The AgencyHabits Podcast

Peter Kang, Sei-Wook Kim

5.0 (2)
MANAGEMENT
UPDATED WEEKLY

Go behind the scenes of real agency businesses. The AgencyHabits Podcast shares ideas, lessons, and experiments from across Barrel Holdings - home to a growing portfolio of specialized agencies and over two decades of insights. We share them all here, hoping you'll test, tweak, and find what works best for your agency.

1D AGO

Agency Profit Deep Dive: Gross Margin, Sales & Marketing, and EBITDA | EP27

Gross margin determines how much freedom your agency really has. If that number is weak, everything else becomes harder. Today, we break down gross margin, gross profit, and EBITDA and explain what healthy agency financials actually look like. We show why gross margin is the true funding source of your business and how low gross margin quietly limits growth. We also unpack: Why 50 percent plus gross margin should be the starting target What a healthy sales and marketing allocation looks like Why 35 percent EBITDA can actually be a warning sign The common myth of "we invested in growth" If you want more freedom, better capital allocation decisions, and a stronger long-term agency, start by getting gross margin right. Key takeaways today: 📌 Gross margin is the funding source for growth and experimentation. 📌 50 percent plus gross margin creates flexibility and strategic optionality. 📌 Healthy agencies target 20 to 30 percent EBITDA. 📌 High EBITDA can signal underinvestment in growth. 📌 Revenue growth without margin discipline leads to long-term erosion. 📌 Sales and marketing must be measured over longer time horizons. 📺 Watch us on YouTube ==================== Peter Kang on LinkedIn: https://www.linkedin.com/in/peterkang34/ Sei-Wook Kim on LinkedIn: https://www.linkedin.com/in/seiwookkim/ AgencyHabits Website: https://www.agencyhabits.com/ AgencyHabits on LinkedIn: https://www.linkedin.com/company/agencyhabits/ Barrel Holdings Website: https://www.barrel-holdings.com/ Barrel Holdings LinkedIn: https://www.linkedin.com/company/barrel-holdings/

30 min
FEB 10

How Agencies Should Actually Use Data | EP26

Most agencies already collect plenty of data, but very few use it well. Instead of clarity, leaders end up with dashboards, noise, and gut decisions. In this episode, we share a practical way to use data to make better agency decisions without overwhelming your team or building complex reporting. Data is not about more reports. It is about recognizing patterns that help you make clearer, faster decisions as an agency leader. Today on The AgencyHabits Podcast, we walk through five practical lenses for using the data most agencies already have. We cover how to analyze engagements, clients, employees, new business, and team sentiment in ways that directly improve profitability, focus, and decision-making. We also discuss common mistakes, like overreacting to recent data or confusing reporting with insight, and how to build data review into a repeatable leadership habit. Key takeaways today: 📌 Most agencies already have enough data, but lack a clear way to interpret it. 📌 Engagement-level data reveals which services and scopes consistently drive or destroy margins. 📌 Client-level analysis helps refine ICP, retention strategy, and long-term profitability. 📌 Employee data validates performance patterns beyond gut feel or anecdotal feedback. 📌 New business data clarifies why you win, lose, and attract certain types of clients. 📌 Team sentiment data helps identify burnout risk and capacity issues early. 📺 Watch us on YouTube ==================== Peter Kang on LinkedIn: https://www.linkedin.com/in/peterkang34/ Sei-Wook Kim on LinkedIn: https://www.linkedin.com/in/seiwookkim/ AgencyHabits Website: https://www.agencyhabits.com/ AgencyHabits on LinkedIn: https://www.linkedin.com/company/agencyhabits/ Barrel Holdings Website: https://www.barrel-holdings.com/ Barrel Holdings LinkedIn: https://www.linkedin.com/company/barrel-holdings/

