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

Is an acquisition in your agency's future but you're not sure how to find a potential buyer? Does your agency have incredible strategic partnerships? Sometimes, the best merger and acquisition deals come out of existing relationships with partners and businesses that offer complementary services. The key is to structure a beneficial and fair deal for both parties while avoiding the biggest acquisition pitfall.

In today's episode, we'll cover:

• Why agencies need to lead with data.
• Agency acquisition mistake to avoid.
• How to structure an agency owner's buyout.

Today I sat down for a discussion with Tim Curtis, President, and CEO of CohereOne, a direct-to-consumer marketing agency. Tim recently sold his agency to a strategic partner and took a little different approach. He's here to discuss what he did and why this option was the best choice for his agency.

We all have biases. It's human nature. So, of course, you think your agency provides the best solutions and services. But while it's great to take pride in your work, when you are trying to sell (whether it's to a client or another agency), you want to put the data first.

As a data-driven agency, Tim knows the value of numbers. Numbers don't lie. So, if you want to sell the value of your service or communicate the results your agency can achieve, let the numbers do the talking. Once you provide the data, then you can explain why you're the best. Tim says, if you want to take advantage of opportunities, you have to understand the data, and then the context. In that order.

One mistake many agency owners make when there's a merger or acquisition deal on the table is letting their foot off the gas. They focus on the value of the sale instead of keeping the agency profitable. Of course, it's more fun to think about the dollar signs, what you want to buy, and how much money you are going to make from a buyout. When this happens, people tend to relax, put in a little less effort, and look at the acquisition as a done deal. This is a mistake.

Regardless of your role in the agency, everyone needs to be all in until the deal is in ink. Continue to hustle, bring on new clients, and build new income. What happens when you start to take the foot off the gas? Best case scenario, you sour the relationship between you and the buyer. Worst case scenario, you lose the deal.

There are many ways to structure an acquisition. You can have more cash upfront and less earnout. Or you can have less cash, but retain a big piece of equity. Tim says, when it came to structuring his acquisition, he went with a hybrid approach.

Generally, when we consider earnout, we look at EBIDTA. Often, this is where sellers get the best deal. But Tim says, instead of EBIDTA, his earnout is based on gross sales. In addition, they've also agreed to guaranteed payments based on this amount. With this approach, there's more incentive for everyone to focus on the growth of the business, rather than bleed it for profits. This way, the agency continues to grow momentum. Tim says, the industry as a whole is beginning to see more of a shift towards smaller percentages upfront. As such, it's important to look for the best way to get the most out of your deal.

Whether making a deal with a strategic partner or putting out feelers to merge with another agency, it all comes down to your approach. When you focus on what makes you valuable and keep your foot on the gas, you won't have to work as hard for a buyer to recognize your agency's value.

Payroll and benefits are hard. Especially when you're a small business. Gusto is making payroll, benefits and HR easy for small businesses. You no longer have to be a big company to get great technology, great benefits and great service to take care of your team.

For a limited time, Gusto is offering a deal to Smart Agency Master Class listeners. Check out Gusto.com/agency for 3-months FREE once you run your first payroll with them.

Are you tired of working for an agency? Do you feel like you could do things better yourself? Are you ready to start your own digital agency but afraid of the unknowns? You can spend all your time worrying about the uncertainty or you can get busy turning your dreams into reality.

In today's episode, we'll cover:

• 2 things to set your agency up for success.
• 3 things to know about landing new agency clients.
• Can starting an agency be a side-hustle?

Today I sat down for a fun talk with George Ippolito, President, and Creative Director of IMA, a B2B digital agency. Unlike many agency owners, George didn't become an accident agency owner, he walked away from his job as an employee and made the conscious decision to branch out on his own. He's here to talk about why he made the jump and what he's learned along the way.

Whether you fell into the agency world or have over 20 years in the business like Greg, starting out can be a challenge. Unless you have an established client base, it can feel like a mad scramble to bring in enough clients to be profitable. For Greg, things were even more challenging because he had a Non-Disclosure Agreement that prevented him from recruiting potential clients. So how do you make sure you get off to a good start?

