Garrett Mehrguth on Scaling, Acquiring, and Staying Sharp

In this episode of Retained Trust, host Karl Hughes sits down with Garrett Mehrguth, founder of Directive and Abe, to unpack what it really takes to build, scale, and sustain a high-performing digital agency. Garrett shares why he's drawn to the constant reinvention required in agency life, how he structures leadership across multiple teams, and the bold bets he's making—like launching a new LinkedIn ads agency and buying others through his HoldCo, More Good Capital. From hiring to contracting, reinvesting profit, and knowing when to acquire versus build, Garrett brings candid, high-energy insight for founders navigating uncertain markets and aggressive goals.Key Points From This Episode:[00:00:00] Garrett's passion for the complexity and human challenges of agency work[00:04:01] Why the idea of “elevating out” of your business is a myth[00:06:08] Garrett’s executive structure and leadership style at Directive[00:08:12] How he sets pace and alignment through strategic initiative planning[00:12:14] The need for constant service reinvention in marketing agencies[00:14:35] How Garrett tested and scaled paid channels with gift card demos[00:17:46] Why proper contracting and LTV shape agency scalability[00:20:56] The value of tightly focusing on one service for one persona[00:23:17] Smart cross-selling: building services based on client delivery pain points[00:24:14] Why Garrett launched Abe, a LinkedIn-only ads agency[00:26:53] Directive vs. Abe: how focus improves clarity and execution[00:28:23] The logic behind pre-hiring and betting big once a year[00:29:11] Shifting from mid-market to extremes: startups and incumbents[00:32:45] Garrett’s take on the myth of “passive income” from agency ownership[00:34:22] Using acquisitions to gain capabilities and reduce CAC[00:36:55] What makes an agency acquisition worthwhile (and what doesn’t)[00:38:10] Lessons from failed expansions and why he'd buy instead of build[00:41:20] Why coaching other agency founders is Garrett’s favorite work[00:44:05] How most growth challenges tie back to leadership and structure[00:47:47] Book recommendations on professional services, hiring, and strategyLinks:Garrett Mehrguth on LinkedIn: https://www.linkedin.com/in/garrettmehrguth/Directive: https://directiveconsulting.com/Karl Hughes on LinkedIn: https://www.linkedin.com/in/karllhughesProduction and editing by The Podcast Consultant: https://thepodcastconsultant.com