you already have a plan for what you'll do after selling, then an acquisition is the best path for you.

Do You Want to Transform Your Agency from a Liability to an Asset?

Looking to dig deeper into your agency's potential? Check out our Agency Blueprint. Designed for agency owners like you, our Agency Blueprint helps you uncover growth opportunities, tackle obstacles, and craft a customized blueprint for your agency's success.

Would you like access to our advanced agency training for FREE? https://www.agencymastery360.com/training

How do you measure your agency's success? Awards and accolade? Top-line revenue and big name clients? What if we told you a more focused and lean approach could be the best path. Today's featured guest realized the importance of finding a "sweet spot" in the agency world, so he moved to focusing on quality over quantity. He talks about the challenges of maintaining a small client roster and the benefits it brings. In his business model, his agency is providing consistent, high-quality work and building strong partnerships. Learn valuable insights on leadership, innovation, and the importance of a good relationship building.

Nick Francis is the Chief Visionary Officer of The Franchise Group, a strategic marketing and creative agency that does a comprehensive range of services, including video production, web design, graphic design, and event production. He recounts his journey into the agency world, beginning with the support of a boss who became a mentor and surviving the housing market crash and the pandemic. Nick discusses how he built a culture that has created remarkable retention rates at his agency and why his network is his most important tool to keep a full client funnel.

In this episode, we'll discuss:

• Adapting and innovating in uncertain times.

• Redefining success instead of chasing awards.

• Retaining talent longer than the industry average.

Subscribe

Apple | Spotify | iHeart Radio

Sponsors and Resources

Smart Pricing Table: Today's episode of the Smart Agency Masterclass is sponsored by Smart Pricing Table, an award-winning proposal software built just for marketing agencies and designed to handle your unique challenges and cut down the time you spend on proposal as much as 90%. Go to smartpricingtable.com/smartagency to see if this is the missing piece your agency needs. Schedule a demo and get 50% OFF for the first two months.

Building an Agency with the Right Mentorship

Nick began his career working in the film industry, later transitioning to the ad world, and eventually ending up at a company that blended both worlds working in video production and events.

As part of a small team of five people, Nick worked on the creative development side from writing scripts to pitching ideas. His work attending events led him to form a network of people in that space who needed similar services. Soon he started bringing in new clients for the agency.

Nick's boss noticed he' had mastered nearly every aspect of the business except financial management. He took the unusual step of sharing budgeting expertise with Nick and actively encouraging his independence.

In 2006, Nick launched his own agency, bringing along a big client that sustained his business through its crucial first five months.

It's a very unique case scenario to start your agency with your former boss's support and even taking a big client with you, but that relationship was pivotal in Nick's journey, with him continuing to be his mentor to this day.

Adapting and Innovating in Uncertain Times

Running an agency that focuses mostly on the events industry, Nick's business practically disappeared with the pandemic and the lockdowns. Suddenly, the agency lost a devastating 35% of its revenue that year.

Instead of panicking, they quickly adapted to online events for a while. They moved to building a full broadcasting suite at their office to help clients get their message out in a time when they couldn't do so at live events. Initially, they faced resistance with clients still being more interested in traditional event experiences. However, as they persisted in promoting the benefits of virtual engagement, they found success in reaching a wider audience.

It was a bold move that took some time to gain interest but it was the right call to keep the business going during those uncertain months.

Redefining Success Instead of Chasing Awards

The agency industry tends to be heavily focused on growth and competition, which affects how owners see their own milestones and overall success.

The pressure to grow fast and beat their competition leads many owners to chase awards over personal fulfillment. But why should success be defined by outside metrics rather than personal satisfaction? For some, a lean, focused approach yields greater satisfaction more than a huge, impersonal operation.

In Nick's case, after navigating the turbulent times of the housing market crash, he and his team adapted by becoming an extension of their clients' teams rather than merely functioning as external vendors. This shift allowed them to forge deeper connections with their clients, emphasizing collaboration and shared goals.

After years of growth, he and his team started to consider the advantages of focusing on bigger clients who sign longer contracts and usually represent less hassle for them. On one hand they were thinking strategically about the future of the agency but on the other the agency just naturally moved in that direction based on what clients were looking for.

