Year-by-year guide. Grow a Digital Agency From 0 to 100 Pax.

I was running Adyax, a 350-person digital agency that exited in 2018. Running a 40 pax code.store now.

TL;DR> Here are the steps:

1. Year > Specialize: Choose a specific tool and vertical. Build a Reputation: Focus on delivering exceptional work and lean on your personal network for initial clientele.
2. Years> Diversify: Add new tools and Cross-sell: Offer these new services to satisfied clients from Year 1.
3. Years> Market Actively: Attend relevant events and conferences. Feedback Loop: Engage with audiences to better understand industry pain points.
4. Years> Expand Delicately: New vertical can be challenging
5. Years> Learn run.
6. Year 6> Strategize and Consult: offer more than just execution. Provide strategic advice to clients.

Year 1 Specialize> Find your unique niche

In the initial year of launching a digital agency, you’re still building your reputation. Most of your early clients will likely come from your personal network. This is because individuals prefer to collaborate with established experts.

Simple test: Do you prefer that

“ a plumber “

or

“a plumber expert in hammams”

…to repair your Hammam?

Specializing in both a tool and a vertical can significantly enhance your expertise and marketability. By becoming an expert in a particular tool and industry combination, you position yourself as a go-to specialist, making it easier to attract clients and projects within that niche.

At the end of Year 1 you should have at least a complete team of 5 people building project after project.

Year 2 Diversify > Learn new skills

In Year 2, diversify by adding tools or project types, like mobile apps or e-commerce. Cross-sell to satisfied Year 1 clients and use their success stories to attract new clients.

Year 3> Expand in new verticals

It takes 2 years and multiple projects to start understanding an entire industry enough. Once you’ve done that you can try leveraging the use cases built past 2 years to attract clients from a new vertical. It’s easier to go from expensive to cheap and from complex to simpler industries than the other way. For example, if you succeed in Luxury, going Retail is easy. But rising from Retail to Luxury is hard.

Year 4> Organic growth continues

Begin marketing by attending events related to your chosen tools and verticals. Events are major lead generators, especially if you present. Apply to speak wherever possible. This not only hones your public speaking but also deepens your understanding of industry pain points through audience feedback.

If you’re not too bad, you should have a decent 30–40 pax agency. Just when problems will start to appear. At this point, you’ll need strong financial and resource management tools. If you’re not careful enough, you can fuck-up your cash flow in 2 months.

You start to feel competition, with repeatable opponents.

Expanding into a new vertical becomes challenging due to the strong pull from existing clients and employees. It’s hard to shift or break away from this established center of gravity.

We’re here with code.store today. Call us!

Year 5> Delving Deeper into the Stream of the Value Chain

With a steady stream of recurring clients and long-term projects, you now have revenue stability. It’s an opportune moment to delve into post-project management, or “run.”

This entails establishing a support team, measuring response times, implementing qualification workflows, arranging round-the-clock duties, and mastering multi-region/brand project deployments.

Pursuing the “run” phase is advantageous due to its consistent, recurring revenue and long-term contracts. It also facilitates regular communication with your client. The best opportunity to cross-sell a new tool or service is a few months after a successful project launch.

Year 6> Take it all

By the sixth year, your team’s extensive expertise and case studies position you as strategic advisors to your clients. You’ll guide them through industry nuances, anticipate upcoming challenges, and aid them in maximizing profits or reducing costs.

To elevate your influence, immerse yourself in internal politics, participate in CEO-level events, and join exclusive clubs. The key to fortifying your network is generously assisting others whenever possible.

As your company grows to around 100 employees, it’s essential to institute support departments like HR and finance. With each new growth level come fresh challenges. I’ll talk about what happens next in the next article. Subscribe to receive updates.