At Agency Management Institute, we are often called upon to help agency owners plan their next steps when it comes time to sell. This may lead to the owner wanting to hand the reins to a current employee that has proven to be the right person to take over owning and running the agency. There are challenges that the seller has to contend with, but there are just as many challenges, and mistakes, the potential buyer needs to keep in mind.
As an employee presented with the chance to take over ownership of the agency, it can be a daunting undertaking. To try and offer some guidance, I’ve identified the five most common mistakes that I’ve seen made by employees who are buying the agency from the current owner. We’ll look at the importance of pushing for a clear process and plan for the owner’s exit strategy and how to avoid miscalculating the risks. I’ll share some of the emotional challenges to expect, as well as the importance of tough conversations. Finally, I’ll explain why it’s not only helpful but necessary to put together a team that can help guide you through the transition period, and beyond.
Agency ownership is a thrilling undertaking. If the opportunity presents itself, you should absolutely give it serious consideration. Just be smart about the steps you take. AMI is here to welcome you to the adventure.
A big thank you to our podcast’s presenting sponsor, White Label IQ. They’re an amazing resource for agencies who want to outsource their design, dev, or PPC work at wholesale prices. Check out their special offer (10 free hours!) for podcast listeners here.
What You Will Learn in This Episode:
- The need to push for a process and plan when buying an agency
- The error in miscalculating the risks
- The emotional challenges of agency ownership
- The missed opportunity in tough conversations
- The need to put together a support team