Skip to content
  • English
  • Business
  • Entertainment
  • National
  • Lifestyle
  • Education
Daily News India

Daily News India

Just another WordPress site

  • English
  • Business
  • Entertainment
  • National
  • Lifestyle
  • Education
  • Toggle search form
  • SaladO – A journey from Small Home Kitchen to the Biggest Salad brand in India Business
  • ‘The Big Daddy House’ suspense thriller film released at MX player Entertainment
  • ClassAct 2023 – The Hindustan Times Republic Day Quiz: Top tips from the quizmasters Business
  • Moris PR Introduces Revolutionary And Specialised Pr Campaigns Business
  • Subhash Ghai, Rakeysh Mehra, Jackie Shroff, Divya Dutta and Ravinder Bhakar celebrate 75th Independence Day hosted by National Museum of Indian Cinema Press Release
  • Bas Kooijman – sharing over 7 years of trading experience as an experienced entrepreneur Business
  • Meet the Famous actor, blogger, Instagram Influencer and also a wizard entrepreneur Hakoom Al Fajeer Business
  • Kutumb Bungalow Project in Dap Oli: Exquisite Township bringing the best of both worlds Business

5 Common Mistakes to avoid while running an agency

Posted on January 29, 2022 By dsprime 10 Comments on 5 Common Mistakes to avoid while running an agency

New Delhi (India), January 29: It is widely believed that India is witnessing an agency boom at the moment. Even in the midst of a pandemic, when most businesses had to shut shop, many agencies were springing up all over the country. (LBB, 2020) But starting an agency and running an agency are two very different things. And a quick deep dive at numbers or even a short conversation with any industry insider would help you see the real picture pretty quickly. The number of agencies that fold within a couple of years is pretty significant.

But it would be naïve to assume that the failure of these agencies is to be blamed on one big reason or lack of capability on the part of the people running them. The truth of the matter is that these agencies work in a market with squeezed margins and increased competition, with multiple factors that make mere survival difficult. But that is not to say that running an agency successfully is a pipedream. What’s more important than ever is to avoid mistakes that could kill your venture before it starts. To put it simply, a ‘what not to-do’ list.

(A) Purpose – The very first reason many of these agencies fail is the lack of a concrete purpose or vision. You think you have the necessary skills or relevant knowledge to start out on your own. So, you take the plunge under the assumption that once people see your work, getting clients is going to be a piece of cake. But within a couple of months, reality hits.

To put it bluntly, mere talent isn’t enough to run a successful agency. You need to have a solid vision to make yourself stand out from the crowd. What is the reason for you to start your agency? How is it different from the competition? Are you willing to take risks? It is imperative to have clear answers to all these questions before you start. It is also important to be willing to take risks. Starting with no vision and an aversion to being disruptive in the market is probably a death knell even before you start.

(B) Pricing – Another reason why many agencies fold in India is undoubtedly the low cost of input or investment involved. While this is touted as a major reason for the agency boom in India, it has led to a situation where the market is filled with indistinguishable agencies competing with and eventually cannibalizing each other. So, the only way many agencies know how to distinguish themselves from the competition is pricing. In order to survive and grow, they agree to prices way below an acceptable level. This is a grave mistake to make. The moment you start undervaluing and underpricing your work, you are effectively communicating that your work is substandard. While it is true that most clients are price-sensitive, it is also a fact that clients looking for quality do not mind paying the price if they think the output is worth it. It is also the only way to get long-term loyal clients and build a reputation. Clients acquired through low pricing are just going to jump the shark when the next agency offers them an even lower price.

Another aspect of this is the burnout and disillusionment that comes with accepting work that is unchallenging and underpaying. Most agency employees today are working longer hours and believe they’re underpaid. (Digiday, 2020) Hence, a big part of running a successful agency is the ability and courage to say no to work that underpays.

(C) Collaboration– In India, the top agencies get the major share of the advertising pie. These agencies have well-established departments and areas of operations providing a variety of functions. On the contrary, most small or mid-size agencies have one area of operation- SEO, copywriting, design, etc. This then becomes another hurdle they struggle with while acquiring clients. This is one major reason why many mid-size agencies are dying off. In other words, these agencies are quickly becoming the Blackberry phone of the advertising world.

The solution to this problem lies in collaboration. In order to survive, small agencies need to join forces to optimize their strengths. The benefits of combined synergies are not just limited to survival and growth, but also better output, increase in creativity, time saved, and new access to previously untapped clients.

