Share:
Table of Content
Do you want to start advertising agency business?
In these times where people buy benefits instead of products, it has become really significant to advertise the services whether you are a small business or a larger one. To let people know why they should choose your products rather than the same product of another company, you have to advertise in the best way one can.
Do you think that you have the mind to advertise in the best way one can? If no, then here we are ‘Albert Advertisers’ with the professional minds to feature your brand.
The sample business plan envisaging how Albert Advertisers will be started is given here for anyone who wants to know how to start an advertising agency.
Executive Summary
2.1 The Business
Albert Advertisers will be a registered and licensed advertisement company located in Austin, owned by Albert Finney. The business will be based on advertising and marketing small and large businesses in Austin by traditional means of making billboards and by using digital and social platforms.
2.2 Management
If you have decided to start an advertising agency, you should then make a detailed advertising agency business plan with a special focus on how you will be managing your business. Albert Advertisers will be managed by Albert himself. He will hire the perfect minds after rigorous testing to ensure the best and unique ideas for advertisement. Besides, he will hire IT Experts, Painters, and Web Developers to convert your dream of attracting a large audience into reality.
2.3 Customers
Our customers will be the owners of online companies and entrepreneurs of large and small startups based in Austin. Besides new startups, we also expect previously running businesses to avail our services whenever they have to market their new products.
2.4 Business Target
Enlisting the targets, you want to achieve in your marketing agency business plan, will help you in making a defined strategic plan to achieve them. Our target is to be the most popular advertisement agency in Austin and to earn a profit margin of $10k per month by the end of the first year.
Company Summary
3.1 Company Owner
Albert Finney will be the owner of Albert Advertisers. Albert is a Bachelor in Advertising and Digital Media Design from the University of Oregon and has a two-year experience of working as Advertising Manager. By the mix of both his ideas and management skills, Albert is confident that soon he will be able to be prominent and distinct in the market he is going to serve.
3.2 Why the Business is being started
Albert has always been passionate about starting his own business. His degree and his interests toward digital marketing persuaded him to start a marketing company. This will be a source of earning a profit while using his dedication and skills in this profession.
3.3 How the Business will be started
Due to his prior experience as an Advertising manager, Albert knew well how to start a marketing agency. If you are new to this business and want to know about how to start a marketing company, you can take help from this sample business plan. Albert will hire a team of experienced web developers, painters, artists, billboard designers, and general assistants to advertise others’ business. A place will be taken on rent and necessary equipment like computers, advertising flags, banners, paint, brushes, boards, and accessories will be bought. Albert has decided to provide a comfortable and learning environment for his team and also to make a complacent place for the customers to sit and see our advertising projects. The startup summary is as follows:
The detailed start-up requirements are given below:
| Start-up Expenses | |
| Legal | $55 300 |
| Consultants | $0 |
| Insurance | $32 750 |
| Rent | $32 500 |
| Research and Development | $32 750 |
| Expensed Equipment | $32 750 |
| Signs | $1 250 |
| TOTAL START-UP EXPENSES | $187 300 |
| Start-up Assets | $220 875 |
| Cash Required | $332 500 |
| Start-up Inventory | $32 625 |
| Other Current Assets | $232 500 |
| Long-term Assets | $235 000 |
| TOTAL ASSETS | $121 875 |
| Total Requirements | $245 000 |
| START-UP FUNDING | |
| START-UP FUNDING | $273 125 |
| Start-up Expenses to Fund | $151 875 |
| Start-up Assets to Fund | $123 000 |
| TOTAL FUNDING REQUIRED | $0 |
| Assets | $23 125 |
| Non-cash Assets from Start-up | $18 750 |
| Cash Requirements from Start-up | $0 |
| Additional Cash Raised | $18 750 |
| Cash Balance on Starting Date | $21 875 |
| TOTAL ASSETS | $373 125 |
| Liabilities and Capital | $0 |
| Liabilities | $0 |
| Current Borrowing | $0 |
| Long-term Liabilities | $0 |
