The Hardest Period of Agency Scale: 1 to 2M per year

A lot of people believe that getting an agency to 80k per month is the hardest part of the scaling process.

It's not.

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, send over a LinkedIn request.

Getting above 160K sustainably is the toughest part of scaling an agency. 

This can vary depending on pricing models but breaking out above 160k-250k/ month is the first real test of:

1. The agency's leadership and culture

2. Product value

3. But most importantly its middle management systems

Agency owners tend to be ambitious and have a strong vision.

They have been obsessed with their product delivering great value to clients.

This is why in my experience the 3rd is the biggest challenge - Middle management systems

To be more specific, two things happen that make people grow to the 160-250k range, and then get dragged back down 20-30% (or to around $160k/month again).

1. They promoted all managers from within (not just some)

2. They hired from the outside, but they hired people that were not senior enough.

Both options have a fatal flaw. They assume that people being brought in know how to manage and lead others.

The reality is that only 20-30% of middle managers are good at managing people AND can create systems from the ground up.

Hiring managers that can do both is incredibly tough and you have two options. 

1. Hope you hire a manager who can build the systems (usually a director-level hire who has done it before)

2. Get a consultant to come in and build everything then hire someone to operate the built-out system.

The common thread between the 2 options is that the person has done it before. 

Every run you take at breaking through the 2 to 2.5M barrier will take you at least 9-12 months.

Getting it right the first time will take trial and error, money, and precious time.

Some agencies never break through.

But many give up on doing so and stay in the 2M and below range. 

This is why middle management systems are the #1 reasons agencies don’t scale.

Ready to chat about getting more leverage out of your team? Book a time in my calendar now to connect before to walk through the process in more detail.

Nick