The Case for Small Agencies – Why a boutique is often better.
As members of the DBA, I was recently digesting the annual ‘What Clients Think’ report which provides agency owners with an insight into the barriers and opportunities of the agency-client relationship. There’s a section on winning new business and the top 5 reasons why a client would not choose a small agency. Having learnt my craft at the world’s largest ad agency (McCann Erickson) and now at the helm of our very own boutique agency for almost 18 years, I felt compelled to pen some thoughts on the pros (not cons) of working with a smaller agency.
1. Account Management isn’t strong enough.
The perception that those bigger budgets and complex projects demanding tight project management wouldn’t get the same robust approach in a small agency is something I’d love to challenge.
Firstly, account management has always been seen as the poor relation of creativity. When I started in the industry, we were called ‘suits’ for a reason and often seen as an unnecessary surplus to requirements for the majority of owner-managed businesses or SMBs. I know of agencies that don’t even have account management at all and it sends a small shiver down my spine. I’ve also experienced account management in corporate agencies that can be paralysing, diluted and a little bit ‘smoke and mirrors’. I’ve also seen first hand a sizable global agency without any systems or processes. And I mean zero – yes I was shocked too. Sometimes perception isn’t a reality.
Truth is a team of 17 individuals working across account management, design, motion and PR. I’d argue our account management is very robust. When we founded Truth almost 18 years ago, I was able to take the frameworks and systems I know work, avoid those that don’t and create a streamlined process that hasn’t let me down yet. We have a process for strategy that’s not only proven to work, but also hugely efficient time-wise; design sprints are the new workshop in our world – only faster and more productive. I’m a huge advocate for a good written brief. Great brief = great output. Our briefing template is a focused document that gives the creative team enough to work with, without being overwhelmed or bogged down in unnecessary detail. Our finance system is efficient and bomb-proof. For me, finance is a bible – it’s not just about being commercially viable, it’s about profitability, growth and that all-important fall back plan should the worst ever happen (it hasn’t yet, but you never know). Our scheduling tool works seamlessly, it tracks hours without forcing creative types to make up their timesheets (yes they all do it and no, you can’t ever get them to do things any differently –I should know, I’m married to one). Reporting delivers not only expectations but also return on investment. Client teams are often too busy and too stretched, it’s our job to make their lives easier. And when things go wrong (which let’s face it, sometimes they do), an experienced account handler will know that a contingency plan, managing client expectations and delivering what we say we will, always goes a long way.
2. There’s not enough capacity.
Darren, my cofounder and husband, sees problems as things to be solved. It’s why he’s an excellent designer – probably the best I’ve ever worked with, and why we both break the ‘difficult’ down into lots of little easys. Capacity has never been an issue; we both lead by example – unlike a big corporate where the director might rock up to meetings but don’t actually get seen much after that – Darren and I work across ALL our clients. We’ve created a culture that means we all muck in. Might sound a bit parochial but in reality if we say we’ll do something, we will. We never sell a promise we can’t deliver but we do go over and above to deliver what we say. Again, it’s about managing client expectations. I’d argue that it’s because of our size, we are agile and efficient. It’s a definite plus, definitely not a minus. And before you ask, we rarely use freelance cover; it’s usually to help with holiday leave. We often regret it when we do – the design team are very particular and have spent many years doing things the Truth way; so they typically end up doing it again. False economy.
3. Smaller Talent Pool
Okay, so this I get to an extent. Some smaller agencies won’t have a bigger pool or employ teams with the same backgrounds or experiences. There’s also the perception that big agencies have more diverse nationalities in the team. I can’t speak for every boutique agency on this –but at Truth we have a team that’s predominantly from big agency background. McCann Erickson, Gyro International, Havas Lynx, TBWA, Mediacom; and client-side experience with Waterstone’s, Molton Brown and Fortnum & Mason. We’ve also employed people from South America, Spain, Italy, Kenya and Mauritius. It’s this big-thinking that Truth clients get to experience on a smaller scale. Without the fluff and from the people who’ll genuinely work on your business.
4. Lack of a network
As a single-site, smaller agency, will the team understand cultural nuances? We absolutely work on Manchester-based business, but we’ve also worked with some global giants like PZ Cussons, Reebok, Durex, Sinclair, Marriott and Fortune Brands-owned Global Plumbing Group across Europe (Shaws, Perrin & Rowe, Victoria + Albert Baths, Riobel and Aqualisa). And, that’s just at Truth alone.
We’ve also helped launch international brands like Riobel and Salford University, as well as the UK launch of American gluten-free brand UDI’s. We’ve got enough collective experience as a team to have touched most sectors and most markets. Collectively the years of experience across the team is unexpectedly high.
5. Bigger agency means safer financially
This is something I vehemently believe we can counter. It largely depends on the owners, how they run their business and if they see it as a lifestyle business or not. I’ve been in the industry long enough to know that a LOT of agencies are not commercially sound and will spend money they don’t have or operate on the wire continuously.
I’ve also been in a large agency where heads roll as soon as one client is lost. It’s not something that sits well with me and it would seriously keep me awake at night. I’ve spent years ensuring the agency is financially solid. It means that we’ve kept money inside the business, we’ve invested in a Grade II listed building and we’ve never spent beyond our means. We make sure the team comes before us and we have never counted our financial liabilities as a buffer for cashflow. We’ve been in business for 18 years. Our retained earnings are impressive and we can confidently continue operating if we drop a big client. Companies House will tell you a lot about how an agency is run financially. As a client due-diligence is something I’d strongly recommend.
Small isn’t always small
There are some big corporate agencies that are fantastic places to work. There are also some not so great examples, as well as smaller agencies that don’t take fiduciary duty very seriously. All I’d say is don’t discount a boutique agency for any of these reasons until you get to know what they’re capable of. Chemistry meetings are a great way to do this and can allay any fears you might have about going boutique. You never know, they might be a better option in terms of creativity, servicing and financial stability.