The Three Must-Haves Missing From Your Agency’s Annual Plan

When it comes to building a successful agency, strategic planning is imperative. A solid annual business plan sets the foundation for growth, defines a clear direction, and—if done correctly—ensures long-term success.

Most of the agencies we work with go through the exercise of creating a strategic plan every year.

However, we often find that when executing the plan, they’re not progressing the firm in the way they hoped, and ultimately, they’re not moving the needle on increasing the company’s value.

After creating (and reviewing!) countless strategic plans for clients, we know that most plans do a great job at covering the basics, but many miss critical elements that are key to optimizing the firm’s operations, improving efficiency, and driving growth.

Below, we’re sharing the most often overlooked elements and how to integrate them into annual planning for your firm to go further and reach your goals faster and with less friction.

1. Strategic Leverage: Amplifying What Works

In the constantly evolving agency landscape, it’s easy for leaders to become tempted by the allure of the latest trend. There’s always something new and shiny to try and another strategy that promises bigger and faster growth. We’ve seen this backfire more times than not.

The most successful agencies are the ones that recognize the importance of amplifying effective, proven strategies rather than constantly adding new, untested elements to their business model. Sure, innovation is crucial, but scaling comes from focusing on the right thing at the right time and leveraging your existing strengths.

Identifying What Works

Agencies can pinpoint their most successful strategies by evaluating performance metrics, client feedback, and profitability reports. Simply asking a few simple questions can point agencies in the right direction.

• What feels easy for the team to deliver?

• Where is the most profit being generated?

• Where does the agency already have the talent and resources?

• Where is the highest demand?

Focus on what the data shows is already working. The agencies that scale the fastest—and with the least effort—are those that double down on where they’re already successful. Don’t divert resources from your biggest source for growth!

Creating Scalability

Once an agency has identified what is working, the next step is building scalable systems around these strengths. A one-off success isn’t enough; it needs to be repeatable. Creating templates, workflows, and processes that allow the team to replicate that success consistently creates a smoother path for growth and frees up leadership time to focus on other strategic priorities.

Avoiding Over-Complication

In an attempt to grow, many agencies make the mistake of adding unnecessary complexity to their operations. This leads to what we lovingly call the “deformed Jenga stack”—a structure so over-complicated that one wrong move could topple everything. We typically see this happen when leaders add layers of processes and people to compensate for other challenges in the business that run deeper.

For example, if an agency has an overly cumbersome multi-person review process, is it truly necessary? Or are there a few wrong-fit team members—or perhaps even clients—within the agency that need to go instead?

Every year, we recommend taking time to find an area of over-complication and eliminate it from the business. 

2. The Boring Stuff: SWOTs & Metrics

It’s easy to love the glamorous side of running an agency—closing deals, launching campaigns, and bringing on new clients. But it’s often the boring stuff that moves the needle. Unfortunately, many business plans skip over these essentials.

Effective Use of a SWOT Analysis

Yes, a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis might sound like something out of Business 101 class, but it’s incredibly effective—if done correctly. Most agencies skip this step or do it once and never revisit it.

Agencies must understand both the internal and external risks and opportunities within their companies. Have a clear understanding of how the competitive landscape has evolved over the last year, and look for opportunities to strengthen the firm’s positioning in the market. We recommend that agencies conduct a thorough SWOT analysis each year and use the insights to shape strategy development.

Metrics and Measurement

Many of the agencies we work with are surprised to learn that as the firm grows, the metrics that the firm tracks need to evolve as well. As an agency scales, so should the KPIs. Tracking the right metrics for an agency’s current stage of growth is crucial to evaluating what is working and what is not. 

For example, if a smaller boutique agency has recently moved from contractors to full-time employees, understanding the overall utilization rates and the team’s earning potential becomes essential. If a boutique agency has scaled to a size that requires departments, clear operational and financial metrics for each department need to be established. If high-level hires, like a COO, have been made, a new level of monitoring and reviewing of performance is crucial. 

We advise all agencies to ensure they have a clear rhythm for reviewing key metrics and a process in place for discussing them regularly.

3. Core Services: A Flagship Offering

An agency’s flagship service offering is the cornerstone of the business. The service defines the brand and serves as the anchor for every other initiative. Yet, many business plans fail to define this offering clearly, or they dilute their resources by spreading them thinly across too many services.

What Makes a Strong Flagship Offering?

• Clear processes: Every step of delivering a flagship service should be defined, repeatable, and streamlined for maximum efficiency.
• Positioning: A flagship service should position the agency as an expert in a specific area and define the firm as a leader among competitors.
• Frameworks: Well-established frameworks guide the delivery process, ensuring that the team can consistently deliver high-quality work.
• Sales pipeline: A fine-tuned sales pipeline fuels the flagship offering, ensuring a steady stream of new clients.
• Case studies: Compelling case studies serve as social proof, demonstrating the value of a firm’s flagship service to potential clients.

Once the flagship offering has been defined, it can serve as a funnel for other services the agency provides—or even services a partner offers.

Financial Foundations

In addition to defining the flagship service, it’s essential to know the numbers. Understand the hard costs of delivering each service and what the margins are. Without this clarity, scaling becomes guesswork, and profitability can suffer.

To Wrap It Up

Strategic planning is the cornerstone of growth for any agency. However, often, the most important elements for true scalability are overlooked. By including the above elements, agencies can foster growth, improve efficiency, and scale sustainably.

Ready to refine your business plan and scale your agency with ease? If you’d like to learn more from the Advocation team follow us on social media–Instagram, LinkedIn, and YouTube.