Agency planning ahead of a downturn or recession
A downturn is predicted from some point in Q4 this year but with the right planning, agencies can survive and even flourish! It’s important to review your client portfolio to identify where there could be risk and opportunity.
Start by categorising clients by industry and assess how they will be affected by a shrinking economy. Some industries will be unaffected or could even thrive in a downturn or recession. These are the clients for which you can forecast revenue to continue, and possibilities may exist for upselling and account growth.
The clients that can be difficult to predict are those that are impacted by a declining economy. There will be clients in this category that will see their marketing and communications budgets cut, whilst for others, spend will continue as they try to compete for market share during the downturn and beyond. Your client knowledge and recent conversations will be key to understanding which clients may reduce or maintain spend.
Where your agency has multiple offers, each service should be reviewed for its likelihood to be affected by the downturn. New business efforts and planned hires should be for offers and client areas that are likely to succeed and grow.
Whilst the pandemic came at us with little time to react, we have been afforded far more time to plan this time around.