1. Give yourself a cushio: You're not going to make good decisions if you feel like you are already starting in the hole. Before Greg made the decision to start his agency, he made sure he had 6 months of expenses in the bank. The way he put it, with as much experience as he had, if he couldn't win new clients of his own within that time, he didn't deserve to own his own agency.
2. Consider what you have to offer: Because Greg signed an NDA with his last agency, his options were limited when it came to attracting new clients. This meant he had to take a close look at his strengths and how he could position his agency to attract clients.

Let's be honest, clients are everything. You need clients to have a successful agency. But how do you find these clients if you don't already have established connections?

1. Create multiple touchpoints: In the beginning, IMA used dimensional mailers, phone calls, emails — pretty much anything to get the prospect's attention. When you create multiple touchpoints, you increase the likelihood your prospects will pay attention to you. That said, it is possible to bug someone so much they never want to work with you. If you don't hear from a cold prospect within 5-6 contacts, it's time to let them go.
2. Focus on how you can help: Prospects aren't interested in helping you make money; they're looking for someone who can fix their problems. Get your foot in the door and have those open and honest conversations. Listen to what your clients need and communicate a plan on how you can ease their pain points or solve their challenges.
3. Know when a client is not a good fit: You may be anxious to sign on as many clients as you can, but you want to make sure they are the right clients. If you can't provide what the client needs or they aren't the right fit for your agency, don't force it.

The short answer is no. It may be tempting to try to start an agency on the side while working your full-time job. The logic here is, you always have a steady income stream while you try to make it on your own. While this might work for some people, 99% of the time it's a bad idea.

You can't run a business part-time. Your growing marketing agency needs your focus, your ideas, and your time. If you are working two jobs at once, they will both suffer. And then there's you. You'll quickly discover you have no time to just "shut it off." You have to get in the mindset that even a full-time job does not provide job security. It may feel safer to keep your job, but sometimes, the risk is worth the reward.

Starting an agency is an exciting time, but it comes with a very steep learning curve. The more you prepare and the bigger buffer you give yourself, the happier you'll wind up in the long run.

Do you struggle to get clients to view you as an authority? Do you have a difficult time communicating value to your prospects and clients? Are you concerned about losing work to machine learning or AI? When you position your agency in the context of strategy, you bring value to clients and outlast computer intelligence.

In today's episode, we'll cover:

• How to grow your agency team the right way.
• 3 ways to set your agency apart from AI.
• Do your clients view your agency as a trusted advisor?

Today I sat down for an interesting talk with Dan Golden, co-founder and president of BFO, a digital marketing agency with over 60 employees globally. Over the past 10 years, Dan and his partner have grown their agency across the globe and learned what it takes to be successful in today's changing market. He's here to talk about what he's learned about growing a team and evolving his agency with changing technology over the past decade.

When you're first starting an agency, it's easy to focus on rapid growth. What can I do to get more clients, make more money, and grow my team? It's a natural instinct. We all want to find success and we can be impatient waiting for it to come organically. But if you're not careful, you may find the growth of your team no longer supports the work you bring in.

So how do you avoid this and make sure you don't have to make some painful cuts?

• Focus on "right-sizing": As you're building your teams, don't simply be reactive to the work that comes in. Be intentional with the type and size of team you create.
• Resist the urge to overbuild management: It may seem like a natural progression to promote your early employees to managers as the agency begins to grow. But just because someone has been there the longest, doesn't mean they should be a manager. Put the right people in the right places and don't create a position you don't need.

If you're not paying attention to AI, you should. AI is changing the industry and forcing many agencies to take a hard look at the way they do things. And the hard truth is, there are many agencies vulnerable to losing business to AI. The trick is to position yourself so you work with AI, not against it. This means:

• Refocus on where you add value: A machine can compile spreadsheets and discover trends, but what about strategy? You may need to shift how you do business. However, if you restructure some of the engagement to strategy instead of execution, you will still end up with a valuable partnership.
• Embrace the change: AI isn't all bad. Automation can make your life easier and add value to your clients. Focus on how you can use this technology and act as a shepherd to guide clients through this new world.
• Up your skills: AI can have a steep learning curve. Be the best in class in understanding how to manipulate machine learning algorithms and do something not many other people can.