36 min
FEB 3

Turning Every New Client Opportunity Into an Agency's Compounding Asset | EP25

Most agencies treat client work as a series of one-off transactions. But the most successful firms treat every engagement as an investment that compounds over time. In this episode, hosts Peter Kang and Sei Wook Kim introduce the concept of engagement yield: the tangible and intangible value that extends far beyond the invoice. They break down the four components of engagement yield; proof, leverage, relationships, and referrals. And explains how agencies can systematically capture this value. Peter and Sei Wook share practical strategies for turning client work into lasting assets: from creating reusable case studies and SOPs to deepening client trust and building referral systems. Whether you're evaluating a new client opportunity or looking to maximize the value of existing engagements, this episode provides a framework for thinking long-term and turning every project into a compounding advantage. Key Moments 1. Why treating client work as a one-off transaction limits agency growth. 2. Introducing engagement yield: the value beyond revenue. 3. Proof: How case studies, testimonials, and thought leadership build credibility. 4. Leverage: Creating SOPs, templates, and frameworks to improve efficiency and margins. 5. Relationships: Building trust and expanding your network within client organizations. 6. Referrals: Turning happy clients into a sustainable source of warm leads. 7. Why not all engagements are created equal: evaluating opportunities through the yield lens. 8. The risk of negative engagement yield: how bad clients can cost you more than money. 9. Practical steps to position your agency for higher engagement yield. 10. What a high-yield agency looks like over time vs. the cost of low yield. Real Talk Takeaways 1. Revenue is just the starting point. The real value lies in what you build on top of it. 2. Proof isn't just a portfolio, it's credibility. Without it, clients are just taking your word. 3. Leverage turns experience into efficiency. If you're reinventing the wheel every time, you're leaving money on the table. 4. Relationships are seeds for future opportunities. A contact today could be your champion tomorrow. 5. Referrals don't happen by accident. You need a system for asking, nurturing, and staying top of mind. 6. Two clients with the same budget can have wildly different engagement yields. Choose wisely. 7. A bad client can create a negative yield… damaging relationships, reputation, and team morale. 8. Engagement yield requires intention. It won't happen unless you build processes to capture it. 9. Compounding doesn't happen overnight. It's the result of consistent, intentional decisions over time. 10. The healthiest agencies don't just deliver work. They build assets that make future work easier, more profitable, and more fulfilling. Timestamps 00:00 – Introduction: From One-Off Revenue to Compounding Assets 00:30 – Defining Engagement Yield: The Value Beyond the Invoice 01:00 – The Four Components of Engagement Yield 01:50 – 1. Proof: Case Studies, Testimonials & Thought Leadership 04:05 – 2. Leverage: SOPs, Templates & Operational Efficiency 06:20 – 3. Relationships: Building Trust & Expanding Your Network 08:00 – 4. Referrals: Turning Happy Clients into Warm Leads 09:40 – Why Not All Engagements Are Created Equal 11:40 – The Risk of Negative Engagement Yield 13:00 – How to Position Your Agency for Higher Yield 15:10 – What a High-Yield Agency Looks Like Over Time 18:30 – The Cost of Low Engagement Yield 20:00 – Closing Thoughts: Thinking Long-Term & Compounding Your Advantage Notable Quotes "Engagement yield is the difference between the immediate return you get from revenue and the long-term impact and upside from the work." — Sei Wook Kim "Proof isn't just about volume.It's about relevance. A few deep case studies are better than a dozen thin ones." — Peter Kang "Leverage is about turning what's in people's heads into something the whole team can use." — Sei Wook Kim "Relationships are like planting seeds. You never know which one will grow into your next big opportunity." — Peter Kang "Referrals are gold, but they don't happen naturally. You have to work for them." — Peter Kang "A higher budget project with low yield can hurt you more than a lower budget project with high yield." — Sei Wook Kim "Negative engagement yield is real. And it can cost you relationships, referrals, and reputation." — Peter Kang "Compounding is the result of looking at every engagement as an investment, not just a transaction." — Peter Kang Links & Resources Peter Kang on LinkedIn: https://www.linkedin.com/in/peterkang34/ Sei-Wook Kim on LinkedIn: https://www.linkedin.com/in/seiwookkim/ AgencyHabits Website: https://www.agencyhabits.com/ AgencyHabits on LinkedIn: https://www.linkedin.com/company/agencyhabits/ Barrel Holdings Website: https://www.barrel-holdings.com/ Barrel Holdings LinkedIn: https://www.linkedin.com/company/barrel-holdings/