(D) People and Processes– This is the step that is probably most ignored when it comes to running an agency. Most agencies think that just by hiring talented people, they can ensure the success of their business. But this cannot be further from the truth. Hiring the right people and investing in the right people, after all, are two very different things. Running an agency means you are working with highly creative professionals- people who have strong opinions, artistic tastes, and possibly, egos. How you deal with your employees is a strong factor that could make or break your agency. In an article published in January 2022, building healthy employee relationships was seen as imperative to the success of any business, particularly agencies that struggle with high turnover rates. (Forbes, 2022) Therefore, it is important to build honest relationships and make bonds with your employees that are based on mutual respect and appreciation.

Another important aspect of this is to set up processes that are simple, effective, and time-saving. From creative pitches to communication frequency and reporting, it is necessary to have clear systems in place. This can be extremely helpful for employees to know what’s expected of them, how to go about it, and help them to review and take corrective action when needed.

(E) Finance– Since most agencies are run by people whose main strength lies in their creativity, mismanagement of the financial aspect of running an agency is much too common a mistake. The lack of sound systems and processes in place leads to a situation where an agency becomes a prime target for being taken advantage of. It is, therefore, necessary to ensure that there are set processes in place and that these are followed irrespective of the work or client. Having robust and transparent contracts is necessary to gain client trust as well. Many large advertisers have long felt a lack of clarity in their relationships with media agencies. (McKinsey & Company, 2018) Being upfront with clients at the start of negotiations and ensuring that payments are received at pre-decided intervals can help ease out these worries. Being honest with your finances at every step is paramount to ensure longevity in the market.

It is also important to be aware of the many schemes and policies put in place by the government to help out small businesses. In recent times especially, there are many schemes intended specifically for budding entrepreneurs in MSME sectors like ‘MSME Business Loans in 59 Minutes’ for easy and quick loans, ‘Market Development Program’ for expansion to international markets, and multiple tax credits as well. (OkCredit, 2020) It is important to do extensive research on these policies to ensure that you’re getting the maximum benefit.

Like any small business, running an agency also depends on a multitude of complicated factors that need to work in cohesion and harmony at all times. And while success is not something you can predict or guarantee, avoiding the crucial mistakes listed above can definitely help you sustain and grow in this highly competitive market. 

Agam Chaudhary- With 15 years of experience in the digital marketing and technology sphere, Agam brings with him a vast array of knowledge as well as innovative and exceptional processes sure to deliver organization-wide transformations. Having run a successful agency for more than a decade and worked with brands across various industries and geographies, Agam has a unique view and understanding of the digital sphere that is both contemporary and disruptive. In the last 5 years, he has also helped various agencies and e-commerce businesses to scale up and multiply the size of their billings/profits. His latest assignments have been launching NFT Marketplace and the Metaverse game. He can be reached at [email protected] / https://www.linkedin.com/in/agamchaudhary/

Bibliography

LBB. (2020, December). The Class of 2020: 14 Agencies That Launched in the Midst of a Pandemic.

Digiday. (2020, March). Digiday Research Report: Ad agency employees are overworked and underpaid.

Forbes. (2022, January). how-agencies-can-ensure-strong-employee-relations-at-the-hiring-stage.

McKinsey & Company. (2018, May). Truth in advertising.

OkCredit. (2020, December). https://okcredit.in/blog/government-policies-for-small-businesses/.

Business Tags:Business

Post navigation

Previous Post: ALD Proposed Acquisition of LeasePlan, Creation of NewALD, a leading global player in mobility
Next Post: Famous Tarot Card Reader and Numerologist Navnedhi Waddhwa attends ABP Ganga show Chunav Kranti Express

Related Posts

  • Mumbai resident Shrey Karia Awarded as the youngest businessman in India Business
  • Sikich announced Nov. 17, 2022 the signing of a definitive agreement to acquire Accelerated Growth, an accounting, finance and technology consulting firm based in Chicago Business
  • EZOK Launches Exclusive Collection At Venus Steps, New Delhi Business
  • Budget a step towards making India a superpower as well as self-reliant – Mr. Alpesh Purohit, Director, Pinnacle Credit Advisors Pvt Ltd Business
  • Top 9 Dryfruit Industry Insights: Seasonal Demand, Market Leaders, and Price Changes Business
  • Six Times Failed Revision Hip Replacement Surgery of a Ghana patient performed successfully at Krishna Shalby Hospital, Ahmedabad by World-renowned Joint Replacement Surgeon Dr Vikram Shah Business

Comments (10) on “5 Common Mistakes to avoid while running an agency”

  1. marizon ilogert says:
    October 9, 2022 at 6:02 pm

    I will right away take hold of your rss as I can not to find your email subscription hyperlink or e-newsletter service. Do you’ve any? Kindly allow me realize so that I may just subscribe. Thanks.