Retaining Talent Longer Than the Industry Average

Many owners believe if the business isn't growing employees will see stagnation and eventually leave. Instead, Nick advocates for balancing professional development with personal wellbeing as a different metric of success. His approach has yielded remarkable results, particularly with entry-level hires who typically remain with his agency for three to four years—far exceeding the industry standard.

This success in retention stems from a deliberate focus on creating a fulfilling work environment. Nick has found that employee satisfaction most commonly correlates with feeling valued and finding meaning in their work.

Career goals are important, of course, but as long as you continue to challenge your employees and innovate they'll stay inspired and motivated to do good work.

You Never Know When You're Building a Relationship

After nearly two decades in the industry, Nick has cultivated a powerful professional network that serves as his agency's primary source of high-value clients.

In his view, a good network is everything and building and nurturing relationships should be not just a supplementary aspect of business but a fundamental aspect intertwined with growth, opportunity, and resilience.

Nick advises agency owners to remember that genuine engagement with others leads to unexpected opportunities. By being fully present and attentive, it fosters deeper connections that later evolve into fruitful collaborations.

You never know when you're building your next relationship, so approach networking not as a transactional but as an organic process of connection-building.

Do You Want to Transform Your Agency from a Liability to an Asset?

Looking to dig deeper into your agency's potential? Check out our Agency Blueprint. Designed for agency owners like you, our Agency Blueprint helps you uncover growth opportunities, tackle obstacles, and craft a customized blueprint for your agency's success.

Would you like access to our advanced agency training for FREE? https://www.agencymastery360.com/training

Are you integrating AI in your agency processes in the most effective ways? What sort of opportunities are you missing by not integrating AI into your agency's systems and processes? There's no going back from AI, so you might as well embrace it as it continues to evolve the ever changing agency landscape.

While many agencies have begun incorporating AI tools, numerous opportunities remain unexplored, and the technology's full potential is still emerging. Today's featured guest brings unique insights as an agency owner who has fully embraced AI's transformative power. Through his continuous study and practical implementation of AI solutions, he has gained valuable perspectives on how this technology is fundamentally altering agency operations—from team structures to client expectations. Tune in for practical insights for agency leaders looking to harness AI's potential while adapting to the evolving demands of the digital marketplace.

Manish Dudharejia is the founder of E2M Solutions, one of the largest white label partners for digital agencies that has established itself as a trusted resource for agencies needing support in website development, e-commerce, SEO, and content creation, particularly in WordPress.

Manish is a good friend of the podcast and a repeat guest of the sharing insights on hiring tips for agencies, advice on how to level up your agency, and the right time to use acquisition as a strategy for growth.

In this episode, we'll discuss:

• AI's role in agency evolution.

• Why your agency should stop charging hourly rates.

• 2 big opportunities for agencies to integrate AI.

Subscribe

Apple | Spotify | iHeart Radio

The Transitional Phase Agencies Face with the Rise of AI

It seems as though things shift rapidly in the agency space ever since 1999 when the arrival of the internet forever transformed how we market.

One of the biggest shifts in the agency model in recent history is the use of AI. This technology has come to completely revolutionize the internet and, as Manish points out, it's impossible to ignore.

The launch of user-friendly platforms in the early 2000s marked the beginning of a paradigm shift. Businesses quickly became aware of these alternatives, leading to increased competition and a downward pressure on prices as businesses became more informed.

Today, we find ourselves in a similar transitional phase. The integration of AI technologies into agency workflows promises to enhance efficiency by automating repetitive tasks, streamlining project management, and optimizing client communications.

A more informed and discerning consumer expects personalized experiences and immediate responses. Agencies must adapt their strategies to meet these expectations, leveraging data and insights to create tailored campaigns that resonate with their target audiences.

AI's Role in Agency Evolution

The rise in the use of AI technologies in the industry does not mean this technology will replace agencies. However, agencies that integrate AI will replace those who don't.

What AI can do in agency world is not merely about automation or replacing human effort; rather, it is about enhancing capabilities and redefining the agency-client relationship.

Historically, agencies had relied on large teams to execute projects and meet client demands. However, as technology evolves, the need for extensive manpower diminishes and agencies must position themselves as strategic advisors rather than just service providers. Clients are increasingly looking for partners who can address their biggest challenges, not just execute tasks.