21 min
JAN 26

Why Peter Wrote a Book on Holding Companies | EP24

In this special episode, host Sei-Wook Kim interviews Barrel Holdings co-founder Peter Kang about his new book, The HoldCo Guide: How Entrepreneurs Structure and Build a Holding Company That Lasts. Peter shares the organic journey that led him to write the book, from scaling a single agency to building a multi-agency holding company, and why no existing resource fully addressed the topic. He breaks down the core concepts every entrepreneur should understand: the spectrum between capital allocator and operational HoldCos, the critical balance of centralization vs. decentralization, and the financial metrics that truly drive compounding growth. Whether you're running one business or several, this conversation offers a practical look at how to think strategically about profits, structure, and lasting value. Key Moments 1. The organic origin story behind The HoldCo Guide and why Peter decided to write it. 2. Defining the two major types of holding companies: capital allocators vs. operational HoldCos. 3. Where Barrel Holdings fits on the HoldCo spectrum and how its approach has evolved. 4. The delicate balance of centralization vs. decentralization in a holding company structure. 5. Sector-specific HoldCos: advantages, risks, and how Barrel navigates concentration. 6. The crucial financial metrics for HoldCos: free cash flow, ROIC, and MOIC. 7. Why governance, compensation, and tax planning are non-negotiable chapters in the book. Real Talk Takeaways 1. Writing a book doesn't have to start as a grand plan; it can grow organically from sharing what you're learning in real time. 2. Holding companies aren't one-size-fits-all; most exist on a spectrum between pure capital allocation and hands-on operations. 3. Centralize only what creates leverage (like finance and governance); decentralize operations and customer-facing decisions. 4. Sector specialization can deepen operational expertise but also increases exposure to industry downturns. 5. Free cash flow is the lifeblood of a HoldCo; without it, you can't fuel the compounding flywheel. 6. Governance might sound dry, but it's essentially the "design manual" for how your holding company works. 7. Even single-business owners can apply HoldCo principles to strategically reinvest profits and drive growth. Timestamps 00:00 – Introduction: Interviewing Peter on His New Book, The HoldCo Guide 04:03 – The Two Major Types of Holding Companies: Capital Allocator vs. Operational 07:45 – Where Barrel Holdings Sits on the HoldCo Spectrum 09:12 – Centralization vs. Decentralization: What to Control and What to Delegate 11:52 – Sector-Specific HoldCos: Pros, Cons, and Barrel's Position 14:41 – The Financial Metrics That Matter: Free Cash Flow, ROIC, and MOIC 17:50 – Why Governance, Compensation, and Tax Structure Deserved Deep Dives 20:51 – Who the Book Is For and Where to Find It Notable Quotes "The big insight from this book is this definition of HoldCo's, the two different major types. One being the capital allocator HoldCo, and the other is what I'm calling the operational HoldCo." — Peter Kang on the core framework of holding companies. "Free cash flow becomes a very important number because if you can convert a higher percentage of your EBITDA to free cash flow, you have more to compound." — Peter Kang on the essential metric for HoldCo growth. "Centralization versus decentralization is a huge theme. What do you intentionally centralize at the HoldCo, and what do you deliberately try not to manage centrally?" — Sei-Wook Kim on structuring a holding company for scale. "One failing work stream can sink the entire relationship, no matter how well others perform. Clients evaluate your agency as a whole." — Sei-Wook Kim on the importance of aligned operations across a portfolio. Links & Resources Peter Kang on LinkedIn: https://www.linkedin.com/in/peterkang34/ Sei-Wook Kim on LinkedIn: https://www.linkedin.com/in/seiwookkim/ AgencyHabits Website: https://www.agencyhabits.com/ AgencyHabits on LinkedIn: https://www.linkedin.com/company/agencyhabits/ Barrel Holdings Website: https://www.barrel-holdings.com/ Barrel Holdings LinkedIn: https://www.linkedin.com/company/barrel-holdings/

