So you might not realise this, but many of us who work at Tech Collective also work in agencies. The agencies are doing quite well and still growing, so we decided to analyse how they are succeeding.
We broke it down into four simple steps that our agencies have followed in order to grow their business to over seven figures. The process has been simplified and we looked at the various factors that contributed or created obstacles to said growth.
Find your niche and double down
We work for agencies that focus on a specific industry or service. So one (unnamed) agency focuses on technology, while other only focuses on digital marketing for the beauty sector.
This has helped them understand their niche and take advantage of a clear and precise focus to scale effectively within that sector. The best businesses can’t be everything to everyone, so it might be smarter to go deep rather than wide. Focus your staff resources, time and attention on perfecting it, so you stand out in the crowd.
Where there have been obstacles or barriers to growth has been from choosing too small a niche, which can stifle growth or create a insurmountable ceiling for your business.
Create a referral-based business
Each agency took a fundamental step that helped them scale their business faster overnight. They offered their clients and networks a referral fee for new business.
Nothing expands your network faster than incentivising people who you work with (and they trust you quality) to recommend you to other potential clients. Being niche also allows you to build a network of similarly connected individuals. Some business clients cannot or will not accept referrals, so agencies can even offer them free or discounted services in exchange for referrals – this works out best for both sides.
The only pitfall to look out for is the potential for conflict or clients being territorial when it comes to their agencies.
Scale your price as you grow
By being focused and having a strong track record in your niche, you should be able to increase your pricing. Agencies tend to under-price their services at the start in order to build a client list and create a strong portfolio. However, when it comes to time to normalising the price, many agencies delay that or find it difficult to tell their clients.
There is no easy way to do it, but if you have a good working relationship and have always provided strong results, there is a good chance the client wouldn’t mind a small increase in the monthly.
Don’t be afraid to hire contract or remote staff
Half the teams we work with are remote or on project contracts, so the agencies can scale their services without the hassle or burden of firm overheads.
The flexibility and often cost-effectiveness of remote workers offers our agencies the option to take on larger projects without being too weighed down. There are many benefits to remote workers and it should be one of the first options you consider when scaling your business.