Additionally, AI is also having an impact on the dynamics of team structures within agencies. Traditionally, growth was synonymous with hiring more staff. However, the advent of AI challenges this idea. Today, agencies can achieve growth without necessarily increasing headcount. This shift encourages a leaner, more agile approach to business operations, where technology complements human expertise rather than replaces it.

Why Your Agency Needs to Stop Charging Hourly Rates

The advent of artificial intelligence (AI) presents a transformative opportunity for agencies to streamline their processes, reduce delivery times, and ultimately increase their bottom line. This reduction not only improves operational efficiency but also contributes to increased profitability. However, this also means you should reevaluate how you're charging and how you're choosing to present the value you're bringing to clients.

With AI's ability to streamline processes and enhance productivity, agencies can significantly reduce the time and resources required for project completion. For instance, if a website that once took 100 hours to develop can now be completed in just 10 hours, agencies risk losing substantial profit if they maintain an hourly billing model.

Bottom line, by charging hourly you are losing money by become more efficient.

2 Big Opportunities for Agencies to Integrate AI

1. Fractional AI consultants. Manish sees huge opportunity for agencies that embrace AI consultancy as a crucial strategy to enhance their services, streamline operations, and ultimately drive revenue growth. By hiring fractional AI consultants, agencies can offer specialized guidance to their clients without the burden of fulltime hires. This approach not only allows agencies to enhance their service offerings but also enables them to assist clients in integrating AI into their daily operations. As AI continues to evolve, the demand for expertise in this area will grow, making it a timely investment for agencies looking to differentiate themselves in a competitive market.

2. Responsive SOPs. Traditionally, SOPs serve as static documents that guide team members in their tasks. But how could AI improve this? For his part, Manish is testing dynamic SOPs powered by AI. By feeding existing SOPs into an AI agent, agencies can create a responsive system that provides real-time insights and recommendations. This approach not only enhances the relevance of SOPs but also allows teams to ask specific questions and receive tailored guidance. Using Ai in this way opens up many possibilities like identifying efficiencies as things change. For instance, you can use it to streamline the onboarding process, making it faster and more efficient. Additionally, it could provide valuable insights into client challenges, enabling agencies to respond more effectively and proactively address client needs. This adaptability is crucial in an environment where client expectations are constantly evolving.

Furthermore, AI models trained on both public and private data can enhance the quality of SOPs and operational processes. By leveraging the insights generated from these models, agencies can refine their strategies and make more informed decisions, ultimately leading to better outcomes for both the agency and its clients.

Do You Want to Transform Your Agency from a Liability to an Asset?

Looking to dig deeper into your agency's potential? Check out our Agency Blueprint. Designed for agency owners like you, our Agency Blueprint helps you uncover growth opportunities, tackle obstacles, and craft a customized blueprint for your agency's success.

Would you like access to our advanced agency training for FREE? https://www.agencymastery360.com/training

Have you defined the who in your agency's growth journey? What are you using to guiding the type of team that will grow your agency to it's full potential? In today's episode, our featured guest shares his experience of co-founding a digital agency two decades ago with a group of former colleagues. By bringing clients from their previous agency and leveraging a steady stream of referrals, they were able to launch and grow their business. However, he quickly discovered that attracting the right talent—especially individuals excited to join a small, fledgling agency—was far more challenging than expected.

Learn the valuable lessons he's learned about hiring, the qualities he looks for in candidates to drive his agency's success, and why he emphasizes the importance of acting swiftly when a hire isn't the right fit.

Justin Hall is the co-founder and managing partner of Voxus PR, a B2B tech PR, social media, and content agency based in South Seattle. He shares the story behind how he and his partners transitioned from a larger agency to launching their own, the uncommon support from their former employer during their transition, and what's he's learned since about hiring and scaling.

In this episode, we'll discuss:

• Why asking "who" matters more than "how" in agency growth.

• Balancing experience vs. potential in agency hiring.

• Be quick to act if a new hire is not the right fit.

Subscribe

Apple | Spotify | iHeart Radio

Sponsors and Resources

Smart Pricing Table: Today's episode of the Smart Agency Masterclass is sponsored by Smart Pricing Table, an award-winning proposal software built just for marketing agencies and designed to handle your unique challenges and cut down the time you spend on proposal as much as 90%. Go to smartpricingtable.com/smartagency to see if this is the missing piece your agency needs. Schedule a demo and get 50% OFF for the first two months.

