Marketing keeps speeding up and getting more complex, so clients keep asking agencies for more – broader strategy, complementary services, and real-time integration to make a bigger difference in the marketplace. As a result, a lot of independents are tempted to entertain cash infusions. 

While understandable, the money focus is shortsighted. Cash alone won’t make an agency bigger, stronger, or more future proof. In fact, more than half of the conversations I have with owners stall when I ask what they’d do with the extra money they think they need. As soon as they start thinking about why they need it, most realize they’re hung up on the fundamental idea of “more.” 

That underscores a reality check and truism: You have to know what your agency needs before you can strengthen it. And, growth capital comes in many forms beyond cash. Growth means different things to different people - you need to define what this means for you and for your agency - revenue? profit? headcount? client retention? something else? 

Think about why you started your agency. Maybe the agency you worked for was swelling but not really growing, and there was no room for you to expand your role, impact, or fulfillment. Do you want to replicate that? 

Small agencies need distinction. You can’t be everything to everyone. You need to know what your real story is, so stakeholders understand it, and talent knows who they’re coming to work for and what they can accomplish there. Getting crystal clear on the partnerships you’re going to build and why. Growth may mean fewer clients and people, but more focused and profitable. 

Usually, it entails three additional types of capital that are about how you work. 

Intellectual capital. Agencies tend to overlook the importance of securing their intellectual capital - whether it’s because of time, interest or other priorities. When the intellectual capital leaves, this will impact how you differentiate yourself from your competitors, your overall profitability, and your long-term sustainability. Assess where you have gaps in knowledge, skills and abilities. What controls do you have in place to ensure that when people exit your organization, the intellectual capital doesn’t leave with them?  

Human capital. Are you building, buying or borrowing talent? Growth means people stay and build with you. That’s inner strength. If you’re building talented teams, you’re continually expanding your value to clients. You get smarter on client business, faster at generating ideas, and more in sync when creating work. 

Intellectual capital attracts and binds human capital, which is a prerequisite to developing relationship capital.  

Relationship capital. It’s hardly a secret that agencies are in the relationship business. When you focus on your relationships, you create the possibility of exponential connection and growth from unforeseen angles. Relationships mean more than clients. Think current, former, and prospective employees, and all the allies, partners and suppliers your business depends on. How are you bringing them all into the business today? Consider sharing stories of creating and putting out great work, wins and lessons learned along the way. And credit everyone directly or indirectly involved. You’ll strengthen your connections and bring them together. 

All this capital comes together in the right clients. For most smaller agencies, bigger isn’t better. The “when we finally get in with the really big brands” instinct ultimately stunts growth. The right big idea is how a prospective client is prepared to value and work with you. Are they interested in collaborating with you and your team? Do they value you as an agency partner? Are they allowing you to experiment? Are they a client you are proud to work with?   

When you’re focused on right, your whole agency feels it. This week, I heard an agency talk clearly about what clients are right for them - and it didn’t come from the owner. But it was very clear that the owner is talking to her team about how they win and who they can do their best work with. And now that message extended to a table full of allies for that agency.  

If you don’t have clarity on what growth means, a bucket of cash won’t support your organization. You need to define the culture of your agency, who you’re supporting, and why you’re supporting those businesses. Then you’re poised to grow in the right ways.