Have you made hiring mistakes that affected your agency's growth? How long did it take you to course correct before it was too late? Wrong hires can become a cancer inside your agency that leaves you exhausted and overworked. Today’s guest started her agency as a very small operation and turned to friends when it came to hiring. However, she soon realized that friendships don’t always translate to the best work relationships. She was micromanaging, losing money, and losing confidence in her ability as a leader. In a bold move, she took control of the situation by shutting down her agency at the end of the year. She decided to create new rules, enforce them, and see who really remained after the agency’s direction was made clear. Tune in to learn she saved her agency, gained confidence as a leader, and built the team she needed. Danielle Reid is the owner of DR and Associates, a creative agency specializing in communications, diversity, and multicultural marketing. They do brand and project development, and growth campaigns for start-ups and helps all size business and achieve results through strategies that connect while using innovation and expertise. In this episode, we’ll discuss: Rapid growth and getting to 7-figures in four years. Why you should always ask for a budget. Pulling the brakes to correct hiring mistakes.   Subscribe Apple | Spotify | iHeart Radio Sponsors and Resources Gusto: Running payroll and benefits is hard. Especially when you’re a small business. Gusto is a tool that helps make payroll, benefits, and HR easy for small businesses. You no longer have to be a big company to get great technology, great benefits, and great service to take care of your team. For a limited time, Gusto is offering a deal to Smart Agency Master Class listeners. Check out Gusto.com/agency for 3-months FREE once you run your first payroll with them.   The Biggest Challenge with Getting to 7-Figures in Four Year Danielle worked for a Big 6 agency as a senior manager for a long time and loved being the person pulled into projects that needed saving. However, she craved new challenges and eventually got bored. She left agency life to work for the Navy, a new and exciting challenge that validated her leadership talents. She realized she was the expert in the room, which fueled her motivation to one day own her own agency. After a brief stint at a corporate job she realized it was the right time to become a business owner, so she started her agency, DR & Associates. Looking back, the growth they’ve seen since 2019 has been amazing, hitting over 7 figures in just four years. However, despite the rapid rise, pricing was the first big obstacle she struggled with. Agency owners often see low pricing as a strategy to get started and build a client list. Like many before her, Danielle wasn’t thinking about her profit margin. She figured she’d just charge low prices to have a competitive advantage. How did she measure success? It was all about making an impact on companies she believed in. Many businesses couldn’t afford a $25,000 retainer but had great potential for growth. This approach is often driven by a desire to attract clients and gain experience in the field. However there are risks associated with low pricing. It’s important to consider the implications of this strategy and its long-term effects on the agency's growth and profitability. A Crucial Turnaround: Why You Should Always Ask for The Budget The first moment that represented a crucial turnaround for Danielle was her first 6-figure contract. A non-profit client needed help with social media strategy and ended up hiring her agency. She was stunned to find their budget was $180,000 but was glad to have asked for a budget beforehand. This contract dwarfed her previous record of  $4,000 so it was a huge step in the right direction. This enormous deal affirmed her value while fueling accelerated growth. Still, Danielle doesn't apply a one-size markup. Especially with budget-limit