Mar 14, 2018
Want to learn how to increase your agency's worth? Curious about value when you're ready to sell your digital agency? Let's talk about how to increase your agency's worth so that when you're ready to sell you get top dollar like my client who just sold his for over 7 figures!
My client won't have to work another day in his life if he doesn't want to! Here's what we so he could improve his agency's value and sell when the time was right....
1. MAXIMIZE PROFITABILITY - Make sure you're not underpriced or over-servicing. Average service business in the US should have a profit margin of 32%, of course the higher, then better. Repeatable process and recurring revenue is key - buyers are attracted to both these things.
2. DIVERSIFY CLIENT LOAD - Don't have a huge concentration of the agency business on a singular client. Aim for a wide spread of clients and not too much profit tied up in just 1-2 big clients. Buyers know they'll lose some clients after the acquisition, so they like to see a healthy spread of the business across many clients.
3. AUTHORITY IN A NICHE - Potential buyers like knowing your agency is focused on a specific segment of the market. Don't be afraid to get super specific and niche down. When you take a generalist's approach as a "me too" agency there isn't anything to distinguish you apart from everyone else. Give your buyers a reason to want to buy an authority in the market.
So yeah, these are the 3 things that increased the value of my client's agency. And because of his profitability and processes he got noticed and sold his agency for a major chunk of change.
And honestly, that's my whole goal in what I'm doing. I want you to be able to grow and scale. I want you to be able to profitably sell if and when you want. And when you do, I want it to be game changing for you.
I want to hear from you. What are you struggling with? What questions can we answer here on SwenkToday?
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JASON SWENK IS AN AGENCY ADVISOR THAT GUIDES MARKETING AGENCIES THROUGH A PROVEN FRAMEWORK FOR GROWING THEIR AGENCY FASTER & EASIER.
Fresh out of college Jason was off to work for Arthur Anderson, one of the big 5 consulting firms. He quickly realized that he could never work for anyone other than himself. He decided to change direction, launch a digital agency that quickly grew to a multi-million dollar operation working with brands such as AT&T, Hitachi and Lotus Cars. After 12 years of steady growth, the agency caught the attention of bigger agencies and Jason sold it in 2012.
Now, Jason leads http://JasonSwenk.com, a unique media
company & consultancy helping marketing agencies grow &
scale their agencies faster by applying the framework that he used
to grow, scale and eventually sell his agency. Jason has helped
over 10,000 agencies in 23 countries meet or exceed their business
Jason currently hosts two shows that are available for download…
The Smart Agency Master Class Podcast, dedicated to providing tactics and strategies to agency owners and decision makers that cut through the BS, focus on exactly what works and what doesn’t; and
SwenkToday a daily VLOG that documents the entrepreneur journey of building another multimillion dollar business, where he share the latest strategies, and answers the most burning questions entrepreneurs have.
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