5 simple tips to make sure your Digital Agency is not losing money

I know, I know. When you decided to open your own Digital Marketing Agency, the last thing you thought you would be doing is spending hours every month in spreadsheets with numbers trying to figure out if you are making money with all these clients that you are doing great work for. But here you are, and you need to get a grip on them.

Now if you don’t know this already by providing Inbound Marketing to your clients you are now running a Professional Services business. Yes, you may spend most of your day selling software, projects, retainers & websites however if you were selling touchless widgets that didn’t require any support or follow up when you own a complicated company.

1. Financial Spreadsheet - Profit & Loss Statement. If you want to grow and scale your agency, you need to have an overview of this at all times. 
   
   
2. Time Tracking - You must have a tool for this! One that is easy to use so your employees don’t need to manually log each little task eg.
   
   
3. Profitability by client - You must know how profitable each client is. While you can set out with the best expectations on what margin you want to achieve, you need to make sure you are actually making money while you deliver the work.
   
   
4. An Accountant who understands the Professional Services Industry - Your business is a global one and needs the type of accountant that can understand your services and the industry you are in.
   
   
5. Invest in Databox and create your agencies Dashboard - This has to be one of the best tools to help you manage your agency. Even if you use another tool, the important thing is to have overviews and to not spend a massive amount of time per month on reporting, when it can be done automatically. 

Before you reach for the brown paper bag its ok.. Breathe. . . You can do this! And we can help. Your first step is that you need to know what numbers you have to collect each month and have a template to help you keep track of them. By making sure you have these 5 things in check, you'll get that good gut feeling and you can spend time on actually growing your business.

Find out more tips on how to have an agency that you love in [Part 1] of our series.

So let's start there, and if you want more tips or help - Let us know!