Choosing the right exit strategy as an agency owner
In this episode, Chip and Gini explore strategies for agency owners contemplating an exit plan. They discuss the importance of planning and the different options available, depending on the agency’s size and structure. They talk about the limited choices for solopreneurs, as well as a wider variety of possibilities for larger agencies, including mergers, transferring ownership to employees, or simply stepping back from daily operations. They emphasize the need for a solid timeline and a leadership team to ensure a smooth transition and successful exit. Additionally, they caution about potential pitfalls and unrealistic expectations, sharing insights from their own experiences and those of others in the industry. Key takeaways Chip Griffin: “It’s helpful for any agency owner to be giving at least some degree of thought to how they might want to exit the business someday, with the understanding that a lot of it is not fully within your control.” Gini Dietrich: “I think you have to give yourself a pretty good runway of five to eight years. So if you want to sell in eight years, start thinking about it now so that you can prepare and plan for what that eventual exit would look like.” Chip Griffin: “Anytime that you are thinking about selling your agency, you have to think about the reaction of clients because that does matter.” Gini Dietrich: “If you can structure it by building a leadership team, or a core group of people who might either buy it or go with the sell, that’s a really good way to be able to do it.” Related Things to know before you consider selling your agency Are you thinking about selling your agency? The reality of selling your PR or marketing agency What to do when you are preparing to sell your agency How to get ready to sell your agency Is it time to sell your agency? Sharing ownership in your agency View Transcript The following is a computer-generated transcript. Please listen to the audio to confirm accuracy. Chip Griffin: Hello and welcome to another episode of the Agency Leadership Podcast. I’m Chip Griffin. Gini Dietrich: And I’m Gini Dietrich. Chip Griffin: Gini, I’m getting out. I’m done. Gini Dietrich: Finally. Chip Griffin: Finally. It’s all over. Maybe we can have a click bait headline or something like that on this episode. I quit. Gini Dietrich: I quit. Chip quits in a fury. Chip Griffin: You know, I really hate all those YouTube videos where that’s, you know, they use that as the thumbnail or something like that. And it’s just like, you know, I’m not going to, I’m going to, you know, stop drinking coffee or something like that. Okay, great. Like, what does that have to do with anything? Gini Dietrich: Right. Chip Griffin: No, we won’t do that. We’re not, we’re not that clickbaity. We’d like you to listen. We’d like you to click over but not at the expense of our ability to have a straight face and pretend that we’re serious. Gini Dietrich: Right. Be somewhat intelligent. Chip Griffin: But we are gonna talk about exiting because it’s been a while since we’ve talked about the different ways that, that agency owners can leave their businesses. And this is something that continues to come up on a regular basis. I talk with, with plenty of agency owners who are thinking towards the future and trying to figure out what is their exit strategy for the business. Either because they’re burned out, fed up and, and want it sooner rather than later, or because they’re just trying to think somewhere down the road, you know, what is, what is my objective here? What is the point of all of this? And so I think it is helpful for anyone who owns an agency to be giving at least some degree of thought to how they might want to exit the business someday, with the understanding that a lot of it is not really fully within your control. So you have to be flexible and adapt as things come up and as your life changes or as the business changes and that kind of stuff. But you should be thinking about the different ways that