Scaling a successful digital marketing agency takes hard work and dedication. It also involves a lot of smart planning, especially when it comes to money. The truth is that many business owners don’t succeed because they don’t have a healthy relationship with money.
As an agency owner, you can’t think about money only in terms of your profits. If you do, you have to change that mindset quickly.
You have to consider your monthly agency’s income as a tool that you’re going to use wisely to keep your business in the game and growing. Yes, your agency’s profits will maintain your lifestyle, but you can’t focus on that short-term. Your agency needs you to make smart financial decisions to keep going and get ahead of other agencies.
Why Money Matters
You may think, “But I have all my agency’s monthly expenses under control.” That’s good! But what about unexpected situations that can affect your budget? What about financing events, conferences, courses, and more that can contribute to your workers and agency’s growth? You need money for moments of crisis and moments of growth. Here are three essential reasons why money matters:
You need to stay on top of your finances
Knowing what’s going on in your agency is an essential part of your job as an agency owner. This includes the money too. If you get in the habit of looking at your accounts every day (revenues, expense, and projections), you’ll always know what’s going on with your finances. It will help guide your next steps and plan. Just a few minutes in the morning or a scheduled time every week is enough to keep you informed.
A crisis can hit anytime
You can’t control everything that can affect your business, like a global pandemic or a recession. For this reason, you always have to have money available for these extraordinary situations. If you’re financially prepared to face a crisis, you can get out of it without further problems.
You can afford your agency’s development
Businesses often cover the costs of conferences, training, and events for their employees. This not only motivates employees, but also helps your businesses too because your employees will apply the knowledge they’re getting from those experiences.
Likewise, having savings to expand your agency’s offices, replace old furniture, and update essential technology allows you to improve your business in other ways.
Our Favorite Budgeting Tips
We understand that if you haven’t implemented good budgeting practices before, it can be a little hard to start doing them, especially for an agency with many expenses. But we’re going to share with our favorite budgeting tips to make it easier for you.
1. Have a get-small budget
When we talk about having a get-small budget, we refer to budgeting just the essentials. Essential things are basic services, a license for software required to operate, your employees’ salaries, emergency expenses, among other things. This can vary depending on your agency’s activities, and you have to evaluate it carefully.
By doing this type of budgeting, when a crisis hits, you’re ready to switch to this get-small budget and survive.
2. Try not to have debt
Having debt is easy, but paying it off can affect your company’s growth for years. When it’s time to get small, you’ll have a monthly expense weighing you down that you can’t get rid of if need be.
Before putting yourself into debt, think carefully about if it’s for something that will help your agency grow. Otherwise, it can be used for more important things that can even save your agency if the going gets tough. Entrepreneur Dave Ramsey has excellent tips on getting out of debt.
3. Think about what you’re spending on and make sacrifices
Many times, businesses and especially marketing agencies, spend much money on tools or software that they think is going to help them, or on fancy computers and offices. However, your budget should evaluate which of those things are a must within your agency.
Making sacrifices on things that you want but don’t need keeps your monthly expenses low, which increases profits and allows you to save.
4. White label your services
When you white-label services, you save a lot of money in the long run. This is because you don’t need to hire a full-time digital marketing expert (or several). If you hire a digital marketing agency to white label services to you, you’ll pay less per client, and be able to have more clients and make more money. You’ll save on employee benefits, training, and more, while selling more.
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