  2. zmozeroteriloren says:
    November 23, 2022 at 6:38 pm

    We absolutely love your blog and find most of your post’s to be exactly I’m looking for. can you offer guest writers to write content to suit your needs? I wouldn’t mind writing a post or elaborating on a few of the subjects you write related to here. Again, awesome website!

  3. What is Chiffon cake and How to Make it (Cake Handbook Guide) says:
    December 21, 2022 at 6:56 pm

    I gotta bookmark this site it seems very helpful very beneficial

  4. 10 Ways to Use Breadfruit (Recipe Book) says:
    December 25, 2022 at 9:32 am

    Enjoyed reading through this, very good stuff, appreciate it. “If it was an overnight success, it was one long, hard, sleepless night.” by Dicky Barrett.

  5. Top Places to Eat in Boston (United States) says:
    December 26, 2022 at 8:25 pm

    I know this if off topic but I’m looking into starting my own weblog and was wondering what all is required to get set up? I’m assuming having a blog like yours would cost a pretty penny? I’m not very internet smart so I’m not 100 positive. Any recommendations or advice would be greatly appreciated. Thanks

  6. Top Places to Shop in Denver (United States) says:
    December 26, 2022 at 8:38 pm

    great points altogether, you simply gained a new reader. What would you suggest about your post that you made a few days ago? Any positive?

  7. Handbook Guide to a Jaguar - E-TYPE 4.2-LITRE SERIES II 2+2 (Classic Handbook Car Guide) says:
    December 29, 2022 at 1:27 am

    I¦ve recently started a blog, the information you provide on this web site has helped me greatly. Thanks for all of your time & work.

  8. graphic designers says:
    December 29, 2022 at 1:49 am

    Excellent read, I just passed this onto a friend who was doing some research on that. And he just bought me lunch since I found it for him smile So let me rephrase that: Thank you for lunch!

  9. The Best Breakfast Places in New York (United States) says:
    December 30, 2022 at 2:15 am

    Oh my goodness! a tremendous article dude. Thank you Nonetheless I am experiencing concern with ur rss . Don’t know why Unable to subscribe to it. Is there anybody getting an identical rss drawback? Anyone who is aware of kindly respond. Thnkx

  10. Beginners Guide to Growing Pediocactus (Home & Garden Handbook) says:
    January 1, 2023 at 11:16 pm

    I like what you guys are up too. Such smart work and reporting! Carry on the excellent works guys I’ve incorporated you guys to my blogroll. I think it will improve the value of my web site 🙂

Leave a Reply Cancel reply

Your email address will not be published.

Recent Posts

  • A Pen Drive Accidentally Swallowed By A 5-Year-Old Boy Removed Endoscopically, there by avoiding major surgery
  • Bharat-Bharti and Paryatanam-Bharti organized the National Food and Cultural Festival in Ahmedabad
  • Ciceroni hosts their first pop-up in Mumbai, A curation that brings forth 20+ emerging homegrown designers from across India
  • Kusum Tete – the popular tribal leader of Sundargarh
  • Child Help Foundation’s Initiative to raise awareness for Girl Child Equality On National Girl Child Day

Recent Comments

  • MichaelMit on The truth in the APSSB matter
  • gate.io on Pooja Ajay kumar Mehta from Ahmedabad grabs two gold medals and creates a world record at the World Powerlifting competition held in Moscow, Russia
  • joker123 on Ace of Spades PR Agency: Who Should Get Published in the Press?
  • Jackgab on Astrology for business: Dr. Vinay Bajrangi
  • Ugogab on Riya Sinha and Shraddha Varma’s Brainchild Fuzia is a Voice for New Age Feminism, Gender Equality, and Empowerment
  • Amkette launches the AMP Audacity 1000 Digital Soundbar with HDMI Input Business
  • Business Mint’s 36th Nationwide Awards – 2022 were presented at Bengaluru (Silicon Valley of India) Business
  • Hey girl, it’s too good to be true. True False- Only D2C brand, catering to Women’s Power Dressing Lifestyle
  • NIEM recognized at 11th World Education Congress as ‘Top Institution For Event Management Studies’ Press Release
  • 1st Edition of Aaj Ke Karamveer Awards Felicitates Achievers from Various Fields; Political Leaders, Bollywood Stars and Renowned Sports Persons Graced the Event Press Release
  • Bio of Mudit Sharma, an Internet Celebrity Lifestyle
  • Alan Fenandes – one of the most sought-after coaches in the world of Mixed Martial Arts. English
  • Latika – the Eduprenuer, an epitome of grit and determination, a dynamic force in sphere of AI and Robotics Business

Copyright © 2023 Daily News India.

Powered by PressBook News WordPress theme