How to Build a Successful Agency, with Nick Kremer
This week, I welcome Nick Kremer to the show. Nick has been a serial entrepreneur since he was 23 and has spent the last 12 years investing all of his time and effort into Driven Leads and their clients. Nick discusses how to build a successful agency by prioritizing cash flow and avoiding business debt. Hear insights about:
- Why finding and staying in a niche is more efficient and financially beneficial for entrepreneurs
- The most common mistake that new agency owners make when starting out
- Why Nick has remained a W-2 employee and hasn’t taken any dividends from his company
- How giving employees more independence can save business owners time
- When entrepreneurs should develop an exit strategy
- Why prioritizing cash flow and avoiding debt is crucial to a successful business
Setting Your Business Up for Success
It may be appealing to start your business as a jack-of-all-trades, thinking that you’ll have the potential for more work. In actuality, the riches are in the niches — settling on a specific area of focus allows you to become a go-to expert in your industry. Choosing a niche sets your business up for success from the beginning.
My guest this week on the Progressive Agency Podcast is Nick Kremer. He has been a serial entrepreneur since he was 23 and has spent the last 12 years investing all of his time and effort into Driven Leads and their clients. Nick joins me to discuss how he accidentally found his niche (GoogleAds), and what he did to build a successful agency around it.
Focusing on Your Cash Flow
What’s the most common mistake that new entrepreneurs make when starting? Not focusing on cash flow. During our conversation, Nick shares an example of a good friend who recently started a business and almost immediately started making $30k a month. He explains why his friend should not pocket any of that money – instead, he should be investing it back into his business.
Your company needs money to be able to flourish and grow, so you need to reinvest in your business. You have to look at taking that money that you’re making now and predict where you’re going to need it in 6-12 months. Most businesses don’t fail because the person doesn’t work hard, they fail because they made the wrong financial decisions. That is the reason why it’s crucial to be educated on cash flow and business debt.
Managing for Efficiency
Entrepreneurs may also want to consider remaining a W-2 employee in their business, like my guest Nick Kremer. Nick explains that he does not take dividends from his company, but instead chooses to invest that money back into his employees.
Nick values investing in his employees, but he quickly learned that he was spending too much time managing them and their tasks. He recalls, “I had my door open too often, which slows down the process of anybody that has the door open to answer questions.”
Nick discusses how he changed his process to help his employees find solutions for their questions, eventually leading them to depend on his guidance less and less. Coaching your employees to be more confident and independent ultimately leads to more efficiency in the business.
How to Connect with Nick Kremer:
- Website: https://drivenleads.com/
- Facebook: https://www.facebook.com/DrivenLeads/
- LinkedIn: https://www.linkedin.com/in/nickjkremer/
- Twitter: https://twitter.com/nickjkremer
About Nick Kremer:
Nick has been a serial entrepreneur since he was 23 and has spent the last 12 years investing all of his time and effort into Driven Leads and their clients. Many people find themselves becoming an entrepreneur for several different reasons like freedom, money, and building on an idea. Nick came to the world of entrepreneurship because he was raised in a world where most of his family were business owners, farmers, and people that paved their own path. The greatest reward of running his own business is seeing his clients and employees have a better life as a result of working with him. Whenever he is asked about his exit strategy from his current business, his answer is a quick one-worded response – death. He genuinely enjoys being able to lead his team every single day.