As your marketing agency grows, the demands on your leadership team evolve. In the early stages, you may have more time than money, and you might be willing to take chances on less experienced leaders because they come at a lower cost. However, as your agency scales and the stakes increase, you’ll find that you need leaders who can make big decisions, solve complex problems, and deliver results—quickly.
Here’s how to build a leadership team that will not only keep your agency running smoothly but also drive profitability and growth.
1. Early Stages: Prioritizing Time Over Experience
When you’re just starting out, your resources are limited. At this stage, you may find yourself bringing on leaders who lack deep experience but have the hunger to learn and grow. Since you’re short on funds but have time, these early hires can be trained to meet your expectations. You’ll spend more time mentoring them, ensuring they understand your vision and are equipped to handle the day-to-day operations.
However, this comes with limitations. These early-stage leaders may not have the foresight or experience to tackle bigger challenges as they arise. And while that may work in the beginning, it won’t suffice as your agency starts to scale.
2. Scaling Up: The Need for Speed and Experience
As your agency grows and the stakes rise, you’ll find that time becomes your most valuable resource. At this point, you don’t have the luxury of spending months training leaders from the ground up. You need individuals who are equipped to jump in, make quick decisions, and drive profitability.
This is where hiring leaders with prior experience solving similar problems becomes essential. Leaders who have been through the trenches in comparable roles will know how to navigate the hurdles your agency is facing, whether that’s managing large teams, dealing with operational inefficiencies, or improving profit margins. These leaders bring with them a wealth of knowledge that can accelerate your agency’s growth. Yes, they will come at a higher cost, but the speed of execution they offer can make a significant impact on your bottom line.
3. Hire for Results, Not Just Cost
At the scaling stage, it’s crucial to hire for the results your agency needs, not just for cost. While more experienced leaders will command higher salaries, their ability to execute at a higher level, solve problems more efficiently, and lead teams effectively can deliver much greater returns than their less experienced counterparts.
When hiring leaders at this stage, think about the specific challenges your agency faces. Whether it’s improving client retention, streamlining processes, or managing cash flow, look for candidates who have demonstrated success in these areas in the past. Their previous experience is an investment in your agency’s profitability.
4. Building a Leadership Team That Executes
Once you’ve identified the right leaders, it’s critical to ensure that they know what they need to execute. Every leader should be clear on the goals and KPIs they are responsible for. For example, if your Operations Manager is tasked with improving efficiency, ensure they have a detailed understanding of what success looks like—whether it’s reducing client churn, cutting costs, or optimizing workflows.
Clear expectations paired with regular performance reviews will help keep your leadership team aligned with your agency’s financial goals. Leaders should be held accountable, but they should also be empowered to make decisions that drive profitability. Encourage them to take ownership of their departments and provide the support they need to make big, impactful decisions.
5. Trust and Empower Your Leaders
Once you’ve hired capable leaders, trust them to do their jobs. Micromanaging will only slow them down and stifle their ability to make quick, effective decisions. As your agency grows, you can’t be involved in every decision—and that’s okay. If you’ve built a strong leadership team, you can trust them to handle the day-to-day operations while you focus on the bigger picture.
Empower your leaders to make their own decisions and trust that their experience will guide them. This not only builds a culture of accountability but also helps to drive profitability because you aren’t wasting time second-guessing every choice they make.
6. Be Prepared to Spend Accordingly
When building your leadership team, be prepared to spend accordingly. You’re not just paying for their experience—you’re paying for speed, execution, and results. A high-caliber leader may command a higher salary, but the value they bring to the agency is far greater than their cost. They’ll make decisions faster, solve problems more effectively, and ultimately drive profitability in ways that less experienced leaders cannot.
Conclusion
Transforming your agency’s financials requires leadership that understands the numbers, communicates those numbers clearly to the team, and holds everyone accountable for their part in achieving financial goals. As the CEO, it’s your responsibility to ensure that your agency is profitable and growing, and the best way to do this is by focusing on the financial health of the business. Know your numbers, communicate them to your team, and hold them accountable—this is the leadership blueprint that will take your agency to the next level.