Many agencies are feeling the C19 squeeze and cashflow runways are running out. Paul Winterflood from Moore Kingston Smith joins us to explain the critical KPIs that all agencies should be shooting for and where to financial management. These are magic numbers for marketing agencies.
- Staff costs as a percentage of Gross Income should be no more than 55%. 60% is the non-stretch target
- Gross income per head should equal £120,000 or more. The non-stretch target is £100,000
- Overhead cover should equal three months’ worth of overheads in net current assets as a minimum
- Operating profit should be 20% or more
- Revenue growth should exceed 10% per annum in normal times
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