– Brick building from the bottom up, and industry best practice guidelines
Following on from a last weeks’ 2020 Budget breakfast keynote in Sydney – I was excited to receive an overwhelmingly positive response from all 15 agencies who attended.
It surprised me at how well received the event was, after all ‘the budget’ is often considered to be a bit of a boring topic, however, the feedback was interesting, and so I thought I’d share it with you:
1. Comprehensive content
a. The first feedback point was: how useful the explanations and discussion was about all facets of building an agency budget: the misnomer about payroll staff and freelance resources, and stacking operating expenses, tax and loan pay-back provisions, setting the right profit – to deliver a 3-pronged break-even, expected, and stretch revenue targets.
b. Delivering a wealth of knowledge: industry benchmarks, rules of thumb, billings per head, and how to mitigate common traps and pitfalls experienced by some agencies, to become a high-performance successful agency: exceeding expectations.
2. ‘Right between the eyes’ slide-deck and dynamic consultation
a. The second point was: the way the keynote was delivered using live demonstration coupled with a Lego brick building theme to build a budget from the bottom up; then looking at it from other angles: industry lens ‘rules of thumb’, internal/external benchmarks, billings per head, and agency size agency expectations.
b. Straight talking, evidenced-based, clear metrics with benchmarking facts.
3. High energy is contagious
The third aspect of positive feedback was: the enthusiasm in the room, which stimulated everyone to discuss, debate, share what worked well for them. In particular, the recording of resources as Cost Of Sales/Goods Sold (COS/COGS) as opposed to recording as an Operating Expense, and the importance of recognising Full Time Equivalent (FTE) values and calculations and handling of Freelancers (F/Ls).
The reason I have not presented this Budget topic before now, is quite simply because although an essential component in all successful businesses, I expected the industry would find it dull and boring. So I’m thrilled by the response, and the outcome for all – how wonderful to see everyone (The Finance Directors in the room, Ops Directors, and Agency Heads) all excited and energised, as it was paramount to them how fundamental the budget process is to their business, and getting this first step right, to ensure foundations are strong, targets clear, to focus their team for an exceptional year ahead.
Armed with your Budget, the next KMint events are the Show Me The Money workshop in July; and the Rate Card keynote in August. Click this link to book your seats. We already have 8 agencies booked in and I’m looking forward to a more stimulating discussion with industry leaders around the table assessing what works, what doesn’t work, and what’s best practice.
In the meantime, if you would like me to review your budget, or bounce an idea or an issue with me to gain a second opinion – I welcome your email or phone call and let’s have a 30 minutes complementary discussion.