An Intentional Agency Backed by the Old Boss

Justin's path to agency ownership was more deliberate than the typical accidental agency owner. He worked at a big agency twenty years ago, where he joined a group of workers who set out on their own to build an agency.

Motivated by the idea that they could figure out a better way to do things, this group ventured to start their own business. They had built a reputation for exceptional work, which earned them not just their former boss's blessing, but also the opportunity to bring several existing clients with them. In fact, Justin acknowledges that their old boss' support played an important role in their eventual success.

It's an extremely rare case scenario and one that was a result of the great work that these workers had done for that agency.

Why 'Who' Matters More Than 'How' in Agency Growth

When it comes to choosing a niche, Jason believes it's a mistake to make this decision based on your personal preferences. "Do I love this particular niche?" Is not necessarily the best question to ask yourself when choosing a path for your agency. Instead, this would be a good moment to ask yourself: "Where?" and "Who?"

These questions serve as guiding principles for agency leaders, enabling them to empower their teams to make informed decisions autonomously. When agency leaders focus on the destination rather than the minutiae of the journey, they create an environment that fosters initiative and proactive problem-solving among their employees. In this sense, instead of asking HOW can I get my agency to the next level? Ask yourself WHO could help me reach that goal? And WHO do you need to become to not hold the agency back?

This mindset of surrounding yourself with the right people who can contribute to the agency's vision and help navigate the complexities of growth should also align with your recruitment strategy. As Justin has learned, leaders should be hiring for initiative and communication rather than merely filling positions based on specific skill sets.

Balancing Experience vs Potential in Agency Hiring

Once the business was set up and some clients were secured, Justin and his partners faced the challenge of scaling and adding new business responsibilities to the client work they usually handled.

Fortunately for them, the referrals poured in during the first several months, so new business was not a concern. On the other hand, finding talent willing to join a small agency was not easy. Unlike larger corporations with specialized roles and departments small agencies require employees to wear multiple hats. As Justin explains, the ideal candidate must not only excel in project management and writing but also be adept at pitching media and communicating effectively.

This recruitment challenge prompted a fundamental strategic question: should they prioritize experienced people who could immediately contribute, or invest in developing new, young talent with the right potential? Each approach has its merits. Initially, the partners sought seasoned professionals who could make an instant impact. Yet they quickly discovered that these experienced hires often required significant support and integration.

Hence, they now expand their search to also find talented young individuals fresh out of college with the right attitude and potential that could be trained to become valuable team members. The agency has adapted to offer these individuals what they would need to thrive: invested mentors and the right processes to make them the best they can be.

Making Hard Choices in Small Agency Leadership

Thinking about past hiring mistakes, Justin goes back to the need to fail fast when you're running a smaller agency. This is true for clients and also for employees. In both cases, you'll need to say no sometimes and be quick to find out whether or not they're the right piece in your puzzle.

The balance between nurturing talent and recognizing when to make tough decisions is a delicate one that agency leaders must navigate. You may recognize the signs that an employee is just not right for your team but fail to act quickly and hold on to them thinking you can turn things around. It's human nature to want to fix the problem.

For Justin, it depends on whether or not the employee is 100% invested in trying learn and get better. At the end of the day, however, if they're not capable of fulfilling certain functions in a time-effective manner, then they're probably the wrong fit. This philosophy is compassionate yet pragmatic. It recognizes that sometimes, the most supportive action is to acknowledge when an employee's skills and the agency's needs are fundamentally misaligned.

Do You Want to Transform Your Agency from a Liability to an Asset?

Looking to dig deeper into your agency's potential? Check out our Agency Blueprint. Designed for agency owners like you, our Agency Blueprint helps you uncover growth opportunities, tackle obstacles, and craft a customized blueprint for your agency's success.

Would you like access to our advanced agency training for FREE? https://www.agencymastery360.com/training

Have overwhelm or frustration ever made you want to sell your agency? When you're burned out, the grass might look greener — but one agency owner learned that it's not. Discover why he sold after just two years plus why the acquisition was dissolved and he grew his original business back to 5X within the next four years.

Learn more about his reflections on why his initial burnout came to be, the reasons that partnership failed, and how he managed to rebuild his agency even stronger by surrounding himself with the right people.

