EP 315: Five mistakes employees make when buying into the agency with Drew McLellan
Oct 18, 2021
Discover the top five mistakes employees make when taking over agency ownership. Learn why a clear exit strategy is crucial and how to navigate the emotional challenges of this big transition. The importance of tough conversations and building a supportive team is highlighted to ensure a smoother process. Embracing agency ownership can be thrilling, but smart planning is key to success. Tune in for valuable insights that can set you on the right path.
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volunteer_activism ADVICE
Push for a Clear Buy-In Plan
Don't wait for the agency owner to create a buy-in plan if they are inactive.
Proactively push for a detailed plan covering timeline, purchase price, and financing options.
volunteer_activism ADVICE
Assess Risks Objectively
Understand the real risks of agency ownership objectively rather than letting fear hold you back.
Seek trusted advisors to help evaluate risk fairly and mitigate it using industry knowledge and metrics.
insights INSIGHT
Ownership Requires Emotional Strength
Being great at your current role doesn't guarantee readiness for agency ownership.
Ownership demands emotional strength and decision-making skills beyond day-to-day management.
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Crucial Conversations provides tools and strategies for handling difficult conversations where stakes are high, opinions vary, and emotions run strong. The book focuses on creating a safe environment for candid discussions, using techniques like STATE (Share, Tell, Ask, Talk, Encourage) and CRIB (Commit, Recognize, Invent, Brainstorm) to ensure productive and respectful communication. It underscores the importance of shared understanding, mutual purpose, and active listening in achieving successful outcomes in crucial conversations.
Radical Candor
Be a Kick-ass Boss Without Losing Your Humanity
Kim Scott
Radical Candor by Kim Scott offers a practical approach to management by emphasizing the importance of caring personally and challenging directly. The book argues that effective managers must find a balance between being empathetic and providing clear, honest feedback. Scott draws from her experiences at Google and Apple to provide actionable lessons on building strong relationships, giving feedback, and creating a collaborative work environment. The book introduces the concept of 'radical candor' as the sweet spot between obnoxious aggression and ruinous empathy, and provides tools and strategies for managers to implement this approach in their daily work[1][2][5].
Rethink Innovation
Rethink Innovation
Carla Johnson
At Agency Management Institute, we are often called upon to help agency owners plan their next steps when it comes time to sell. This may lead to the owner wanting to hand the reins to a current employee that has proven to be the right person to take over owning and running the agency. There are challenges that the seller has to contend with, but there are just as many challenges, and mistakes, the potential buyer needs to keep in mind. As an employee presented with the chance to take over ownership of the agency, it can be a daunting undertaking. To try and offer some guidance, I’ve identified the five most common mistakes that I’ve seen made by employees who are buying the agency from the current owner. We’ll look at the importance of pushing for a clear process and plan for the owner’s exit strategy and how to avoid miscalculating the risks. I’ll share some of the emotional challenges to expect, as well as the importance of tough conversations. Finally, I’ll explain why it’s not only helpful but necessary to put together a team that can help guide you through the transition period, and beyond.
Agency ownership is a thrilling undertaking. If the opportunity presents itself, you should absolutely give it serious consideration. Just be smart about the steps you take. AMI is here to welcome you to the adventure.
A big thank you to our podcast’s presenting sponsor, White Label IQ. They’re an amazing resource for agencies who want to outsource their design, dev, or PPC work at wholesale prices. Check out their special offer (10 free hours!) for podcast listeners here.
What You Will Learn in This Episode:
The need to push for a process and plan when buying an agency
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