Too Big to Be Small, Too Small to Be Big: The Challenge of Running a Sub-10 Agency
Running an agency with fewer than ten people can feel like being trapped in a difficult middle ground. You’re too big to be small, but too small to be big. At Gyda, we call this stage the sub-10 challenge, and it’s one of the toughest phases agency owners ever face.
The Sub-10 Reality
When you’re operating with fewer than ten staff, you don’t yet have the departments and infrastructure of a larger agency. There’s no dedicated sales team, no marketing lead, no in-house HR, no legal counsel, no one exploring AI tools on your behalf. You’re doing it all yourself.
But at the same time, you’re not as lean as the freelancer working from an attic, charging £5 or £10 an hour and happy with it. You can’t compete with them on price, and you can’t yet compete with the scale and credibility of a 20- or 50-person agency.
That’s why life in the sub-10 zone is so frustrating: too big to be small, too small to be big.
Living Through Endless Firsts
Another reason it feels so difficult is that everything is happening for the first time.
The first account manager you hire.
The first sales role you bring in.
The first HR problem you face.
These firsts never stop coming, and each one feels risky because you don’t yet have the experience or systems to handle them smoothly.
The Disproportionate Impact of Every Decision
In a sub-10 agency, the impact of any single event is magnified. Lose one client, and suddenly you’ve lost 20% of your revenue. Lose one staff member, and you’ve lost 20% of your delivery capacity.
In larger agencies, those shocks are spread across a broader base. For you, they’re seismic.
The Valley of Death
Perhaps the hardest reality is what we call the valley of death.
When you work alone, life is simple. Let’s say you generate £100k in revenue. After expenses, the vast majority comes back to you. You might pay a small amount to an accountant, but the rest is yours.
Fast-forward to running a team of 10, each contributing £100k. That’s £1m turnover. But with salaries, overheads, and delivery costs, your net profit margin might be 10% — meaning you’re back at £100k in your pocket.
The irony is stark: you can earn the same running solo as you do leading a small team. Growth looks like it’s costing you money before it starts to make you money.
That’s the valley of death. Every agency leader has to push through it… and many don’t.
The Pricing Squeeze
On top of that, pricing becomes a minefield. Larger agencies with 20 or more staff can command higher fees. At the same time, freelancers can undercut you dramatically. You’re stuck in the middle, struggling to price your work at a level that’s both profitable and credible.
Working in the Business vs. Working on It
We’ve all heard the advice to “work on the business, not in the business.” But in reality, sub-10 owners constantly get dragged back into client delivery and day-to-day firefighting.
Before you know it, you’re working 50–60 hours a week, and when you divide your take-home by the hours worked, you might as well be stacking shelves at Sainsbury’s.
The Way Forward
Here’s the good news: there is a proven path to grow beyond this stage. It requires clarity, peer support, and practical strategies that allow you to cross the valley of death without burning out.
That’s why we run a mastermind group specifically for sub-10 agencies. It’s a space to share your challenges, learn from others who’ve been there, and figure out how to grow with confidence.
If you’re in this position, know that you’re not alone, and you don’t have to stay stuck in the “too big to be small, too small to be big” trap. Let’s talk about your agency, your ambitions, and the way forward.