What are some signs that an agency is seriously going under? (other than layoffs)

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When the new business pipeline dries up. Pay attention to the amount of pitches that are happening.

likesmarthelpful

^^^^scatter shot pitching 💯

likesmart

Pay attention to the client roster and look for 3 red flags:
1) If the agency is not bringing on new clients
2) If the agency is losing clients
3) If clients are cutting budgets and reducing spend

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💀

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If they are called 180, run.

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When the utility bills start coming in red envelopes.

likehelpful

The answer is: Yes. Yes it is.

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When employees checks are weeks late and leadership keeps avoiding questions

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You hear The Message by Grandmaster Flash playing on loop in the lobby

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When mandatory virtual town halls become a daily/weekly reoccurrence after 5 p.m. and your new president continues to use the words "radical transparency" when announcing huge client losses, layoffs, & top talent exits.

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And when your entire team of senior leadership restructures in less than one calendar year. You notice the good/original people slowly but surely being pushed out and an entirely new staff and direction the agency points in.

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not paying employees or vendors

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If they are owned by WPP, under the inane leadership of Mark Read

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If you’re in a holding co other agencies in that holding co might start poaching talent.,

Another one:

You start seeing rubbish and trash all over the place. Abandoned desks, cables, old hardware thrown out around the office. The junkyard of once a sucsessful vibrant space.

It's a different answer if you're part of a public company or a private company.

A sign is if they don't want to be transparent with employees about the money.

Everyone should feel entitled to understand these two basic questions:

What's our revenue? Are we scope only? Is there another way we get paid?

What's the margin on that revenue? How do we increase margin?

What's our monthly burn? Basically, what does it cost to keep the lights on all things included.

If you're part of a public company, X agency in WPP, a percentage of your company's revenue (typically not the profit but the revenue) gets kicked to the hold co. It's why margin creation is so important. If the agency is having a hard time meeting its obligation to the parent company, you can expect changes or consolidation.

If you're private it's a different matter. Then it's up to the majority equity stakeholders their appetite for lower payouts or more investment.

Huge parties, no promotions

When new clients are small, tiny budgets and then leave

When timesheets become harder to do because you're not 100% covered in client budgets anymore..um..miscellaneous..general admin..should I just put in sick leave?

Just put it all under ‘pizza party’

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