It can be really tough and also really easy, depending on the size of your company.
The problem with running a digital agency is that it is labor-intensive. As you take on more projects, you may need to increase your headcount dramatically.
When an agency is small, you can probably handle most projects effectively, while making a decent income.
In fact, you might even be making pretty substantial income if you charge clients on a retainer basis.
However as you try to scale the company (and hire more people + rely on management to run the company), that's when things get more complicated.
One of my biggest struggles was when a major client dropped us and I realized I was stuck with a huge headcount. It nearly broke the company and it caused many people to be demoralized.
To cover costs, I had to make cuts across the board to ensure the company could still run. It was terrible, but I learnt that if you rely too much on one source of income (or a large client), it could end up really badly.
