Why Hitting £1M in Revenue is Just a Waypoint, Not a Destination
- Tom Wilson
- Mar 18
- 3 min read
For many agency owners, £1M in revenue feels like the ultimate milestone. A marker of success. A number that promises easier days and bigger rewards. But the reality is, hitting £1M doesn't mean you've made it. If anything, it makes things more complicated.
At The Agency Adventure, we believe in shifting the focus away from arbitrary revenue and headcount targets. Sustainable agency growth isn't about how much money flows through the business; it's about how much value and stability you create for yourself and your team.
Why £1M Doesn’t Solve Your Problems
Everything that feels difficult now—finding clients, managing projects, hiring the right people, balancing cash flow—doesn’t magically disappear at £1M. If anything, the stakes get higher:
More revenue often means more costs, not more profit.
More clients mean more complexity in service delivery.
More team members mean more time spent managing people instead of doing work.
You may even take home less than you did at £500K in revenue if margins aren’t controlled.
Instead of chasing an arbitrary revenue figure, agency owners should track metrics that actually indicate financial health and sustainable growth.
The Metrics That Matter
Revenue per head: £100K per employee
Gross profit: 55%
EBITDA: 25%
Utilisation rates:
Doers: 80%
Managers: 60%
Senior Leadership Team: 50%
Directors: 30%
Overheads: You have at least 3 months worth in the bank (but 6 is better)
Pricing: Should be based on 5x the cost of delivering the work
These numbers paint a clearer picture of whether your agency is actually in good shape—not just hitting revenue milestones with nothing to show for it.
What Sustainable Agencies Get Right
To achieve real success, agencies must be able to say they:
Have a clear destination in mind—a mission, vision, and values that guide growth beyond hitting revenue targets.
Can consistently find, win, and grow new business, avoiding feast-and-famine cycles.
Have a senior leadership team that actually makes decisions and isn’t bottlenecked by the founder.
Have a brand that stands on its own, rather than relying on the founder’s reputation alone.
What This Means for You
Instead of focusing solely on revenue, founders should be ask yourself:
Are you taking £50K+ per year in dividends?
Can you work a 4-day week without the business suffering?
Are you taking at least 6 weeks of holiday per year?
Are you paying into your pension?
These are the real signs of a well-run, sustainable agency for the founder.
What This Means for the Team and Clients
A sustainable agency isn’t just better for the founder—it benefits the entire team and the clients you serve.
For your team:
A stable agency means job security, fair pay, and a culture that isn’t built on burnout.
Clear decision-making and strong leadership create a workplace where people can thrive.
Sustainable pricing allows for professional development, better tools, and a healthier work-life balance.
For your clients:
A well-run agency delivers consistent, high-quality work without last-minute panic or overpromising.
Stable teams mean deeper expertise and long-term client relationships.
Financial health allows for reinvestment in better services, innovation, and strategic thinking rather than reactive firefighting.
Where Do You Go From Here?
If you’re on the path to £1M, don’t make the mistake of thinking it’s the finish line. Set your agency up for profit, stability, and a life you actually want to live.
Get your calculator out. How do you stack up these metrics today? If you're hitting them, give yourself a big pat on the back but if you are not, start thinking about what you need to do to move the needle in the right direction.
We have guides and expert partners at The Agency Adventure who can help you with every aspect of agency challenges and if you would like a free Agency Assessment to see where you score vs. our Agency of the Future model - just click here.
Written by : Tom Wilson
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