Somebody messaged me today in need of advice. They're considering starting an agency and wanted to hear about my experience. After typing up my response, I realized that others might find it helpful. I've expanded on the advice below, but I've tried to keep the integrity of what I shared in my message.

Firstly, keep your expenses incredibly low. Having a big team is lovely for vanity. But, it's not necessary—especially within the first couple of years. Overhead is a guillotine. It kills more agencies than French aristocrats at the end of the 18th-century. You're far better off staying small and nimble. This isn't just smart from a cost perspective. It also allows for speed. If I were a betting man, the next great agency won't be a big name like Ogilvy, but an indie shop you've never heard of.

Take hiring full-time employees seriously. Never bring someone on if you don't have enough dough in the bank to give them a proper home for at least a year. Agencies are inherently volatile. Be transparent about this volatility. Early on, you should build great relationships with talented freelance creatives. When you find undervalued talent, invest in them. Never underestimate loyalty. It's as important to an agency as creativity. Notice when times get hard, as they inevitably will. Take note of the first ones who jump out of the boat and swim to shore at the sight of raging rapids. When you find a creative who is loyal, hire them—assuming you have the money to do so. You can always develop talent. You can't develop loyalty. Folks either have it or they don't.

As far as closing new business goes, take an old-fashioned approach. This is a relationship business. When a CEO or CMO is looking to hire an agency, they're not consulting ChatGPT. They're not perusing LinkedIn. They're not reading the paid ads on Lord knows what platform. They're picking up the phone and calling other CEOs and CMOs they trust, respect and admire. In the words of Tony Soprano: "This is a face-to-face business." Get your ass on a plane. There isn't a damn thing romantic about Zoom. More than this, do great work. Every agency I admire—Day Job, Mischief, Gretel, BBH—has one thing in common. They do extraordinary work. Day Job's work is so goddamn good, the CEO posts it on LinkedIn with a single, one-line caption: Day Job did this. The work speaks for itself.

Lastly, prepare for 2-3 years of absolute hell. Starting an agency has been the hardest thing I've ever done. You wake up every day and get punched in the face. This doesn't mean you shouldn't do it. It can be hugely fulfilling. But, know what it is you're signing up for. The flashy days of Mad Men are far behind us. These days, agency life looks more like a dogfight. Fortunately, the difficulty of running an agency also becomes a competitive advantage. Not a lot of people have the stomach for it. If you can endure for long enough, your competition will take care of itself.

Godspeed.