Case Study: Agency Cash Flow FixBusiness Development
A young digital design and marketing agency was struggling due to irregular cash flow.
Note: Afdonex is a relatively new business. This case example is from earlier work completed by Afdonex’s Don Wieshlow. Don was a co-founder at Uppercut.
Digital design and marketing agency “Uppercut” had a problem faced by many service companies in that it was servicing mostly one-and-done projects, meaning that a significant amount of time each month went towards non-billable work trying to find, sign and onboard new clients.
This time-intensive situation led to ongoing cash-flow issues for the company. The agency needed to tackle three main problems:
- First, reduce the amount of time spent chasing new clients.
- Second, reduce the time allocated to onboarding new clients for just short-term projects.
- Third, get a higher return from the time invested.
In this case, Uppercut needed to obtain more significant, steady monthly clients which could alleviate some of the cash flow pressure.
Working on this problem at the time, I was able to – through complex deal negotiation – leverage a key opportunity with a New York based organic beauty products company into a large, multi-year, partnership. This deal, which was largely based on payment-for-performance, enabled Uppercut to achieve multiple years of steady revenue from this client.
Correspondingly, as part of this solution, Uppercut’s client was able to save money by eliminating its own staff costs for design, marketing, web, while achieving triple digit growth during the life of the services relationship. This was a true win-win relationship.
Benefit:
In this case the Uppercut agency benefitted from the strategic planning, negotiation & deal making skills I provided to strategize, negotiate & implement a win-win partnership deal.
Result:
The Uppercut agency in this case was able to generate hundreds of thousands of dollars in revenue and reduce its cash flow pressure for several years – allowing it to continue to build up and further diversity its client & experience base.
Uppercut’s client would achieve triple digit revenue growth and brand enhancement during the life of the deal – while eliminating its staff costs for marketing, design and web support.