Alex Polamero is the founder of Ninestone Partners, an agency focused on the middle of the funnel. They build marketing and sales automation systems that help clients scale and effectively nurture prospects to closing. He discuss the evolution of his career, going from solopreneur to building and selling his agency and remaining as an equity partner. Alex also dives into his mindset and reasons behind his agency's sale and the events that led to him taking back ownership of its name and original clients.

In this episode, we'll discuss:

• Selling as a way out of the burnout trap.

• Cashflow issues and not making payroll.

• Lessons after buying back his agency.

Subscribe

Apple | Spotify | iHeart Radio

Sponsors and Resources

E2M Solutions: Today's episode of the Smart Agency Masterclass is sponsored by E2M Solutions, a web design, and development agency that has provided white-label services for the past 10 years to agencies all over the world. Check out e2msolutions.com/smartagency and get 10% off for the first three months of service.

Building an Agency by Filling the Gap

Alex has over 20 years of experience working with CRMs, beginning as an Oracle superuser with an extensive network of contacts and later becoming a Marketo-certified expert managing marketing for a billion-dollar real estate firm. Seven years ago, he took the leap to start his own venture, Ninestone Partners.

When he first launched his business, Alex viewed other agencies as competitors, seeing them as rivals in areas like website development and paid advertising. However, years of experience shifted his perspective. Today, his agency operates as a collaborator, working alongside other agencies and specializing in the middle of the funnel—where their expertise truly shines.

According to Alex, most people don't know the nuances of every automation system, which one to use in each industry and how to help businesses grow quickly. This knowledge gap is where his team excels, helping businesses grow quickly by leveraging the right automation strategies tailored to their needs.

Escaping Burnout by Selling the Agency

Two years after starting his agency, Alex had two full-time employees and several contractors, even managing automated marketing solutions for a larger 25-person agency. Despite this success, he found himself overwhelmed and burned out.

Looking back, he realizes the root of his struggles was that he hadn't chosen between being a solopreneur—taking most of the profits to fund his lifestyle—or committing to being a true business owner. Straddling both worlds, he continued accepting new projects for quick profits without building the necessary team infrastructure. His fear of hiring and potential failure led to increasingly unsustainable workweeks filled with late nights and weekends.

This approach inevitably led to stagnation. Alex faced a classic dilemma: unable to handle more clients alone, yet afraid to bring on additional help. Like many inexperienced business owners, he had initially prioritized money over time and it took years before he learned to value time with his employees, family, and himself.

His mindset reflected a common misconception among agency owners: that leadership means outworking everyone else and that constant busyness equates to productivity. Exhausted from this unsustainable approach, Alex ultimately sold his agency in a deal keeping him on as an equity partner. The arrangement promised relief from the administrative and management duties he disliked, allowing him to focus solely on sales.

Post-Sale Breakdown: Cashflow Issues and Not Making Payroll

The first weeks post-sale were great for Alex. He finally had time for himself and even went on a skiing trip with some friends. However, eight months later, the reality of balancing multiple roles began to take its toll. Juggling his sales responsibilities, equity partnership duties, and technical operations proved far more challenging than he had anticipated.

Around this time, Alex and his partners discovered a critical issue: their invoicing process had completely broken down, resulting in six months of unpaid invoices, an oversight that left them without the funds to pay their 25 employees.

With no money to cover payroll, Alex was forced to take out a high-interest loan, a decision that weighed heavily on him and his family.

It became clear that not everything was going as well as he'd initially hoped. After this, Alex and the other partners reached the conclusion that there were some aspects of running the business in which they just didn't agree.

Why Clarity is Key: Growing 5x in Four Years

The heart-to-heart with his partners culminated in an offer to buy back his agency. Under the terms of the deal, his partners would retain his equity and any new clients acquired during that year, while Alex regained his previous clients and rights to the Ninestone name. Though he restarted with only half the business he had before the partnership, Alex viewed it as a fresh start.

Four years later, his agency had grown to five times its size at the time of the split. This period was a lesson in humility and forced Alex to confront the reality of his situation and acknowledge that he didn't have all the answers. It also underscored the inherent uncertainty of the entrepreneurial journey—a reality he had to embrace rather than resist.

