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When Winning is Losing

  • Writer: Brad Lawwill
    Brad Lawwill
  • Mar 15
  • 4 min read

Updated: Mar 15

As anyone who has run a creative business or had any accountability for driving revenue through such a business knows, the desire to say "yes" to a new project can be overwhelming. Whether you are a boutique agency, a holding company shop, or a freelancer doing your own thing, the pressure to keep the project pipeline full and the cash flowing can lead to taking on work that is less-than-ideal.


But taking on business that is not profitable, that is misaligned with your expertise, or that causes you or members of your team to become burned out and disengaged can actually turn a project win into a business loss and do substantially more harm than good.


"We Are Not Here for Busy Work"

That quote belongs to a former boss of mine at Omnicom. Running an Omnicom agency was not always a basket of kittens, but it did give me the opportunity to learn from some incredibly talented business leaders. That boss was one of those folks: a former BevAlc industry executive affectionately known (behind his back) as "The Texas Tornado".


Early on in our reporting relationship, I brought a potential project to his attention and he asked to see how we had priced our proposal. When we looked through the budget analysis together, I explained that we had priced it to "win" - that is, offered discounted rates that would yield a low profit margin in the hopes of securing the client and developing them into something bigger.


His full response was, "Brad, you can't bank on the future and we are not here for busy work. No sense in taking on work that isn't profitable." And he was right.


The allure of landing a new client or taking on an exciting new project can sometimes cloud our judgment and make us lose sight of the practical reality that our business needs to be profitable to survive and thrive. Servicing a piece of business that runs at a low - or worse, negative - margin is discouraging and disheartening. Too many of these projects can put you right out of business.


Every piece of business should be priced thoughtfully - and scoped accurately - to give the business the best chance to generate profit.


"I Guess We Do Events Now"

That one comes from the head of an advertising shop that decided to take the lead on producing a brand experience for one of their long-standing clients...despite not having a single person in the shop with events expertise.


The result was perfectly predictable. A steep learning curve, long hours for her team, things both big and small getting missed, a poor attendee experience, and a deeply frustrated client.


When a creative business takes on work that is not aligned with its expertise, the results can be catastrophic. Not only is it difficult to thoughtfully and appropriately price the work, it often leads to suboptimal results that can damage your reputation, brand, and relationships. And that does not even take into account the often-overlooked "opportunity cost" - the time and momentum you have taken away from your core business to go on an ill-advised professional walkabout.


"This Client Makes Me Want to Go Back to Waiting Tables"

I can still see the exhaustion and anguish in the eyes of the employee who said this to me about a particulary difficult client. A client that we eventually had to fire for the good of our business.


The sad reality is that even when you thread the needle to land a profitable piece of business that is perfectly aligned with your creative expertise, it can still go pear-shaped on you.


The ideal state for a creative business is that the folks servicing the work (whether it is you or other members of your team) are fully engaged in the project. Fully engaged folks turn out terrific work and terrific work leads to highly satisfied clients. Highly satisfied clients keep coming back for more.


But, sometimes you end up taking on a client that is difficult or impossible for your team to rally around. This might be because of a client contact's personality or their work style. Or it might even be because of the client's reputation or the very nature of its products or services. For example, a creative team might refuse to work with a brand because of their political ideology or because they manufacture a controversial product.


Employees can also become disengaged when a project is poorly resourced, overly complicated, or so taxing that it interferes with the need for balance in their life.


Creative business leaders need to pay attention to these situations because disengaged or burned out employees can create significant challenges. They turn out poor work product. They can influence the attitude and effort of their teammates. And they quit and need to be replaced.


"Know When to Fold 'Em. Know When to Walk Away. Know When to Run"

That's from my Dad (when he was singing along with Kenny Rogers).


Not all wins are created equal and some are not worth pursuing in the first place.


When a project is priced too low, falls outside of your expertise, or pushes you or your team to the brink, the cost of that "win" could be devastating.


Saying "no" to the wrong opportunity is not a failure - it's a smart and strategic business decision.




 
 
 

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