| Accounts Payable (Outstanding Bills) | $0 |
| Other Current Liabilities (interest-free) | $0 |
| TOTAL LIABILITIES | $0 |
| Capital | $620 125 |
| Planned Investment | $620 125 |
| Investor 1 | $0 |
| Investor 2 | $0 |
| Other | $0 |
| Additional Investment Requirement | $0 |
| TOTAL PLANNED INVESTMENT | $620 125 |
| Loss at Start-up (Start-up Expenses) | $313 125 |
| TOTAL CAPITAL | $251 875 |
| TOTAL CAPITAL AND LIABILITIES | $251 875 |
| Total Funding | $255 000 |
Products
Before deciding the services Albert analyzed what others are lacking in this domain. To adopt additional paths for advertisement besides traditional means Albert has decided to start a digital marketing agency. The overall services Albert Advertisers will provide are given here:
- Printing innovative flyers and brochures
- Designing appealing and unique billboards
- Making related banners and flags
- Making business cards and invitation cards
- Advertising through social media sites, websites, and emails
- Advertising using the technique of search engine optimization
Marketing Analysis of Marketing Agency
The next important step you have to take if you are looking for how to start your own advertising agency marketing plan is to do an accurate market analysis. You need to figure out what others in the same business are doing and what additional services you’ll have to provide to take a lead upon them. Albert has decided to start an advertising agency marketing plan not just for the sake of opening his own business but to introduce new ways of advertising and getting introduced to people. He has decided to follow both the traditional means of advertisements and the latest digital trends. So, you can have guidance from this sample business plan even if you are looking for how to start advertising agency marketing plan.
5.1 Market Trends
The entrepreneurs when they are taking a startup, can’t focus on each and everything by themselves and they want the services of some professional and trustee organization to do marketing work for their marketing plan. According to a report by IBISWorld, stats have shown a noticeable growth rate of 4.2% of the advertising industry in the United States over the past five years, generating a revenue of $54.5 billion annually. In the US alone there are more than 120 thousand advertising agencies running successfully. So the business can prove extremely beneficial for you provided that you plan it effectively.
5.2 Marketing Segmentation
To know and focus on the demands of its customers, Albert Advertisers has divided its customers in the following target groups. The detailed marketing segmentation of our target audience is as follows:
5.2.1 Business Owners: The biggest category of our customers will be the owners of small and large businesses based in Austin. They will avail our services of designing billboards and printing brochures for them as well as the services of our experts to make their website SEO friendly.
5.2.2 Institutions & Organizations: Our second target group comprises of various institutions and organizations located in Austin including public-sector organizations, schools, colleges and universities, political parties, sports organizations, and non-profit organizations. They will need our services to promote their ideas and services.
5.2.3 Online Companies: Our third target group will be the online companies not just restricted to Austin but to anywhere in the United States. They will avail just our services of social media marketing, developing websites and SEO their content.
| Market Analysis | |||||||
| Potential Customers | Growth | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | CAGR |
| Institutions & Organizations | 32% | 11 433 | 13 344 | 16 553 | 18 745 | 20 545 | 13,43% |
| Business Owners | 48% | 22 334 | 32 344 | 43 665 | 52 544 | 66 432 | 10,00% |
| Online Companies | 20% | 12 867 | 14 433 | 15 999 | 17 565 | 19 131 | 15,32% |
| Total | 100% | 46 634 | 60 121 | 76 217 | 88 854 | 106 108 | 9,54% |
5.3 Business Target
We aim at extending our services to several cities through our online servicing. Our financial goals to be achieved over the course of three years are:
- To balance the initial cost of the startup with earned profits by the end of the first year
- To achieve the net profit margin of $10k per month by the end of the first year and $15k per month by the end of the second year
5.4 Product Pricing
After considering the market demands, we have priced our services in the range similar to our competitors. However, we’ll be offering several discounts to introduce us to the market.
