In this episode, I’m joined by Jonathan Leafe, a growth consultant who helps agency owners build better businesses and find financial freedom. We dive into the tricky growth stage between 10 and 25 employees — what Jonathan calls the “fear of 13” — and why getting your processes and systems in order at this stage is crucial. We explore the balance of hiring, the importance of realistic forecasting, and why sustainable growth comes from looking after your existing clients, not just chasing new business. Jonathan also shares insights on becoming a strategic advisor to your clients and why retention is the key to long-term success. Plus, we touch on the challenges agencies will face in 2025 and why staying proactive and strategic will help you thrive.

Key insights from the podcast:

Challenges of Scaling an Agency

Jonathan described the challenge of growing an agency from 15 to 25 employees as the “fear of 13.”

→ Growth at this stage can create chaos without proper systems and processes.

→ Operational changes are critical to maintain profitability and avoid burnout.

Balancing Resource Investment and Forecasting

Agencies face a dilemma between hiring ahead of demand or waiting for clear growth signals.

→ Hiring ahead of demand is risky without sufficient financial reserves and solid forecasting.

→ Overinflating forecasts can lead to overextension and financial instability.

Sustainable Growth and Client Retention

Sustainable growth comes from client retention and strategic expansion—not just new business.

→ Strong account management helps maintain client relationships and prevent churn.

→ Being seen as a strategic advisor (not just an order taker) builds long-term loyalty.

→ Referrals and organic growth within existing accounts are powerful growth levers.

Strategic Conversations and Client Success

Agencies should empower their teams to have strategic conversations with clients.

→ Larger agencies: Separate account management from delivery to improve focus.

→ Smaller agencies: Strong leadership is key to driving client success.

→ Maintaining relationships with all stakeholders in a client’s business is crucial.

→ Example shared: A long-term client relationship led to significant mutual growth.

2025 Outlook and Client Focus

Mixed outlook for 2025 due to ongoing economic uncertainty.

→ Agencies should focus on clients with growth potential and support those struggling.

→ Understanding client economic cycles helps agencies adjust strategies accordingly.

This episode highlighted the importance of sustainable growth, strategic positioning, and proactive client relationships as keys to scaling an agency effectively.