23 min
JAN 20

Breaking Down Agency Employee Compensation | EP23

Compensation is more than just a number. It's a strategic tool for attracting, retaining, and motivating talent. In this episode, hosts Peter Kang and Sei-Wook Kim unpack the full spectrum of employee compensation in an agency setting. They start by acknowledging that while pay is crucial, it's not the only factor. Culture, management, challenging work, and company trajectory all play vital roles. From there, they dive into the core components: base salary (and how to set competitive, geographically-aware bands), benefits (health insurance, 401k, PTO, and creative perks), and both short- and long-term incentives. Peter and Sei-Wook share practical insights on designing bonus structures, from annual performance bonuses to spot rewards, and discuss the nuances of variable compensation and commissions for sales and account teams. Finally, they explore "upside compensation" like profit sharing and equity, highlighting the administrative complexity and strategic alignment needed to make these programs effective. Whether you're a startup agency or scaling beyond 20 employees, this episode offers a clear, intentional framework for building a compensation system that supports both your people and your business. Key Moments 1. Why compensation matters, but isn't the only factor in talent retention. 2. Base salary: setting bands, accounting for geography, and aligning with business affordability. 3. The role of benefits: health insurance, retirement plans, PTO, and ancillary perks. 4. Bonuses broken down: annual/performance bonuses vs. spot/ad-hoc rewards. 5. Variable compensation & commissions: designing incentives for sales and account teams. 6. Profit sharing: models for broad vs. leadership-only eligibility, and the need for financial transparency. 7. Equity as long-term incentive: RSUs, options, phantom equity, and ESOPs, when it works and when it doesn't. 8. Administrative overhead: the hidden costs of complex comp programs. 9. Keeping it simple: starting lean and scaling intentionally. Real Talk Takeaways 1. Comp is important, but culture, management, and growth trajectory are equally critical to retention. 2. Base salary is foundational. Get it right first, using geography and business model as guides. 3. Benefits are a significant cost, especially health insurance. Be conservative early on. 4. Bonuses can create entitlement if not structured carefully. Spot bonuses feel special but can seem arbitrary. 5. Commission structures must incentivize the right behaviors. Not just volume, but quality and retention. 6. Profit sharing requires financial transparency and clear rules. It's not as simple as just cutting a check. 7. Equity without a clear liquidity path or shared vision often fails as a retention tool. 8. Every new comp component adds administrative overhead. Start simple and scale thoughtfully. 