An Agency Setup That Does Not Suck

In 2012, I founded my first company—a boutique software agency—with no real plan but the determination to do things my way. I had no desire to follow the conventional path or interest in processes or structures. And yet, for some reason, the company grew. We started bringing in medium-sized and big clients. Soon, we had a team of 12, and before I even realized it, I’d created a lifestyle business.

But I didn’t even know what that meant. I just wanted freedom, a good life, and a business that supported both. Then, everything changed.

The Shift to Serious Business

At some point, we started a new joint venture. One of my business partners declared that this venture needed to be different—more structured, more serious. He called our first company a lifestyle business in a way that made it sound like a dirty word, something unserious, something that needed to change.

So, we sold the agency and dived headfirst into the new venture. This time, we had investors, a formal structure, and all the trappings of a "real" business. The shift was drastic. We were playing by different rules, and the stakes were higher. But there was one problem—I hated it.

I longed for my old lifestyle business but couldn’t ignore its flaws, making it difficult to operate.

The Flaws of the Traditional Agency Model

Running an agency with employees came with challenges I hadn’t fully anticipated. We had 12 people, and managing them took longer than I wanted. Employees require development, support, and, most of all, consistent work. But in the agency world, projects don’t come steadily. They come in waves. One month, clients are knocking down your door; the next, there’s radio silence.

During those quiet times, we still had payroll, and every dollar earned seemed to melt away. Even when we had projects, there was another problem—what to do with the team when they weren’t actively billing on a project. We had to invent work to keep morale high and justify their salaries, often directing them toward internal projects. These projects were fun, but when a client came waving a check, we had to pull people away, killing momentum and morale.

These internal projects never saw the light of day. They became time and money pits, and the constant switching frustrated everyone. The whole system was flawed, but I still wanted to return to the agency model. Why?

A New Approach to a Lifestyle Business

Today, I run my agency very differently. Instead of a team of employees, I work with a network of trusted freelancers. We build bespoke tech projects from scratch, tailored to our clients’ needs, with a sharp focus on speed and quality.

Here’s the beauty of this model: freelancers are entrepreneurs. They understand the game. They don’t need to be micromanaged. They don’t need hand-holding. They’re paid only when the agency gets paid, significantly reducing my financial risk. And I still take a markup on every project. This means I can maintain the freedom and flexibility I crave without the headaches of traditional employment.

The Sweet Spot: Why Freelancers Work

When I present my agency to potential clients, it appears as a cohesive unit. This helps me land bigger projects—work that would be impossible if I were just a lone freelancer. An agency's perceived size and structure provide the trust and credibility to secure larger, longer-term projects. These projects offer more safety and volume, reducing the need to always find new clients.

And when a project ends? The freelancers know the deal. They find their next opportunity. It’s not my job to find busy work to keep them happy. They manage their careers, and I don’t have to invent tasks to keep people on the payroll.

Managing the Risks

Of course, there are risks. As I rely on freelancers, there’s always the potential for delivery issues if someone is unavailable. I actively manage this risk by continuously expanding my network and improving my sales pipeline.

But I’d rather deal with these manageable risks than the suffocating feeling of making payroll with no revenue. This new agency model supports my freedom. It’s lean and agile and designed to give me the life I want without the compromises of the past.

The Takeaway

Business doesn’t always have to be "serious" to be successful. Sometimes, choosing the right seriousness that aligns with your lifestyle makes all the difference. For me, embracing the agency model anew, with freelancers instead of employees, has made business fun again. It’s a calculated risk that gives me freedom, flexibility, and the joy of working on my terms.