Furthermore, the experience taught Alex an important lesson about having clarity as you start to build your business. Do you want to be a consultant working only with contractors and never having to build a team? Or do you want to build a business that you can sell in the future? The pathway is different; the mentality and systems are different for each approach.

Once he committed to a clear direction, he Alex understood he needed to surround himself with experts. The founder does not need to do it all and be a lone wolf. Instead, being part of a pack brought him much more joy and helped him grow much more than he'd expected.

Embracing Collaboration and Uncertainty to Unlock Your Agency's Potential

What's the biggest bottleneck holding your agency back at the moment? As Alex learned with experience, he had been the bottleneck stifling his agency's growth by trying to juggle multiple responsibilities without a clear delineation.

During his second run with the agency, he knew that as the visionary leader, he needed an integrator that would handle operations, freeing him up to focus on sales. By collaborating with others and delegating tasks according to expertise, owners can focus on their strengths, ultimately leading to a more efficient and successful operation. Basically, Alex figured out where he wanted to go and who he needed to hire to get there.

Ultimately, the journey of building a business is not just about reaching a destination but about embracing the process as an ongoing experiment. Adopting a mindset that values experimentation and collaboration can lead to both personal fulfillment and professional success. Entrepreneurship is inherently uncertain. However by acknowledging this, you can cultivate a culture of innovation within your team, encouraging creative problem-solving and the exploration of new ideas.

Do You Want to Transform Your Agency from a Liability to an Asset?

Looking to dig deeper into your agency's potential? Check out our Agency Blueprint. Designed for agency owners like you, our Agency Blueprint helps you uncover growth opportunities, tackle obstacles, and craft a customized blueprint for your agency's success.

Would you like access to our advanced agency training for FREE? https://www.agencymastery360.com/training

Have you hit the limit of the growth you can single-handedly bring to your agency? What steps are you taking to ensure you continue to be your organization's MVP? For many agency owners, reaching hitting a glass ceiling on growth signals the need to bring on a skilled operator to help eliminate low-value tasks from their schedule.

Today's featured guest specializes in operations hiring and has developed a systematic approach to identifying and delegating low value tasks that consume CEOs' time and energy. As an expert in operational efficiency, she trains operators to create effective processes that free founders to focus on strategic growth. She shares her secret to a great hiring funnel, what results to expect from an operator's first 90 days in your agency, and the #1 thing an operator does for their agency founder. Learn actionable insights on breaking through operational bottlenecks and building a strong operational foundation through strategic hiring and training.

Jhana Li is a former COO and the founder of Spyglass Ops, an Operations Hiring Agency, working on behalf of digital businesses to find and hire operations positions. She discusses the challenges agency owners face when trying to scale their businesses and share insights on breaking through the common glass ceiling that many entrepreneurs encounter.

Jhana emphasizes that growth stagnation often occurs when founders reach their personal limits in creativity and productivity. She provides valuable strategies for developing new skill sets and building a capable team to propel business growth beyond personal capabilities.

In this episode, we'll discuss:

• The secret to a great hiring funnel that attracts A-players.

• The crucial first 90 days that determines an operator's success.

• The #1 thing an operator does for a CEO.

Subscribe

Apple | Spotify | iHeart Radio

Sponsors and Resources

Smart Pricing Table: Today's episode of the Smart Agency Masterclass is sponsored by Smart Pricing Table, an award-winning proposal software built just for marketing agencies and designed to handle your unique challenges and cut down the time you spend on proposal as much as 90%. Go to smartpricingtable.com/smartagency to see if this is the missing piece your agency needs. Schedule a demo and get 50% OFF for the first two months.

Scaling Your Agency Beyond the Founder's Glass Ceiling

As a former COO, Jhana has seen the glass ceiling many founders encounter at some point in their growth occurs once they've hit the limit of the growth they can personally create. It's no longer about showing up and single-handedly working out every problem or how innovative they can be. Breaking through that glass ceiling requires both personal transformation and strategic team building.

The path forward demands founders step back from their hands-on approach and focus on developing a trusted leadership structure. This includes establishing middle management positions across all functional departments, ensuring each area has dedicated decision-makers and strategic thinkers. Central to this evolution is hiring an operations manager who can unify the team and create organizational cohesion, transforming disparate departments into a synchronized whole.

Do You Have a Hiring Funnel That Consistently Attracts A-Players?

