You’re pulling in $2M+ a year. Your team’s busy, your clients are happy—yet your bank account doesn’t reflect the effort.
Why?
This is the wall most agency owners hit. The work is flowing, but the profits… aren’t.
In this real-life agency financial turnaround, you’ll see how one service business went from losing money (–2% NOI) to 6% net operating income in just six months—with a clear path to 10%.
No theory. Just data, strategy, and a scoreboard any founder can run.
Before and After: What Changed
| Metric | Before | After (6 Months) |
| Revenue (TTM) | ~$2.4M | ~$3.4M (forecast $3.5M) |
| NOI | –2% | 5% → 6% (targeting 10%) |
| Gross Profit Margin | ~20% | Holding steady |
| Cash Position | ~$334k | 1-month runway (goal: 2 mos) |
| Methodology | Loose, ad hoc reporting | Rolling 12M + 3M updates, monthly |
The challenge: Close a $600K profitability gap without adding overhead.
Why Revenue Was Up, But Profit Was Down
Within the first week of our Agency Finance Health Check, we uncovered the root causes:
- Pricing wasn’t pressure-tested against win rates or margin targets
- Pipeline had no close probabilities, leading to poor hiring timing
- Proof assets were weak, which slowed the sales cycle
- Hiring was reactive, causing inconsistent delivery and margin leakage
- Cash was tight, creating operational risk and stress
This isn’t a unique story. It’s a pattern we see in most early-stage 7-figure agencies.
The Agency Financial Turnaround Plan (90–180 Days)
We implemented a focused 5-part system to close the profit gap:
1. Pricing Discipline
- If win rate > 50%, raise the price
- Target a ~40% close rate — the profitability sweet spot
- Track contribution margin per job
- Focus on mid-sized projects (highest margins historically)
2. Pipeline → Coverage → Hiring
- Build a weighted pipeline by stage, last touch, close probability, and start date
- Calculate coverage = pipeline hours ÷ delivery capacity
- Only hire when coverage > 1.1 for 2+ weeks
- Pre-source candidates in advance
3. Recruiting Engine
- Run local video ads and daily stories targeting ideal hires
- Use structured interviews, 90-day scorecards, and daily check-ins
- Create clear performance-based pay bands
4. Proof & Nurture
- Send weekly proof packets: before/after results, budget vs. actual, on-time delivery
- Collect new client proof weekly
- Create a simple nurture list of warm leads and send weekly updates
5. Opportunity Filter
- For large, risky takeovers:
- Price with premium margin
- Assign proven leads
- Use staged go/no-go checkpoints
Weekly Scoreboard
Metrics that matter—simple, visible, and actionable:
- Win rate by project type
- Contribution margin per job
- Pipeline coverage ratio (triggers hiring)
- Cash runway and AR days
- New proof assets added this week
This is the system behind the agency’s financial turnaround.
Roles and Accountability
| Focus Area | Accountable Leader | Metrics to Monitor |
| Pricing | Founder/Owner | Live bids, close rate, margins |
| Pipeline | Ops Lead | Weighted forecast, job stages |
| Hiring | People/COO | Pipeline coverage, speed-to-hire |
| Proof | Owner/Marketing | Weekly packet sent |
| Finance | Fractional CFO | Salary/dividend mix, runway, taxes |
The Bottom Line: How This Agency Closed a $600K Profit Gap
The agency didn’t magically grow their way to profitability—they engineered it.
Here’s what made the difference:
- Filled open delivery capacity with profitable, mid-sized projects
- Implemented pricing discipline based on real close-rate targets
- Made data-backed hiring decisions from a probability-weighted pipeline
- Created a proof system that drove faster sales and higher trust
The result? A real, sustainable agency financial turnaround—built on financial clarity, stronger systems, and double-digit NOI as a goal, not a dream.
Want a Custom Turnaround Plan for Your Agency?
If you’re stuck in that spot—good revenue, no profit—we’ve got two slots left this month for our Agency Finance Health Check.
You’ll get:
- Industry benchmarking
- A 90-day plan to fix pricing and hiring
- A weekly proof system you can run
- CFO-level insight on your numbers
Book your spot now and get a roadmap that works.
About Argento CPA
Argento CPA is a Canadian accounting and advisory firm that helps digital agencies and service businesses scale profitably. We specialize in:
- Fractional CFO services
- Financial clarity and strategy
- 12-month forecasting
- Pricing optimization
- KPI dashboards
- Cash flow planning
If you’re running a $2M–$10M agency and need more than bookkeeping, let’s talk. We bring clarity to your numbers, speed to execution, and strategy to every decision.
About the Author
Michael Argento, CPA, is the founder of Argento CPA. He partners with growth-minded agency owners to build profitable, scalable firms. Michael specializes in pricing strategy, cash flow design, and productized CFO services that help clients scale with confidence.