Agency Survival Guide: 6 Steps to Stay Financially Strong in a Slowing Market
Over the past several months, I’ve heard a lot of the same things from agency leaders - clients are pulling back, projects and media buys are stalling, and new business seems harder (and slower) to close. Whether it's general economic uncertainty or cuts to federal and state budgets, it seems that everyone has started to feel a bit on edge as we head into the second half of 2025.
If your agency is in this position, you’re not alone. I believe now is the time to get sharper and more intentional so that you can operate from a place of confidence, not panic. Agencies that emerge stronger from downturns are those that take a hard look at their operations, cash flow, and client mix, and make informed decisions before they’re forced to.
Here are the top 6 things I’d recommend focusing on right now:
1. Protect Your Cash Position
Your number one priority should be building (or maintaining) at least 4-6 months of runway to cover operating expenses. If you don’t, start now. Trim non-essential expenses, re-forecast multiple scenarios, and make sure your leadership team knows what levers can be pulled if things tighten further. Liquidity gives you flexibility and peace of mind.
2. Clean Up AR, AP, and Payment Terms
Cash flow issues usually show up in accounts receivable first. Audit your aging AR, follow up, and get firm on late payments. And at the same time, review your accounts payable and see if there are opportunities to renegotiate terms or pause unnecessary spending. If your current client terms are NET 60 or longer, consider adjusting them where you can - even partially - to better align with when work is actually happening. Try to get more cash earlier.
3. Tighten Revenue Tracking and Forecasting
If you’re only looking at signed revenue, you’re missing the full picture. You need visibility into actuals, forecasts, and at-risk revenue in real time. Whether it’s a simple spreadsheet or a more advanced system, make sure you’re tracking every potential dollar: new biz in the pipeline, pending renewals, upsells, and existing scopes at risk of shrinking.
4. Get Clear on Client Risk and Profitability
Now is not the time to carry too many unprofitable or unstable accounts. Identify clients that:
Consistently run over budget
Require constant hand-holding
Are slow to pay
Miss deadlines and cause delays
Then take action. That might mean restructuring the scope, increasing rates, or, in some cases, winding the relationship down if things seem untenable. The goal is to protect your margin and free up capacity for better-fit work.
5. Reevaluate Your Team Structure and Delivery Model
Take a hard look at your staffing model. Are roles aligned with your current service mix? Is your team stretched too thin or underutilized? Consider shifting some roles to contract/flex, cross-training team members, or realigning responsibilities to reduce dependency on any one person and allow others to grow and learn. This doesn’t have to be about cutting - it’s about making sure your team is structured to handle today and tomorrow’s workload, not last year's.
And don’t forget - talent retention is critical. Make sure your top team members are well supported - operationally, emotionally, financially, etc. - as you navigate the next 6-12 months.
6. Build a Faster Financial Modeling Muscle
It’s the ad world - things change fast. You need the ability to quickly model scenarios when something shifts, a client drops out, a new deal closes, a team member resigns, or a major scope changes. Build a model you can use to scenario-plan in real time. Your leadership team shouldn’t have to wait days or weeks to understand the impact of key decisions. Timing is critical here.
Closing Thoughts
As we all know, this industry is cyclical. In the good times, it’s easy to ease off the operational side of the business - especially when new business or exciting client work is taking center stage.
I always recommend making sure your agency is running like a well-oiled machine, and this period of uncertainty is a great opportunity to do just that. Use it as a moment to clean up what’s been overlooked, strengthen what’s already working, and put better systems in place to help you weather the storm.
If you want to talk through how to get a better handle on your operations or just chat about best practices, my inbox is always open.
Agency Diagnostic Tool
And if you haven’t seen it yet, I just launched a free tool that helps agency leaders quickly diagnose how they’re doing across key areas of operations.
Check it out here -> The Agency Diagnostic