4 major agency challenges and how to approach them [podcast]

Are most agency founders accidental business owners?

According to Drew McLellan, Founder of Agency Management Institute, they are. 

In this episode of the Vertical Go-To Market Podcast, I sit down with Drew to break down what it takes to build a thriving agency. 

 We discuss:

👉 Identifying the turning point when you need external support to continue on a growth path.

👉 Four major agency challenges and how to approach them.

👉 Niching down as a subject matter expert to meet client expectations. 

👉 The ideal split of agency operating costs against Adjusted Gross Income.

 Actionable Key Takeaways for Agency Founders:

👍 Agency owners should aim to build wealth while operating the business by optimizing sales, staffing, and profitability.

👍 Processes are a must-have; tribal knowledge won’t sustain success at a growing agency.

👍 Sharing and learning from peer challenges and successes calls for full transparency and vulnerability.

👍 A niche can be an industry, an audience, or even a deliverable. It isn’t always a specific type of business.

👍 Hire people who have a passion for the niche you serve to avoid the boredom pit.

👍 Adjusted Gross Income is the one metric all agency owners should be obsessed with.

🎧 Listen to the episode now: 

• Podcast Website

• Apple Podcasts

• YouTube

• Spotify

• Amazon Music

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Best,

CQ

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Frequently Asked Questions

Why does Drew McLellan believe most agency founders are "accidental" business owners?

Because many founders start out as skilled practitioners of a craft, drifting into agency ownership without necessarily setting out to build and run a business, a distinction discussed as shaping many of the common challenges agencies later face.

What does Drew McLellan mean by saying a niche isn't always a specific type of business?

That a niche can be an industry, an audience, or even a deliverable, broadening the definition of specialization beyond just picking a single vertical like "dentists" or "plumbers."

Why does Drew McLellan recommend hiring people with genuine passion for the niche being served?

Because passion helps team members avoid the "boredom pit" that can come from repeatedly serving the same type of client, sustaining engagement and quality over the long term rather than burning out on repetitive work.

What is Adjusted Gross Income, and why should agency owners be obsessed with it?

A key metric discussed directly in the episode as the one number Drew McLellan believes deserves the most attention, more revealing of an agency's actual financial health than gross revenue alone.

Why does Drew McLellan say tribal knowledge won't sustain a growing agency?

Because knowledge held only informally within individuals doesn't scale as an agency grows. Documented processes are necessary to maintain consistency and quality beyond what unwritten, person-dependent knowledge can support.