🤨 The 4 biggest constraints holding your agency back

Last week, I had just 20 minutes to talk to an agency owner doing $20M/year…

To take a high-level look at his business, assess their constraints, and provide potential solutions.

Here’s how I found out exactly what was wrong in their business, created a strategy to grow it, and earned a follow-up conversation…

A Painful Discovery

Within a few minutes, I learned that this business:

• Currently earns between $1.9M to $2.5M every month

• That they’re netting negative-$1M every month

• Due to fluctuating business

I like to dissect businesses from their numbers first, then dive into potential constraints.

The 4 core business business constraints are:

1. Leads: The number of leads you generate per month

2. Sales: The percent of leads you close and at what price.

3. Capacity: How many clients you can onboard and fulfill per month.

4. Lifetime Value: How much $$ clients pay you over the course of their lifetime.

Once I knew the numbers of this 8-figure business, it was time to figure out what was holding them back.

The Lightbulb Moment

***

Jordan: How many calls do you book per month?

Prospect: We book 12-15 qualified calls/mo.

Jordan: How many deals do you close per month and at what price point?

Prospect: 1-2 deals per month with an AOV (Average order value) of $250k

Jordan: Is that $250k/mo or for a specific timeframe?

Prospect: That is for 3 months, so $50k/mo.

Jordan: What’s your capacity to scale this?

Prospect: Capacity isn’t an issue, we can scale big.

Jordan: What is your LTV or average length of time with clients?

Prospect: The average client probably stays close to 6 months, but the issue we face is that contracts are month to month.

***

BINGO – I’d found their biggest issue:

They have no cashflow predictability.

After ramping up to support clients…

They’d lose these massive accounts out of nowhere, and get stuck with a ton of overhead.

I latched on to this issue, to see if they also felt this was a problem…

And if they’d be willing to introduce longer contracts.

Their answer was simple: “Yes… We just don’t know how to do this.”

I asked if there were any other issues they felt could be limiting growth, and the founder shared that their CTO is also interim head of sales.

They tried hiring someone to run this department, but it was a massive failure.

At this point, their two major constraints seemed clear:

1. Cashflow predictability, driven by month to month contracts

2. Inability to 5x revenue (which would temporarily solve their cashflow issues), by not having someone to drive this department effectively.

At this point, my 20 minutes were up, I’d impressed the founder, and we set up a follow-up meeting. 🤝

How This Can Help You

1. Consider running this analysis on your business monthly.

Business is like a game of Whac-A-Mole, where constraints always change.

But without looking at it from a high-level view and running the numbers, you can end up focusing on entirely the wrong thing.

2. Consider introducing this form of consultative selling into your process.

Selling via consulting builds trust and is the most effective way to create a solution and a custom proposal.

3. Hire an expert to look at your P&L.

One of my other businesses, 8 Figure Finance, can help with this!

Ready to Uncover Your Agency's Hidden Growth Potential?

If you're like many agency owners, you might be:

• Struggling with cashflow predictability

• Hitting a revenue ceiling you can't seem to break through

• Unsure which areas of your business to focus on for maximum growth

These challenges aren't unique…

In fact, they're common even among $20M/year agencies like the one I recently spoke with.

At 8 Figure Agency, we specialize in quickly identifying and solving these exact issues for agencies of all sizes, by:

1. Analyzing your business constraints in-depth

2. Identifying your biggest growth opportunities

3. Developing a customized strategy to skyrocket your revenue

Whether you're struggling with implementing longer-term contracts for better cashflow…

Building a sales team that can 5x your revenue…

Or any other growth challenges…

We have the expertise and experience to help YOU break through.

If you’re ready to uncover your agency's true growth potential…

👉 Schedule a short growth strategy call with our team here…

Where we'll help identify your biggest constraints, and start mapping out a plan for explosive growth.