Strategy
If you are going to start a social media marketing agency or even a traditional advertising agency marketing plan you must have an excellent sales strategy plan for yourself. To present your work to your target customers you have to prove that you can help them in gaining customers through advertisements, and that is only possible if your own advertisement plan for your company is extraordinary. If you are looking for how to start a digital marketing agency pdf format, you can take help from this freely available business plan on how to start marketing agency mainly focused on digital marketing.
6.1 Competitive Analysis
Our biggest competitive advantage is that our company will not only be making billboards and banners but in addition to these, we will be hiring IT Experts and Web Developers to advertise through digital media. Our skilled and experienced employees will make your website SEO friendly. Secondly, our staff especially web developers are highly experienced and despite their prior experience they will be given continuous learning programs. Moreover, we will be servicing online, thus enabling our customers to facilitate online orders. Lastly, we will be offering discounts to our customers to help us in getting introduced to a large audience.
6.2 Sales Strategy
- We’ll ensure a 25% increase in our website traffic every month and a gradual increase in our means to convert that traffic to our customers
- We’ll SEO our website to give our customers an example of how we work
- We’ll advertise us through posting appealing billboards and banners on public places and on social media
- We’ll display our works to our customers by sending them introductory letters and by exhibiting them in the waiting area for them
- We will offer a 20% discount on our services for the first five months of our launch
6.3 Sales Monthly
6.4 Sales Yearly
6.5 Sales Forecast
| Sales Forecast | |||
| Unit Sales | Year 1 | Year 2 | Year 3 |
| Flyers & brochures | 1 887 030 | 2 680 320 | 2 588 240 |
| Billboards, banners & flags | 802 370 | 815 430 | 823 540 |
| Business & invitation cards | 539 320 | 770230 | 1 002 310 |
| Digital advertising | 265 450 | 322 390 | 393 320 |
| TOTAL UNIT SALES | 3 494 170 | 4 588 370 | 4 807 410 |
| Unit Prices | Year 1 | Year 2 | Year 3 |
| Flyers & brochures | $140,00 | $150,00 | $160,00 |
| Billboards, banners & flags | $600,00 | $800,00 | $1 000,00 |
| Business & invitation cards | $700,00 | $800,00 | $900,00 |
| Digital advertising | $650,00 | $750,00 | $850,00 |
| Sales | |||
| Flyers & brochures | $2 149 800 | $2 784 000 | $3 383 200 |
| Billboards, banners & flags | $120 050 | $194 500 | $268 500 |
| Business & invitation cards | $50 110 | $71 600 | $93 000 |
| Digital advertising | $139 350 | $194 600 | $249 850 |
| TOTAL SALES | |||
| Direct Unit Costs | $Year 1 | $Year 2 | $Year 3 |
| Flyers & brochures | $0,70 | $0,80 | $0,90 |
| Billboards, banners & flags | $0,40 | $0,45 | $0,50 |
| Business & invitation cards | $0,30 | $0,35 | $0,40 |
| Digital advertising | $3,00 | $3,50 | $4,00 |
| Direct Cost of Sales | |||
| Flyers & brochures | $989 300 | $1 839 000 | $2 679 700 |
| Billboards, banners & flags | $66 600 | $119 900 | $173 200 |
| Business & invitation cards | $17 900 | $35 000 | $52 100 |
| Digital advertising | $19 400 | $67 600 | $115 800 |
| Subtotal Direct Cost of Sales | $1 294 100 | $1 699 400 | $2 104 700 |
Personnel plan
If you are starting a marketing agency especially a digital marketing agency you will need to hire highly trained staff to prove that you are the best among your competitors. In this sample digital marketing agency business plan, we are enlisting the employees Albert will hire with a little job description.
