Top-line growth is only one end of the P&L statement. Agency owners that are not just sales-minded, but understand operations just as well, recognize that their margins can be improved elsewhere too. However, an early-stage agency will need revenue to demonstrate traction and proof of concept. Also a company with enough track record – and one that is looking to sell – needs to do better than that.
EBITDA will take center stage for a buyer looking under your financial hood. There are plenty of ways to raise the roof on your EBITDA without having to drive sales. Post pandemic, structural readjustments and remote work are redefining operations. If you are looking to drive up your bottom line as you line up a sale, we recommend you take a closer look at our five hacks to grow the value of your marketing agency without the need to raise revenue.
Five Hacks To Grow The Value of Your Marketing Agency
The Roof Overhead is an Overhead
Office leases, in particular, are dead weight in the current market environment. Long leases are not integral to the business of most marketing agencies – something that is especially obvious since 2020.
It is worth reconsidering if that office lease or that prestigious address on the business card are worth their costs. No less, co-working spaces, insofar as they are open for business, offer a smart and flexible alternative. Why not survey your team to see how many days a week they would be happy working remotely and scale down accordingly?
Automate Where You Can
Automation and streamlining are essential ingredients to your margin improvement. Revisiting your processes, workflows and operational architecture to drive further automation will bring natural improvements. Tasks that should raise the automation flag include tasks that involve compliance and audit trails that require multiple people to execute or that are especially time-sensitive.
From invoice generation to time tracking, and from automated workflows to streamlined communication through project management tools with automated notifications, the world of process automation is yours for the taking. Keep in mind that no tool is a cure-all, and any tool is only as good as its implementation. Set goals, assign accountability, and measure your results over time. This approach will reduce the likelihood of errors and improve productivity, positively impacting your margins in the medium to long term.
Improve Your Brand & Increase Prices
When was the last time your brand got a shake-up? Is your website and logo still too similar to when you first launched? Rebranding isn’t just for Fortune 500 companies in the public eye. Refreshing your look and feel can strengthen your positioning as you gear up for a sale. This can also help justify raising your prices along the way.
Invest In Your Team
Most importantly, take a good look at your team. They will be the ones carrying your agency not only to the finish line but beyond as you execute a potential exit strategy. Who are the top-tier candidates that will shoulder your agency and drive its success at this critical juncture? Invest in these individuals and shed any excess weight as you close in on your valuation goals, enhancing the value of your marketing agency.
Future-Proofing In Times of Crisis
It may be a cliché, but there’s truth in it: there is opportunity in crisis. Even if you’re not looking to make a sale just yet, there are steps you can take to improve your operational resilience. Take advantage of the current reshuffle. Use it as an opportunity to cut costs and restructure your agency, bringing its value to where it needs to be to become an attractive listing for potential buyers.
