Digital marketing business plan for starting your own agency

The future of marketing is inevitably digital. There’s no denying this and that makes digital marketing one of the most profitable businesses that you can start today. If you want a business plan for digital marketing agency, this document will tell you all there is to it. However, for a successful business, you need to know in detail about starting a small marketing business.

This is a business plans for restaurant that will walk you through all the things involved in starting this business from marketing to finances. One thing that you need to note before we get started is that just like a business plan for the cyber security, this is more of a services business than a products business.

Executive Summary

2.1 The Business

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Peck Digital Marketing will be a registered and insured digital marketing services provider in Dallas, Texas. The person owning this business, John Peck knows in detail how to start your own marketing agency and has a lot of experience in the field. The business will provide digital marketing services to businesses of all sizes and natures.

2.2 Management of Digital Marketing Agency

If you want to know how to run a digital marketing agency, the most important thing to consider is the management of the business. John will be the CEO and will have the decision-making power in the business. He will hire three managers to run the business.

The managers will be responsible for external relations, operations, and finance. They will run the day-to-day things of the business, but the supreme authority will rest with John himself in this internet marketing company business plan. All important matters will be reported to him.

2.3 Customers of Digital Marketing Agency

The next important thing in this strategic business plan for a marketing agency are the customers that this business will be serving. As digital marketing is a service needed by all businesses, the customers will be from a range of different industries. The main customers of this business will be:

  • Startups looking for digital marketing to promote their brand.
  • Small family-owned businesses looking to increase their reach.
  • Corporations who want to promote their services or improve their brand image.
  • Public service organizations looking to spread awareness.

2.4 Business Target

The target of this business, just like any judgement recovery business plan is to make money. This target is broken down into the following parts:

  • Establish a reputable name for the business, one people can trust and depend on.
  • Get permanent clients from small business and corporate sector.
  • Provide better services in the area than the competition.
  • Maintain the highest level of client satisfaction.
3 Years Profit Forecast - Digital Marketing Agency Business Plan Template
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Company Summary

3.1 Company Owner

John Peck is a retired Marine with interest in digital marketing. He started experimenting with digital marketing when he wanted to spread awareness and raise money for the war-wounded veterans. Following his retirement, John started his own non-profit digital marketing agency to provide services to charitable organizations. Now Joh wants to take this one step further.

3.2 Why the Digital Marketing Agency is being started?

The reason why this business is being started is another important part of this online marketing business plan pdf. The main reason behind John starting this business is that he got his legs amputated after the war and cannot do anything physically demanding. This is a business that he can run from his bed. The main motivation behind this, however, is to raise money for veterans. A large portion of the earnings of Peck Digital Marketing will be dedicated to retired servicemen who need money for their treatment or prosthetics.

3.3 How the Digital Marketing Agency will be started?

Step1: Feasibility Planning

The most important part of this marketing agency business plan sample is the feasibility of the business. That is covered in detail in this business plan web agency. You will get a clear picture of what needs to be done. John conducted a detailed feasibility study in which it was revealed that the business is not only viable but will also be hugely successful if done the right way. The main edge that John’s business has is that it is being started to help the heroes of America.

Step2: Developing a Brand

This will not be a difficult step here because this is a business plan for a media company. This business will be helping other businesses establish their brands and hence it will not be difficult for them to make one for their own. Once this has been successfully done, nothing can prevent the business from being hugely successful.

Step3: Starting the Office 

While the brand building process is going own, John’s team will start making a physical office for the business. This will be located in downtown Dallas where most of the perspective clients have their offices.

Step4: Establishing an Online Presence  

This will also be done in parallel with establishing the office. John’s team will establish a website and all social media pages to give the brand a presence on the internet. Unlike a business plan for green house, this business needs to have a proper web presence.

Step5: Promotion and Marketing

This will be started in earlier stages of establishing the business. The brand will be promoted and marketed to make sure that all the people who matter for the business know it and are aware of what services it will be offering.

