Introduction
Moving from freelancing to a fully-fledged agency is a big decision as you embark and conquer a whole new set of exciting challenges. Any major change can be overwhelming as you enter the unknown but don’t stress, as we are here to guide you along the way.
It is key to be clear about why you want to make the change and what you hope to achieve as it is important to set clear objectives and milestones. Celebrating these on the way helps you stay motivated and on track. Keeping the momentum is fundamental to your success.
Generally, the move is based on the potential for increased revenue, and there is something about creating a business that has longevity and is bigger than yourself.
The great mental shift
Believe it or not, the first change is a mental one; making the shift from a freelancer to an agency is all in your mind. You need to start thinking and treating yourself like you are already a fully-fledged agency.
Sometimes it’s the simple things like using the word ‘we” or using your business’s name as opposed to your own when referring to your business. So before we jump into the nitty gritty, start acting like an agency instead of a freelancer.
Setting up your business
Our previous post on what do you need to set up your business correctly is worth reading, as many of the principles are applicable. And as we said, “There is something very satisfying about bringing your vision to life, and it can be very tempting to rush in before you are ready. But, as they say, “Fail to prepare, prepare to fail.” Preparation and research will be critical to your success. “
Laying the foundation with a business plan
A formal business plan will definitely be required if you need any form of start-up capital, but even if you don’t, it’s a great way to formalise your business approach.
Business plans should also contain what needs to get done and what your goals are. Without a predefined set of goals, how will you know if your business is successful or not? It may be easier to think of a business plan as a tool to help manage how your business grows and meets your objectives. It will help define your strategy, deadlines, milestones, and budgets and also establish what it will take for your business to be profitable.
Your business plan should provide a high-level picture of your business, what problem you are solving, your solution to the problem, your target audience, and the strategy you will be using to achieve your goals.
It helps you with the financial aspect of your business in terms of expenses and what it will take for your business to be profitable.
The legal side of business
Getting professional advice on your business’s legal and tax aspects is always advisable, as you definitely don’t want any nasty surprises down the road. Although having a professional register your business may require some upfront costs, it will help in the long run.
You will need to understand the ins and outs of registering your business and how your business is taxed. There is always a lot of paperwork that needs to be initially completed, but it is equally important to know what type of documentation you need to retain on a monthly basis, especially from a tax perspective.
You may also need to investigate whether or not you need some form of personal liability insurance, and finally, there is the banking aspect. Look out for banks that target entrepreneurs and understand your changing needs and especially make sure you take note of all the associated costs.
If this is part of your knowledge base, then you are very lucky; for the rest, we would like to reiterate that engaging with a professional is by far your best bet!
Growing your pipeline
Moving from freelancer to agency is dependent on increasing your business and revenue so that you can effectively support this big change. More often than not, freelancers are inspired to move to the next level because they are inundated with work and, as a result, need to relook at their business model.
In simple terms, you need to substantially increase your client base. This can easily be achieved through marketing, social media, content creation, etc., all of which we have covered in previous articles.
Customer experience
As every business knows, the market is competitive and having a superior service is no longer enough to attract and retain customers. It all boils down to how focused you are on your customer’s experience.
Any touchpoint where your company interacts with an existing or potential customer contributes to their overall customer experience. And that experience is what creates their perception of your brand.
Benefits of focusing on customer experience
Three main benefits arise when your customer has a positive experience with your business – increased customer loyalty, improved customer retention, and finally, new customers through referrals.
What makes a loyal customer? Loyal customers are those who have formed an emotional connection with your brand, and they become attached when they remember how they felt when they used your product or service.
Research also shows that customers will spend far more money with businesses that provide an exceptional customer experience – it all comes down to beating expectations, and once you do that, you not only have a loyal customer but one that will keep coming back.
Customers are also less likely to buy from your competition if they enjoyed the experience of interacting with your business – but if they had a negative experience, almost 90% of customers would head off to your competition.
A positive customer experience will also translate into recommendations and referrals – and let’s be honest, that is free advertising. People are more likely to buy from businesses that receive positive reviews or recommendations, especially considering around 50% of customers research their products and services before deciding whether to buy or use a specific product or service!
Client Relationship Management (CRM) systems
As mentioned creating a positive customer experience is key and implementing systems will go a long way to ensuring you never miss a step.
A client relationship management system (CRM) is crucial for managing your client data, sales funnels and onboarding processes. They also provide great insights allowing you to identify bottlenecks and where you are failing to close those important sales.
A predefined sales and onboarding process will help you convert potential customers into paying clients. Taking the time to identify all touchpoints within your sales process and the corresponding actions you need to take ensures that everyone within your agency is on the same page. And most importantly, no steps are missed.
Typical onboarding processes include the following:
- A list of all the questions you need to ask upfront to provide a comprehensive quote. This also helps you identify any red flags. It is key to remember that just because a client is interested in your service doesn’t mean they are the ideal fit for your business.
- Reminders to follow up on quotes, updates on your work, meetings etc.
- Contract management is a key aspect of any business, and including this as part of your onboarding process is critical. Using electronic signatures is imperative to speeding up the process.
- Financial management from a client perspective can also be effectively managed within a CRM system. This will assist you with ensuring that deposits or retainers have been paid.
Your onboarding process will evolve over time as you gain more experience, but here are a few questions to get you started:
- What tasks need to be completed in order to deliver a quality service?
- Which team is responsible for each task?
- Who is the client’s point of contact?
- What sequence should the tasks be performed, and what triggers the start/end of each task?
- How are deadlines determined and communicated?
Growing your team
Growing your team is by far the most overwhelming and challenging aspect of becoming a fully-fledged agency.
Initially, rushing out and employing a whole new team isn’t necessary. Fortunately, you can outsource a lot of the functions, which will help you get a feel of what it is like to delegate to others. In addition, and probably most importantly, you can gain insights as to what type of skills and people will best suit your business.
The key to growing your team and business effectively is to hire people to fill roles that generate revenue. There are plenty of systems and tools that you can utilise for operational aspects like accounting or bookkeeping.
And finally, ensure that your contracts are as specific as possible in terms of your expectations and what you will be paying salary-wise.
Taking your business to the next level
One of the challenges of moving from freelancing to being an agency is realising that you need to change your focus from doing to promoting. This doesn’t mean that you neglect the quality of your service, but you need to start focusing on sales and marketing.
You could hire a sales and marketing person, but ultimately, it is your responsibility to drive your strategy, keep up to date with the latest trends, and constantly think of ways to increase your customer base and generate business.
If your passion is “doing” the work, we suggest you narrow your focus to your top 3 key clients until you are comfortable employing the right salesperson.
Conclusion
As we mentioned in a previous post, preparation is key, and we can never reiterate the importance of research enough. Take the time to research and build a solid foundation. When starting your own business, ensure that you are flexible and that your strategy is not fixed; you need to be adaptable and scared of making changes.
Growing your business will be stressful and challenging sometimes, so it is always important to look back at how far you have come. Your learning curve will be steep snd this takes us back to our earlier comment about celebrating milestones – take time out to congratulate yourself and your team, and don’t forget to have fun and enjoy your journey.
