The simplest thing an agency owner can do to ensure they’re running a financially healthy business is to measure and manage profitability on a client level.
Whatever the engagement model you use, it’s pretty likely that your biggest cost input is going to be wages (time).
By keeping a close eye on how much time and resources each client demands versus the revenue they generate, you can start to see the building blocks for your agency’s current financial health.
This isn’t about micromanaging every minute but about understanding where your efforts yield the best returns.
When you have this clarity, you can make informed decisions about team allocation, client pricing, and overall business strategy (do you even want to keep working with a category of client that you make zero margin on?).
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