TSN #26 - Agency Operating System

Hey! 👋

This week's idea was inspired by Tamaribuchi, a consultancy founded by Metalab's former COO. Having unsuccessfully run an agency myself, I can tell you - there's massive opportunity in helping them run better.

Enjoy!

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🎬 The Pitch

Imagine building a consulting practice that transforms chaotic agencies into well-oiled machines. There are thousands of digital, dev, marketing, and creative agencies struggling with the same problems: unprofitable projects, team burnout, and operational nightmares.

Here's the concept: Position yourself as the agency whisperer - someone who's been in the trenches and knows how to fix these problems. You'd work with agency owners to implement systems, processes, and cultural changes that transform their business. With the right approach and positioning, you could charge €10-30k per engagement while building a portfolio of success stories.

The best part? This business leverages pure expertise - no tech stack needed, no employees required, just your knowledge and a proven framework for fixing agency operations. I hear “productized” in the background.

📊 Market Insights

The agency market is ripe for optimization:

• Over 120,000 agencies in the US alone

• 75% of agencies have fewer than 10 employees

• Average agency profit margin is only 11.4%, in many cases even less

• 68% of agencies struggle with project profitability Source: Agency Benchmarks Report 2024

💡 The Concept

Core Service Model:

• Deep-dive agency assessment

• Operations and process optimization

• Team structure and culture improvement

• Profitability enhancement

• Implementation support

Service Packages:

1. Diagnostic Package:

   • 2-week assessment

   • Detailed recommendations

   • Implementation roadmap

2. Full Transformation:

   • 3-6 month engagement

   • Hands-on implementation

   • Team training

   • Systems setup

3. Ongoing Advisory:

   • Monthly check-ins

   • Growth planning

   • Performance monitoring

   • Could be done on a fractional basis

💰 Revenue Streams

• Primary: Project-based consulting (€10-30k per engagement)

• Secondary: Monthly retainer for ongoing fractional COO support (€2-5k/month)

• Additional: Process templates and playbooks (€1-2k per package)

• Workshop facilitation (€5k per day)

🛠️ Bootstrappability Score: 9/10

Start with just your expertise and a laptop. Main investment is in building your framework and materials.

💻 Non-Tech Factor: 6/10

While you'll deal with agency tools, the business itself is pure consulting. Focus on expertise and relationships.

🚀 Getting Started

1. Build Your Framework:

   • Document common agency problems

   • Create assessment templates

   • Develop process playbooks

   • Build ROI calculators

2. Define Your Service Offerings:

   • Create clear packages

   • Set pricing tiers

   • Develop deliverables

   • Create case study format

3. Initial Client Acquisition:

   • Target 5-25 person agencies

   • Offer free mini-assessments

   • Network in agency communities

   • Share insights on LinkedIn

4. Delivery Process:

   • Initial assessment phase

   • Recommendations workshop

   • Implementation support

   • Progress tracking

   • Results documentation

💪 Pros & 😓 Cons

• Pro: High-value, high-margin work

• Pro: Clear ROI for clients

• Con: Need significant agency experience

• Con: Projects can be emotionally draining

🔍 Steal Somebody’s Homework & Dive Deeper

Want to explore this idea further? Check out:

• Tamaribuchi - Agency operations consulting

• Parakeeto - Agency profitability experts

• Digital Agency Coach - Training and consulting

Got agency horror stories or transformation successes? Share them!

- Slavo