Fieldnote Studio had done everything a young agency is supposed to do. The calendar was full, the client list kept growing, and the team had doubled in three years.
But the founder, Daniel Reyes, was lying awake over payroll. Revenue was around $1.6 million a year, yet the bank balance rarely covered more than three weeks of costs, and he was delaying his own salary most months.
What we have found
We spent the first two weeks reading invoices, payroll, and six weeks of team timesheets. Three things stood out.
The FIndings
- Two retainers were losing money
- Clients paid about 68 days after invoicing
- Costs arrived before revenue
Outcomes
On a similar revenue base, the margin shift is worth roughly $190,000 more gross profit a year. The studio also has a cash buffer of more than eight weeks of costs, up from three, and Daniel now pays himself on time every month.