How to Build a 5 Million Dollar Agency, With Michael Wark

00:01 – 00:40 – Introduction to the Episode and Guest: Marcel introduces Michael Wark and his expertise in finance for agencies.

00:40-01:00 – Michael’s Background and Passion for Agency Finance: Michael shares his excitement for the topic and his background in financial services.

01:00-01:45 – The Role of a Virtual CFO for Agencies: Discussion on how Michael serves as a virtual CFO for agencies worldwide, blending operations with finance.

02:10-03:18 – Why Michael Started Trimline and Focus on Agencies: Michael’s journey from corporate to entrepreneurship, focusing on creative agencies.

04:15-05:15 – The Importance of Management Accounting Over Tax Accounting: Insights on how focusing on management accounting can better support growth and strategic decision-making.

05:15-06:41 – Stages of Agency Growth Towards $5 Million: Michael discusses the growth stages agencies face on their way to $5 million and beyond.

06:59-08:00 – Common Financial Pitfalls for New Clients: Challenges new clients face, such as mixing personal and business finances.

10:38-11:29 – Restructuring P&L for Operational Profit: Strategies to clean up the P&L for a true look at operational profit, separating out non-operational expenses.

14:03-15:42 – Accrual Accounting in Agencies: The complexity of accrual accounting for agencies and the importance of accurate revenue recognition.

19:19-22:08 – Investing for Growth and Understanding Unit Economics: The investment mindset required for sustainable growth and the significance of understanding unit economics.

33:11-37:02 – Building Real Value and Preparing for Exit: Focusing on building a business that’s attractive to buyers by systemizing operations and documenting processes.

How to Build a 5 Million Dollar Agency, With Michael Wark

Points of Interest

Show Notes