Should you merge with a bigger agency because you lack the confidence to go the long road? Honestly, no. Agency life is hard, but don't throw in the towel yet. Frustration happens daily and when an offer comes along it might be tempting to let someone else take over.
I think merging with another agency should really just be a last resort. Here's why...
I've worked with agencies for the last five years and before that, I ran my agency for twelve years. And what I usually see in these cases is that it works out in the short term but eventually, it blows up in their face.
Why are you considering merging with another agency? Is it a lack of skill, or a lack of knowledge? Are you unsure about how you can scale your agency? A lot of people look at mergers as a way to grow. But, it's not really the best way to grow and it ends up causing more harm than good.
Here's what you need to do first before I roll your agency up with another: surround yourself with like-minded people. Talk to other agency owners, join a mastermind, hire an adviser who's been there and done it. What you need is the wisdom and experience of others, because running an agency can be very isolating - but it doesn't have to be!
The next thing you should do is evaluate what your agency is actually worth. Maybe instead of a merger, you will want to cash in your chips and sell.
I just think if you merge with another agency you're giving up too much control for nothing. But, after you've researched other options then, as a last resort, consider a merger. First make sure both agencies believe in the same thing, have similar core values, culture and teams line up nicely. Then create a good Operating Agreement and define roles, buyout details, etc.
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JASON SWENK IS AN AGENCY ADVISOR THAT GUIDES MARKETING AGENCIES THROUGH A PROVEN FRAMEWORK FOR GROWING THEIR AGENCY FASTER & EASIER.
Fresh out of college Jason was off to work for Arthur Anderson, one of the big 5 consulting firms. He quickly realized that he could never work for anyone other than himself. He decided to change direction, launch a digital agency that quickly grew to a multi-million dollar operation working with brands such as AT&T, Hitachi and Lotus Cars. After 12 years of steady growth, the agency caught the attention of bigger agencies and Jason sold it in 2012.
Now, Jason leads http://JasonSwenk.com, a unique media company & consultancy helping marketing agencies grow & scale their agencies faster by applying the framework that he used to grow, scale and eventually sell his agency. Jason has helped over 10,000 agencies in 23 countries meet or exceed their business goals.
Jason currently hosts two shows that are available for download…
The Smart Agency Master Class Podcast, dedicated to providing tactics and strategies to agency owners and decision makers that cut through the BS, focus on exactly what works and what doesn’t; and
SwenkToday a daily VLOG that documents the entrepreneur journey of building another multimillion dollar business, where he share the latest strategies, and answers the most burning questions entrepreneurs have.
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