015: The Profit Problem: Why 67% of Agencies Are Struggling (And How to Fix It)

What if scaling your agency didn’t mean working more, but working smarter?Profitability is the foundation of a sustainable, thriving agency - but so many agency owners struggle to maintain healthy profit margins. In this episode, we're diving deep into the biggest profitability mistakes agencies make, why revenue alone isn’t a measure of success, and the strategies you need to build a financially sustainable business.Melissa and Meredith break down the common pitfalls agency owners face, why pricing and scoping are crucial to profitability, and how optimizing your operations can make your business more efficient, scalable, and stress-free.What to Expect From This Episode..The Four Biggest Profitability Pitfalls:Caving to lower prices to win businessUnderestimating project scope and failing to price accordinglyInternal inefficiencies that drain time and resourcesA lack of niche and client diversificationKey Takeaways:Why revenue isn’t the real metric you should focus onHow to scope for reality (not best-case scenarios)The power of standardizing processes for efficiency and profitabilityHow to confidently say “no” to low-value workWhy niching down leads to higher profit margins and more aligned clientsReal Talk MomentsWe get candid about:The fear of raising prices and how to push past itThe emotional weight of making big financial decisionsWhy agencies struggle with scope creep (and how to stop it)How to create pricing that protects your margins__Interested in the Q1 Biz Dev Challenge with Melissa? A month-long program designed to help you fill your pipeline with quality opportunities. Limited to 20 participants, get support, creative assignments, and access to a private Slack community. DM Melissa on LinkedIn or Instagram for more information.Interested in the 1:1 Strategic Brainstorming Session with Meredith? This session is a focused 50-minute consultation for entrepreneurs seeking targeted guidance and business insights. Dive deep into your most critical challenges, uncover opportunities, and develop actionable strategies. Book your strategy session here.Connect With Us:Instagram @agencydarlingsLinkedInJoin Our Agency Advice ColumnEmail: [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 LinkedIn and Instagram.Meredith Fennessy Witts is the Founder of Le Chéile, the go-to finance and strategy consultancy for creative agencies scaling beyond seven figures. She helps creative founders clarify their cash flow, restructure...

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