"Most agencies give away their secret sauce and then charge for cooking." As agencies, we tell our clients exactly what we do and why we do it. The problem is, eventually, you'll have clients who think they can do it on their own. But you can prevent this.

• Know the value of your services: One of the main reasons clients don't understand the value of strategy is because you don't understand the value of strategy. If you're not charging strategy as a separate line item, do it now.
• Be flexible: Things are changing. There are more resources available on the client's side than ever before. Some clients may not need you for everything. And that's okay.
• Ask the right questions: The client may think they have a better strategy, but what are they risking? Lay it out to them — How many leads are they getting? What is a lead worth? What type of traffic are they getting from these leads? When faced with hard facts, many clients will see the benefit of working with an expert.

Now, more than ever, it's important to highlight what you bring to the table. When you position yourself as a trusted advisor instead of an executioner, your clients are going to have a harder time walking away.

Payroll and benefits are hard. Especially when you're a small business. Gusto is making payroll, benefits, and HR easy for small businesses. You no longer have to be a big company to get great technology, great benefits, and great service to take care of your team.

For a limited time, Gusto is offering a deal to Smart Agency Master Class listeners. Check out Gusto.com/agency for 3-months FREE once you run your first payroll with them.

Are you thinking about selling your agency, but aren't sure where to start? Are you going through an acquisition and want to make sure you get it right? Selling an agency can seem overwhelming to someone who has never done it, but the more you know, the easier it will be.

In today's episode, we'll cover:

• Why you need to enter an acquisition with a clear vision.
• 2 things to include in agency valuation.
• #1 reason to take your time during your acquisition.

Today I sat down for an enlightening chat with Jack Burris, CEO of 54 Brands. After over 20 years in the business, Jack recently closed on an acquisition. He's here to talk about what the process looked like and how he made sure the whole process went seamlessly.

If you're thinking about selling your agency, it's easy to become distracted. Far too often we spend so much time worrying about the money, we forget about why we got in the business in the first place. But when you evaluate your priorities, you're more likely to be satisfied with the end results.

Jack is less than a year out of his agency acquisition. And so far, he has no regrets. One of the main reasons is he went into the process with a clear vision of what was important to him — the evolution of the agency and the clients. Knowing the new owners were on the same page in both regards, Jack says the acquisition went better than anticipated.

Price is a sticking point during any negotiation. You've put your blood, sweat, and tear into your agency. You want to make sure you get a fair price. But this is more than just a multiple of EBITDA. If you have a non-conventional agency or unique traits that make it special, it's important to make it's included in your valuation. What does this mean?

• Client relationships: At the time of the acquisition, 54 Brands didn't have a lot of recurring revenue. But one thing they did have was long-term relationships. Some of their clients had been with the agency for more than 15 years. These relationships are important and add value to the agency.
• The agency structure: The agency had fewer full-time employees and more contractors. Jack believes their team structure was a big selling point because it allowed for more control over profit.

Let's be honest. As entrepreneurs, we can be inpatient. During an acquisition, it's easy to think, "Why is this taking so long?" But Jack explains it's important to take your time. Not rushing the process allows for two things. Not only do you have more time to make sure you get the numbers right, but you also have time to process your emotions. Giving up control of your agency is a big deal. Allow yourself enough time to process the transition so you don't immediately second guess your decision immediately following the acquisition.

When you're going through an acquisition, it's important to look at the big picture. It's about more than just the money, it's about where you want to see the agency in the future. When you take your time and set clear priorities, you're more likely to be happy with the end result.

Click here for my Agency Valuation Chart

Have you struggled to build relationships and connections for your agency? Are you looking for a way to increase your agency's authority and become a leader in your niche? A podcast is a great tool to get your agency voice out there and strike up meaningful and productive conversations.

In today's episode, we'll cover:

• 2 reasons your agency should start a podcast.
• 2 mistakes to avoid when you start a podcast.
• #1 Way to grow your agency.

