Navigating Economic Turbulence with Expert Counsel From Two Industry Veterans
Imagine this scenario: Your agency loses $4M in gross revenue within just 35 days due to sudden economic policy shifts. This isn't fiction—it's a real experience in the last couple of months shared by an agency caught due to economic headwinds.
Recently, I had the honor of joining two heavyweights of the marketing industry expertise – Mike Hart from Hart Inc. and Vince Dong from Advice Software & Consulting Inc. We discussed the impact of the recent economic headwinds due to tariffs and how marketing agencies need to position themselves for growth in this environment.
Strategic Responses vs. Knee-Jerk Reactions
Fool me once, shame on you; fool me twice, shame on me. This isn’t the first rodeo for many agency owners when it comes to dealing with unexpected economic turbulence. In the past, the instinct had been to cut, cut, cut to survive. However, this time around, Mike and Vince offer some concrete steps that agencies should consider, and here’s my best attempt at summarizing their biggest pieces of advice.
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Not many people want to captain a boat in a storm. In this case, one day or a few hours could bring something completely unexpected, much like seafarers of long ago. Stay calm and lead your agency with confidence. Your team looks to leadership during uncertain times. Panic-driven decisions rarely yield positive outcomes.
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Strengthen your leadership prowess with expert perspectives outside of your agency. It is hard to see the solution while immersed in problems. Building a strong advisory board provides valuable guidance and accountability when navigating uncharted waters.
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Similar to how a surgeon has practiced their procedures using simulations to ensure excellence, agency leaders need to do the same, modeling of outcomes before cost-cutting.
Building Sustainable Agency Resilience
The above three steps are actions that agencies could incorporate very soon. From a long-term perspective, agency leaders need to use their creativity to uncover new revenue streams. Reducing dependence on any single client or industry creates a nice buffer against market volatility that impacts a country or region.
The next major step agencies should take is to look to AI and analytics beyond creative ideas. These technologies have the power to boost agency efficiency and better demonstrate the value of your services to clients.
This transitions to the next point, which was to proactively strengthen client relationships. Agencies shouldn’t wait to receive a negative call; they should be fostering loyalty through frequent engagement, so they are seen as a member of the client’s internal team and not just an external service provider. This may not guarantee not being cut or having budgets being reduced, but it is a proven way to ensure your agency isn’t the first item on the chopping block.
A Steady Course Ahead
The agencies that will thrive in this uncertain landscape won't be those that simply react to challenges as they arise. Success will come to those who anticipate change, create strategic contingency plans, and build business models flexible enough to adapt quickly..
By implementing these strategies, your agency can develop the resilience to not only survive economic turbulence but also emerge stronger on the other side.
The goal isn't just to weather the storm—it's to learn how to dance in the rain.