This week, we recount the insights gained from an AC Community event hosted by Peter Czapp, Co-founder of The Wow Company, an accountancy firm that works with agencies to help them grow more profitably and sustainably.
At the interactive event, Peter took us through how other agencies manage their cash to help them achieve their objectives. Peter drew on 17 years of working with agencies, sharing some really interesting case studies from clients of The Wow Company.
Cashflow is a huge part of any agency and has been a major concern over the past 2 years. So how can we increase the cashflow to our business? How do we ensure a healthy bank balance? And then – what do we do with it?
Peter Czapp, Co-Founder of The WOW Company and the AC joined us to help us work it all out.
“I’ve always had a fascination with my work at WOW because I get to see the accounts of all these agencies.
What is the difference between those that are achieving great growth and doing it profitably, sustainably and those that are just stuck?” he asks.
It’s something which Peter has been trying to find the answers to via BenchPress, the largest survey of independent agency owners of businesses less that £1m and those more than £1M, and it’s thrown up some fascinating answers:
Of those surveyed, only 37% of agency owners are not over reliant on their biggest client, meaning that they could be just one phone call away from potential crisis.
Peter recalls “One of our clients went from £80,000 down to £10,000 overnight via a series of phone calls. And I spoke to them that day. Imagine how he felt?”
“Have a plan for what to do when you get that phone call, because nothing will last forever: It will come to an end. And you need to prepared for what happens when it does.”
As bleak as this may sound, there are an abundance of ways in which we can make ourselves less dependent on that one client and more financially secure as a business. And it’s all in the planning:
“What will you do? How much cash have you got? What people will you need to say goodbye to? What freelancers do you need to let go? And if you’ve got that plan and you’ve created it calmly with a nice cup of tea, without the stress then when it happens, you open the door, you dig it out and you’re much able to better able to execute it.”
Peter Czapp, Co-founder of The Wow Company
Back in 2004, Peter co-founded The Wow Company. Over a decade later, Wow has become one of the fastest-growing accountancy practices in the UK, with an amazing team of people. He has worked with many creative clients, so in 2013, Peter also set up The Agency Collective! We are now the largest membership organisation for independent agency owners in the UK and we can say proudly that we have the best most supportive and creative community.