Today I sat down with Jeremy Weisz, co-founder of Rise 25, a B2B podcast consulting agency. Jeremy is a strong believer podcasts are the number one thing you should do to grow your agency. In his role, he works with agencies to help them see a return on investment from their podcast. He's here to share a few tips on how to leverage your podcast to gain referrals and create greater connections in your marketing space.

You've heard me say it over and over again — if you run an agency, you need to have a podcast. It's the number one thing I've done that has helped my business grow. Jeremy follows the same line of thought. He says there are a number of benefits to starting your own podcast:

1. Greater authority. Creating a podcast gives you a platform. You have the opportunity to have thought leadership conversations and create your own message. When you bring on guests in your niche you build trust with your audience and increase your authority.
2. A chance to build connections. Your podcast isn't just for your listeners, it can serve as a resource for you. When you invite guests on your show, you have the opportunity to share something valuable and exchange ideas. Worst case scenario, you've learned something new and have created engaging content. Best case scenario, you've built a relationship where this person may end up as a resource, or even a client, later down the road.

Jeremy's literally in the business of creating podcasts and making sure agencies get the best return on their investment. Because of this, he's got an inside look at some of the most common mistakes agencies make. Here are a few things Jeremy says you need to avoid:

1. Vanity metrics. One of the first things people do when they start a podcast is focus on the numbers. How many downloads did I get? How can I get more subscribers? Don't. Quit focusing on things that don't matter. At the end of the day, it's about connecting with the right people. Instead, think about what you can give back to your guests and how you can give them a platform to talk about what they're doing.
2. Wasting too much time. Are you trying to do everything? Are you creating the podcast, editing, and writing up the show notes? Don't try to take on all the pieces yourself. Your job is to focus on connecting to your best referral partners and clients. It's okay to bring in someone else to do the rest.

As agency owners, it's all about the relationships we create. Without our clients, our partners, and our contacts, we wouldn't be able to do what we do. The number one thing you can do to help your agency grow is focus on your relationships. This means less automation and more personal connections.

Jeremy says he sets aside time every week to connect with his clients. It could be a 45-minute phone call or a quick text just checking in. Find out how your connections like to communicate. You can even create a quick video and send it through a message.

Want to do something right now and see an immediate return? Sit down and make a list of 10, 20, or 50 people who already like you or have already been referred to you. Now send them a note or give them a call. Take the time to show them you appreciate them. Jeremy says most times people will respond with a thank you, or better yet, a referral.

Creating a podcast is a fun, simple way to broaden your reach and increase your authority. Don't wait. It's okay to jump right in. I guarantee you'll get more out of it than you expect.

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Is pride standing your way of growing your agency? It's easy to get in your own way sometimes as an entrepreneur. I had something in my personal life that made me step back and reflect on this lesson. In this video, I'll talk about progress vs. pride.

Sometimes pride holds us back. Whether it's our desire to be right or just a matter of principles, we lead with our pride and sometimes do things that prevent growth. As I think back over the 12 years I owned my agency, I remember many occasions where this was true (even though I didn't realize it at the time).

Choose progress over pride. It's easier said than done, right? But here's the secret and something I tell my agency-owner clients all the time... remove emotion from the decision. Don't lead with your feelings on a certain matter but instead eliminate those emotions and make a level-headed decision. When you take away the emotion you're left with facts and that will lead you to progress.

Is pride standing in your way? If not pride, what IS standing in your way of growing? Comment below and maybe I can help.

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Thanks for watching. I hope you keep up with the daily videos I post on my channel. Make sure you subscribe and share your learnings with others. Your comments are why I do this, so please take a second and say hello.

JASON SWENK IS AN AGENCY ADVISOR THAT GUIDES MARKETING AGENCIES THROUGH A PROVEN FRAMEWORK FOR GROWING THEIR AGENCY FASTER & EASIER.

