Want a Clearer Picture of Your Agency’s Financial Health? Start Here.
As an agency founder, it’s easy to get caught up in the hustle of client work, team management, and delivery—while your numbers quietly drift into the background.
But here’s the thing: you can’t grow what you don’t understand.
Le Chéile helps creative agencies like you lead with financial clarity—not guesswork.
Knowing your financials isn’t just for tax season or your accountant—it’s essential to scaling your agency sustainably, paying yourself well, and avoiding burnout.
In a previous episode of Agency Darlings™, Melissa Lohrer and I broke down the core metrics every agency owner should know. Today, I’m sharing three of our go-to financial guidelines we use with clients at Le Chéile.
1. The 60% Rule: Keep Payroll Under Control
💰 Target: Keep your total payroll (contractors, employees and your own pay) under 60% of total revenue.
This single metric gives you a quick read on whether your team costs are sustainable—or if they’re eating into your margins. If you’re consistently above 60%, it’s time to review roles, capacity, and pricing.
2. Profit Goals: Aim for 15–25%
💰 Target: A 15–25% profit margin is a healthy sweet spot for creative and digital agencies.
Less than that, and you’re likely underpricing or overextended. More than that, and you may have room to reinvest in growth (or give yourself a well-deserved raise).
This margin ensures you have breathing room—for taxes, investments, slow seasons, and yes, profit distributions.
3. Revenue Planning: Start with the End in Mind
💰 Strategy: Instead of starting with how much you think you can make, reverse-engineer your revenue targets.
Add up your business expenses (tools, payroll, contractors)
Layer in your desired profit margin
That number? That’s your true revenue goal
This takes the guesswork out of goal setting and helps you plan for growth grounded in financial clarity—not hope.
Finances Don’t Have to Be Scary
Most agency owners I work with didn’t start their business because they loved spreadsheets—but learning a few key financial principles can transform how you lead and grow.
Start small. Track consistently. And don’t be afraid to ask for help.
Want more on this topic? Catch the full conversation on this episode of Agency Darlings™—we go deeper on what to track, how to budget, and where most agency founders go off course.
About the Author
Meredith Fennessy Witts,
Founder & Strategic Growth Advisor at Le Chéile
and Co-Host of Agency Darlings
With a background in financial and operational consulting and a successful track record of founding and scaling her own agency, Meredith brings deep expertise in strategic growth for indie creative and digital agencies.
Her company, Le Chéile, helps agencies scaling toward and beyond 1M+ in revenue to rightsize teams and payroll, increase founder pay, scale offers and packages and more. She helps clients to achieve their goals while clarifying their business strategy and finances.
She is a trusted authority on building mindful, profitable businesses—especially for underserved founders in the women, LGBTQ+, and BIPOC communities.