{"id":13205,"date":"2016-07-27T11:05:10","date_gmt":"2016-07-27T11:05:10","guid":{"rendered":"https:\/\/www.heartinternet.uk\/blog\/?p=13205"},"modified":"2016-07-27T11:05:10","modified_gmt":"2016-07-27T11:05:10","slug":"6-big-myths-about-growing-an-agency","status":"publish","type":"post","link":"https:\/\/www.heartinternet.uk\/blog\/6-big-myths-about-growing-an-agency\/","title":{"rendered":"6 Big Myths about growing an agency"},"content":{"rendered":"

\u201cWhat exactly makes your agency so different? How can you make sure you\u2019ll keep on, well, keeping on?\u201d<\/p>\n

We\u2019d done well. The agency I co-created<\/a> had notched up seven years of double-digit growth and was coming to the attention of some bigger competitors. As we circled each other like dogs in the park, they wanted to find out the secret.<\/p>\n

\u201cWell we\u2019ve got good relationships\u2026\u201d I started, lamely.<\/p>\n

\u201dCome on, we all have! Are you pricing really low \u2013 managing to outsource the work overseas?\u201d I was asked. \u201cWhat about your reporting? Do you let clients have good visibility?\u201d<\/p>\n

I considered for a moment, thinking about the stuff that clients complimented us on. Nothing really stood out. There wasn\u2019t any secret sauce.<\/p>\n

We\u2019d launched in a young market, that much was true. But we certainly weren\u2019t part of the first wave. And its not as though we weren\u2019t doing exactly the same stuff has hundreds if not thousands of other agencies.<\/p>\n

We weren\u2019t first movers; particularly cheap; and hadn\u2019t won any awards. And we hadn\u2019t developed any unique software that something that gave us a winning edge that the experts demanded was necessary.<\/p>\n

What exactly underpinned our apparent success?<\/p>\n

That got me thinking. Maybe you didn\u2019t need a secret. Maybe the essential ingredients deemed necessary for success were actually myths.<\/p>\n

Our experience had proved them wrong.<\/p>\n

So for your benefit, here\u2019s my list of the biggest myths about building an agency, the things that \u2013 in the end – I\u2019ve found just weren\u2019t necessary at all.<\/p>\n

Myth 1 – You need to do everything yourself<\/h2>\n

Talking of money, when you don\u2019t have any then you\u2019ll probably need to do everything yourself. Of course you\u2019ll create your own website, develop your brand, and start selling. But you\u2019ll also do the account management, the billing and the technical support too.<\/p>\n

I was the same. One moment I was creating an invoice, the next I was editing the website.<\/p>\n

It\u2019s not something over which you have any choice. You need to minimize the costs. And you need to know that everything is done exactly the way you want it.<\/p>\n

But when it comes to growing your agency, you need to change your mentality, and here\u2019s why.<\/p>\n

Your most valuable resource in your business is your time. And you\u2019ve only got a fixed amount of it.<\/p>\n

You need to use it on activities that deliver the greatest return.<\/p>\n

You might need to be around at the concept phase, when your client\u2019s idea starts becoming a project. But you might not be the best person to build that project. You might be adding the most value by nurturing the client, reassuring them that your agency is a good choice.<\/p>\n

Its almost certainly the case that your time is not best spent doing the VAT return or the payroll.<\/p>\n

So when you want grow your agency consider where your strengths are. What activities can you do that add most value to your business? Do those and delegate others. Make the decision to use your time wisely.<\/p>\n

\"17_flat_desktop\"<\/p>\n

Myth 2 – You need to be first<\/h2>\n

I\u2019ve lost count of the number of business growth articles that spout the virtues of \u2018first mover advantage\u2019. I\u2019m sure you\u2019ve heard it too – the belief that those who are first in the market have a head start. Before others realize what\u2019s happening the business has an established brand and revenue stream.<\/p>\n

Once people notice what the company is up to, and how well it\u2019s going, they\u2019ve captured a good chunk of the market. The lead is unassailable.<\/p>\n

It\u2019s what Microsoft achieved with Windows.<\/p>\n

But I have to disagree with this one.<\/p>\n

First-movers make clumsy errors, as there\u2019s no map to follow. They can\u2019t learn from close competitors. It costs a fortune for them to research what the market wants and then to build it.<\/p>\n

Those that follow can benefit from a track already cut through the forest. They see and avoid the mistakes, and can even recruit the pioneers who have learned the hard way.<\/p>\n

Those that follow almost always win the end. Google nailed Yahoo. Facebook eclipsed Myspace.<\/p>\n

You work in any agency. You should already know this. You\u2019ve decided to offer a service that thousands of others already do.<\/p>\n

It was the same decision we made. Even in 2000 there were lots of online agencies around. It didn\u2019t stop us giving it a go.<\/p>\n

Take reassurance from the fact that there is an established demand for what you do. See what works for others and be inspired by it. Don\u2019t waste time trying to create a completely new thing \u2013 others have done the hard work so you don\u2019t have to.<\/p>\n

\nMyth 3 – You need to invest<\/h2>\n

When we go to events, to connect with web designers and developers, one of the most common questions I get asked is: \u201chow do I raise enough money to launch my new business?\u201d<\/p>\n

This reminds me of a complaint I used to get in the early days of the agency. Friends would say \u2018I\u2019d love to do what you do but I just don\u2019t have the money\u2019.<\/p>\n

