3 Things That Quietly Kill Profit - Even When You’re Growing

You’re growing. Revenue’s rising, clients are happy, and your team’s busy.
But despite all that… the profit just isn’t showing up.

Sound familiar?

You’re not alone. Many agencies look successful from the outside but struggle behind the scenes.

When one agency completed our Plan for Profit Scorecard, the numbers told a familiar story…

Here’s how their results looked in our Plan for Profit Scorecard - a free tool that measures how ready your business is to scale profitably across key financial areas in your business:

🔴 Profitability: 40%
🟠 Strategic Planning: 60%
🟠 Reporting & Visibility: 60%
🟢 Cashflow: 80%

This is more common than you think. You’re growing - but you’re still not seeing the profit you expected. The business feels busy, but not always in control.

So, what was holding them back? Let’s break it down.

1. Profitability: 40%

They were working hard but not smart, pricing based on instinct not insight. They didn’t know which services or clients were actually profitable - and scope creep was a regular issue - so while the work was flowing, the margins were slipping away.

Despite all the hard work, money was leaking out of the business. They weren’t undercharging… but they weren’t charging smartly either.

How to fix it:

• Review client and project profitability (not just revenue).

• Build a proper costing model to protect margins.

• Track time and scope - even basic time tracking gives clarity.

Remember: Your most profitable offer isn’t always the one bringing in the most income. Know your margins.

1. Strategic Planning: 60%

The pain: They had big ambitions - but without a clear financial roadmap, they were reacting instead of leading. Every decision felt like guesswork - and that uncertainty was slowing growth.

The impact: They hit bottlenecks. Hiring was delayed, pricing didn’t evolve, and financial targets weren’t driving decisions.

How to fix it:

• Set clear revenue and profit targets aligned to your lifestyle and growth goals.

• Create 12-month and 90-day plans with real numbers behind them and have a broader indication of forecasts 5 years ahead

• Forecast based on data, not guesswork - and revisit it monthly.

• Think with the end in mind. Know your exit plan, work towards it, review it regularly.

You can’t hit a target you can’t see. Planning is what gives you clarity and control.

1. Financial Reporting & Visibility: 60%

The pain: They had systems, but not strategy. Reports existed, but no one was reading them - or if they were, they didn’t know what they were looking for.

The impact: Decision-making was slow and reactive. They had a bookkeeper, but no real visibility into performance.

How to fix it:

• Get monthly reporting in place (not just year-end accounts).

• Set up a simple dashboard: cashflow, profit, revenue by service/client.

• Learn what your numbers are telling you - or work with someone who can help interpret them.

• Understand what the impact is and what action needs to be taken, its not just about the numbers but what to do

You don’t need to be a financial expert. But you do need to lead with data, not gut feel.

What happened next?

With a few smart shifts, this agency started:

• Identifying and fixing pricing gaps

• Reallocating resources to profitable work

• Setting clear targets and making confident, proactive decisions

And most importantly, profit started rising without the chaos.

This is what happens when you stop guessing and start leading with your numbers.

Once you have clarity, everything becomes simpler - decisions, pricing, planning and profit.

Want to see where you stand?

Take the Plan for Profit Scorecard - it’s completely free and only takes 2 minutes.

You’ll get a personalised report showing exactly where your business stands today - and a clear roadmap to grow profitably, confidently, and sustainably.

👉 Take the Plan for Profit Scorecard Quiz Now