Let’s be real—most agency owners don’t spend their mornings sipping coffee and poring over financial reports. But here’s the truth: if you want to build an agency that thrives, scales, and eventually sells for a life-changing valuation, you need to become best friends with your numbers. Not the “oh, I kinda know my revenue” type of friend. I’m talking about the “you know your gross margin, net profit, and EBITDA better than your kid’s birthday” kind of friend.
And here’s where most people mess up. They look at their financial data like it’s the end of the road. “Oh, cool, we made $150k this quarter.” But that’s not the point of data. The numbers aren’t just there to be admired; they’re there to tell you what’s working, what’s broken, and what needs to happen next.
So let’s talk about turning that data into something actionable—steps that actually move your agency forward and help you hit those big goals.
Start with the Pro Forma
The pro forma is your agency’s crystal ball. It’s the financial roadmap that says, “If we hit these numbers, we’re golden.” It’s not just about wishful thinking; it’s about defining what success looks like and then breaking it down into steps to get there.
Let’s say your pro forma tells you that you need $500,000 in revenue this quarter, with a gross margin of 70% and a net profit of 30%. Great. Now, let’s turn those targets into a plan.
Step 1: Reverse-Engineer Your Revenue Goals
Ask yourself: “What needs to happen in the business to hit $500,000 this quarter?”
- How many clients do we need?
- What’s the average revenue per client?
- How many sales appointments do we need to generate those clients?
Let’s say you need 10 new clients at an average of $5,000 per month to hit your revenue goal. That means you need your sales team to book 30 qualified sales appointments this quarter, assuming a 33% close rate.
Action Item Example:
Assign your marketing team a target of generating 100 qualified leads this quarter. Break it down further—how many leads need to come from paid ads, referrals, or email campaigns? Each team member should have a clear number tied to the bigger picture.
Step 2: Tie Financial Goals to Operational Metrics
Your financial data isn’t just about revenue—it’s about how efficiently you’re running the business. If your gross margin target is 70%, you need to dig into what’s eating up your COGS.
Ask:
- Are we overstaffed on certain projects?
- Can we renegotiate software contracts or vendor rates?
- Are there inefficiencies in how work is being delivered?
Action Item Example:
Let’s say your COGS is currently sitting at 40% instead of 30%. That’s a red flag. Identify where the bloat is. Maybe you’ve got freelancers billing too many hours on a client that’s underpaying. Set a goal to renegotiate that client’s contract or streamline workflows to reduce hours spent.
Step 3: Build Quarterly Goals for Each Department
Your pro forma gives you the big picture, but to hit those numbers, every department in your agency needs a clear target.
Example:
- Sales Team: 30 sales appointments booked this quarter.
- Marketing Team: 100 qualified leads generated.
- Operations Team: Reduce COGS from 40% to 35%.
- Customer Success Team: Improve client retention to 95%.
Each department needs action items tied to these goals. For example, if client retention is the goal, your Customer Success Team might focus on monthly check-ins, upsell opportunities, and proactively addressing potential churn risks.
Step 4: Create Actionable Steps
This is where the magic happens. Once you’ve set your goals, break them down into bite-sized actions that your team can execute.
Example for Marketing Team:
- Launch two new lead magnets by the end of Month 1.
- Run a $5,000 paid ad campaign in Month 2 to drive traffic.
- Follow up with 50 warm leads from previous quarters.
When everyone has a clear plan, accountability becomes easier. And when accountability is easier, the numbers tend to take care of themselves.
Step 5: Measure Progress Weekly
Here’s where most agency owners drop the ball—they set goals and then disappear until the end of the quarter, hoping everything magically works out. That’s not leadership; that’s wishful thinking.
Instead, review progress every single week.
- Is your sales team on track to hit 30 appointments?
- Are your COGS trending toward 35%?
- Are leads coming in at the pace you need?
If something’s off, adjust. Don’t wait until the end of the quarter to realize you missed the mark.
Step 6: Celebrate the Wins, Fix the Misses
When your team hits a goal, celebrate it. Make a big deal about those wins—it’s what keeps people motivated. But when you miss a target, don’t sugarcoat it. Own it, analyze what went wrong, and fix it.
Example: If your sales team only books 20 appointments instead of 30, dig into why. Was it a lack of leads? Poor follow-up? Fix the problem, and make sure it doesn’t happen again.
How This Ties Back to Selling Your Agency
Here’s why this process is so important: Buyers don’t just want a profitable agency—they want a predictable one. When you can show potential buyers that your agency runs on clear goals, actionable plans, and disciplined execution, you’re not just selling a business. You’re selling peace of mind.
Your pro forma isn’t just a tool for internal planning—it’s a selling point. It shows buyers that your agency knows exactly how to hit its numbers and that the systems are already in place to do it.
Final Thoughts
Turning financial data into actionable insights isn’t rocket science, but it does require discipline and focus. The more you lean into this process, the easier it becomes to hit your goals—and the more valuable your agency becomes.
So here’s my challenge: This week, pull up your pro forma and ask, “What needs to happen to hit these numbers?” Then break it down into goals and actions for each department. Follow through, track progress, and don’t settle for “good enough.”
Because in this game, hitting your numbers isn’t just about success today—it’s about building a business that’s worth something tomorrow.