Startup Cost - Digital Marketing Agency Business Plan Template
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    Start-up Expenses 
    Legal$230,000
    Consultants$0
    Insurance$30,000
    Rent$30,000
    Research and Development$27,000
    Expensed Equipment$54,000
    Signs$4,000
    TOTAL START-UP EXPENSES$375,000
    Start-up Assets$347,000
    Cash Required$354,000
    Start-up Inventory$40,000
    Other Current Assets$225,000
    Long-term Assets$277,000
    TOTAL ASSETS$1,243,000
    Total Requirements$1,618,000
    START-UP FUNDING 
    Start-up Expenses to Fund$375,000
    Start-up Assets to Fund$1,243,000
    TOTAL FUNDING REQUIRED$1,618,000
    Assets 
    Non-cash Assets from Start-up$1,630,000
    Cash Requirements from Start-up$385,000
    Additional Cash Raised$53,000
    Cash Balance on Starting Date$39,000
    TOTAL ASSETS$2,107,000
    Liabilities and Capital 
    Liabilities$29,000
    Current Borrowing$0
    Long-term Liabilities$0
    Accounts Payable (Outstanding Bills)$45,000
    Other Current Liabilities (interest-free)$0
    TOTAL LIABILITIES$74,000
    Capital 
    Planned Investment$1,618,000
    Investor 1$0
    Investor 2$0
    Other$0
    Additional Investment Requirement$0
    TOTAL PLANNED INVESTMENT$1,618,000
    Loss at Start-up (Start-up Expenses)$415,000
    TOTAL CAPITAL$2,033,000
    TOTAL CAPITAL AND LIABILITIES$2,107,000
    Total Funding$1,618,000

    Services

    Since there can be a ton of services that can be included in a online marketing business proposal, we need to carefully choose which services to provide. To make things simple, this business plan template for marketing company will start with limited services and then the scope will be increased.

    The internet marketing for services provided by this internet marketing business plan sample will include the following:

    • Brand Promotion

    This service will be provided to both new and established brands. We will form a major portion of the services provided by Peck Digital Marketing.

    • Product and Service Marketing

    Note

    This will be one of the most important services provided under the umbrella of Peck Digital Marketing. This service will mostly be provided to established brands.

    • Awareness Campaigns

    All types of public, private, corporate, and government awareness campaigns will also be covered by Peck Digital Marketing.

    • Fundraiser Promotion

    This will be provided as a free service to help raise money for various causes.

     Marketing Analysis of Digital Marketing Agency

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    With all that finalized, the next thing to be taken care of in this marketing agency business model is the marketing analysis. This is the portion of this sample business plan for marketing company where we see the trends of the market to assess the profitability of the venture. This will help us determine the ROI on the investment made for starting this business and the chances of success we are looking at.

    5.1 Market Trends

    If you want to start giving services of internet marketing for business, you need to know the market trends of the field. Luckily for anyone starting to start a marketing agency business plan, this filed has been growing steadily over the last decade and experts are of the view that it will only grow over the years to come. That makes entering into this business very profitable and the chances of being successful are high.

    Now, just like we did in the law firm sample business plan, let’s have a look at the market segmentation that we have for this business.

    5.2 Marketing Segmentation

    The customers of Peck Digital Marketing are expected to be from the following market segments:

    Marketing Segmentation - Digital Marketing Agency Business Plan Template

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    5.2.1 Corporate Clients

    This segment will give us the most business. The clients will be smaller in number but larger in magnitude of business that they will conduct with us. We will form permanent alliances with these clients.

    5.2.2 Entrepreneurs and Startups

    This segment will need a different approach at digital marketing as it is one thing to market and promote an established corporation and a totally different one to do the same for a startup. 9

    5.2.3 Small Businesses

    Small businesses that need to increase their reach in the local, national and international market will make an important market segment for us.

    5.2.4 Non-Profit Organizations

    A wing of the business will be dedicated to working with non-profit organization on a no-profit-no-loss basis.

    Market Analysis       
    Potential CustomersGrowthYear 1Year 2Year 3Year 4Year 5CAGR
    Corporate Clients36%39,00041,00043,00045,00047,00010.00%
    Entrepreneurs and Startups28%25,00027,00029,00032,00033,00010.00%
    Small Businesses21%22,00023,00025,00027,00028,00010.00%
    Non-Profit Organizations15%14,00016,00017,00019,00022,00011.00%
    Total100%100,000107,000114,000123,000130,00010%

    5.3 Business Target

    • To become a well-known name in the field of digital marketing in the area.
    • To provide the best all around digital marketing services.
    • To expand to other cities and states and get international clients.
    • To be the best digital marketing services provider in the USA ultimately.

