I Found $70K Hidden in This Agency (You Might Have the Same)

Hey there,

Welcome back to the Agency Finance Letters. This one will be a 3 min read.

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Today, I’m sharing how we saved one of our clients over $70K a year.

This was for a $180K/m agency. They were already crushing it, but in this growth some “inefficiencies” had built up…

And here's the thing - I see these issues everywhere. Bet you might have some of them too.

This is what we did:

1. Bookkeeping Cleanup

Bookkeeping is one of these funny ones.

Because it usually won’t directly save you money, but without good books you won’t even be able to see where you might be losing money.

Things to look out for:

• All revenue lumped in one “Sales” account

• “People Cost” not spread out over the departments or roles

• No process to make sure it’s done accurately each month

• Or no bookkeeping in the first place…

This helps you see where you are making or losing money.

2. Low Hanging Fruit

When you’re busy scaling, costs will creep up.

And while I do believe it’s better to focus on Making Money rather than Saving Money, it’s also true that every $ saved can be reinvested into growth (or be paid out).

So that’s what we did for them:

• Saved 1% on the payment fees by eliminating currency conversions

• Helped them earn 5% interest on their cash

• Identified software to be moved to annual plans (+ reduced seats for some tools)

This alone added over $37K in profits per year.

3. Team Structure Optimization

This client had senior people on their payroll. Account management, media buying, strategy - you name it.

We didn’t tell them to fire anyone or cut salaries, as that would hurt growth.

But we did help realign expectations and identify what the optimal team structure would be.

This made it clear that there was enough capacity in the business for now, which stopped them pulling the trigger on yet another hire (which really wasn’t required yet).

I won’t count that as a saving, but it kinda was.

4. Opportunities Hidden In Plain Sight

For this client, retention was great. But they were so specialized that they missed all the extra little opportunities.

We identified:

• Which clients were prime for an upsell

• How to incentives the team to make these upsells

• Which referral partners could fit their business

We worked with agencies making $10K+ per month from referral fees alone.

For this client, these “easy” opportunities will easily add $30K+ p/y to the bottom line.

5. Improved Financial Model

Costs will always creep back up. That’s what it’s key to stay on top of it consistently.

We gave them our full model. Now we can track all the margins over time, and see exactly in which areas we might be over-spending (or under-spending).

Here's my question for you: Are you doing all this?

If not, you're probably leaving money on the table. And that’s holding back growth.

I've done tons of these audits. And I guarantee we can save you money (or we don’t charge you).

Hit reply if you're curious. I'm here to help.

Keep crushing it,

Joey