Fresh out of college Jason was off to work for Arthur Anderson, one of the big 5 consulting firms. He quickly realized that he could never work for anyone other than himself. He decided to change direction, launch a digital agency that quickly grew to a multi-million dollar operation working with brands such as AT&T, Hitachi and Lotus Cars. After 12 years of steady growth, the agency caught the attention of bigger agencies and Jason sold it in 2012.

Now, Jason leads http://JasonSwenk.com, a unique media company & consultancy helping marketing agencies grow & scale their agencies faster by applying the framework that he used to grow, scale and eventually sell his agency. Jason has helped over 10,000 agencies in 23 countries meet or exceed their business goals.

Jason currently hosts two shows that are available for download…

The Smart Agency Master Class Podcast, dedicated to providing tactics and strategies to agency owners and decision-makers that cut through the BS, focus on exactly what works and what doesn't; and SwenkToday a vlog that documents the entrepreneur journey of building another multimillion-dollar business, where he shares the latest strategies, and answers the most burning questions entrepreneurs have.

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Does your current agency business strategy support long term sustainability? Are you looking for some simple strategies to be a more effective leader? It probably comes as no surprise the two issues often go hand-in-hand.

In today's episode, we'll cover:

• 3 elements to any successful agency.
• What is the key to agency client retention?
• How to be a more effective agency leader.

Today I had an informative talk with Ryan Cote, digital services director at Ballentine, a direct mail and digital marketing agency founded by his great-uncle over 50 years ago. Ryan's here to share how his family's agency has sustained success for over five decades, and how he has become a better leader.

If you want to know the secret to success, there's no better place to start than with an agency that's been around since the mid-1960s. During a time in which many agencies have started and failed, Ballentine has not only survived, they've thrived.

I asked Ryan why he thinks his family's agency has been so successful. His answer — it all begins with the basics:

1. Always look for sales. As agency owners, we have a tendency to back off from bringing in new sales when business is good. But we often experience lulls where we have to catch up to find new clients and replace some that have left. Constantly sell and bring on new clients.
2. Keep your current clients happy. Ryan says his team is always revising their onboarding strategy to make sure clients get the attention they need. In order to retain clients, make sure you're giving them the attention they deserve.
3. Start with leadership. As your agency begins to grow, the way you treat your team can make a big difference. For some people, leadership comes naturally. For others, it doesn't. Take the time to make sure you have the right leaders in the right places.

Many agency owners make the mistake of thinking converting leads is the secret to rapid growth. The truth is, you have to focus on your current clients first. It's far easier and cheaper to retain existing clients than to keep finding new ones. The number one key to client retention is communication.

There's no quicker way to lose a client than to make them feel neglected. Make time to show your current clients you're still invested. For Ryan, this means bi-weekly phone calls and quarterly check-ins. For you, this could be something different. Establish a procedure that prioritizes communication and keeps the client involved every step of the way. Take nothing for granted.

Speaking of communication, make sure you communicate successes and what you're doing behind the scenes. As another podcast guest said, "If we didn't communicate it, it never got done." Give your clients a way to track metrics and provide benchmarks to show how far they've come.

Ryan says having a team made him take a look at his own ability to be a leader. This, in turn, pushed him to focus on personal development. Despite what you're lead to believe, leadership doesn't come out of a book and it's not something that you really can teach. Successful leadership comes from within.

I end my day answering "What did I learn? What did I accomplish? Am I ready for tomorrow?" This simple ritual allows me to visualize the day ahead and get a good night's sleep. Ryan, on the other hand, focuses on a morning routine. His regimen includes meditation, exercise, and morning journaling. Whatever you choose, take some time to focus on what went well and how you can improve. Being aware and continuous learning are two attributes of a good leader.

So much of your success as an agency will come down to your values. When you invest in your clients and your team, you're more likely to see your agency grow.

Payroll and benefits are hard. Especially when you're a small business. Gusto is making payroll, benefits and HR easy for small businesses. You no longer have to be a big company to get great technology, great benefits and great service to take care of your team.

For a limited time, Gusto is offering a deal to Smart Agency Master Class listeners. Check out Gusto.com/agency for 3-months FREE once you run your first payroll with them.