9. For most employees, clear salary bands and regular reviews matter more than fancy long-term incentives. Timestamps 00:00 – Introduction: Why Compensation Is More Than Just Salary 01:30 – Base Salary Fundamentals: Setting Competitive & Geographically-Aware Pay 02:00 – How to Determine What Your Business Can Afford 03:20 – The Pitfall of Comparing Salaries with Other Agencies 04:20 – Developing Salary Bands & Career Growth Pathways 05:45 – Benefits Breakdown: Health Insurance as a Major Cost & Consideration 07:30 – Retirement Plans, PTO, and Creative Perks (e.g., Anniversary Gifts) 09:00 – Bonuses Explained: Annual/Performance-Based vs. Spot/Ad-Hoc Rewards 11:35 – The Risks of Bonus Structures: Entitlement vs. Recognition 13:45 – Variable Compensation & Commissions: Tailoring for Sales & Biz Dev Roles 16:10 – Designing Commissions to Incentivize Quality, Not Just Volume 18:40 – Variable Comp for Account & Project Management: Upselling & Expansion 19:50 – Profit Sharing Models: Company-Wide vs. Leadership-Only Pools 21:25 – The Need for Financial Transparency & Administrative Overhead 23:10 – Key Rules & Complications: Payout Timing, Eligibility, and Clawbacks 24:40 – Equity & Long-Term Incentives: RSUs, Options, Phantom Equity & ESOPs 26:15 – The Importance of a Clear Liquidity Path or Exit Vision 27:40 – When Equity Works vs. When It's Just a Retention Gimmick 29:30 – Recap & Final Takeaways: Start Simple, Scale Intentionally 31:15 – Closing Thoughts: Focus on Base Salary & Clear Review Systems Notable Quotes "Comp isn't the end-all-be-all. You're not going to attract really great people just because of comp." — Peter Kang on the holistic view of retention. "Base salary is the most important thing to nail right off the bat." — Sei-Wook Kim on starting with fundamentals. "Benefits can be a big factor especially in the U.S., where health insurance weighs heavily." — Sei-Wook Kim on the role of non-salary compensation. "Spot bonuses are effective because they don't create entitlement but they can feel arbitrary." — Peter Kang on the pros and cons of ad-hoc rewards. "Equity without a clear path to liquidity is often symbolic. It doesn't translate to the result you're looking for." — Sei-Wook Kim on the pitfalls of equity as a retention tool. "Profit sharing sounds great, but there's a real administrative overhead. You have to be prepared for it." — Peter Kang on the hidden complexity of shared profits. "Keep things simple at the start. Once you give a benefit, it's really hard to take it away." — Sei-Wook Kim on starting lean and scaling intentionally. Links & Resources Peter Kang on LinkedIn: https://www.linkedin.com/in/peterkang34/ Sei-Wook Kim on LinkedIn: https://www.linkedin.com/in/seiwookkim/ AgencyHabits Website: https://www.agencyhabits.com/ AgencyHabits on LinkedIn: https://www.linkedin.com/company/agencyhabits/ Barrel Holdings Website: https://www.barrel-holdings.com/ Barrel Holdings LinkedIn: https://www.linkedin.com/company/barrel-holdings/

