Welcome back to the final article in this four-part series, detailing the biggest mistakes I made as an agency owner – and how you can avoid doing the same.
This week, we’re going to discuss the final error I made as an agency owner, one that potentially cost me hundreds of thousands of pounds: not being in the right frame of mind when I was selling the business.
Even if you’re not currently thinking about selling your agency (or in the process of doing so), you’ll still find valuable lessons to be learned here.
After that, I am going to recap the four biggest mistakes I made as an agency owner, giving you an easy reference for this material in the future.
But I’m getting ahead of myself: first things first…
Setting The Scene
I remember it like it was yesterday. December 2002. As another year drew to a close, I was sitting in my office, reflecting on all that had happened over the preceding 12 months – and even further than that, right back to the beginning.
Since starting my agency in 1991, I had grown the business from a two-man show to an agency with over 25 staff, seven-figure revenues, and a healthy client book to boot. The dotcom crash had passed our UK-based business by, and we were well poised to succeed and grow moving forward.
The future was bright, but there was one problem: I didn’t really love the work anymore.
Sure, I still showed up every day, met with clients, worked on putting deals together, mentored my staff, made decisions, and “took care of business”…
But the passion that had driven me to set up my own agency in the first place had dwindled. I seemed to spend all day dealing with other people’s problems and that wasn’t why I set up my own business in the first place! So initial talks of moving to a new office space (one that could accommodate our expansion plans) were nothing but a headache. Losing a key client (responsible for ~30% of our revenue) didn’t help matters.
The fire was gone. And I didn’t know how I was going to get it back.
As I sat there in my office at the year’s end, I knew that something had to change. I wasn’t motivated to keep moving in the same direction I’d been heading in. My work-life balance had taken a hit, and I desperately needed a break.
It’s from this position that I decided to sell my agency. This wasn’t an impulsive move by any means (it’s not as if a buyer walked in off the street and made a great offer the next morning), but it all started here from this place of tiredness.
Looking back now, I know that I wasn’t in the right frame of mind to sell my business. I was looking for a way out, and that made me vulnerable. And potential buyers could sense that.
So in this first part of the story, the lesson is clear: when you’re selling your agency, don’t negotiate from a position of tiredness. You’ll end up getting a worse deal than you could. If you need to, consider bringing in some outside help – hire a specialist to assist with negotiations and broker a great deal. They often pay for themselves, especially if they’re skilled.
And the second part of the story? That’s the tale of what happened to me once the sale finally went through.
Almost overnight, I was free as a bird…
With no idea where I wanted to fly.
Amidst the hustle and bustle of selling the agency, I had failed to create a concrete plan of what I’d do once it was sold. I was so focused on selling the business (the process actually took about 9-months) that I spent no time answering the question ‘what next?’. I knew I didn’t want to retire (a. I was only 39 and b. I didn’t sell for nearly enough to enable me to retire)
It’s easy to feel lost when you lose something that’s been driving you for a long time. When I no longer had to show up at the office every day to put out fires and make big decisions, I was directionless for a time. But thankfully, this confusion didn’t last too long. To get clarity, I did one simple thing:
I sat down and remembered all the things I had wanted to do before running the agency had dominated my life, taken my time & energy, and drained the fight from me.
Some of the things were easy. I wanted to travel more. Spend more time with family. Contribute to charity more often. All the things I could do – but not things that would give me all the direction I was looking for.
I racked my brains further. As I reflected on those times when I had felt most engaged with my work… I realised that I loved helping people overcome obstacles and solve problems. Whether it was delivering great work to clients (the kind that they were delighted with) or mentoring a promising employee through a particular situation, I loved coaching (I just didn’t know that was what it was called at that time!)
So that’s what I decided to do. I would become a full-time business coach and work with other agency owners, helping them to avoid the traps I had fallen into in my business. I knew that – if nothing else – my fresh pair of eyes could give a much-needed perspective on a situation. My vision was clearer than it had been in a long time now that I knew what I wanted again.
