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How to Make Your Agency Profitable in 2025
Dec 7, 2024
Marcel Petitpas, CEO and co-founder of Parakeeto, shares his expertise on boosting agency profitability. He discusses the interconnectedness of agency operations and reveals the cycle of insolvency that many agencies face. Key metrics like delivery margin and average cost per hour are spotlighted as essential for financial success. Strategies for optimizing pricing and maximizing operational efficiency are also covered, providing valuable insights for agency owners looking to thrive in 2025.
59:05
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Quick takeaways
- Agency owners must understand the interconnectedness of finance, operations, delivery, and sales to enhance profitability and avoid insolvency.
- Monitoring delivery margins is crucial, as a healthy margin above 50% indicates the financial viability of client projects and resource allocation decisions.
Deep dives
The Interconnected Nature of Agency Operations
Agency owners face the challenge of managing the interconnected aspects of finance, operations, delivery, and sales. It is crucial to understand how changes in one area affect the others, especially when assessing profitability and making staffing decisions. Owners often grapple with determining their true financial health, questioning if they are charging adequately or managing their resources well. Addressing these interconnected issues is essential for sustainable growth and avoiding the cycle of insolvency that many agencies experience.
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