33 min
JAN 14

Annual Checkup: 9 Markers to Diagnose Your Agency's Health | EP22

Most agencies only seek help when something is broken. But by then, the problems are often systemic. In this episode, hosts Peter Kang and Sei-Wook Kim shift the conversation from reactive fixes to proactive health. They introduce a holistic "annual checkup" framework, mapping nine critical agency functions to body parts and their vital signs: from positioning (vision) and client trust (heart rate) to revenue stability (blood pressure) and risk resilience (immune system). Drawing from their experience building and scaling Barrel, Peter and Sei-Wook explain how to spot early warning signals before they become emergencies. Whether you're assessing your pricing metabolism, your delivery spine, or your business development lungs, this episode provides a structured way to diagnose, strengthen, and future-proof your agency. Key Moments 1. Why agencies shouldn't wait for "symptoms" to show up before doing a checkup. 2. Positioning as vision: How clarity attracts better clients and reduces downstream friction. 3. Client trust as heart rate: Measuring the durability and consistency of client relationships. 4. Revenue stability as blood pressure: The risks of client concentration and project-based income. 5. Pricing as metabolism: How strong positioning enables confident, value-based pricing. 6. Delivery systems as the spine: Building structural integrity so work gets done reliably under pressure. 7. Business development as the lungs: Balancing "zone two" nurturing with "VO₂ max" growth sprints. 8. Team leverage as muscle mass: Ensuring balanced delegation and sustainable org structure. 9. Risk resilience as the immune system: Preparing for shocks without breaking the company. Real Talk Takeaways 1. Don't wait for pain to force change. Proactive checkups prevent small issues from becoming systemic failures. 2. Strong positioning acts as a filter. It attracts better clients and reduces sales friction. 3. Client trust isn't soft; it's measurable through retention, referrals, and lower "resting heart rate" stress. 4. Revenue concentration is like high blood pressure; it might feel fine until it's not. Diversify your base. 5. Pricing confidence comes from market position, not negotiation tactics. If you're always discounting, diagnose why. 6. Your delivery system is your backbone. If founders constantly jump in to save projects, it's a sign of structural weakness. 7. Business development requires both endurance (relationship nurturing) and sprints (targeted campaigns). You can't do one without the other. 8. Leverage isn't just about delegation, it's about balanced organizational muscle. Avoid overdeveloping one area while neglecting others. 9. Resilience isn't about avoiding shocks; it's about how quickly you recover. Plan for the unexpected before it happens. Timestamps 00:00 – Introduction: Why Your Agency Needs an Annual Checkup 01:40 – The 9-Marker Framework: A Holistic Health Diagnostic 02:00 – 1. Positioning (Vision/Eyesight) 04:00 – 2. Client Trust & Retention (Heart Rate) 05:40 – 3. Revenue Stability (Blood Pressure) 07:00 – 4. Pricing (Metabolism) 09:00 – 5. Delivery Systems (Spine) 10:15 – 6. Business Development Sustainability (Lungs) 12:20 – 7. Team Leverage (Muscle Mass) 14:40 – 8. Risk & Resilience (Immune System) 16:30 – Recap: Putting the 9 Markers into Practice Notable Quotes "The healthiest agencies don't wait for symptoms to show up." — Sei-Wook Kim on proactive checkups. "Positioning is really the core decision that an agency needs to make. Every downstream decision flows from it." — Peter Kang on the foundational role of positioning. "Client trust is like your resting heart rate. In a healthy agency, it's steady and low-stress." — Peter Kang on measuring relational health. "Revenue concentration is like high blood pressure, it might feel fine until it doesn't." — Peter Kang on the danger of relying on one or two clients. "Pricing is a reflection of everything else. You can't just jack up prices if your positioning and delivery aren't strong." — Sei-Wook Kim on value-based pricing. "Your delivery system is your backbone. If it's weak, everything else suffers under pressure." — Peter Kang on operational integrity. "Business development is like cardio training. You need both endurance and sprints. You can't just do one." — Peter Kang on sustainable growth. "Resilience is like an immune system. You're going to get sick. It's about how fast you recover." — Peter Kang on preparing for shocks. Links & Resources Peter Kang on LinkedIn: https://www.linkedin.com/in/peterkang34/ Sei-Wook Kim on LinkedIn: https://www.linkedin.com/in/seiwookkim/ AgencyHabits Website: https://www.agencyhabits.com/ AgencyHabits on LinkedIn: https://www.linkedin.com/company/agencyhabits/ Barrel Holdings Website: https://www.barrel-holdings.com/ Barrel Holdings LinkedIn: https://www.linkedin.com/company/barrel-holdings/

