008: Know Your Numbers: Simple Ratios To Run Your Agency By

In this episode of Agency Darlings, we’re diving into one of the biggest challenges creative agency owners face: managing finances. We’re talking all things cash flow, setting realistic revenue goals, and, most importantly, making sure you’re paying yourself what you deserve. This Q&A-style episode dives deep into the numbers game that fuels your business success. Whether you're struggling to pay yourself consistently, wondering how much of your revenue should go toward payroll, or debating between reinvesting in your business and rewarding yourself, tune in to hear our thoughts and strategies for managing your agency's finances with confidence and data-driven decisions.Key Takeaways:Founder Pay 101: Start small with consistent payouts and scale gradually using percentage-based goals to avoid financial strain.The 60% Rule: Keep payroll (including contractors, employees, and your own pay) under 60% of your revenue to maintain a healthy business.Profit Goals: Aim for a net profit margin of 15–25% to balance growth with sustainability and avoid tax penalties.Revenue Planning: Reverse-engineer your financial targets by accounting for expenses and desired margins.Savings Strategy: Even in lean months, allocate a small percentage of your revenue to a high-yield savings account for future investments.Did this episode inspire you to rethink your financial goals? Let us know! DM us with your questions or share your biggest financial win this year. Don’t forget to rate us on Spotify, it helps our podcast reach more listeners like you!Show Quotes We Love:"Everyone says they want to double their revenue in a year, but my question is always, ‘Why?’ If you don’t know the reason behind the goal, it’s just another arbitrary benchmark." – Meredith-Thanks to our sponsor Copper, for making this podcast possible. Copper is a CRM that helps agencies attract more clients, streamline communication and deliver projects effortlessly. Exclusive to the listeners of this podcast, Copper is offering 15% off annual plans with promo code AGENCYDARLINGS, all one word. Check out Copper’s Lead Nurturing Playbook, designed to help agencies nurture leads and grow sustainably.This episode is sponsored by our partners at Sked Social. Sked's Social Media Management tools are designed to streamline your workflow, enhance team collaboration, and deliver exceptional results for your clients. Sked is offering a free trial and custom demo to the listeners of this podcast, visit this link to learn more and use code DARLINGS at checkout for 10% off annual plans.Connect with Us:Follow us for more insights on agency growth strategies. You can find us on Instagram and LinkedIn. Join our Agency Advice Column here.For all inquiries, contact us at [email protected] Your Hosts:Melissa Lohrer is the Founder of Waverly Ave Consulting, a Growth Consultancy for indie agencies. She partners with agency owners to create seven-figure growth through strategic repositioning, modern revenue models, and relationship-based sales. Connect with her on

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