Are you struggling in a partnership that is no longer working? Are you anxious about sitting down and have that conversation? As agency owners, we often get into partnerships because we want someone to bounce ideas off of and take on some of the burden of leadership. But sometimes, a partnership is just not a good fit.

In today's episode, we'll cover:

• Is your partnership holding you back?
• The #1 discussion any agency owner should have before bringing on a partner.
• Why the important conversations should always include risk.

Today I sat down with David Valentine, CEO of Avadel, a Facebook advertising agency. In 2017, David made the difficult decision to step away from his partner and run the agency they had started together, on his own. He's here to discuss what brought him to this decision and what he would do differently if he could go back.

As humans, we tend to avoid confrontation at all costs. Who wants to have a difficult conversation when we can just ignore it and hope it all goes away? David knew there were problems at his agency about a year and a half in. The main problem — David wanted to be more aggressive and go all in and his partner, well he wanted to go hiking. The two simply had different goals and ideas about the amount of work they wanted to put into the agency.

If you're working with a partner, you may have noticed things that could be red flags:

• Do you have different ideas about how you measure success?
• Do you have different thoughts about how you want to approach the big decisions?
• Is one partner putting in a lot more work than the other?

In a partnership, you want someone who will complement your weaknesses, but in the end, your core values need to align. If things just aren't meshing, it may be time to have the difficult conversation.

David didn't expect his partnership to fail. After all, he had started his agency with his best friend. But looking back, there are a few things he would change. Whenever you are working with a partner or going in a new direction there is one important conversation you have to have.

Before you talk about revenue or staffing or any other major decisions, sit down and talk about your perfect day. What does your perfect workday look like at your agency? What about the perfect week? The perfect month? The perfect quarter. For me, I know I want to work 9-3, Monday through Thursday, with summers off. If I were to ever bring on a partner in the future, these values would have to align. When you think about time and what you're doing first, you'll never sacrifice revenue. When you prioritize revenue, you'll always sacrifice time.

So you've sat down and decided to talk about what your ideal future looks like. Beyond your basic expectations, you can't forget to talk about risk. How much risk are you willing to take? This will play a big role in the direction of your agency and your overall investment.

David says he felt like he could not fulfill his potential in the early stages of his agency. If you are working with a partner, you have to make sure it is someone who has the same goals, not someone who will hold you back.

A partnership is a great way to bring in new ideas and bring on someone that will have your back. But the reality is, many partnerships don't work out. And that's okay. When you go in with a clear expectation of what you expect and are prepared to have those tough conversations, you're more likely to see success.

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Does it feel like no matter how hard you work, you just keep running around in circles? Are you ignoring all the signs that your agency's crying out for help? When you get to a point where it seems like your agency is out of your control, often, the best solution is a simple change of perspective.

In today's episode, we'll cover:

• 3 signs your agency needs more attention.
• 2 steps get a stalled agency back on track.
• Do you have your priorities all wrong?

Today I sat down for an engaging chat with Brad Martineau, repeat podcast guest and owner of Sixth Division, a digital marketing agency. Like so many of us, Brad saw success early on but quickly stalled out. He's here to talk about why he found himself in this position and how he scaled back to scale up.

As agency owners, we have a tendency to set our sights high. We go into the business with a lofty goal in mind and won't stop until we get there. When this happens, it's easy to gloss over (or even purposely ignore) signs you're in trouble. Brad says to ask yourself these 3 questions to find out when your agency needs your attention:

1. Is your team excited? One of the first signs something is wrong is team morale. Brad says there's a difference between a disappointed employed and a disgruntled employee. If your team's unhappy or constantly overworked, it's time to slow down.
2. Are your clients pumped? Your clients should be excited about your work and see the value your agency delivers. If your client response is lackluster or worse, you're losing clients, do something now.
3. Is revenue shrinking? A sure-fire sign you need to make a change is less money coming in. If you're not as profitable as you once were, you're either spending too much or you're losing clients.

Brad says he spent 1.5 years ignoring all the signs something was wrong. If you're not careful, success will tell you you can do no wrong. But ignoring the problem can cause a lot of unnecessary pain and anxiety, as Brad will attest. So what can you do to get your agency back on track?

