When you run a marketing or advertising agency, you provide valuable services to clients. Marketing allows you to determine which specific products and services deliver value to consumers, while advertising focuses on refining the message in various media. Thus, you want to remain profitable so as to keep paying your executives and crafting immortal brand images.

Due to changing demands in the real world, however, you often have to draft relevant campaigns and adjust them according to the amount you spend and the revenue that you earn. A client’s product can go viral, and you have to assist with managing their image. Alternatively, a campaign may earn negative publicity and you need to backtrack and engage in damage control. Knowing how to manage both also involves understanding the numbers involved.

Financial forecasting helps you create a timeline for both costs and revenue. While some agencies have intense schedules to balance client needs, we always recommend making a plan and it doesn’t have to be complicated.   

Master Your Revenue Forecasting

DeepSky advises not to get overly complicated when doing revenue forecasting. While services can go line by line through income statements and  Too many details can bog down your plans, especially since real life can interfere with the best-laid timelines. You never know what is going to happen, good or bad, with your advertising or marketing services. 

When you are forecasting, you need to figure out what you want to accomplish within six months. Be specific but not overly detailed. For example, you can determine how much revenue you want to earn within that time period. You can watch our very detailed video on revenue forecasting in general, and you can apply these principles to marketing and advertising agencies. 

Once you have a goal, you determine your focal points by which to achieve it during the six-month window. These would be your top five priorities. Priorities can include how many people you want to hire to create campaigns and pitches, how many campaigns you want to launch, or how many clients you wish to acquire. 

Know how much money you have within available cash flow and how much you wish to enter into that amount. The minute you run out of money within company accounts, then your company is no longer profitable or operational, and you are in the red. If you know how much needs to be spent within a designated time period, however, then you can determine if you need to take out loans, increase prices, or have the money available to hire someone in-house or outsource instead. 

Refine Your Cash Flow With DeepSky’s Help

Do you need a wingman for your finances, who can show you the right way? We assist all sorts of businesses to ensure that you can get accounting and financial services at a fraction of the cost for an in-house expert. Our Financial WingmanTM program is built to provide customized support so that you know how to manage cash flow and income statements. 

Contact us today to find the right service for you. No market size is too big for us, and trust our team to help your marketing and advertising services grow. Get outsourced financial services and increase your profitability.