I Wish Someone Had Warned Me About the Real Reasons Most Agencies Fail
Every entrepreneur knows that most Agencies fail, but very few of them actually understand why.
While many budding entrepreneurs are busy blaming the ever-elusive “market conditions” or that latest technological curveball for agency failures, some agencies are their own worst enemies.
And let’s face it: it’s often because they’re missing the memo on some pretty basic stuff.
You might think it’s all about the big external monsters lurking in the shadows, but sometimes, the dragons are chilling right at home.
Have you ever heard that saying, “It’s not the industry; it’s you”? Well, it stings a little, but there’s some truth to it.
Here’s the tea: while everyone’s playing the blame game, we need to talk about those internal hiccups that trip agencies up, time and time again.
Buckle up; it’s about to get real.
Error #1: Not understanding the problem.
Did you know that a staggering 70% of business solutions fail because they don’t address the right problems? It’s like using a band-aid for a broken bone — completely ineffective.
In the sage words of Peter Drucker,
“If you can’t measure it, you can’t improve it.”
Understanding a problem in its full depth, its nooks and crannies, is a fundamental principle in business. It’s about measuring the issue accurately to craft solutions that genuinely fit.
After my team and I embraced this fundamental principle, actively investing time in dissecting and understanding the problems presented to us, a transformation occurred.
Today, I stand at the helm of a multiple 7-figure agency, steering a fantastic team of over 15 amazing people.
Our secret? We took the time to learn our client’s true needs, the underlying issues, and the questions that weren’t being asked.
Delving deep into the core of problems, we uncovered opportunities that others missed. We became not just service providers but trusted advisors, a role far more valuable and appreciated by clients.
The approach isn’t just about solving problems; it’s about understanding them so well that the solutions are innovative, tailored, and right on target, every single time.
Clients aren’t just looking for solutions. They’re looking for the right solutions.
Error #2: Lack of a Unique Selling Proposition (“USP”)
Ever walked into a store with an aisle of seemingly identical products? You pick one, not because it stands out, but because, well, it’s just there.
That’s the cold, hard truth for agencies without a clear USP. They become just another bottle on the shelf, indistinguishable from the dozen others.
Marketing guru Seth Godin once said,
“In a crowded marketplace, fitting in is failing. Not standing out is the same as being invisible.”
These words ring especially true in the bustling world of agencies.
If you don’t have that unique twist, that special sauce, why would clients pick you over the myriad others clamoring for their attention?
So, what’s the magic of a well-defined USP?
- Clarity — It defines who you are and what you stand for.
- Differentiation — It sets you apart in an ever-crowded marketplace.
- Attraction — It draws in your ideal clients like a magnet.
Your USP isn’t just about a catchy phrase or a stylish logo; it’s the DNA, the core essence of your agency.
In a world teeming with competition, your USP is your compass, pointing you toward clients who value, resonate with, and will champion what you bring to the table.
Error #3: Not understanding the organization’s capabilities.
Ever come across startling statistics that leave you contemplating? Well, here’s one to chew on — a staggering percentage of project failures are chalked up to a sheer misunderstanding of an organization’s true capabilities.
And here lies the Achilles heel of many budding agencies — jumping at every opportunity without pausing to assess if it’s within their bandwidth to deliver excellently.
It’s like a chef promising to whip up a gourmet meal but forgetting to check if the right ingredients are available in the kitchen.
Grasping the essence of what your agency can realistically achieve, the heights it can reach, and the projects it can seamlessly handle is akin to holding the magic key that unlocks sustained success.
It entails nurturing a genuine understanding of your agency’s strengths and weaknesses.
So, what’s the strategy? — Here’s your go-to approach:
- Audit and Reflect — Periodically take stock of your strengths and areas of growth.
- Cultivate Learning — Continually develop your team’s skills to meet changing industry demands.
- Define Boundaries — Know when to say no, ensuring alignment with your core competencies.
Look, every agency wants to be the superstar, the game-changer, the next big thing. And there’s nothing wrong with that.
But the real magic? It happens when ambitions align with actual abilities.
When agencies recognize their authentic strengths, they can channel them in directions that not only fulfill client expectations but exceed them.
It’s about playing your A-game, every time, and knowing exactly what that A-game looks like.
Error #4: Lack of clear leadership.
Remember playing ‘Follow the Leader’ as kids? The game was simple.
One person leads, and everyone else follows. But when there’s no defined leader, things go haywire, and, honestly, it’s no fun.
That same chaos, my friend, isn’t limited to childhood games — it’s vividly present in many struggling agencies.
When we talk about the corporate world, leadership isn’t just about holding a position or a fancy title. It’s about direction, vision, and cultivating an environment where every team member feels they’re part of something bigger.
Now, I’ve seen businesses that are driven by passion and brimming with talent. Yet, without a steady hand to guide the ship, they end up sailing in circles.
The real essence of leadership? It’s more than just calling the shots.
It’s about:
- Visionary Thinking — Envisioning the bigger picture, setting the destination, and charting out the journey to get there.
- Clear Communication — Ensuring that every team member is not just on board, but understands the ‘why’ behind every decision.
- Empathy & Understanding — Recognizing the strengths and weaknesses of each team member, and positioning them where they shine the brightest.
Let’s face it, in the hustle and bustle of agency life, it’s easy to lose sight of the importance of having a solid captain at the helm.
But here’s the sobering reality: no matter how powerful the engine or how sleek the ship, without a captain, you’re just drifting.
Ask yourself, does your agency have that guiding star? That beacon that steers everyone right through stormy weather and sunny days alike?
If not, maybe it’s time to find or become that beacon, because remember, without leadership, there’s no direction, and without direction, there’s no destination.
By the way, if leadership piques your interest as it does mine, I’ve dived deep into the subject in another piece.
Check out my in-depth article on The Six Reasons People Follow Leaders. It’s definitely worth a read. The challenges, and immense rewards of true leadership — it’s all there.
The bottom line with the accelerator touch:
I know what it’s like to struggle as an agency owner, but I also know what it takes to build a multiple 7-figure agency.
And now, with Agency Accelerator, I’m offering my expertise and experience to help other agency owners achieve their income and lifestyle goals.
But it’s not for you if you have more projects than your agency can handle, AND you’re already consistently hitting your revenue and profit goals.
But if you’re in the agency owner’s trap, then this may be the most important thing you need.
So what’s the Agency Owner’s Trap?
I’m glad you asked. ;-)
You’re in the Agency Owner’s Trap if you —
- Are not sure when or where your next project will come from
- Don’t feel like you’re being paid what you’re worth
- Feel stuck competing for prices projects on freelance marketplaces like Upwork, Fiverr, and 99designs
The truth is, if you don’t have a steady stream of qualified inquiries about your services — you simply CAN NOT survive as an agency owner.
And even if you do survive, it will be a miserable existence!
But even if you’re getting a lot of inquiries, if you’re not converting at least 50% of those inquiries into high-paying, profitable clients, then it’s like trying to run a race with weights around your ankles.
So if you’re ready to take your agency business to the next level and achieve the income and lifestyle you desire, apply for the Agency Accelerator to learn more. I look forward to helping you achieve your goals and grow your agency!
Peace & love
— Wayne