7.1 Company Staff
Albert will manage the business himself, the staff he’ll hire is as follows:
- 1 Accountant to maintain financial and other records
- 1 Receptionist to attend to customers
- 4 Graphic Artists and Painters to design billboards, banners, and brochures
- 2 SEO Specialists to do search engine optimization
- 4 Web Developers to develop websites and to do social media marketing
- 2 Technicians to operate the machines
- 2 General Assistants to carry day to day tasks and to bring required materials
- 1 Cleaner to clean the facility
- 1 Driver to provide transport
7.2 Average Salary of Employees
| Personnel Plan | |||
| Year 1 | Year 2 | Year 3 | |
| Accountant | $85 000 | $95 000 | $105 000 |
| Receptionist | $45 000 | $50 000 | $55 000 |
| Graphic Artists | $152 000 | $159 000 | $166 000 |
| SEO Specialists | $152 000 | $159 000 | $166 000 |
| Web Developers | $152 000 | $159 000 | $166 000 |
| Technicians | $145 000 | $152 000 | $159 000 |
| General Assistants | $50 000 | $55 000 | $60 000 |
| Cleaner | $42 000 | $45 000 | $48 000 |
| Driver | $42 000 | $45 000 | $48 000 |
| Total Salaries | $304 000 | $318 000 | $332 000 |
Financial plan
The success of a business heavily depends on the accuracy of its financial plan. A financial plan is important because it demonstrates what will be your startup expenses including the salaries of your employees. Your financial plan will help you in devising the way to balance your startup costs with the earned profits.
While making your marketing agency business plan, you must hire a financial expert to make an accurate financial plan for your business. As you will have to do large scale advertisement and will have to hire experienced and highly paid staff, so it is very important to have an idea of the expenses you will have to meet and the investments you will have to do. For a rough estimate, we are providing the sample financial plan of Albert Advertisers, but still, it is advisable to seek the services of a financial expert for this task if you entering this venture.
8.1 Important Assumptions
| General Assumptions | |||
| Year 1 | Year 2 | Year 3 | |
| Plan Month | 1 | 2 | 3 |
| Current Interest Rate | 10,00% | 11,00% | 12,00% |
| Long-term Interest Rate | 10,00% | 10,00% | 10,00% |
| Tax Rate | 26,42% | 27,76% | 28,12% |
| Other | 0 | 0 | 0 |
8.2 Brake-even Analysis
| Brake-Even Analysis | |
| Monthly Units Break-even | 5530 |
| Monthly Revenue Break-even | $159 740 |
| Assumptions: | |
| Average Per-Unit Revenue | $260,87 |
| Average Per-Unit Variable Cost | $0,89 |
| Estimated Monthly Fixed Cost | $196 410 |
8.3 Projected Profit and Loss
| Pro Forma Profit And Loss | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | $309 069 | $385 934 | $462 799 |
| Direct Cost of Sales | $15 100 | $19 153 | $23 206 |
| Other | $0 | $0 | $0 |
| TOTAL COST OF SALES | $15 100 | $19 153 | $23 206 |
| Gross Margin | $293 969 | $366 781 | $439 593 |
| Gross Margin % | 94,98% | 94,72% | 94,46% |
| Expenses | |||
| Payroll | $138 036 | $162 898 | $187 760 |
| Sales and Marketing and Other Expenses | $1 850 | $2 000 | $2 150 |
| Depreciation | $2 070 | $2 070 | $2 070 |
| Leased Equipment | $0 | $0 | $0 |