Here\u2019s the good news. If you want to start and grow an agency you don\u2019t need money.<\/p>\n

You don\u2019t have stock to buy. You don\u2019t have to have employees. You don\u2019t need to rent an office.<\/p>\n

Not needing money is one of the most appealing things about starting an agency.<\/p>\n

If you\u2019ve got your laptop, software and connectivity, you\u2019re set. The question of money becomes: how long can you live without it?<\/p>\n

Your wages (and then your employees\u2019 wages) are your single, unavoidable cost. Everything else is optional.<\/p>\n

Most of us can\u2019t survive for long without an income. So if you plan to launch an agency then its good to lay the foundations before you give up your day job. You can create the brand and name, work out your core services, and start warming potential clients before you make it permanent.<\/p>\n

That way your income-less period is as short as possible. And your agency is set with the best chance of success.<\/p>\n

Myth 4 – Put all your effort into winning new customers<\/h2>\n

Of course, without winning any customers your business will never get off the ground.<\/p>\n

But once you land your first few, another consideration becomes key: how to keep them.<\/p>\n

Experts agree \u2013 it costs a business more to win new customers than to keep your existing ones<\/a>. The fastest growing are those that focus on minimising churn.<\/p>\n

And don\u2019t forget: happy retained customers are far more likely to recommend you. Referrals are the largest single source of new customers for successful businesses.<\/p>\n

We experienced this: although our new customer pipeline was pretty limp, our retention was awesome. Growth was (almost) guaranteed.<\/p>\n

Remember that finding a new customer is just the start of your journey. Keeping them is what really matters.<\/p>\n

 <\/p>\n

\"sysadminrecruitment-laptop\"<\/p>\n

\nMyth 5 – You need to make a lot of money<\/h2>\n

Yes, I really did just write that.<\/p>\n

Bear with me. I want to tell you a story.<\/p>\n

If you\u2019re as long in the tooth as I am, you\u2019ll remember the Dotcom bubble. Back in 2000 finance folks were throwing money at startups. Their value was derived from their future revenue potential.<\/p>\n

Although a few still survive, most went bust. And that wasn\u2019t just because they struggled to make money. It was because they spent so much at the same time.<\/p>\n

Perhaps the most famous fail was Boo.com where champagne and first-class flights helped the team to squander millions in months.<\/p>\n

In business there\u2019s a simple equation that you need to get right.<\/p>\n

Earn > spend.<\/p>\n

Most businesses focus on the left hand side. They\u2019ll do anything to boost the revenue. But the most successful will focus on the right hand side too.<\/p>\n

We created our agency at the height of the bubble, so the lesson was keenly felt.<\/p>\n

We had very standard computers, and dial-up. We had a tumbledown office in a frumpy, down-at-heel neighbourhood. We had Ikea furniture.<\/p>\n

We didn\u2019t start spending until we had a year\u2019s buffer under our belt. We could afford to go twelve months without earning a penny.<\/p>\n

That might seem extreme, but it meant that growth was stable and sustainable. When we did lose clients it didn\u2019t seem like the end of the world. We could take some time to focus on winning new ones.<\/p>\n

So think carefully about every purchase you make. Don\u2019t tie yourself to long and expensive contracts. Scrooge your way to success.<\/p>\n

Myth 6 – You need a unique service or product<\/h2>\n

In business theory books, consumers act like machines making rational economic choices about what they buy, and from whom.<\/p>\n

In the real world these rational consumers don\u2019t exist.<\/p>\n

We have pre-conceptions, a psychological bias born from experience that bakes in a preference for X over Y.<\/p>\n

Sometimes we can explain this bias. For example, I\u2019ve a soft spot for Sainsbury’s because my mum used to shop there. I\u2019ve no hard evidence that they\u2019re a better choice for my groceries.<\/p>\n

But mostly we can\u2019t, since the bias is comprised of many thousands of factors.<\/p>\n

Moreover, we don\u2019t have perfect market knowledge. I don\u2019t the price of lemon curd at the 20 local shops that stock it. I haven\u2019t tasted them all and worked out which is the best one for me.<\/p>\n

This combination of bias and poor knowledge means that we\u2019re awash with poor-quality low-value products, sold to us by successful businesses.<\/p>\n

Now I\u2019m not saying the service that we provided in our agency was of poor quality. But I am sure that it wasn\u2019t the very best around. We succeeded through strong relationships and transparency.<\/p>\n

The best product or service at the best price is not critical. It can\u2019t harm, but it\u2019s not a must-have requirement.<\/p>\n

So if you think your service is a bit rough around the edges; if your projects sometimes fall short of your competitors; don\u2019t give up. Your success depends on many other factors, not least of which includes your client\u2019s bias. Its something they trust more than anything else.<\/p>\n

\nSo what really matters when growing your agency?<\/h2>\n

That\u2019s enough myths called-out. Here\u2019s what I think makes a difference.<\/p>\n

1. No business grows forever without great customer service. Customer referrals should feed your sales pipeline. So speak to customers, survey them; ask them why they stay (or go). Solve those problems to keep you on the path to growth.<\/p>\n

2. Make customers feel the quality of your service. No one likes to consistently buy a downgrade, cheap-feeling product, even though it might be good value. Focus on how the customer perceives what you do for them. It lies at the heart of your brand experience.<\/p>\n

How about you? What do you think is important to keep the wheels speeding up? Please leave a comment below.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

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