For Jhana, hiring A-players is not about fishing in the right pond but rather using the right fishing rod. Great talent is available everywhere but does your agency have a hiring funnel that will consistently extract the right A-players for the right role?

A strategically designed hiring funnel serves as both an attractor and a filter, automatically screening out 95% to 98% of applicants before they reach the interview stage. This efficiency comes from carefully crafted criteria that not only draw in ideal candidates but also discourage those who wouldn't be a good fit, saving valuable time and resources.

This approach contrasts sharply with the common scarcity-driven hiring mindset, where employers cast wide nets and hesitate to filter out any candidates. According to Jhana, a well-structured hiring system achieves better results by focusing on quality over quantity, ultimately leading to conversations with only the most promising 3% of candidates who truly align with the role requirements.

What's the Secret to a Great Hiring Funnel?

Building mousetraps in your job post and hiring process is one thing – for instance, Jhana and her team add a codeword to the job description that they'll ask the candidate to repeat during the job application process. However, she only uses that type of strategy for roles that require a high level of attention to detail.

Other than that, she has a secret weapon that has consistently given her the best results: performing a skill assessment before sending a candidate to interviews. Skill assessments can take up to two hours, which is exactly the point. It's a way to stress test the candidate to see if they already have the experience for the role. Jhana likes to include very specific questions to get candidates to think about how they would tackle a major challenge associated with that role, which experienced candidates will have no problem doing.

Moreover, the effort a candidate puts into completing a skill assessment can be telling. A candidate who submits a thorough, well-structured response demonstrates a commitment to excellence and an understanding of the expectations of the role. In contrast, a lackluster submission may indicate a lack of motivation or a superficial understanding of the job requirements.

Candidates who have genuine experience in a given area will articulate their thoughts with clarity and assurance, while those who are less familiar may struggle to provide coherent answers. By designing assessments that require candidates to draw on their past experiences, you can better identify those who are truly equipped to handle the challenges of the role.

The First 90 Days: A Guide to Integrating New Operators

Jhana has learned that an experienced operator will take their first 30 days with a company to observe, learn, and listen before they jump in and start fixing things. They understand that what they see at first glance might not be the root cause issue at play. Therefore, if they jump in and start tacking inefficiencies right away they might be missing the actual issue.

From a founder's perspective, it may be frustrating, as they expect immediate results. However, it is essential for operators to familiarize themselves with the intricacies of the business to address the root causes of inefficiencies effectively.

To prevent these frustrations, Jhana recommends scheduling a "success meeting" at the second-week mark. By that time, your operator will have had two weeks to observe the inner workings of your agency. During this meeting, the operator presents their findings and aligns with the founder on priorities moving forward. The result of this meeting should be a clear understanding of what the operator is expected to accomplish within their first 90 days so the founder knows this is in fact the right person for the job.

How much time should you invest in training a COO? Jhana knows of cases where the founder is still training their ops manager six months later. To her, you should always keep in mind that any time spent on training is an investment on that person and they won't return on that investment until they are fully functional in their role. She prefers to do a 14-day boot camp before seeing ROI. During that time, she makes herself available every day for a minimum of 30 minutes so they can ask any questions or run something by her.

The #1 Thing an Operator Should Do for the CEO

The most important thing an ops manager should be doing for their CEO is help optimize their time to maximize their contributions to the organization and ensure that they focus on high-value tasks that drive growth.

The CEO is supposed to be the agency's MVP and yet they constantly undervalue themselves when they spend time doing low-value tasks. This is why Jhana trains her operators to do a time audit on their CEO during their first 30 days in the organization. As a result, they can determine how much of the founder's time is going to low-value tasks and prepare a game plan to get them out of day-to-day operations.

This misallocation of time detracts from the CEO's ability to innovate and lead and costs the organization in terms of lost opportunities and diminished productivity.

Why not start now? Even if you're not at the point where you can hire an operator, do a time audit, locate the low-value tasks taking up too much of your time, and then delegate them to an assistant. That alone would make a huge difference in ensuring you're spending more time growing the business.

Do You Want to Transform Your Agency from a Liability to an Asset?

Looking to dig deeper into your agency's potential? Check out our Agency Blueprint. Designed for agency owners like you, our Agency Blueprint helps you uncover growth opportunities, tackle obstacles, and craft a customized blueprint for your agency's success.