| Utilities | $4 000 | $4 250 | $4 500 |
| Insurance | $1 800 | $1 800 | $1 800 |
| Rent | $6 500 | $7 000 | $7 500 |
| Payroll Taxes | $34 510 | $40 726 | $46 942 |
| Other | $0 | $0 | $0 |
| Total Operating Expenses | $188 766 | $220 744 | $252 722 |
| Profit Before Interest and Taxes | $105 205 | $146 040 | $186 875 |
| EBITDA | $107 275 | $148 110 | $188 945 |
| Interest Expense | $0 | $0 | $0 |
| Taxes Incurred | $26 838 | $37 315 | $47 792 |
| Net Profit | $78 367 | $108 725 | $139 083 |
| Net Profit/Sales | 30,00% | 39,32% | 48,64% |
8.3.1 Profit Monthly
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow
| Pro Forma Cash Flow | |||
| Cash Received | Year 1 | Year 2 | Year 3 |
| Cash from Operations | |||
| Cash Sales | $40 124 | $45 046 | $50 068 |
| Cash from Receivables | $7 023 | $8 610 | $9 297 |
| SUBTOTAL CASH FROM OPERATIONS | $47 143 | $53 651 | $59 359 |
| Additional Cash Received | |||
| Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
| New Current Borrowing | $0 | $0 | $0 |
| New Other Liabilities (interest-free) | $0 | $0 | $0 |
| New Long-term Liabilities | $0 | $0 | $0 |
| Sales of Other Current Assets | $0 | $0 | $0 |
| Sales of Long-term Assets | $0 | $0 | $0 |
| New Investment Received | $0 | $0 | $0 |
| SUBTOTAL CASH RECEIVED | $47 143 | $53 651 | $55 359 |
| Expenditures | Year 1 | Year 2 | Year 3 |
| Expenditures from Operations | |||
| Cash Spending | $21 647 | $24 204 | $26 951 |
| Bill Payments | $13 539 | $15 385 | $170 631 |
| SUBTOTAL SPENT ON OPERATIONS | $35 296 | $39 549 | $43 582 |
| Additional Cash Spent | |||
| Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
| Principal Repayment of Current Borrowing | $0 | $0 | $0 |
| Other Liabilities Principal Repayment | $0 | $0 | $0 |
| Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
| Purchase Other Current Assets | $0 | $0 | $0 |
| Purchase Long-term Assets | $0 | $0 | $0 |
| Dividends | $0 | $0 | $0 |
| SUBTOTAL CASH SPENT | $35 296 | $35 489 | $43 882 |
| Net Cash Flow | $11 551 | $13 167 | $15 683 |
| Cash Balance | $21 823 | $22 381 | $28 239 |
8.5 Projected Balance Sheet
| Pro Forma Balance Sheet | |||
| Assets | Year 1 | Year 2 | Year 3 |
| Current Assets | |||
| Cash | $184 666 | $218 525 | $252 384 |
| Accounts Receivable | $12 613 | $14 493 | $16 373 |
| Inventory | $2 980 | $3 450 | $3 920 |
| Other Current Assets | $1 000 | $1 000 | $1 000 |
| TOTAL CURRENT ASSETS | $201 259 | $237 468 | $273 677 |
| Long-term Assets | |||
| Long-term Assets | $10 000 | $10 000 | $10 000 |
| Accumulated Depreciation | $12 420 | $14 490 | $16 560 |
| TOTAL LONG-TERM ASSETS | $980 | $610 | $240 |
| TOTAL ASSETS | $198 839 | $232 978 | $267 117 |
| Liabilities and Capital | Year 1 | Year 2 | Year 3 |
| Current Liabilities | |||
| Accounts Payable | $9 482 | $10 792 | $12 102 |
| Current Borrowing | $0 | $0 | $0 |
| Other Current Liabilities | $0 | $0 | $0 |
| SUBTOTAL CURRENT LIABILITIES | $9 482 | $10 792 | $12 102 |
| Long-term Liabilities | $0 | $0 | $0 |
| TOTAL LIABILITIES | $9 482 | $10 792 | $12 102 |
| Paid-in Capital | $30 000 | $30 000 | $30 000 |
| Retained Earnings | $48 651 | $72 636 | $96 621 |
| Earnings | $100 709 | $119 555 | $138 401 |