    5.4 Product Pricing

    The prices for the services will be kept lower than the average of what competitors are charging. This will be used as a strategy to get permanent clients. Once we have the clients, then we can charge higher prices and make profit. However, we will offer the lowest prices to no-profit-no-loss bodies.

     Marketing Strategy

    Having a proper marketing strategy is imperative for starting your own marketing agency. John will target the marketing strategy to reach out to every single customer that can be out there for the business. This is one of the most important parts of any digital advertising agency business plan and we will give it all the importance that it needs.

    6.1 Competitive Analysis

    1. We have the most talented and experienced team of all those operating in the area.
    2. John has a better chance at succeeding in this business because he wants to help veterans.
    3. No service provider in the area is providing as comprehensive digital marketing services as we aim to.

    6.2 Sales Strategy

    • Peck Digital Marketing will be advertised through print electronic and social media.
    • We will offer concessions and discounted packages for new customers to drive sales in the start.
    • We will provide our clients with marketing strategies and implement them to get solid results and nothing can be better than that for driving sales in this industry.

    6.3 Sales Monthly

    Sales Monthly - Digital Marketing Agency Business Plan Template
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    6.4 Sales Yearly

    Sales Yearly - Digital Marketing Agency Business Plan Template

    6.5 Sales Forecast

    Unit Sales - Digital Marketing Agency Business Plan Template
    Sales Forecast   
    Unit SalesYear 1Year 2Year 3
    Brand Promotion41,00043,46046,068
    Product and Service Marketing40,00042,40044,944
    Awareness Campaigns56,00059,36062,922
    Fundraiser Promotion38,00040,28042,697
    TOTAL UNIT SALES175,000185,500196,630
    Unit PricesYear 1Year 2Year 3
    Brand Promotion$60.00$69.60$80.74
    Product and Service Marketing$54.00$62.64$72.66
    Awareness Campaigns$50.00$58.00$67.28
    Fundraiser Promotion$55.00$63.80$74.01
    Sales   
    Brand Promotion $2,460,000.00 $3,024,816.00 $3,719,313.75
    Product and Service Marketing$2,160,000.00 $2,655,936.00 $3,265,738.91
    Awareness Campaigns $2,800,000.00 $3,442,880.00 $4,233,365.25
    Fundraiser Promotion $2,090,000.00 $2,569,864.00 $3,159,904.77
    TOTAL SALES$9,510,000.00 $11,693,496.00 $14,378,322.68
    Direct Unit CostsYear 1Year 2Year 3
    Brand Promotion$58.00$66.00$76.00
    Product and Service Marketing$52.00$58.00$68.00
    Awareness Campaigns$48.00$55.00$62.00
    Fundraiser Promotion$53.00$60.00$70.00
    Direct Cost of Sales   
    Brand Promotion $2,378,000.00 $2,868,360.00 $3,501,137.60
    Product and Service Marketing$2,080,000.00 $2,459,200.00 $3,056,192.00
    Awareness Campaigns $2,688,000.00 $3,264,800.00 $3,901,139.20
    Fundraiser Promotion $2,014,000.00 $2,416,800.00 $2,988,776.00
    Subtotal Direct Cost of Sales$9,160,000.00 $11,009,160.00 $13,447,244.80

    Personnel plan

    If you want to know how to start online marketing company, you need to be clear about the staff that you will need to run the business. In this marketing agency business plan pdf, we will cover that in detail too. The staff that you need to effectively run the company will be the following:

    7.1 Company Staff

    The following people will be needed to run the business:

    • John Peck will be the owner and CEO of the business.
    • 2 Managers for operations, external relations marketing.
    • 4 Social media marketers.
    • 2 Google Ads specialists.
    • 2 Content writers.
    • 2 Web developers.
    • 1 Guard.
    • 1 Reception clerk.
    • 1 Telephone operator.

