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.

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.

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.

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.

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.

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.

Do your employees have a clear path for growth within your agency? Do they feel supported, empowered, and fulfilled in their role? Today's featured guest shares insights from his journey transforming his agency team structure that resulted in thriving for the business, his team, and himself.

After years of struggle, this agency CEO took ownership of his role and developed a strategic approach to employee motivation and development. By reimagining annual reviews and creating meaningful growth opportunities, he shifted from an environment of stagnation to one of continuous improvement. In this interview, learn the benefits of offering a clear path for growth within your agency, and how to improve your team’s experience during annual reviews. He also shares how to get yourself out of sales — if that’s something you want — and why you need to keep doing what you love.

Warren Wilansky is the president and founder of Plank, a Montreal-based digital agency specializing in arts and culture, nonprofit, and higher education projects. He shares his agency ownership journey and discusses the challenges of navigating the early days of the agency, including the learning curve of running a business and the evolution of his role as a sole owner.

In this episode, we’ll discuss:

• The mindset shift that allowed for team retention and growth.

• Redefining employee reviews and how to have them review you.

• Maintaining purpose as your agency grows.

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.

A Traditional Story of Accidental Agency Ownership

Warren’s journey is a pretty traditional accidental agency owner story. Starting with a communications degree, he transitioned from freelance website design to founding an agency with two partners. However, the partnership proved unstable—one left after six months, and the other departed after five years, ultimately leaving Warren as the sole owner for years, until his first employee became his current partner.

Initially, Warren viewed his agency more as a collaborative collective among friends rather than a structured business. This perception shifted dramatically when his second partner departed, forcing him to fully embrace his role as a CEO. For the first time, he recognized the need to take complete responsibility for every aspect of the agency.

While continuing to engage in website design—his original passion—Warren realized that his most critical project was the company itself and its strategic development.

A Mindset Shifts that Allows for Employee Retention and Growth

As he navigated the early stages of his agency, Warren quickly recognized the importance of hiring people who could outshine him in their respective roles. For instance, the agency hired its first creative director once he discovered someone who was a better designer than he’d ever be. This realization marked a turning point in his business strategy. Instead of attempting to be the best at every task, Warren embraced the idea that the success of his agency depended on assembling a team of skilled professionals who could bring their expertise to the table.

Another important milestone in his hiring structure was the introduction of director-level positions. Initially, Warren adopted a model where all team members were viewed as equals, believing this would promote collaboration and creativity. However, he soon realized that this lack of hierarchy left employees with limited opportunities for advancement. Without clear pathways to grow within the organization, talented individuals often felt stagnant, leading to disengagement and, ultimately, turnover.

A structured hierarchy with a path for career progression allows individuals who excelled in their roles to take on new challenges and responsibilities. It also serves as a chance for team members to figure out whether they liked the feeling of running a company, fostering a sense of ownership and accountability among team members.

Redefining Employee Reviews - and Having Them Review You

Most employees have a love-hate relationship with the annual review. On the one hand, they fear the feedback but on the other they also await the meeting in order to discuss a raise. At Warren’s agency, the team conducts annual and quarterly reviews for more regular check-ins.

Although they’re still called “reviews” at Warren’s agency, Jason’s advice is to change the term to something that doesn’t evoke feelings of judgment and scrutiny, redefining this process by labeling it as a "coaching session." This emphasizes the supportive nature of the interaction, framing it as an opportunity for development rather than an evaluation of past performance.

Overall, the biggest challenge is finding the right balance of positivity while still offering areas of improvement without demotivating employees in the process. As Warren points out, traditional reviews often begin with critiques, which can overshadow positive feedback. By reorienting the conversation to highlight accomplishments first, followed by constructive suggestions for improvement, employees are more likely to retain and act upon the feedback provided.

In addition to reviewing your team, as a CEO or founder you should also want to know your areas of improvement. It can be hard getting that information out of employees, who might feel intimidated. A good framing to get the information you want is to ask "What do you want me to start doing?" "What do you want me to keep doing?" and "What do you want me to stop doing?" In this way, you will get provide enough context for valuable insights without putting your team in the awkward position of formally reviewing you.

Agency Sales: Freeing the Founder & Empowering the Team

As CEO, Warren’s current role is mostly looking for ways to support his strategy team, tapping into his network to bring more opportunities for the agency, and being the face of the agency. The CEO is also the person who has all the relationships and all the stories that shape an agency’s identity and are a great tool to converting a new client.

Having all the stories can lead a CEO to believe no one could possibly replace them in sales, after all, only they have the necessary narratives to engage clients. However, then the agency would fall apart if the founder ever decided to retire. Instead, if you can share those stories with your team to use on different case scenarios, you will free up your time to focus on the agency’s growth and empower your team to  share their own client success stories.

In the end, are the stories from 10 or 20 years ago the only ones worth telling in your agency? For Warren, the stories being created today are just as important and even more so. Instead of romanticizing old stories, give your team the chance to use them to engage clients as they gain experience instead of just selling on features. Eventually, they’ll have stories of their own and they will take full ownership of sales, which in turn will free you up as agency owner to dedicate to the business’ growth.

How to Maintain Purpose as Your Agency Grows

As CEO you should do what you love and delegate or eliminate the things you don’t. In Marc’s case, he enjoys sales, which he views as relationship building rather than a transactional process. He advocates for founders to carefully distinguish between tasks they love and those they want to delegate.

