Episode 046. The Confident Pivot: Reinventing Without Burning It Down

 

Melissa can't think of a single client she's working with that isn't in the middle of a pivot right now or hasn't pivoted in the past year. We're in a particular moment of needing to pivot, given what's happening in the world.

According to the 2025 Agency Growth Benchmark report, over 60% of agencies between $500K and $3M undergo a positioning or offer reset every two to four years. Pivoting doesn't need to be a sign of failure. It's a sign of outgrowing something.

Why 2026 Is the Year of the Agency Pivot

Something is happening across the agency landscape that's impossible to ignore. Founders who've been running their businesses for five or ten years are suddenly rethinking everything. Not because they failed, but because they've outgrown the version of their agency that got them here.

The Year of the Snake gave us time to reflect. Businesses slowed, pipelines thinned, and agency owners were forced to sit with uncomfortable questions about whether what they've built is actually what they want. Now, as we transition into the Year of the Fire Horse (a year defined by fast, courageous energy and significant transformation), those reflections are turning into action.

The Four Types of Agency Pivots

The Positioning Pivot is often the first domino to fall. This is where you move from being one of many to one of one, shifting from generalist to specialist or narrowing your focus to industries where you have an unfair advantage.

The Offer Pivot involves streamlining and premiumizing what you deliver. This means killing the Cheesecake Factory menu of services and focusing on outcomes-based solutions that command higher prices.

The Client Pivot might be the most emotionally challenging. It often requires releasing legacy clients who no longer fit where you're going. This creates space for higher-value relationships.

The Model Pivot is the most foundational shift. This is where you move from founder-doer to CEO, which demands a complete rethinking of your staffing structure, pricing, and delivery systems.

How to Pivot Without Losing Everything You've Built

The biggest mistake agency owners make is thinking a pivot has to be a dramatic reinvention. The best pivots are gradual transitions that let you test what's working before going all-in.

Start with the "rebuild from day one" exercise. Imagine you don't have your current business. No existing clients, no team obligations, no sunk costs. If you were building this agency from scratch today, what would it look like? The gap between that vision and your reality is your roadmap.

From there, apply the keep-stop-evolve framework. What's working that you should protect? What needs to end? What needs to change? Not everything requires a dramatic overhaul. Sometimes the shift is as simple as stepping off client calls that your team can handle without you.

(00:00:00) Introduction & Year of the Fire Horse

  • A season-opening look at the energy shift from reflection to transformation

  • Why 2025 was the Year of the Snake (reflection) and 2026 is the Year of the Fire Horse (bold action)

  • Connecting the Chinese zodiac to what's happening across the agency landscape

  • Setting the stage for a conversation about pivoting

(00:04:00) Why Every Agency Owner Is Pivoting Right Now

  • Nearly every agency we work with is mid-pivot or recently pivoted

  • The different scales of pivot from small tweaks to complete reinvention

  • Why 2025 forced so many founders to confront hard truths

  • The pattern that's too common to be a coincidence

(00:10:00) Pivoting Isn't Failure, It's Outgrowing What Worked

  • The 60% statistic on agencies resetting positioning every 2-4 years

  • Pivoting as outgrowing versus pivoting as panic

  • Making change feel less emotional and more like standard business practice

  • Why pivoting should be part of your DNA, not a crisis response

(00:17:00) Signs You're Ready for a Pivot

  • Capacity strain without growth (busy but not profitable)

  • Revenue plateau despite best efforts

  • The "work for your business" feeling instead of the reverse

  • When your clients no longer match your expertise level

(00:23:00) The Four Types of Agency Pivots

  • Positioning pivot: from generalist to specialist (one of many to one of one)

  • Offer pivot: streamlining and premiumizing services

  • Client pivot: releasing legacy relationships to create space

  • Model pivot: founder-doer to CEO transformation

(00:33:00) How to Approach Change Without Burning It Down

  • Why you don't need to do everything at once

  • Prioritizing high-impact, easy-to-execute changes first

  • The interconnected nature of pivots and how to navigate it

  • Why gradual transitions beat dramatic reinventions

(00:37:00) The "Rebuild From Day One" Exercise

  • Imagining no constraints or obligations

  • What clients, work, and brand would you choose today?

  • Using this vision to identify the gap between current and ideal

  • Giving yourself permission to dream bigger

(00:42:00) Testing Before You Commit

  • Market testing on sales calls and with existing clients

  • The startup mindset of iterating based on feedback

  • Getting comfortable with gradual evolution

  • Why you don't need to change your entire website first

(00:45:00) Bringing Your Team Along for the Ride

  • The keep-stop-evolve framework for simple but powerful reflection

  • Why founder energy affects the whole business

  • Giving your team something to rally behind

  • Sharing renewed clarity creates momentum

This episode is brought to you by:

Copilot Money | Get two months free with code DARLINGS at copilot.money/darlings

Copper | Get 15% off any annual plan with code AGENCYDARLINGS at copper.com/agency

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Meet Your Hosts

Meredith Fennessy Witts is the Founder of Le Chéile, the go-to finance and strategy consultancy for creative agencies.

Connect with her on LinkedIn and Instagram.

Melissa Lohrer is the Founder of Waverly Ave Consulting, a growth consultancy for indie agencies.

Connect with her on LinkedIn and Instagram.

 
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Episode 047. The Delegation Mistakes That Keep Founders in the Weeds

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Episode 045. What Clients Actually Want (And What They Won't Tell You)