According to Forbes, 90% of startup businesses fail within the first five years.
If you are any type of entrepreneur, you probably know a little bit about success and failure. William Edward Hickson once said, “If at first you don’t succeed, try, try, try again.” This can apply to many things in life – especially for business. Whether your marketing agency is succeeding with flying colors or taking a turn for the worst, there are mistakes all people should be aware of when trying to run a successful business.
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Marketing agencies are becoming more and more popular for businesses that want to increase their popularity among clients. Because of this, the competition between marketing agencies if becoming more intense.
If you are finding that your marketing agency isn’t making any money – we have some advice for you. Making money is one of the leading indicators of success and if you aren’t doing that, you might be looking at a troubled future.
Take a look at these reasons why we think your business might not be making money. Adjusting a few minor things could possibly lead to a greater amount of cash flow and more success for your agency.
1. You are doing too many things
One reason you might not be making any money is that you’re trying to do too much with your company. Let’s say you work mainly with smaller companies with less than 50 employees. They aren’t franchises, but they are big enough to have a name. However, some big, money-maker business comes along and wants to hire you as their marketing agency. You realize that you don’t have the manpower or experience to keep up with what this company needs – yet you see the opportunity for profit. If you take this deal, you might be putting your agency in more than it can handle.
It’s always smart to understand your limits and to stay within yourself. Doing this can lead to less overflow and more cash flow.
2. You give discounts too quickly
When your agency needs new clients, you might be willing to do more than you should to get them to commit. If you are finding discounts to give potential (and veteran) clients, this could be a major reason you are taking a hit in the financials.
Focus more on selling your services – not discounts. If you believe that your company is the best option for a potential client, go with your gut. Don’t feel obligated to throw out discounts, sell them on your abilities and knowledge.
3. Your team is too big
No matter how old or young your agency is, waste is something to always to keep in mind. Any person or step in the process that doesn’t add value to the service can be considered waste, and should probably be improved. Eliminated waste can lead to a higher level or productivity and efficiency that can eventually help you make more money.
4. You don’t take care of your clients
Whenever potential clients consider hiring a marketing agency, one of the first things they want to know is how you will care for them. Whether your agency is just starting out or has found great success, clients always want to know that your company will care for them in the best way possible. This means delivering personal and informative customer service at any time while also delivering the best service possible. Whatever you do, take care of your clients. When they know they matter to you, they’ll continue coming back and referring others, which will lead to more profit.
With a few minor adjustments, you can get your marketing agency operating the way you always wanted. By taking these tips into consideration, you can help your company become more efficient while also improving profits.