This is Why Your Agency Is Losing Profit

Most agency owners don’t realize it, but poor resource allocation and capacity planning are silently draining profits. I call it capacity chaos.

You may have great sales and marketing, but if you’re constantly overloading your team or underutilizing resources, you’re bleeding cash in ways that are hard to see but easy to fix.

This isn’t just a small problem—it’s the second biggest profit killer for agencies. 

Let’s break it down.

Hey, I’m Nick Avaria, agency owner, and founder of Agency Acquisitions. If you’re an agency owner who is ready to scale to 7 & 8 figures you’re in the right place.

If you’re on LinkedIn, and we’re not already connected, send over a request to get in touch.

The Hidden Cost of No Plan

Without a solid capacity and revenue forecast, your team operates in chaos:

• Overworked staff: Burnout sets in when workloads aren’t managed. It increases turnover and lowers productivity in the long run.

• Underutilized staff: People sitting idle still collect salaries, draining your margins.

• Missed opportunities: Without forecasting, you can’t see how much work your team can take on—or when to hire.

Here’s the kicker: If you aren’t measuring this properly, it’s impossible to know your true project profitability. 

When you don’t know your numbers, you’re flying blind. And it impacts your ability to scale sustainably.

The 5% Rule

Your forecasts need to be on point. If your revenue or capacity planning is off by even 10%, you’re setting your agency up for:

1. Missed hiring signals when workloads become overwhelming.

2. Overinvestment in headcount when there’s not enough work to justify it.

When done correctly, accurate forecasting improves decision-making and makes scaling predictable.

The Fix

1. Weekly Revenue Forecasts: Track all current accounts, upsell opportunities, and pipeline deals in a single report. Know what’s locked in and what’s at high probability to close.

2. Billable Capacity Planning: Assign targets for every person, team, and department. Aggregate this data to see your true available capacity.

3. Combine the Two: Your revenue potential and capacity should align in a single report to identify gaps or overloads.

Done right, this process can add up to 20% more profit by reducing overtime, burnout, and inefficiencies.

Agencies with this system grow faster and scale sustainably

Want to see how this works in-depth, check out the step-by-step video here:

Could you use a support with getting SOP’s in place for capacity planning?

Book a time with me this week to see what areas of forecasting or allocation are holding your agency back from scaling.

Nick