17 min
JAN 7

Evolving from Managing Projects to Growing Accounts | EP21

Growing from single-project engagements to managing multiple, concurrent work streams is a major turning point for any agency. In this episode, hosts Peter Kang and Sei-Wook Kim unpack the structural shift required to turn this complexity into a sustainable competitive advantage. Drawing from their own hard-earned lessons at Barrel, they dissect the common pitfalls like team silos, client misalignment, and leader burnout, that can derail multi-faceted accounts. Peter and Sei-Wook break down the three critical roles needed for success: Account Leadership for strategy and relationships, Program Management for cross-stream orchestration, and Work Stream Leads for tactical delivery. The conversation also covers practical tools like collaborative brief-writing and quarterly planning to keep all stakeholders aligned. For agency owners ready to deepen client relationships and increase account revenue, this episode provides a clear blueprint for evolving your service delivery beyond one-off projects. Key Moments 1. Defining the transition from project management (single work stream) to program management (multiple work streams). 2. The three essential roles for managing complexity: Account Leadership, Program Management, and Work Stream Leads. 3. Why separating client relationship management from day-to-day execution is non-negotiable. 4. Learning from past mistakes: How siloed teams and unclear ownership jeopardized entire client accounts. 5. Implementing structured communication: The value of quarterly planning, brief-writing, and internal syncs. 6. Client segmentation: How to identify high-potential accounts worthy of a dedicated management structure. 7. Calculating the investment: Why program management pays for itself through retention, growth, and lower cost of sale. Real Talk Takeaways 1. Adding services is easy; coordinating them effectively is the real challenge. Plan your operational structure before you sell the work. 2. Never expect a single project manager to handle multiple work streams and the client relationship. It's a recipe for burnout and failure. 3. Clients evaluate your agency as a whole. One failing work stream can sink the entire relationship, no matter how well others perform. 4. Program management is an investment, not an overhead. It pays for itself through higher client retention and account growth. 5. Unify your internal teams. Silos create misalignment, duplicated efforts, and a fractured client experience. 6. Use collaborative brief-writing and quarterly planning sessions to force alignment—both within your team and on the client side. 7. Segment your client roster. Apply a heavier management structure only to high-potential accounts where the ROI justifies the cost. Timestamps 00:00 – Introduction: From Single Projects to Multiple Work Streams 04:00 – The Big Agency Model: Account Leadership, Program Management, and Work Streams 08:30 – Adapting the Model for Smaller Agencies: Separation of Roles and Cadence 13:00 – Case Study: Lessons from Scaling a Multi-Stream Client at Barrel 19:50 – A Cautionary Tale: How Siloed Teams Can Sink an Account 23:00 – Client Segmentation: Identifying High-Potential vs. Low-Potential Accounts Notable Quotes "In a room with a lot of people who throw around ideas and experiences, it's easy to jump onto things. So I think that's something to be mindful of." — Sei-Wook Kim on the danger of latching onto surface-level tactics without understanding the context. "One failing work stream can sink the entire relationship, no matter how well others perform. Clients evaluate your agency as a whole." — Sei-Wook Kim on the risk of uncoordinated service delivery. "As founders in a business for more than a decade and a half, there's a lot of little things that we take for granted. Little activities that we were just doing on autopilot. We spent a lot of time kind of mapping out all these things." — Peter Kang on the necessity of systematizing before delegating. "Program management is an investment, not an overhead. It pays for itself through higher client retention and account growth." — Peter Kang on justifying the cost of a more complex management structure. Links & Resources Peter Kang on LinkedIn: https://www.linkedin.com/in/peterkang34/ Sei-Wook Kim on LinkedIn: https://www.linkedin.com/in/seiwookkim/ AgencyHabits Website: https://www.agencyhabits.com/ AgencyHabits on LinkedIn: https://www.linkedin.com/company/agencyhabits/ Barrel Holdings Website: https://www.barrel-holdings.com/ Barrel Holdings LinkedIn: https://www.linkedin.com/company/barrel-holdings/