    7.2 Average Salary of Employees

    Personnel Plan   
     Year 1Year 2Year 3
    Operations Manager$14,000$15,400$16,940
    External Relations Marketing Manager$13,000$14,300$15,730
    Social Media Marketers$38,000$41,800$45,980
    Google ads Specialists$20,000$22,000$24,200
    Content Writers$20,000$22,000$24,200
    Web Developers$18,000$19,800$21,780
    Reception Clerk$8,000$8,800$9,680
    Telephone operator$7,000$7,700$8,470
    Guard$10,000$11,000$12,100
    Total Salaries$148,000 $162,800 $179,080

    Financial Plan

    The last thing that we need to talk about in any internet marketing business plan examples is the finances involved in starting the business. Unlike the business plan for janitorial services, the demand for starting capital will be higher here. After thorough enterprise due diligence, here are the expenses involved in starting this business.

    • The cost of setting up the office.
    • The cost of buying office equipment.
    • The salaries of employees for the time before we start making profit.
    • The cost of marketing and promoting the business.

    8.1 Important Assumptions

    General Assumptions   
     Year 1Year 2Year 3
    Plan Month123
    Current Interest Rate8.18%8.22%8.28%
    Long-term Interest Rate8.38%8.45%8.49%
    Tax Rate24.10%24.60%25.66%
    Other000

    8.2 Break-even Analysis

    Break-even Analysis - Digital Marketing Agency Business Plan Template
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    Break-Even Analysis 
    Monthly Units Break-even5341
    Monthly Revenue Break-even$131,700
    Assumptions: 
    Average Per-Unit Revenue$233.00
    Average Per-Unit Variable Cost$0.64
    Estimated Monthly Fixed Cost$163,000

    8.3 Projected Profit and Loss

    Pro Forma Profit And Loss   
     Year 1Year 2Year 3
    Sales$9,510,000 $11,693,496 $14,378,323
    Direct Cost of Sales$9,160,000 $11,009,160 $13,447,245
    Other$0$0$0
    TOTAL COST OF SALES$9,160,000 $11,009,160 $13,447,245
    Gross Margin$350,000 $684,336 $931,078
    Gross Margin %3.68%5.85%6.48%
    Expenses   
    Payroll$148,000$162,800$179,080
    Sales and Marketing and Other Expenses$132,000$135,000$136,000
    Depreciation$2,180$2,200$2,400
    Leased Equipment$0$0$0
    Utilities$2,800$3,000$3,100
    Insurance$2,100$2,100$2,100
    Rent$2,900$3,000$3,100
    Payroll Taxes$28,000$29,000$30,000
    Other$0$0$0
    Total Operating Expenses$317,980 $337,100 $355,780
    Profit Before Interest and Taxes$32,020$347,236$575,298
    EBITDA$32,020$347,236$575,298
    Interest Expense$0$0$0
    Taxes Incurred$6,404$69,447$115,060
    Net Profit$25,616$277,789$460,238
    Net Profit/Sales0.27%2.38%3.20%

    8.3.1 Profit Monthly

    Profit Monthly - Digital Marketing Agency Business Plan Template

    8.3.2 Profit Yearly

    Profit Yearly - Digital Marketing Agency Business Plan Template

    8.3.3 Gross Margin Monthly

    Gross Margin Monthly - Digital Marketing Agency Business Plan Template

    8.3.4 Gross Margin Yearly

    Gross Margin Yearly - Digital Marketing Agency Business Plan Template

    8.4 Projected Cash Flow

    Projected Cash Flow - Digital Marketing Agency Business Plan Template
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    Pro Forma Cash Flow   
    Cash ReceivedYear 1Year 2Year 3
    Cash from Operations   
    Cash Sales$55,000$59,400$64,152
    Cash from Receivables$20,000$21,600$23,328
    SUBTOTAL CASH FROM OPERATIONS$75,000 $81,750 $88,290
    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$75,000 $82,000 $89,000
    ExpendituresYear 1Year 2Year 3
    Expenditures from Operations   
    Cash Spending$40,000$42,000$43,000
    Bill Payments$24,000$25,000$28,000
    SUBTOTAL SPENT ON OPERATIONS$64,000 $67,000 $71,000
    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$65,000 $70,200 $75,816
    Net Cash Flow$20,000$22,000$24,000
    Cash Balance$27,000$29,000$32,000

