How to Manage the Future and Skyrocket Agency Profitability

<p>Is your agency as profitable as it could be? Are you successfully forecasting agency finances? Nate "Agency Dad" Jenson has built his business around helping agency owners drive profitability. Nate is a certified management accountant and internal auditor who focuses on offering the tools and accounting practices necessary for a thriving agency, with his business <a href="https://agencydad.money/" target="_blank" rel="noopener">Agency Dad</a>.</p> <p>On his second visit to the podcast, Nate talks about forecasting and the importance of managing the future, instead of wishing you could change the past. He explains why you, as an agency owner, are very in tune with your business and can make a pretty good forecast of where it will be in three months. He also offers valuable advice on how you can take that first step to start managing the future.</p> <h2>3 Golden Nuggets</h2> <ol> <li><strong>Having a plan is the 1^st step.</strong> One of the questions Nate gets the most from agency owners is “when should I hire a new team member?” You need to <a href= "https://jasonswenk.com/marketing-agency-financials/" target= "_blank" rel="noopener">do your forecasts</a>, he says. What are your sales going to be in the next 3-6 months? There are a number of methods you can use to make that forecast, like linear regression. He recommends the Dilbert method, where you sit down and write down what do you think sales will be in the next months. Most agency owners are pretty in tune with their business and can make a pretty good estimate of what a few months in the future will look like for their business. You’ll never be exactly right. The important thing is to be looking forward.</li> <li><strong>Have a line of credit.</strong> Even with forecasting, you can find one month you don’t have enough money for payroll. Of course, no one wants that, but you have a lot more options if you catch it weeks in advance. You have more time to make some adjustments, reduce expenses, or take a loan. Jason always advises mastermind me