Eat more plants, spend more time outdoors, and grow the business 20%. Admirable goals, but more than likely destined to be forgotten by Valentines’ Day. Growth goals feel good. It’s not uncommon for business owners to sit down in...
Eat more plants, spend more time outdoors, and grow the business 20%.
Admirable goals, but more than likely destined to be forgotten by Valentines’ Day.
Growth goals feel good. It’s not uncommon for business owners to sit down in December, and set a goal based on last year:
“We grew 10% last year, let’s grow another 10% or – why not? – 20%.”
In the current market, however, those goals might look a little different, for example, “We’re down 30% from last year, so next year we need to at least get back to 2022 levels.”
Whether your goal is reaching for the stars or looking to preserve the status quo, in order for it to be attainable, it has to be meaningful.
For an agency, a meaningful goal needs to be based on an understanding of pipeline (committed work, expected work, and work that needs to be generated) and capacity (how much your team can produce on a weekly basis).
It boils down to: Do you have enough work and enough production staff to reach your goals?
Within that equation, there are several other variables to weigh: Are you charging enough for your work? Are you compensating your staff appropriately (salary and benefits)?
However, based on what we’re seeing in the digital agency space, by far the biggest question on the table for 2024, is about pipeline. With smaller budgets and more decision-makers weighing in on every contract, agencies need to set their goals with a longer sales cycle in mind.
Here’s what a virtual CFO looks at to set realistic financial goals with their clients.