1. Acknowledge the problem. This one's hard. As humans, we'd rather ignore a problem than confront it. Pay attention to the signs and get good at recognizing problems from the beginning. The longer you wait, the harder it is to fix.
2. Set aside your ego. Brad says this meant coming to terms with the fact he might not be a $3 million agency. Put aside your preconceptions of how it should be and focus on the fix. For Brad, when he finally faced the issue head-on he was able to cut over $100,000 from his monthly budget.

How do you create goals for your agency? For most of us, it's easy to set monetary or other tangible goals. And for the longest time, I was just like everyone else. My goals were always revenue, projects, time, in that order. There's this bad mindset we get in where we tell ourselves, if I just make this amount of money, my family will be happy, and then I'll have everything I want. But in the end, that goal just keeps getting bigger and bigger and you never catch up.

If you really want to grow, you have to flip the switch. Brad says we need to get away from focusing on monetary profit and prioritize time and emotional profit. When you do this, you'll find you're happier and more fulfilled. And bonus, when you slow down, you free up your headspace to be more creative, which ironically may help increase profits after all.

Don't get too consumed with that bottom line that you forget to enjoy the ride. When you slow down and focus on what's important, then you'll truly be able to enjoy your success.

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Are you starting an agency and debating whether you need a partner? Is your agency growing, but you're not sure where to go from here? It doesn't matter what kind of work you produce or how motivated you are if you don't have everything aligned behind the scenes.

In today's episode, we'll cover:

• Why do so many agency partnerships fail?
• 2 key stages of growing a successful agency.
• Why your agency should always invest in culture first.

Today I had an engaging talk with Francisco Serrano, president and CEO of 121, a digital implementation agency. In the last 16 years, Francisco has grown his agency to a team of 90 employees and just recently hired a COO. He's here to talk about the stages his agency went through to get to where they're at and why you should always put your agency employees first.

I've talked to many agency owners over the years who have started with a partner and eventually dissolved the partnership. It isn't because either partner is bad or not putting enough work; most of the time, it's just not the right fit. And as the agency grows, it's perfectly natural to outgrow one of your partners.

Francisco joins a long list of owners who realized they were better off on their own (including myself). If you're thinking about taking on a partner or are currently working with someone, the question is, how can you determine whether a partnership is going to work? The answer comes down to open communication.

But before you say, "Great, we've already got that covered," understand there's a difference between being able to talk to your partner and really being honest about what you hope to get out of your agency. The number one reason most partnerships fail is because partners don't have the same vision for the direction of the agency.

Before you begin to talk about strategy or revenue or anything else, talk about your focus and your passion. If you don't agree on what you want to stand for, how much work you want to put in, and what you're willing to risk, it's probably not going to work.

So you've begun to see some growth and are getting more clients — great! But if you stay with the same strategy and don't switch it up, eventually, you're bound to hit a plateau. Francisco says there are 2 main stages his agency went through in order to see continued growth:

1. Team building. When you're building a team, usually you're the one that does all the hiring. After all, who better to find the right people for growing your team than you? But as you continue to grow, you'll realize you just don't have enough time to handpick every new member of your team. Francisco says the first big step was hiring an HR professional to recruit and hire new team members, as well as keep the existing ones happy.
2. Execution. Francisco recently brought on a COO to take care of the day-to-day execution. With a team of 90, he wants to focus on building relationships and working on the business, which will ultimately help the agency grow.

When we're first starting out, many of us fail to recognize the importance of agency culture. Francisco makes an interesting analogy between running an agency and osteoporosis. He says, if you don't focus on what's on the inside and what holds everything together, the bones will crumble.

A lot of building a solid culture comes down to communicating with your team and understanding what motivates them (no it's not money). Figure out what they're good at, what they want to do, and what just doesn't make them happy. When you do this, you'll find your team is happier, more successful, and devoted to the agency as a whole.

You'll never find true success as an agency unless you master the fundamentals. If you have talent, culture, and you can execute, the rest is fun and games.

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