Instead of reading, how about listening to the post? Try it in the player below: Marcus Lemonis, CEO of a multibillion-dollar company, goes in search of small businesses in crisis. The entrepreneur invests his money and applies his experience to save these companies and thus obtain more profit. After 4 years and […]
Marcus Lemonis, managing director of a multibillion-dollar company, goes in search of small businesses in crisis. The entrepreneur invests his money and applies his experience to save these companies and thus obtain more profit.
After 4 years and 67 episodes recording the series O Sócio (The Profit) , Marcus Lemonis teaches the 8 rules to make your business more profitable and competitive. And that’s what we’re going to talk about in today’s post.
The beginning of the year is a great time to put into practice new business management techniques and put your agency on top!
1st Rule: Know how to treat people
Don’t be that professional people hate. The number one rule of the master of business is knowing how to treat people.
Aggression or lack of education will not make you a better professional. This kind of attitude doesn’t make anyone want to arrive early or stay working on your business for a long time.
You need people to want to be connected to your business and not the other way around: running away from it.
This rule applies to partners, employees, suppliers, freelancers and the entire ecosystem involved in your agency.
2nd Rule: Make your employees your priority
Marcus Lemonis has been criticized for this philosophy. Many companies argue that the customer is the priority (I don’t disagree), but what about their employees?
In Marcos’ theory, if you treat the employee well, he will end up interacting better with customers.
Employees like to feel protected by management. In a TEDx video, Simons talks about the ideal leadership model to leverage results. Click here to watch.
Marcus’ tip is that you encourage your employees, encourage them, and get them to connect with your agency.
People are important to your business, so make sure they are being well taken care of and protected.
To be more assertive at this point, know how to hire the right people for your agency’s weaknesses.
3rd Rule: Know what you don’t know
Know what you’re good at and what you’re not. Look for people who are good at activities that are not your forte and put them to work on it!
Pretending you’re good at everything can be a terrible mistake for your agency. It’s important to admit what your weaknesses are and get the right people to fill those needs. As for your work, focus on what you excel at.
Many agency owners want to dominate and control all areas of the agency. NO! Start delegating today, your business will thrive!
4th Rule: Be authentic
The authenticity of the brand is essential, as it communicates to your customer in all spheres of the company who you really are.
“People get confused between telling their story and making it authentic. And telling a story is convincing people that it’s authentic”
Customer cases and testimonials are fundamental to support your storytelling .
To tell a good story, start by understanding what clients really want and determine the positioning of your agency and the segment you serve.
5th Rule: Be transparent
Vulnerability and transparency are two different things. Transparency is basically not lying to other parties involved.
To better understand this issue, one must first understand the benefit of transparency. In summary, the purpose of this practice is to gain the trust of the “stakeholders” (stakeholders in the business, such as investors, customers, consumers, suppliers, employees, etc.), through the clear disclosure of everything that is relevant. Informing everything, in this case, means giving both good and bad news.
A clear example of a lack of transparency is when the agency is not achieving the proposed results at the beginning of the project and omits this information for fear of losing the client. Another example is getting lost in project delivery deadlines due to management failures. Whatever the situation, know that lying or withholding is not the way to resolve the issue.
6th Rule: It’s all about following the process
For a company to be successful in the long term, it needs to have well-defined and clear processes .
After the strategic planning of the business, it is necessary to define processes to follow the proposed plan. And when Marcus talks about following suit, it’s not for one, two or three days, but for years.
Many agencies even have defined processes, however, they do not follow them to the letter or do not follow closely if the process is being followed.
If you have poor monitoring of your methods, your business is doomed to bankruptcy.
“Believe and follow the process, you will be successful in business”
Another issue that can harm the methods is the absence of partners in the operation of the agencies. If there is no leadership present in the day-to-day of the operation, you will hardly be able to guarantee that the process is being executed and you will run the risk of having a team that is not aligned with your company’s strategies.
7th Rule: Do the math!
Financial management is the heart of your company; if it doesn’t do well, your business doesn’t stop.
In nearly two years working in the area of partner development, I realized that the topic of finance is, by far, the most worrying issue for most Brazilian digital agencies.
Many still don’t know at the tip of their tongue (which is a mistake) the main financial metrics of their business.
I’ll do a test with you:
- How much does each employee’s man-hour cost?
- What is your fixed cost percentage?
- What is your profit margin per customer?
- How long does your client need to stay at the agency to start earning (LTV)?
- What is your tax cost per project?
- What is your agency’s CAC (Customer Acquisition Cost)?
If you were able to answer 5 or 6 of these questions without consulting a spreadsheet, you have passed the test. Otherwise, beware! These are extremely important numbers for your agency’s health.
In this article we help you price Digital Marketing services and take a more clinical look at these numbers.
Knowing your finances is your agency’s medical exam. You need it to make decisions; whether to hire or fire someone, whether it is time to carry out an expansion plan, etc.
Although this subject is so fundamental, data indicate that out of 10 entrepreneurs, 9 do not know how their business numbers are . Therefore, having 100% control of your agency’s operating and accounting costs will surely make you more competitive in the market.
8th Rule: Stop Crying and Start Profiting
How long are we going to blame that we are not selling and growing on factors other than ourselves?
Assume the mistakes of your actions. It’s always your fault, if you want people to respect you, take the blame.
I see many agency owners complaining about the market, the economy, that the segment is bad, that customers are boring or that prospects don’t have the funds to hire an Inbound Marketing service.
While some complain, others grow rapidly. The difference? The Mindset of the owner who runs the agency. These, in turn, do not complain, have positive thoughts and go after them to get what they want.
My tip for 2019, if you want to sell more: pick up the phone and call! There are many customers in need of your services.
So, what did you think of the tips above?
Face your agency like a real big company, plan and create structured processes. We are living in an extremely competitive market and with more and more professionals, amateurs will not survive.
Finally, I most recommend watching the series. I learned a lot about business management and diversity, each episode is about a different company/segment. #Stay a Tip