Episode description
Summary
Jason Swenk, founder of Agency Mastery, shares his journey from accidentally starting an agency to successfully exiting with an eight-figure deal. He emphasizes the importance of knowing your numbers and focusing on profitability rather than just revenue. Swenk also discusses the key metrics to consider when valuing an agency, such as recurring revenue, predictability, stickiness, and audited financials. He shares his strategy for acquiring agencies, which involves allowing them to operate independently while providing resources and support. Swenk also highlights the significance of having the right team and eliminating ego to make better decisions. In this conversation, Jason Swenk and Tony Wilson discuss the process of selling an agency and provide valuable insights and advice for agency owners who are considering an exit. They cover topics such as the ideal time to start planning for an exit, common pitfalls in negotiations, uncovering the motivations of potential buyers, and planning for life after a sale. Jason also shares information about his mastermind group, Agency Mastery, and how it helps agency owners grow and succeed.
Learn more about Jason's community at https://www.agencymastery360.com/
Keywords
agency, profitability, revenue, exit, valuation, metrics, recurring revenue, audited financials, acquisition, team, selling an agency, exit planning, negotiations, motivations of buyers, life after sale, mastermind group, Agency Mastery
Takeaways
- Focus on profitability rather than just revenue when valuing an agency.
- Consider metrics such as recurring revenue, predictability, stickiness, and audited financials when determining agency worth.
- Allow acquired agencies to operate independently while providing resources and support.
- Build the right team and eliminate ego to make better decisions.
- Regularly track and analyze your agency's financials to make informed decisions and adjustments. Start planning for an exit at least a year in advance to ensure you have the opportunity to sell and maximize your freedom, profit, and time.
- Avoid common pitfalls in negotiations by treating your business as a valuable asset and making decisions based on advice to a friend rather than emotional attachment.
- Uncover the true motivations of potential buyers by asking about past acquisitions and understanding their goals and strategies.
- Consider the importance of cash versus phantom equity in a sale and be prepared for the possibility of the acquiring company backing out.
- Plan for life after a sale by thinking about what you want to create and achieve, focusing on health, family, and new business opportunities.
- Join a mastermind group like Agency Mastery to gain valuable insights, build relationships, and receive support from like-minded agency owners.