How to Avoid Profitability Traps, with Marcel Petitpas

Episode 150

I am over the moon excited to have today’s brilliant guest expert returning to this episode of Sell With Authority. If you’re meeting Marcel Petitpas for the first time — he was my guest generously sharing his wisdom in episodes 95 and 111 of the SWA podcast. He’s off the charts awesome!

If you don’t already know Marcel, he’s the CEO and Co-Founder of Parakeeto — and an expert on agency profitability.

Today, we dive deep into a critical topic: why scaling your agency without keeping a close eye on profitability can actually do more harm than good.

Marcel shares his smarts around the intricate world of profitability traps —those sneaky pitfalls that can quietly erode your margins if you’re not paying attention — and secretly derail your agency’s success.

We explore cash flow traps — how payment terms and project timelines can create cash crunches if you’re not careful.

We also break down the myth of revenue versus AGI and why a $10 million agency with razor-thin margins might need to operate more like a $1 million shop to stay healthy.

If you’ve heard him before — you know Marcel backs up his insights with numbers and examples. He goes by the math to illustrate all of the key points in detail.

So grab your notepad to double down on strategies that will help you sell more of what you do — and drive agency profitability.

What you will learn in this episode:

• The difference between cash and accrual accounting — and why getting it wrong will set you back
• How to recognize and navigate the cash flow traps that could be sabotaging your agency’s profitability
• The misleading nature of revenue figures and the significance of focusing on AGI (Agency Gross Income)
• Why simply having more clients or projects isn’t a surefire way to increase your bottom line
• How payment terms might be quietly eroding your cash reserves — and what you can do to rectify it
• Smart strategies for structuring contracts and payment schedules to improve financial predictability
• The psychological shift you need to make to step away from the trap of a false sense of financial health

Resources:

• Website: https://parakeeto.com
• LinkedIn: https://www.linkedin.com/in/marcel-petitpas-20059588/
• Facebook: https://www.facebook.com/agencyprofitability
• Twitter: https://twitter.com/Parakeeto
• Instagram: https://www.instagram.com/getparakeeto/
• Agency Profit Toolkit
• The Parakeeto Foundations Course
• Software as a Science: Unlock Limitless Recurring Revenue Without Losing Control