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How to Downsize Your Agency, with Carson Pierce — Ep.176

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Parakeeto

Parakeeto

Last updated Mar 28, 2025

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How to Downsize Your Agency, with Carson Pierce — Ep.176

Last updated Mar 28, 2025 | 0 comments

Parakeeto

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About this Episode

In this episode, Marcel and Carson dive into the uncomfortable but necessary topic on every agency owner’s mind right now—how to navigate uncertainty when your pipeline is shaky, cash feels tight, and decisions get harder by the day. They share real talk from their own experience trimming $7K in monthly expenses, the psychology of tough choices, and how to reframe downsizing as a strategic reset rather than a reactive panic. From assessing cash reserves to building data-driven staffing plans, this episode is packed with insights to help you stay lean, smart, and ready for whatever comes next.

Points of Interest

  • 0:00 – 0:23Small Cuts, Big Impact: Marcel explains how trimming small recurring expenses added up to $7K/month in potential savings.
  • 1:32 – 2:44Market Uncertainty Hits Everyone: Carson highlights how client indecision is stalling agency pipelines across the industry.
  • 3:04 – 3:23Opportunity in Unstable Times: Marcel frames uncertainty as a chance to optimize, streamline, and future-proof the business.
  • 4:02 – 4:36Sales Slowdowns and Staffing Pressure: Agencies must balance shrinking pipelines with existing team and overhead costs.
  • 5:02 – 5:25Avoiding Cost-Cutting Traps: Downsizing without strategy can hollow out delivery capacity and worsen long-term profitability.
  • 6:02 – 6:36Overhead First, Not Production: Carson shares a personal lesson on the importance of reducing overhead over core delivery staff.
  • 8:05 – 9:56Balancing Optimism and Cash Management: Founders must weigh hopeful projections against real cash reserves to avoid crisis.
  • 12:04 – 13:19Trigger-Based Decision Rules: Carson suggests creating clear, data-driven thresholds for when to take action—before it’s too late.
  • 17:03 – 17:22Austerity Exercise Yields Results: Marcel’s audit of seemingly small expenses uncovered significant monthly savings.
  • 21:01 – 22:37Smooth Transitions Are Possible: Fears around losing key people are often overstated—teams adapt and grow stronger.
  • 27:12 – 28:13Use a Payroll Grid for Clarity: Marcel introduces a framework for assessing roles, costs, and time allocation to guide decisions.
  • 34:10 – 35:06Profitability Benchmarks to Follow: Aim for ≤50% of income to delivery, ≤30% to overhead, and utilization of at least 50–60%.

Show Notes

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