How do you grow a business from a bedroom startup to a thriving agency? In this episode we’re joined by Simon Barbato, CEO and founder of Mr B and Friends. Simon shares his incredible journey of building an agency, navigating the challenges of the COVID-19 pandemic, and the strategic moves that led to significant milestones like acquiring Future Kings and launching a new London office.

Listen as Simon recounts the evolution of Mr B and Friends, how it bolstered its market presence and mastered the art of client engagement. Learn about the critical importance of cultural integration and operational synergy in ensuring successful mergers. Simon's insights into the competitive landscape of new business acquisition, the impact of external factors on client budgets, and the necessity of adapting agency models to emphasise outcomes over inputs are invaluable for anyone in the industry.

Simon also highlights the importance of resilience and patience in agency leadership, the shift toward value-oriented billing, and the joy of fostering a talented team. He passionately discusses the elements that make a business truly beautiful: significant impact, strong relationships, excellent employee experience, and having fun while achieving financial success. Whether you're an agency owner, a business leader, or someone interested in the intricacies of running a successful firm, this episode offers a treasure trove of insights and inspiration.

Takeaways

• Shaking up the traditional agency model is crucial for survival in the industry.
• Culture and leadership are key in integrating an acquired agency.
• Clean financials, strong governance, and a clear positioning are important for agency owners looking to sell.
• Having a growth opportunity and a compelling story can make an agency attractive for acquisition. New business development is tough in the current market, but agencies can still be successful by attracting inbound leads and maintaining a strong reputation.
• The agency model needs to change to move away from commoditising creative services and focus on delivering value and outcomes for clients.
• Resilience and patience are key qualities for agency leaders to navigate the challenges of the industry.
• Outsourcing and technology can be valuable tools in new business development, but they should be used in addition to, not instead of, human interaction.
• Shaking up the agency model requires unlearning old practices, educating clients about new approaches, and continuously fine-tuning the value proposition.
• Beautiful business for Simon means making a meaningful impact, building strong relationships, creating a positive employee experience, and having fun while delivering quality work.

Chapters

00:00 Introduction to Simon Barbato and Mr. B and Friends

08:24 Shaking Up the Traditional Agency Model

26:29 The Best and Worst Parts of the Acquisition

29:24 Key Considerations for Agency Owners Looking to Sell

31:24 Challenges of New Business Development

35:30 Resilience and Visibility in New Business

48:23 Transitioning to Outcome-Based Solutions

51:48 Shaking Up the Agency Model

01:00:29 Risks and Rewards of Changing the Agency Model

01:06:14 Defining Beautiful Business