agency food presentation
TRANSCRIPT
When it comes to financial challenges, at present there are not only operational hurdles to overcome such as over-servicing, but also ambitions to increase profitability and forecast more accurately.
Agency challenges
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Planning Stage
• Accurate cost forecasting• Plan for the profit that is required by the agency• True understanding of target billable hours in the agency
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Example: Profile 10 man agency
Cost forecast = £720kProfit required = 20% (£144k)Income required = £864kTrue utilisation rates = 60%Hours available in the year = 10,125 hrsAverage hourly rate = £90p/hIncome capacity = £911,250
Written off income = £607,500
*Calculations based on 45 weeks in a year
What measures or processes can be put in place to support this vital revenue stream?
The top 5 new business challenges for agencies are:
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Winning New Business
• Agencies reporting 1 in 3 success rate• Decreasing client budgets less of an issue in
the first quarter of 2015 (16%) compared to the last quarter of 2014 (23%)
• 43% have reduced their rates by up to 20%
Is money really the object? Could lack of time to prepare mean agencies aren’t giving themselves a fair shot at success?
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Focus on new business fixes
• Monitor spend• Stick to calculated rates & value the
agency’s worth• Use a resource management tool
*37% in 2014
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New business resource
• 62% of agencies have a dedicated new business resource• The remaining 38% rely on whoever has the right experience
for the client enquiry• 53% said they sometimes, but not accurately, will earmark
funding to new business
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Agency Food
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