Don’t be hit by the Scope “ROPE-A-DOPE”
I was talking with one of our clients the other day and she was expressing frustration about how a new project is already set to fail because the proposal was under-estimated when it was delivered to the prospect. This is such a common practice in Agencies – basically do anything you can to get the […]
Tips for Financial End of Year Wrap Up
Happy New Year from Creative Performance! Now that 2010 is behind us, there are several things agencies need to remember to do to close out last year. We’ve put together a list of a few things that tend to get forgotten in the excitement of the new year. 1099s Due to vendors by January 31 […]
What is a Blended Role?
A shout out to all agency employees playing a dual or even multi-titled role! Maybe you are an Account/Project Manager, or an Account Manager actually doing content development for clients, or a project manager doing content development, or maybe you even strategically guide the client, while also being their day to day contact, while also […]
What is Marketing Agency Slippage?
Agency slippage is the amount in dollars of billable work each year that you are not billing your customers. Imagine if you could just bill every billable hour your company logged and increase your net profit 10 fold? Great idea huh? Definitely easier said than done, however tackling your slippage is absolutely worth the effort. […]
Direct/Billable Labor on Income Statement…
Where do you put your direct labor on your income statement? I have been asked this question multiple times and while it doesn’t matter effectively for tax purposes, it does matter if you want to benchmark your agency against industry standards. The top industry consultants have set the standard that all labor and labor costs, […]
Need More Agency Profit?
Have you realized your operating profit, or net income just isn’t where it needs to be? According to David Baker, you should be shooting for a target of 15 to 20% of your agency gross income or gross profit. This means that your net income should be 20% of all of your fee income (income […]
Agency Client Concentration
Had a great day at David Baker’s Financial Seminar in San Francisco today. He talked heavily about the dangers of having a client concentration of over 25%, ie: one client representing more than 25% of your agency’s sales. The inherent danger being that it only takes one turnover in procurement or at the VP level […]
Welcome to CPI’s Blog!
The goal of this blog is to discuss all the different ways to help make your Agency become more efficient and profitable, without taking away what makes you successful… your creativity. I’ll be posting about real world experiences, observations and discussing relevant industry topics related to Agency finance/operations and the challenges/benefits of deploying the Workamajig […]