Aug 25, 2021
Summary:
On today’s episode, we talk about where we think an agency’s profit should go to bring the greatest return and maximize your resources. It’s how you bring stability and value to your business. Disclaimer: this is not financial advice. Consult with your financial professional doing anything. We are not financial professionals, and we do recommend finding a real advisor who is invested in you and has your best interests in mind. Your investments are for the long game. We as humans are often so focused on the short term that we forget what this is all for.
Top 3 Curtain Pulls in this episode:
For more tips, discussion, and behind the scenes:
About The Guys:
Bob Hutchins: Founder of BuzzPlant, a digital agency that he ran from 2000-2017. He is also the author of 3 books. More on Bob:
Brad Ayres: Founder of Anthem Republic, an award-winning ad agency. Brad’s knowledge has led some of the biggest brands in the world. Originally from Detroit, Brad is an OG in the ad agency world and has the wisdom and scars to prove it. Currently, that knowledge is being applied to his boutique agency. More on Brad:
Ken Ott: Co-Founder and Chief Growth Rebel of Metacake, an Ecommerce Growth Team for some of the world’s most influential brands with a mission to Grow Brands That Matter. Ken is also an author, speaker, and was nominated for an Emmy for his acting on the Metacake Youtube Channel (not really). More on Ken:
Show Notes:
[0:32] Ken opens today’s episode and mentions that unfortunately, Bob is not on this week’s episode.
[2:03] Brad begins today’s conversation about the financial side of running an agency and discusses what he and Ken do to invest into their companies. “You're losing money, if you're just holding it. What do you do with it to maximize your return?”
[3:51] Brad points out that “we're not financial advisors, but you got to do something with it.”
[6:11] Brad talks about how he tries to maximize his resources and make as many returns on his money as possible. “the only way I can duplicate myself is to make my money work for me.”
[7:49] Ken discusses the balance of maximizing your resources but also taking the time to enjoy them. “I want to maximize it. But I'm rarely enjoying it.”
[11:43] Brad begins a discussion about the things that he and Ken do to help keep their businesses running through a downturn.
[16:17] Ken asks if there are some guidelines Brad has for taking out a line of credit.
[17:30] Ken talks about some strategies that he uses to help him make decisions with the business’ credit line. “If you're going to get a line of credit you need to know, under what circumstances you would use it. You have to have a predetermined plan.”
[21:31] Ken discusses his philosophy about the importance of profit and investing that profit to improve your business. “if you don't shoot for that you can't invest into the business to be better at what you do”
[23:14] Brad asks, “If you do have profit, what do you do with it?”
[24:41] Brad talks about his experience with deflationary assets. “you just know that it's just going to go up in value.”
[25:54] Ken discusses the boundaries he has for investing.
[33:45] Brad talks about the importance of diversification when investing.
[35:15] Ken boils investing down to “what is the simplest way, lowest risk that you can just do better than what you're doing right now. It's better than sitting in the bank.”
[36:53] Ken talks about how cash depreciates in value thus, “That cash is the same as owning a car.”
[40:04] Brad discusses his opinions on investing and what he thinks are the best ways to go about it. “be ready to buy so you have capital to buy, because when there's blood in the streets, and everybody's yelling, the world's gonna collapse. That's when you buy.”
[42:38] Brad talks about why it’s important to try to take your emotions out of investing. “you really just got to look at pure data sometimes when you invest”
[44:15] Ken uses an analogy to demonstrate a unique way of looking at the stock market and why he thinks the best time to buy is during hard times.“Let's say Apple has a sale. We're like sweet, let's go buy a new iPhone. But when the stock market has a sale we're like, oh, no, no, no, we don't want to touch that.”
[47:26] Brad points out that “you have to be a good steward of your own finances and your own business to be able to make other companies’ money.”
[49:40] Ken talks about how having a financial advisor can help when making financial or investing decisions for your agency.