The Agency Profit Podcast How to Downsize Your Agency, With Carson Pierce
Apr 9, 2025
Carson Pierce, an expert consultant in the agency space, shares valuable insights for agency owners facing market uncertainty. He discusses how trimming small recurring expenses can lead to significant savings and highlights the importance of strategic downsizing to protect delivery quality. Carson emphasizes balancing optimism with cash management and suggests using data-driven rules for decision-making. Furthermore, he introduces a payroll grid framework for assessing team roles and improving efficiency while maintaining financial health.
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Episode notes
Cut Overhead Before Production Staff
- Cutting production staff instead of overhead bloats fixed costs and undermines profitability.
- Prioritize reducing overhead first to maintain delivery capacity and business health.
Carson's Layoff Experience
- Carson Pierce was laid off as overhead during a company tightening, which he saw as the right choice.
- Cutting overhead before production keeps revenue-generating capacity intact.
Manage Cash Reserves Prudently
- Monitor your cash reserves closely and ensure you never dip below three months of operating expenses.
- Manage cash intentionally by taking owner distributions and loaning money back to enforce prudent decision-making.
