Starting a creative agency is exciting, but it may be filled with pitfalls. It can be challenging to create a profitable company from scratch. Creative agency companies need to consider how they will make money, how they will compensate their employees, and how they can help their business grow in an ever-changing landscape. Lee Coles explains 8 ways in which new creative agencies can become profitable.
1. Focusing on Value
While your concern as a business is to create higher profits, your clients are not interested in your bottom line. They want to receive original content and original ideas. This can go beyond what they receive when they hire your agency for a brief.
For example, creating content via social platforms such as Instagram – is a great way for your brand to provide a platform to showcase your talents to potential clients. Creating motion design, film and imagery will help spread the word about your word.
Producing a striking piece of content around a current social issue helps elevate you from the competition but also it gives your brand a personality. It will help your creative agency become more visible in Instagram’s ever-changing algorithm. All of these factors can help your creative agency build a name for itself.
2. Understand What Separates You From the Competition
When you are marketing yourself to your audience you will need to show them that you have the capability to work to a brief, handle a diverse set of stakeholders and keep to tight deadlines. To research this, talk to some of your best clients and open a dialogue about what they believe makes you stand out. Each client will have different input, and you can use these stories to redefine your online presence and refine your brand’s own message as an agency.
3. Empower Your Team
In order to grow, you will need to establish the loyalty and investment of your team. Help your team achieve better results by getting their contributions in important areas of your business, and give them some ownership. Invite them into meetings, ask their advice, and listen to them. Your team will have knowledge of what is working for your company and what is not working. Use their insights to help create new profitability, opportunities for your agency.
Foster new ideas among your staff by giving them time to brainstorm each week. They will be able to create new opportunities for your agency by improving their own workflow, new pitch ideas, and a sense of ownership.
4. Invest in Your Employees
Do everything you can to support who is working for you. It may seem counterintuitive, but investing in your team or freelancer will increase their productivity significantly. When your team is happy, your agency will be more profitable. Agencies that are highly ranked on “best places to work” lists are significantly more productive when it comes to being successful.
Some examples of perks that you can give your team could be a working lunch, a team night out, working from home, and a comfortable work environment that encourages creativity.
5. Be Agile
When a strategy or an idea is not working, it is important to let it go. Wasting time on unprofitable ideas can cause your company to fall into a rut. Carefully review all of your ideas and decide whether or not they are contributing to your business.
6. Enhance Your Product-Market Fit
When you are creating new pitches make sure that they are matched to your target market. If you are creating an idea that isn’t fresh – this will dig into your profits. Understanding what your clients need is a huge part of becoming successful. Survey your customers and your competitors, and decide how you can direct your ideas to help win business.
7. Increase Your Sales Skills
Promoting your agency’s services can be just as important as creating the perfect project. When you have better sales skills, you will be able to attract and retain clients much more easily. Having better sales skills will also help your agency promote its services and ideas more efficiently.
8. Reduce Costs Without Sacrificing Quality
Try to discover ways in which you can reduce your costs without affecting the quality of your production. Decreasing your costs can have a direct impact on your profits. For example, you could outsource some work.
Enhancing Your Profits
When you follow these 8 steps from Lee Coles, you will be able to find ways to boost the profitability of your production company. Taking these items into consideration, you will discover what does and does not work about your business. Adjusting your business activities may help your agency grow and thrive.