Getting to 10M+/yr the Biggest Hurdles

Last week I talked about the hardest period to scale an agency, 1-2M.

But there are more plateaus that you need to break out of in order to drive the agency to 10M+ per year.

I’m Nick Avaria, agency owner, and founder of Agency Acquisitions. I’ve scaled multiple agencies to 7 and 8 figures, and now I help other agency owners do the same. If you want to connect with me online, follow me on your preferred platform below 👇

Let's go in order of growth of what you need to focus on for each level:

#1 - Breaking out past $10-20k per month (250k per year): 

This is a product/service delivery problem. 

If you can close 1-2 accounts per quarter and deliver your product well. You can get past 20k. 

That is assuming your service does what you say it does in your sales calls.

#2 - Breaking out past $40-80k (500-1M per year):

This is the problem of delivering product/service while ramping up your revenue at the same time. 

By this time you have a product/service that works reasonably well. 

The problem is that if you get too much into sales, your delivery suffers.

OR

If you get too into delivery, your sales suffer.

This problem happens at $40-50k if you are flying solo or if you have a business partner or reliable 2nd in command happens at $70-80k.

#3 Breaking out past $125-165k (1.5 to 2M per year)

As I mentioned in the last newsletter in way more detail, this is #1 a middle management issue and #2 a data issue.

Building out middle management sucks cash out of the business.

If you hire the wrong people your agency becomes a bureaucracy. 

People focus on administration vs rending maximum client value when you build middle management wrong.

The second issue, data, is all about getting the right dashboards in place so that middle management can use them to figure out problems BEFORE they happen.

When Sr. level people are no longer on the front lines we need dashboards and data systems to help us detect problems that more junior staff members may not detect.

This is by far the most difficult thing to get right.

But, if you can get two or more good middle managers who care about your people, the clients, and the product/service value and get the right dashboards and systems in place, you can break out of this level.

Check out my newsletter next week where I’ll go over the last 2 hurdles to get your agency to 10M+

• The hurdle at 250-300k (3-3.6M per year)

• And the hurdle at 500-700k (5.4-6.6M per year) 

Get the full overview of the Top 5 Killers for Agencies at any level for more detail on how this integrates with other areas of your business.

Have questions about scaling to the next hurdle for your business? Hit reply to this email to book a time with me this week.

Nick