Ep 116: Are you building a valuable asset?

Subtitle:

What do you think of when you hear the word asset? Most people think of stocks, real estate, or some kind of commodity. While all of those things can be a wise investment, those aren’t the type of assets we’ll be talking about. Instead, we’ll be exploring how to build valuable assets and create investments for and within your business. We’ll also talk about verticals, the flywheel concept, business initiatives, AC units, and more on this exciting episode!

 

Summary:

In today’s episode, we talk about building valuable assets. One way to build a valuable asset is to expand into another vertical. Having a focus and a skilled speciality is important, but it’s crucial to look for another vertical where those skills can be marketed. Most agencies already have a valuable asset, knowledge from their experience. This is something that many businesses highly value. Raising your prices, looking over your fixed pricing, and communicating with your clients are a few ways to prepare for the coming year while also retaining your business. Keep an eye out for any opportunities that may come your way, often, the best opportunities come during harsh conditions, so be ready for them. In this episode, we also talk about the flywheel concept. We believe that this concept is a great system that will allow for healthy growth and the creation of assets. Be aware of the state of the economy and ways you can prepare and invest before it's too late. 

 

Top 3 Curtain Pulls in this episode: 

 

• Expand into other verticals. Having a niche and expertise is important, but don’t limit yourself too closely otherwise you will eliminate opportunities for growth and diversification for your business. Instead, do some research on verticals you think would be a good fit for your business, and choose a few to expand into. “What are those verticals that maybe you've been considering or thinking about that you can go in and apply the knowledge that you've had success with in other verticals?”

• Use your knowledge to your advantage. Everyone’s heard the saying “Knowledge is power”, and when it comes to agencies, it’s also a marketable asset. Take some time to reflect on skills or knowledge your business has obtained and create an asset out of those things. “What is the asset that you're creating? In the agency space, it's knowledge. So then how do you exploit that in a bunch of different places? How do you grow that? How do you protect it?” 

• Look for opportunity. When trying to create an asset or make an investment to benefit your business, keep an open mind. It’s important to not look for opportunities through a telescope. Diversification is crucial. Whether you’re expanding to a new vertical, starting a new business initiative, or discovering an asset you already have, keep an eye out for opportunities, they often show up during hard times. “This is an opportunity for agencies.”

 

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About The Guys: 

Bob Hutchins: Founder of BuzzPlant, a digital agency that he ran from from 2000 -2017. He is also the author of 3 books. More on Bob: 

• Bob on LinkedIn
• twitter.com/BobHutchins
• instagram.com/bwhutchins
• Bob on Facebook

Brad Ayres: Founder of Anthem Republic, an award-winning ad agency. Brad’s knowledge has led some of the biggest brands in the world. Originally from Detroit, Brad is an OG in the ad agency world and has the wisdom and scars to prove it. Currently that knowledge is being applied to his boutique agency. More on Brad:

• Brad on LinkedIn
• Anthem Republic
• twitter.com/bradayres
• instagram.com/therealbradayres
• facebook.com/Bradayres

Ken Ott: Co-Founder and Chief Growth Rebel of Metacake, an Ecommerce Growth Team for some of the world’s most influential brands with a mission to Grow Brands That Matter. Ken is also an author, speaker, and was nominated for an Emmy for his acting on the Metacake Youtube Channel (not really). More on Ken: 

• Ken on LinkedIn
• Metacake - An Ecommerce Growth Team
• Growth Rebel TV
• twitter.com/iamKenOtt
• instagram.com/iamKenOtt
• facebook.com/iamKenOtt

 

Show Notes:

[0:40] Ken opens this week’s episode with a chat about the weather in England and AC.

[3:32] Bob asks the guys if they’ve seen the impact of the economy for their businesses.

[3:43] Brad talks about how he’s seen a lot of financial preparations for the coming year.

[5:20] Ken discusses how he’s seen a lower level of consumer spending as well as, “opportunity to grow.”

[11:17] Brad talks about the differences between the 2008 era and the state of the economy today. “I think the case right now is that it's gonna be a slow progression of cutting 10% of their fat. And I think that's healthy, because there's always 10% fat you could cut out of your business, and they're just using this as the opportunity to do it.”

[12:02] Bob discusses the opportunity to explore other verticals and how to use the knowledge you’ve acquired as an asset.

[14:44] Brad talks about the importance of having a balance of having a, “mix of clients that will sustain themselves when the market changes.”

[20:26] Bob discusses the opportunity to revisit the fixed pricing on your contracts to help retain clients during the challenging economic times ahead.

[23:41] Bob talks about the wide variety of things most agencies do and the opportunity to pitch them to existing clients.

[24:47] Ken asks the guys, “are there any new business initiatives that you guys are launching?”

[25:02] Brad talks about his business’ new vertical, the trucking industry.

[31:36] Ken discusses Metacake’s business initiative, Dough Capital as well as some of the niches they have that set them apart and provide opportunities for growth and investment. “Over the last several years, we've put together essentially a capital fund for E commerce companies or direct consumer companies of a certain type. We launched that officially, earlier this year. It's called Dough Capital.”

[36:28] Ken breaks down the flywheel concept and how his business uses it.

[40:04] Ken talks about how he views agencies, what he believes their assets are, and how an agency can capitalize on their opportunities and assets. “What is the asset that you're creating? In the agency space, it's knowledge. So then how do you exploit that in a bunch of different places? How do you grow that? How do you protect it?” 

[45:16] Ken concludes this week’s episode by asking the listeners, “ Do you have a flywheel in your agency? Do you realize the knowledge and experience that you have the opportunity to create as an asset? And then what are you doing with that?”