What are your greatest struggles of running a digital agency? How did you overcome them?

George Pantoulas57mo ago1 reply

Would love some insights on how some of you have built your digital agencies and what did you do differently?

OperationsFinanceSales

1 reply

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.

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