It seems like a quick process when it’s written down like that, but in reality, it took me several months – close to a year, even – before I decided to get into coaching. Looking back, I realise that I could have avoided getting caught in limbo like this if I had just put a proper plan in place before selling the agency.
Taking the time to sit down with a coach/mentor or trusted advisor, and plan out my next moves – would have been a smart decision – but sadly, it wasn’t one I even considered or was aware was even an option!
So that’s the second lesson you can take from my story. If you’re thinking about succession planning then make sure you know what your next steps are going to be. Think a little further ahead than lying on a beach somewhere and ask yourself:
- What do I want to do with the rest of my career?
- What will help me feel fulfilled in life?
- What value do I want to create in the world?
If you’re struggling to answer these questions by yourself, don’t hesitate to reach out to someone else for guidance. Personally, I know it would have made my transition much easier, and I’ve helped many agency owners answer similar questions in the past. The quality of your answers to these powerful questions will determine your future: don’t take them lightly.
When I began writing these articles, I envisioned they would be much different to how they are now. So I suppose the first lesson we can reflect on is that our visions change over time, based on how the real world interacts with them.
As for the worst mistakes I made as an agency owner? They went like this:
When I was running the business, I didn’t have a clear vision of where I wanted it to go. While I had a general sense of its direction, I had no idea of the milestones I’d need to hit each week, month, quarter and year to make that dream a reality.
If this sounds like you, then get clear! Figure out what kind of business you want to build, and start building it. Chunk that end goal down into small milestones you can hit along the way, so you’ll know when you’re on track (and when you’re off).
The second mistake I made was being in constant fire-fighting mode instead of taking a strategic approach to the business. I loved being the key man in my agency, solving problems left and right… but this held us back, as I frequently didn’t have time to make the big moves that would have the biggest impact on the agency.
If this sounds like you, then you need to focus on building a great team. Once you’ve found talented professionals that do great work, you’ll feel comfortable handing off responsibility to them. Secondly, you need to get clear on your vision (sound familiar?) – once you’re accountable to a bigger goal, you’ll find you don’t have time to waste on the small stuff. Bigger problems will demand your attention.
The third mistake I made as an agency owner was trying to go it alone, instead of just learning from the experiences of others. After quickly scaling the agency to around 10 employees, I hit a sticking point. The decisions I was faced with got bigger and more complex, and I (being as stubborn as I was) ploughed ahead. Little did I know that this “trial and error” approach to difficult decisions was not the right move.
Instead, I should have looked outside for guidance: a coach, a mentor, people in my network, seminars or even books. These were all viable sources of knowledge… but I didn’t use them as much as I should have. Don’t do what I did – learn from the experiences of others where you can. Personal experience is valuable in decision-making, but you don’t have to go it alone.
The fourth mistake I made as an agency owner was selling my business from a place of exhaustion. Completely burnt out, I was eager to get the deal done. And once I was out, I lacked a clear plan of action. What did I want to do? Who did I want to be?
I could have avoided both of these situations if I had been more strategic. I could have hired a skilled negotiator to assist with brokering a better deal for my agency. I could have taken the time to work with a coach to clarify my vision for life after the sale. But I didn’t do either of these things. While everything still worked out fine, I know things could have worked out better. So if you’re selling your agency, learn from my mistakes – call on the strength and experience of others if you need to. You won’t regret it.
The purpose of this article series is to help you avoid the mistakes I made as an agency owner. I can’t go back in time and change what happened (and even if I could, would I want to?), but there’s still time for you. The lessons of the past shape our future. They shape the actions we take, the moves we make… and the words I write to you today. It’s up to you whether these lessons help or hinder you.
I hope you’ve gotten something from these articles. And remember: I’m always happy to help other agency owners through whatever they’re dealing with. Odds are I’ve encountered your situation before in my coaching practice. So if you’re currently struggling with something in your business, don’t hesitate to reach out. You can email me anytime at [email protected].