| TOTAL CAPITAL | $189 360 | $222 190 | $255 020 |
| TOTAL LIABILITIES AND CAPITAL | $198 839 | $232 978 | $267 117 |
| Net Worth | $182 060 | $226 240 | $270 420 |
8.6 Business Ratios
| Ratio Analysis | ||||
| Year 1 | Year 2 | Year 3 | INDUSTRY PROFILE | |
| Sales Growth | 4,35% | 30,82% | 63,29% | 4,00% |
| Percent of Total Assets | ||||
| Accounts Receivable | 5,61% | 4,71% | 3,81% | 9,70% |
| Inventory | 1,85% | 1,82% | 1,79% | 9,80% |
| Other Current Assets | 1,75% | 2,02% | 2,29% | 27,40% |
| Total Current Assets | 138,53% | 150,99% | 163,45% | 54,60% |
| Long-term Assets | -9,47% | -21,01% | -32,55% | 58,40% |
| TOTAL ASSETS | 100,00% | 100,00% | 100,00% | 100,00% |
| Current Liabilities | 4,68% | 3,04% | 2,76% | 27,30% |
| Long-term Liabilities | 0,00% | 0,00% | 0,00% | 25,80% |
| Total Liabilities | 4,68% | 3,04% | 2,76% | 54,10% |
| NET WORTH | 99,32% | 101,04% | 102,76% | 44,90% |
| Percent of Sales | ||||
| Sales | 100,00% | 100,00% | 100,00% | 100,00% |
| Gross Margin | 94,18% | 93,85% | 93,52% | 0,00% |
| Selling, General & Administrative Expenses | 74,29% | 71,83% | 69,37% | 65,20% |
| Advertising Expenses | 2,06% | 1,11% | 0,28% | 1,40% |
| Profit Before Interest and Taxes | 26,47% | 29,30% | 32,13% | 2,86% |
| Main Ratios | ||||
| Current | 25,86 | 29,39 | 32,92 | 1,63 |
| Quick | 25,4 | 28,88 | 32,36 | 0,84 |
| Total Debt to Total Assets | 2,68% | 1,04% | 0,76% | 67,10% |
| Pre-tax Return on Net Worth | 66,83% | 71,26% | 75,69% | 4,40% |
| Pre-tax Return on Assets | 64,88% | 69,75% | 74,62% | 9,00% |
| Additional Ratios | Year 1 | Year 2 | Year 3 | |
| Net Profit Margin | 19,20% | 21,16% | 23,12% | N.A. |
| Return on Equity | 47,79% | 50,53% | 53,27% | N.A. |
| Activity Ratios | ||||
| Accounts Receivable Turnover | 4,56 | 4,56 | 4,56 | N.A. |
| Collection Days | 92 | 99 | 106 | N.A. |
| Inventory Turnover | 19,7 | 22,55 | 25,4 | N.A. |
| Accounts Payable Turnover | 14,17 | 14,67 | 15,17 | N.A. |
| Payment Days | 27 | 27 | 27 | N.A. |
| Total Asset Turnover | 1,84 | 1,55 | 1,26 | N.A. |
| Debt Ratios | ||||
| Debt to Net Worth | 0 | -0,02 | -0,04 | N.A. |
| Current Liab. to Liab. | 1 | 1 | 1 | N.A. |
| Liquidity Ratios | ||||
| Net Working Capital | $120 943 | $140 664 | $160 385 | N.A. |
| Interest Coverage | 0 | 0 | 0 | N.A. |
| Additional Ratios | ||||
| Assets to Sales | 0,45 | 0,48 | 0,51 | N.A. |
| Current Debt/Total Assets | 4% | 3% | 2% | N.A. |
| Acid Test | 23,66 | 27,01 | 30,36 | N.A. |
| Sales/Net Worth | 1,68 | 1,29 | 0,9 | N.A. |
| Dividend Payout | 0 | 0 | 0 | N.A. |
Download Advertising Agency Business Plan Sample in pdf
OGScapital staff also specialize in compiling social media business plan, new product launch business plan and help compose marketing strategies in the business plans.
OGSCapital’s team has assisted thousands of entrepreneurs with top-rated document, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.
Hello there.
I write to express my gratitude over this sample of business plan. For quite a long time I had wanted to write down a business plan but did not where and how I could start. However, having stumbled over this sample, I can now Kickstart my own business.
Thank you so very much.