Growing out of lockdown: how to scale an agency

COVID-19 is an opportunity for assertive agencies to scale and grow. Lean into the recovery with confidence. Good luck.

As we kick off the new quarter and lockdown lifts, agency bosses are planning for the remainder of the year and looking to 2021.

Agencies that have had a measure of luck, combined with good management have weathered the crisis and are in a good position to scale and grow.

Independent agencies that specialise in sectors hit by COVID-19 have had the toughest time. Exercise, hospitality, high street retail, travel, tourism, and sport have all been dealt a brutal blow.

Large agencies spread across multiple sectors have also been hit and had to furlough or cut staff. There will be further cuts to come as the furlough scheme tapers off.

Solid financial and talent management have been critical. A strong balance sheet is clearly also helpful.

Where is the opportunity?

Education, health, mobile, online retail, safety and technology have all grown during lockdown. Investment is focused on the reopening effort of sectors impacted by lockdown.

In terms of services, businesses have a massive hole in their sales pipeline left by COVID-19 that they will be looking to fill.

There is already a renewed focus on environment, society, and governance. Organisations that went into COVID-19 focused on profit have taken the biggest financial and reputational hit.

Public education will also be a strong focus for the rest of the year as we learn to live with the virus.

How should agency owners and managers respond?

There is no magic. Growing a business requires three things: investment, robust sales and marketing, and talent.

Direct energy at the markets which have shown resilience with services that are in demand.

Here’s my prediction. Agencies with a strong proposition will perform well as the recession bites. The clarity and confidence is attractive to clients.

It’s no surprise that we’ve seen a series of new agencies launch with a single minded proposition such as Hard Numbers, Made by Giants, Priestly and Shook. There will be more to come.

COVID-19 has provided a moment for agencies to review their purpose, talent and retool for the new operating environment.

It has prompted lots of people, myself included, to reconsider their relationship with work. It’s an opportunity for brave agencies to hire.

The next six weeks will be critical for two reasons. It’s the start of the new quarter and the second half of the year, and we’re emerging from lockdown.

In my next post I’ll look a growing areas of the economy namely construction, COVID-19 resilience and the focus of local and national industrial strategies.

Lean into the recovery with confidence. Good luck.

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Ofcom report: lockdown Internet usage up but only by 30 minutes