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Strong start, strong finish. It may be tempting to take a slow approach to the new year, but as a business owner, there’s a lot to be said for starting the year ‘on the right foot’ towards success.
There is no doubt that the past year has been challenging, especially for agencies, due to several factors, including economic and geopolitical uncertainty and changes in client and consumer behavior.
new research from Agency business status The report found that government agencies are more vulnerable in the following situations: the beginning This year’s. His 75% of agencies have lost clients, and about a quarter of them have lost more than his 10% of staff. All this happened in the first half of 2023. Losses are always tough, but especially when they occur in the first quarter. If you don’t address challenges right away, you risk continuing your bad patterns and habits for another year.
So how can you avoid losses and lead your team to success in the new year? Start with these five things.
1. Invest in your team
The profitability of your business depends on your ability to retain your customers and your team. You might be surprised to learn that investing in your team is one of the best ways to address both. The most successful leaders I work with think about investing in their teams the same way they invest in other parts of their business. and Measure success! Conduct quarterly employee surveys to highlight gaps.
It might be making sure your team enjoys continuing education, competitive pay, growth opportunities, and work-life balance.According to research Companies that invest in the well-being of their teams find that their employees are happier, more productive, and produce higher-quality work. plus Improved customer satisfaction and increased revenue. why? Because clients are less likely to defect and more likely to sign on for more work and recommend you.
Related: 5 Fastest and Surest Ways to Lose Money
2. Stop using excessive services.
Overservice is a serious risk to short-term profits and long-term stability (i.e., burnt-out staff), yet too many agency leaders continue to neglect it year after year. One in ten agency leaders say their projects never or rarely go over budget. This means that most agencies incur a loss at the end of the project. To put things into perspective, if he over-serves even by 10%, he could end up working for free for a whole month, and that adds up.
As we enter the new year, take time to reevaluate how your team proactively addresses customer expectations and build processes. Be clear about the contractual scope of work and the charges for out-of-scope work. This, combined with clear, consistent, and documented communication during milestone check-ins, such as during onboarding and end-of-campaign check-ins, can protect you and your clients from many surprises down the line. can.
3. Clear time tracking
We all know the old saying, “Time is money.” If your team isn’t tracking time, start now. Time tracking software like Harvest, Timely, or a project management tool with built-in time tracking functionality like Teamwork.com makes tracking your team super easy.If your team already tracks time, track accurately is another story.
That may seem like a non-deal breaker. Still, inaccurate data can lead to under-budgeted proposals, unrealistic schedules, inadequate resources, and overestimations of profitability, resulting in overworked teams, dissatisfied customers, and unprofitability. project may occur. From working closely with hundreds of agencies each year, we’ve learned that everyone tracks time differently, but what really matters is how often your team tracks time and how detailed it is in your submissions. or other metadata that should be added. To be included.
Related: Time is money and you don’t have time to lose things
4. Adopt a mindset that prioritizes billable hours
The billable vs. non-chargeable debate is not new to those who do client work. But too many agencies struggle to stay profitable because of it, with one in two not achieving billable utilization benchmarks above 50%. Agencies struggle to manage billable hours, and it comes down to a number of issues, including poor processes and communication breakdowns between managers and team members.
The best rule of thumb is to aim for a 70:30 ratio of billable to non-billable hours and 1:5 of non-billable to billable employees. This ensures that billable staff cover the costs of non-billable staff, giving you a safety net to stay on track during the ups and downs of agency life. A big part of that is creating a culture of “first billable hours” with your team. Train yourself to prioritize this work, track your time, and set expectations with this in mind. That is, “He can only spend 8 hours creating this report for X client.”
5. Balance leader burnout
Employee burnout is a hot topic, but leader burnout is less talked about. Seventy-one percent of government agency leaders suffer from burnout, with work challenges being the top culprit. You won’t be able to bring your best self to your employees and customers if you’re breathing smoke at work.
Some of the best advice for this comes from Tim Ferriss’ book. 4 hours work week: “Never automate what you can eliminate, and never delegate what you can automate or streamline.” Following this process is a great way to increase productivity and prevent burnout. Start by making a list of tasks and ask yourself which ones you can eliminate, automate, or delegate. This will allow you to focus on the work that fulfills you and brings you closer to your goals, including making 2024 your best yet.
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