7 things successful agencies do during turbulent times
It’s not news to anybody that times are tough for UK agencies at the moment. There are some exceptions, but most agencies found 2023 a difficult year. With the first third of the calendar year now over, 2024 is proving to be a similar picture with little sign of improvement anytime soon.
Rising costs, a hyper-competitive marketplace, and a general economic slowdown, have left many agencies ditching growth plans and going into survival mode. The biggest issue seems to be the dearth of new business, with clients continuing to hold on to their budgets, and resisting making decisions on anything other than business critical marketing activity.
Optimistic by nature, we don’t like to talk the market down here at Cactus, but at the same time, we are pragmatic. We wouldn't be staying true to our mission to help the now, next and future agencies if we didn’t face facts and try to offer support when times are hard.
It might seem like cold comfort now, but we genuinely believe that steering a business through tough periods is both rewarding and character building. At risk of sounding cliché, tough times are part of the agency journey. We all have to stay positive and recognise that periods like this do happen and once we come out of them we will be stronger for it.
So what do we see the better performing agencies doing right now? And what would we be doing ourselves if we still ran our own agencies? Here are 7 things the Cactus team recommend you must make sure you are doing in your agency during these turbulent times:
Rigorously monitoring your cash flow: Unless you have a substantial cash buffer on your balance sheet, you must be monitoring your cash flow. If things are tight a daily review of cash might be advisable. To ensure financial stability you need to keep an eye on what is coming and going out. Most agencies go out of business by running out of cash. Don’t be one of them.
Channel your efforts towards a specific target audience: To maximise your impact, focus on a specific target audience and show how you can work specifically for them.
Capitalise on your expertise by focusing on core services: By focusing on a handful of core services, rather than trying to be everything to everyone, you can deliver maximum value for your clients. You also stand a better chance of winning business faster.
Invest in your own marketing: You wouldn’t advise your clients to stop or scale back marketing so why would you do it yourself? Investing your time and effort is as important as investing money in this area.
Make hard decisions swiftly: If you need to reduce costs, then people costs are inevitably going to be a consideration. Reducing headcount is never easy, but delaying tough decisions could put more jobs, and your business, at risk. Act quickly, particularly if it involves employees who are underperforming or no longer required.
Proactively track leads and qualify them effectively: Avoid the illusion of an overstuffed pipeline and wasting time chasing lost causes. It is better to focus on a small number of realistic quality opportunities.
Give equal importance to service delivery and new business: It’s important to consistently grow a quality pipeline to replace any losses and continue to grow your business, but don’t neglect existing clients. Retention is key. Existing clients are your best, and quickest, source of potential additional revenue.
Remember, even in turbluent times, there's always a way to navigate through. By implementing these strategies, keeping a positive mindset, and staying true to your agency's core values, you can navigate these challenges and emerge even stronger.
