- Stefan Katanic
- Posts
- How to Build a $25M+ Agency in 5 Years
How to Build a $25M+ Agency in 5 Years
Most agency owners have no real plan. Here’s one you can steal.
You don’t need to go viral.
You don’t need to raise money.
You don’t need a personal brand.
You just need execution.
Here’s the 5-year roadmap to build a $25M+ agency from scratch:
Year 1: $0 → $1M PROFIT
Focus on client acquisition and delivery. That’s it.
Use fulfillment partners to stay lean
Reinvest profits into sales and marketing
Build your core team: PM, closer, finance
Most agency owners overhire and stall.
You stay lean, you grow.
Year 2–3: $1M → $3M PROFIT
Now shift to retention and recurring revenue.
Lock in 12-month contracts with ACH auto-billing
Cross-sell services (SEO for web design, retainers for CRO)
Standardize fulfillment for consistency
Client LTV > new leads.
Retention is the foundation of scale.
Year 4: $3M → $8M PROFIT
Growth gets expensive. So you buy it.
Acquire smaller agencies (~40% your size)
Absorb their book of business
Integrate their team and ops
Apply your retention model
You skip years of hiring headaches—and multiply instantly.
Year 5+: $8M → $25M+ Enterprise Value
Two paths:
Keep scaling via acquisitions
Exit at a 7–9 figure multiple
You’ve built a machine.
Now decide if you want to keep it—or sell it.
The key principles never change:
Master client acquisition
Build retention systems
Buy scale when
Don’t hire for ego
Think in enterprise value—not revenue
Want help executing this playbook?
This is exactly what I help $1M–$3M agency founders do.
Reply with “BLUEPRINT” and I’ll send the full details of our Strategic Agency Growth Partnership.
Cheers,
Stefan