Joshua Nelson learned from mentors Greg and Ray Crabtree that agencies must maintain a minimum 10% profit margin as they scale, with owner compensation coming from that profit pool. Strategic consulting helped his agency reach over $5 million in annual revenue.
Chapters
One of the things I learned from one of my financial mentors, Greg Crabtree, Simple Numbers, Big Profits, was just this idea that as you grow and as you scale your agency, you're going to be spending money and you're going to have revenues coming in and we want to have a profit. But Greg really makes the case that there has to be a profit and it should be at least 10% regardless of how fast you're growing. The owner's compensation needs to be factored into that profitability. So as you grow your financials, as you grow your agency, profit is mandatory. And then making sure that you're paying yourself and your business partner, if you have a business partner, a wage that's coming out of that profitability to get your true minimum profit within the company. And it should be at least 10% regardless of how fast you're growing. And what's interesting is before I invested in additional training and consulting and support from Ray Crabtree, we just followed the process. We said, look, this guy knows what he's doing. He's got great information. We let him come in and support us and help guide us through this process. And today our agency is doing over $5 million per year.