    8.5 Projected Balance Sheet

    Pro Forma Balance Sheet   
    AssetsYear 1Year 2Year 3
    Current Assets   
    Cash$283,000$316,960$348,656
    Accounts Receivable$24,000$26,880$30,213
    Inventory$4,200$4,704$4,900
    Other Current Assets$1,000$1,000$1,000
    TOTAL CURRENT ASSETS$292,000 $327,040 $367,593
    Long-term Assets   
    Long-term Assets$10,000$10,000$10,000
    Accumulated Depreciation$19,500$21,840$24,570
    TOTAL LONG-TERM ASSETS$23,600 $26,432 $29,736
    TOTAL ASSETS$295,000 $330,400 $371,700
    Liabilities and CapitalYear 4Year 5Year 6
    Current Liabilities   
    Accounts Payable$19,000$21,280$23,919
    Current Borrowing$0$0$0
    Other Current Liabilities$0$0$0
    SUBTOTAL CURRENT LIABILITIES$19,000 $21,280 $23,919
    Long-term Liabilities$0$0$0
    TOTAL LIABILITIES$16,400 $18,368 $20,646
    Paid-in Capital$30,000$30,000$31,000
    Retained Earnings$56,000$61,040$67,144
    Earnings$198,000$215,820$237,402
    TOTAL CAPITAL$293,000 $319,370 $351,307
    TOTAL LIABILITIES AND CAPITAL$309,400 $330,400 $371,700
    Net Worth$299,000$325,910$358,501

    8.6 Business Ratios

    Ratio Analysis    
     Year 1Year 2Year 3INDUSTRY PROFILE
    Sales Growth7.27%8.06%8.93%3.00%
    Percent of Total Assets    
    Accounts Receivable9.26%10.26%11.37%9.80%
    Inventory5.40%5.98%6.63%9.90%
    Other Current Assets2.16%2.39%2.65%2.40%
    Total Current Assets150.02%150.90%152.00%158.00%
    Long-term Assets11.52%11.55%11.61%12.00%
    TOTAL ASSETS100.00%100.00%100.00%100.00%
    Current Liabilities4.96%5.00%5.05%4.34%
    Long-term Liabilities0.00%0.00%0.00%0.00%
    Total Liabilities7.59%7.65%7.72%7.38%
    NET WORTH100.68%101.49%102.42%110.00%
    Percent of Sales    
    Sales100.00%100.00%100.00%100.00%
    Gross Margin95.72%98.30%101.06%99.00%
    Selling, General & Administrative Expenses94.00%96.54%99.24%97.80%
    Advertising Expenses1.57%1.61%1.66%1.40%
    Profit Before Interest and Taxes42.20%43.34%44.55%33.90%
    Main Ratios    
    Current34353632
    Quick3333.434.23533
    Total Debt to Total Assets0.18%0.18%0.17%0.40%
    Pre-tax Return on Net Worth74.01%74.50%75.00%75.00%
    Pre-tax Return on Assets95.06%99.81%104.80%111.30%
    Additional RatiosYear 1Year 2Year 3 
    Net Profit Margin33.19%34.22%35.28%N.A.
    Return on Equity55.88%57.61%59.40%N.A.
    Activity Ratios    
    Accounts Receivable Turnover7.77.87.8N.A.
    Collection Days100100100N.A.
    Inventory Turnover32.434.0235N.A.
    Accounts Payable Turnover151616.3N.A.
    Payment Days272727N.A.
    Total Asset Turnover2.52.52.6N.A.
    Debt Ratios    
    Debt to Net Worth-0.04-0.03-0.04N.A.
    Current Liab. to Liab.111N.A.
    Liquidity Ratios    
    Net Working Capital$243,000$256,608$270,978N.A.
    Interest Coverage000N.A.
    Additional Ratios    
    Assets to Sales0.850.870.87N.A.
    Current Debt/Total Assets1%0%0%N.A.
    Acid Test2929.1129.18N.A.
    Sales/Net Worth2.12.22.3N.A.
    Dividend Payout000N.A.

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