The Squeeze Is Real: Why Agency Growth Now Demands a Different Kind of Courage
Over the last week, we’ve spoken to more than 80 agencies… different countries, different sizes, different services… and the same uncomfortable truth keeps coming up:
It’s getting harder.
Margins are tighter. Salaries are up while client budgets contract. AI is everywhere… exciting, but also unsettling. Leads are slowing. Deals are smaller. Confidence is wobbling.
If you’re feeling the pressure, you’re not alone.
But the solution isn’t to panic, over-pivot… or launch another half-baked service.
This moment demands something deeper.
Let’s break it down.
1. The Market Has Shifted. Have You?
Here’s what we’re seeing across the industry right now:
Cost pressure is up.
Salaries and contractor fees have risen sharply. Inflation hasn’t just hit households… it’s eating straight into your gross margin.
Client spend is cautious.
Budgets are smaller. Proposals are scrutinised. Decisions take longer. “Nice to have” services get ghosted.
Leads are taking longer to close.
Sales cycles that used to take weeks now take months. More hoops. More pitching. Less conversion.
AI has moved from hype to confusion.
It’s a threat, an opportunity, and a distraction - often simultaneously.
If you haven’t re-examined your offer, pricing model, or positioning in the last six months, you’re already behind.
It’s not that you’ve done anything wrong - it’s that staying still is now the riskiest move you can make.
2. What’s Actually Happening?
This moment isn’t a blip.
It’s the “Growth to Maturity” crisis described by Churchill & Lewis - the point where the scrappy, heroic grind that got you here… won’t get you any further.
The old playbook looked like this:
Be good at what you do
Work hard
Keep clients happy
Grow through referrals
That used to work.
But today? It’s not enough.
The market now demands:
More clarity
More impact
More proof
More efficiency
If your answer to all this is “work harder,” burnout is waiting.
3. The Real Threat Isn’t AI… It’s Commoditisation
AI is not your biggest competitor.
Your biggest competitor is your own commoditised value.
If clients see you as someone who “does the thing” - ads, content, design, dev - then yes, AI will undercut you brutally.
But the value AI can’t replace?
Insight
Relationship
Strategy
Judgment
Trust
Winning agencies in this climate:
Lead with insight, not execution
Embed AI deeply into delivery
Sell outcomes, not hours
Invest in positioning, not pitching
Attract leads, instead of chasing them
If that sounds like where you are - great.
If not, it’s time to evolve.
4. Leadership Fatigue Is Real… And Understandable
We’re seeing more founders than ever who are tired, discouraged, or wondering whether to sell, pivot, or simply quit.
It’s not weakness. It’s context.
This phase requires a different kind of courage.
Not “work longer hours” courage.
But CEO-level courage:
Step back from the weeds
Build a strategic narrative
Tighten positioning and pricing
Create real systems and accountability
Ask for help when needed
Say “no” to the wrong work
Say “no” to the wrong clients
This isn’t about doing more.
It’s about doing differently.
5. What the Winning Agencies Are Doing Right Now
We’re not talking about theory. This is what’s happening in agencies that are still growing today:
1. Redefining the offer
Not expanding. Sharpening.
Fewer services. Clearer propositions. Productised, predictable, profitable.
2. Cutting the noise
Firing bad-fit clients.
Dismantling legacy retainers.
Eliminating low-margin work.
3. Owning their numbers
Budgets. Forecasts. FiMO.
They model 6–12 months ahead and make decisions based on margin, not mood.
4. Embedding AI everywhere
Not tinkering. Integrating.
Content, dev, QA, research, ops… all enhanced, all intentional.
5. Investing in brand and positioning
When inbound cools, you need a magnet, not a megaphone.
None of this is luck.
It’s leadership.
6. So… What’s Your Move?
Let’s not pretend any of this is easy.
But it is solvable.
If you’re feeling stuck, start here:
Reconnect to the outcome you want.
Are you growing a business… or running a job you can’t leave?
Cut what’s draining you.
Low-value work. Misfit clients. Outdated offers.
Ask better questions.
The quality of your future comes from the quality of your thinking.
Try these:
“If I started this agency from scratch tomorrow, what would I keep?”
“What work actually builds equity and what is just noise?”
“What type of leader does my agency need me to be right now?”
Get support.
Not from theorists - from people who’ve actually built and scaled agencies.
Final Thought: You’re Not Alone… But You Are Responsible
You’re not imagining it.
Yes, it’s hard.
No, it’s not going back to how it was.
Waiting for things to “settle” is a trap.
This chapter demands strategic leadership… the kind that says:
“I’m building a business that serves my life… not the other way around.”
You don’t need to have all the answers.
But you do need to stop relying on old ones.
The squeeze is real.
So is the opportunity.
The question is: are you ready to step into it?
