The Different Types of Financial Budgets for Agencies
Agency owners are typically known for many positive traits: entrepreneurial drive, subject matter expertise, and care for team culture. One thing, however, Dave has rarely come across is ‘financial guru’.
When Dave Bunce became the VP of Finance (and later COO) at one of Canada’s largest independent agencies, he saw firsthand the importance of stringent financial planning and monitoring to ensure the growth of the agency was sustainable. Having had the opportunity to speak to 100s of agencies in his current role as President of hawke.ai digital marketing insights software; the biggest thing keeping agency leaders awake is how to manage finances and growth.
We had the privilege of hosting Dave at our Ecommerce Agency Book Launch Event this year and delved into some key concepts for driving financial stability and growth in the agency scene.
Highlights, Practical Concteps and Takeaways from Dave’s session:
BAM (Bare A$$ Minimum) Profit
Planned Profit
Target Profit
Budget Planning Steps and Cadence
On-going Assessments and Measuring Against ‘Plan’ and ‘Goal’.
In sum, Dave is an avid advocate for setting these different profit thresholds -no matter how convoluted they may feel at the beginning. But from his years of experience, he also emphasises the importance of allowing everyone to have an opportunity to give input on the direction of the agency’s finances. Most importantly, in proactively addressing difficult conversations as results unfold and give clear barometers for how quickly decisions need to be made and the depth of them.
