The Financial Shift That Transformed My Agency's Future
Starting April 2024, I implemented a fixed monthly salary for myself instead of directly taking all profits. I used to view Innvy and myself as one entity, but that's not sustainable for growth. To build a company, you must separate yourself financially, just like your employees.
The strategy now? Save remaining profits to build a 6-12 month operating cost buffer before considering additional profit-taking.
Why the change? As an agency owner, I want stability, not month-to-month uncertainty. Separating personal and company finances helps when:
📍 Clients ghost without paying
📍 We hit a slow period
📍 We want to experiment (new services, resources, key hires, or scaling strategies)
These scenarios require cash reserves to cover team salaries for up to a year, as they work for the agency, not clients directly.
Failing to save from the start can lead to:
Payroll struggles due to payment delays
Losing top talent if pay becomes unreliable
Lack of capital for growth opportunities
The solution?
Live modestly, save consistently, pay yourself reasonably. This separates you from the business.
Maintain healthy reserves to weather non-payments, retain talent, and seize growth chances.
While pocketing all profits is tempting early on, it can stunt your agency's long-term potential. Agree?
