From General Agency to Successful Niche Marketing Agency
This is the third of three posts from my interview with Ben Hagon, President, and co-founder of Intent.
Here’s the second post, From Employee to Agency Founder (with no real plan).
And the first, From Immigrant to Employee to Agency Founder.
By the fourth year of running Hagon Design, Ben wasn’t satisfied with how things were going.
While the company was busy, it felt unfocused. Ben wanted to change that.
Since he was occupied with running the company, Ben decided the best way forward was to get an outside perspective.
He hired a management consultant with whom he had worked on client projects. Ben had two questions for him. Should we have a niche? If so, what should it be?
LESSON: When your business is creating solutions for clients, you assume you’ll be able to do the same for yourself. But it’s hard. Ask anyone trying to write and design their own website. Hire a qualified professional (isn’t that what you tell your clients?). Pay for fresh thinking from a 10,000-foot perspective. You’re too close to it.
How to Choose a Niche: Build on What You Have
The consultant came back to Ben with one firm answer and a choice.
The answer? Yes, the agency should have a niche.
The choice? The niche should be in one of two business sectors that were predominant at the agency. Choose either construction companies or non-profit organizations.
This recommendation was based on the agency’s experience and the potential for growth in either sector.
LESSON: If you’re looking for a niche, look at clients you already have. Build on your industry knowledge and expertise. Also, be sure the niche is big enough to support your growth.
Choosing a Niche Also Means Letting Go and Making Changes
After some thought, Ben and his team chose non-profit as the company’s new focus.
Why non-profit? Ben liked that the clients worked collaboratively. He found the work more interesting. It gave the team satisfaction that they were putting out information and messages that would be useful and truly help people.
Over time, they let go of the clients who didn’t fit the niche, sometimes helping them find new suppliers.
The most significant visible change was the change of name from Hagon Design to Intent with a clear message: “Intent is Canada’s creative communications agency for non-profit organizations”.
From Ben’s perspective, ”If we’re going to do it, then let’s go for it.”
LESSON: Narrowing focus also means letting go of other clients. At first, that can be tough on the bottom line. You’re letting go of hard-won business. It also means communicating the new you. For Ben, that included a name change and all the time and costs involved in that transition.
How to Build an Agency in the Non-Profit Niche
With a new focus, it was time for Intent to build up the business. But how?
The fresh branding played an important role. While many agencies had some non-profits on their client roster, Intent came out boldly to let the sector know, “we’re here for you”. That got attention and helped word-of-mouth with existing clients.
Attracting new clients meant responding to RFPs. It’s the nature of the non-profit sector. These organizations answer to boards and have to follow a transparent process for how they spend their budgets.
Early on, Intent landed a major client through an RFP which boosted its profile in the sector. They also had partners send them references to suitable RFPs. Soon, they became very efficient at responding to RFPs.
Today, Intent doesn’t answer “cold” RFPs. They only respond to RFPs when they are specifically invited to participate.
LESSON: Many agencies and freelancers shy away from RFPs. They can be a lot of work. But that’s how some sectors do business. So, if you want to work in those areas, get good at RFPs. Also, be selective. Evaluate the RFP to ensure you have an excellent chance of winning the business.
More about RFPs—Should You Respond to Them here.
The Pandemic Was Good For Business? How?
The early days of the pandemic were a very confusing time for everyone. For Intent, the first four months were terrible.
But then things started to change. Organizations were adjusting to the work-from-home model, and one day they woke up and said, hey, we haven’t done anything for months. We have to get going, get caught up.
Business grew by about 250%. Intent became a vendor of record for the province of Ontario. That brought them government projects and projects that aren’t strictly government but for organizations funded by various ministries.
LESSON: You can’t predict everything. Who would have thought that the pandemic would bring more business? There are so many stories saying just the opposite. Also, becoming a government-approved vendor has brought them unexpected clients—not government, but government-funded. Sometimes you don’t know what’s behind a door until you open it.
Google is #1 for New Business. Seriously?
Ben says, “Google is our number one source of business. It’s just crazy. We get so many inquiries through Google searches. It’s insane.”
For many agencies, their website is just wallpaper. Their sites don’t bring them much business.
Why is it different for Intent? Simple. Their site is well-written, tightly designed, and hyper-focused on an important niche. That brings a steady stream of targeted traffic.
LESSON: Whether you’re an agency or solo freelancer, having a focused website can make a massive difference to your business. You’d think everyone would know this by now, but some people still don’t get it.
Critical Agency Growth Factor—Hiring Competent Account Managers
Many small agencies are built around their founders, who, like Ben, are designers or writers. It makes sense, and the conventional thinking is that clients value direct access to the creators, with no middle people.
That’s conventional thinking. But as Ben learned, it’s not always the best thinking.
There are a few problems with this model. First, it splits the time of the creator. They are no longer fully creators nor fully account managers. Also, creators are often big-picture thinkers. That’s a nice way of saying they may not be focused on following up on every detail. And then there’s just the matter of time—they’re trying to do two jobs and run out of hours.
At Intent, the account managers handle the day-to-day liaison with clients. But clients know Ben is always available and shouldn’t hesitate to contact him.
Hiring account managers fueled Intent’s growth. It has changed the work they qualify for, getting more prominent campaigns and repeat business.
The account managers handle presentations, and once Intent gets the business, they take care of all the documentation, contracts, etc.
Ben said, “In the client’s mind, you go from a small graphics design studio to a service-based agency. It just changes everything. You have people keeping a close eye on the projects, and for clients, they have someone to talk to who’s not the ‘boss’.”
LESSON: At a certain point in the growth curve, you must go beyond the founders. Competent account managers make sure all details are covered. They also act as the clients’ voice in internal meetings. It’s an essential step in any agency’s growth trajectory.
If you’re thinking of starting an agency or growing your existing one, why not learn from someone who’s done it all? You’ll find lots of practical advice in my book, How to Start a Successful Creative Agency. It’s the essential business guide for graphic designers, copywriters, filmmakers, photographers, and programmers.
Buy the Book Here
Over 300 pages and 23 chapters, available at Amazon (Paper & Kindle), Kobo (ebook), Apple Books (ebook), and Gumroad (PDF).
The book is packed with useful information to help creatives start and grow their business.
Invaluable!
“Hey Andy. I recently finished your book and absolutely loved it. I myself am starting a design business with a colleague and it’s already been invaluable for us. It’s helping us organise the million things we have going on in our heads prior to the jump from full time Hope you’re well. Thanks again for the great read.”
Cheers Will (from email)
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This chapter covers essential areas such as Clients vs. Projects, Corporate Clients vs. Small Business Clients, How to Create an Opportunity Document, Benefits of Finding a Niche… and much more.
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