26 min
12/30/2025

How Agencies Should Think About and Manage Risk | EP 20

In this episode, Peter Kang and Sei-Wook Kim break down how agency owners should think about risk, not as isolated problems to react to, but as ongoing exposure that needs to be actively managed. Using a simple risk matrix, they explain how to prioritize risks based on likelihood and impact, and why high-impact risks deserve disproportionate attention. They then walk through nine of the most consequential risks agencies face, from founder burnout and partner misalignment to legal exposure, cash flow insolvency, client concentration, and strategic drift. For each, they share practical ways to reduce downside and increase the odds that the business survives unexpected shocks. This episode is a reminder that resilience isn't about eliminating uncertainty. It's about designing an agency that can withstand it. Key Moments Defining Risk for Agencies – Risk as exposure to uncertainty that can materially impact the business. The Risk Matrix – Prioritizing risks by likelihood and impact, and why high-impact risks deserve disproportionate attention. Risk #1: Founder Burnout – Why founder health, compensation, and recovery are business-critical. Risk #2: Partner Conflict & Misalignment – How unresolved tension between partners can destroy otherwise healthy agencies. Risk #3: Key Person Dependency – The dangers of relying too heavily on a single individual for sales, delivery, or operations. Risk #4: Client Legal & Delivery Exposure – How vague scopes, weak MSAs, and poor communication escalate disputes. Risk #5: Employee Legal & Compliance Exposure – Why poor performance management and unclear policies create legal risk. Risk #6: Business Continuity & Infrastructure Risk – Cybersecurity, data breaches, and operational interruptions. Risk #7: Insolvency & Cash Flow Management – Why profitable agencies still fail without disciplined cash management. Risk #8: Client Concentration – The compounding danger of over-reliance on a single client. Risk #9: Strategic Misalignment – Betting on declining markets, trends, or ICPs and slowly capping growth. Closing Thoughts – Risk management as a way to increase survival, not eliminate uncertainty. Real Talk Takeaways Most agencies don't fail from one mistake, they fail from unmanaged high-impact risks compounding over time. Founder burnout is a structural business risk, not a personal weakness. Clear operating agreements and role definitions prevent partner conflict from becoming catastrophic. Documentation, cross-training, and redundancy reduce key person dependency. Tight MSAs, clear scopes, and early communication are the first line of defense against client disputes. Poor performance management creates legal risk long before termination does. Cash flow discipline matters more than profitability on paper. Client concentration magnifies every other risk in the business. Strategic choices compound slowly, but misalignment is one of the most dangerous long-term risks. Timestamps 00:00 – Introduction: Why Risk Matters for Agencies 01:00 – Defining Risk as Exposure to Uncertainty 02:05 – The Risk Matrix: Likelihood vs. Impact 03:10 – Risk #1: Founder Burnout 07:20 – Risk #2: Partner Conflict & Misalignment 13:40 – Risk #3: Key Person Dependency 18:30 – Risk #4: Client Legal & Delivery Exposure 25:20 – Risk #5: Employee Legal & Compliance Risk 29:40 – Risk #6: Business Continuity & Infrastructure 33:45 – Risk #7: Insolvency & Cash Flow Risk 35:30 – Risk #8: Client Concentration 37:45 – Risk #9: Strategic Misalignment 43:05 – Closing Thoughts: Designing for Survival Notable Quotes "Risk is exposure to uncertainty that can materially impact the business." — Peter Kang "The number one job of a founder is staying in business." — Sei-Wook Kim "Founder burnout isn't just personal, it's a systemic risk to the company." — Peter Kang "Vague scopes and unclear agreements are liabilities, not conveniences." — Peter Kang "You don't feel strategic misalignment immediately, but it quietly caps growth over time." — Sei-Wook Kim Links & Resources Peter Kang on LinkedIn: https://www.linkedin.com/in/peterkang34/ Sei-Wook on LinkedIn: https://www.linkedin.com/in/seiwookkim/ AgencyHabits Website: https://www.agencyhabits.com/ AgencyHabits on LinkedIn: https://www.linkedin.com/company/agencyhabits/ Barrel Holdings Website: https://www.barrel-holdings.com/ Barrel Holdings LinkedIn: https://www.linkedin.com/company/barrel-holdings/

35 min

5

out of 5

2 Ratings

Go behind the scenes of real agency businesses. The AgencyHabits Podcast shares ideas, lessons, and experiments from across Barrel Holdings - home to a growing portfolio of specialized agencies and over two decades of insights. We share them all here, hoping you'll test, tweak, and find what works best for your agency.

Creator

Peter Kang, Sei-Wook Kim
Years Active

2025 - 2026
Episodes

31
Rating

Clean
Copyright

© 2026
Show Website

The AgencyHabits Podcast