Completely removing yourself from sales can lead to professional dissatisfaction, so Marc recommends creating processes flexible enough to allow strategic involvement. While the team should be capable of handling most sales independently, founders can still contribute by joining initial or final calls to add depth and personal connection.

Just be mindful of the things you hate doing and want to delegate and the things that really bring you joy and wish to keep doing. Only with that clarity you’ll be able to prioritize and choose a path that won’t kill your love of the work.

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.

Is your agency in need of a rebrand? Many of us are accidental agency owners who threw together a brand without fully understanding our niche or service offering; starting with just a basic name and logo. As the agency evolves this may signal the need for a strategic brand refresh. Today’s featured guest runs a rebranding agency and shares the scenarios that could justify a rebrand, the difference the right will name make for clients to differentiate you, and share some rebranding strategies to keep in mind.

Jim Heininger is a seasoned agency owner based in Chicago who runs two agencies: Dixon James, a strategic communication and change management firm, and the rebranding specialists known as the Rebranding Experts. With over 25 years of experience in the public relations industry, Jim discusses the importance of building a strong agency presence, why your name matters, and when is the right time to think about a rebrand.

In this episode, we’ll discuss:

• 2 big reasons agencies rebrand

• Why names matter for brand differentiation.

• Things to consider before renaming your agency. 

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.

What Does Brand Mean?

Jim built his career in the agency environment, spending 25 years in public relations working for some major agencies like Bushman Hillard and Ketchum. Later on, he worked for McDonald’s as a communications strategist tasked with helping them get through some brand issues they faced at the time. His time at McDonald’s taught him a lot about the perspective on agencies and how to form great client relationships to get the best work out of your agency.

This time proved transformative for his career, it was when he had the opportunity to start his own agency and also when he started learning more about branding.

Jim defines a brand as the comprehensive collection of experiences and assets that define a company, extending far beyond visual elements like logos to encompass customer experience, brand promises, and their fulfillment.

While a brand ultimately exists in customers' minds, and you’ll never be able to control how customers perceive it, you can influence that perception. Influential figures like Steve Jobs understood the importance of brand narratives and greatly admired Nike, which has mastered the art of branding by creating a strong identity that transcends their products.

Businesses should actively manage their brand perception rather than allowing external forces to dictate it. Hence, it is only logical they consider rebranding once the brand no longer represents their business.

2 Big Reason to Consider an Agency Rebrand

According to Jim, agencies are the business category that most frequently undergo rebrands. It makes sense, given so many are accidental agencies. Many agency owners begin as skilled practitioners who establish a business in response to growing client demand, often resulting in a created brands that may not stand the test of time.

There are two common reasons why founders consider a rebrand:

1. Make it all about the business, instead of yourself. Many agencies initially build their brand around the founder's expertise. As the business grows, however, there's often a strategic need to highlight the broader team's capabilities, reducing client expectations for direct founder involvement in every project.

2. Niching down. Another common scenario prompting a rebrand is when an agency decides to niche down its services. While owners might worry about alienating existing clients through rebranding, Jim notes that clients typically focus more on service quality and results than brand aesthetics.

Rebranding is not merely a cosmetic change; it is a strategic decision that requires careful consideration. If your current brand fails to differentiate you from competitors or clearly communicate your value proposition and target audience, it could be time to rebrand. Success lies in approaching it as a strategic initiative, involving key stakeholders, and maintaining focus on innovation and market relevance.

Ultimately, a well-executed rebrand not only revitalizes an agency's image but also reinforces its commitment to delivering exceptional value to clients in an ever-changing environment.

Why Names Matter for Brand Differentiation

If we look around, we’re surrounded by big brands with names that didn’t necessarily mean much before their success gave it meaning. For examlpe, did “google” even mean anything before 1998? It’s natural to ask ourselves then if a name is really that important.

For small businesses, yes, a name is very important because it’s your opportunity to put something compelling out there, capture the audience’s attention, and differentiate your business. Nowadays it’s getting harder to name a corporation, as it seems the good names are all taken. This has led to a trend of using unconventional names, which, while potentially memorable, risk confusing potential clients. The balance between distinctiveness and clarity has become a critical consideration in the naming process.

Jim’s approach to rebranding starts with a name that is packed with meaning, is exciting to the client, and inspires them to put together a cohesive elevator pitch. A well-chosen name should serve as a foundation for effective storytelling, enabling businesses to communicate their value proposition clearly and memorably.

Things to Consider Before Renaming Your Agency

A name serves as the first point of contact between a brand and its audience and should encapsulate the essence of the agency's mission, values, and unique offerings. There’s a lot of work to be done before landing on the perfect name, like understanding your differentiators, your promise to customers, and the legacy you want to leave. Understanding these elements correctly will help you come up with a clear brand promise and a word that represents that promise and brings it to light.

Additionally, think about the type of word you want. Do you want a descriptive word? Do you want to coin a term? Or maybe borrow meanings from existing words that can be contextualized within the industry? Naming, therefore, becomes a strategic endeavor that requires a deep understanding of the agency's strengths and the value it offers to clients.

Just remember the approval timeline associated with trademarking a name can take up to a year, which is why agencies should be confident in their chosen name and conduct a thorough review process, ensuring that it not only resonates with the brand's identity but is also legally viable.

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.