A complete business plan for an advertising agency. Making a business plan

Date of writing: 14.04.2022

Reading time: 35 minutes

Approximate data:

Monthly income – 280,000 rubles.
Net profit – 67,830 rubles.
Initial costs – 414,800 rubles.
Payback – from 7 months.

This business plan, like all others in the section, contains calculations of average prices, which may differ in your case. Therefore, we recommend that you make calculations for your business individually.

In this article we will draw up a detailed business plan for an advertising agency with calculations.

Description of service

Providing advertising services for various companies. The work will include consulting, selection of a suitable advertising strategy, risk assessment, and the actual provision of advertising services (creation of the necessary accompanying elements such as leaflets, as well as their distribution). Please note that we are considering a situation where an entrepreneur opens a small advertising agency.

Market analysis

The market for advertising services is quite large and is constantly expanding. How can you characterize it? The demand for services is constantly growing, and so is the volume of work provided. There is no seasonality in this type of business if we evaluate the entire sector. Seasonality of enterprises applying for advertising has little impact on work. The bulk of the market seeks advertising services on an ongoing basis.

Today, this market segment is the most promising among all available services. The success of almost any business today depends on advertising. Thus, we can talk about a high level of demand.

The advertising agency market is no more than half full. Therefore, entering the market is quite easy. In this type of business, it is very important to show flexibility, ingenuity, and creativity. The ideal option would be for the company to be headed by an experienced, knowledgeable person working in this field. It is difficult to regulate work in a niche about which an entrepreneur has no knowledge. At first, he can himself participate in the development of advertising campaigns.

The most difficult thing in this area is capturing part of the market. Today there are many advertising agencies. In addition, well-known media occupy more than a third of the market, which significantly affects the number of “free buyers.” The main competitors will be large companies engaged in both providing a wide range of advertising services and processing highly specialized market segments.

How can you fight such serious competitors? It’s worth being creative when developing your own ideas. Make special efforts when preparing proposals. The success of the business will depend on their quality. A low price is unlikely to attract large clients, but you shouldn’t inflate it either. The ideal option is to set the average market price or slightly lower.

All existing companies will be potential buyers. Today, the success of an enterprise directly depends on product promotion. It’s not for nothing that they say that advertising is the engine of trade. When choosing a mid-price segment, you must understand that the main clients will be small and medium-sized companies. Large enterprises, as a rule, turn to well-known advertising agencies. It will be very difficult to catch such a “fish”.

SWOT analysis

Possibilities

Changes in advertising technologies, the emergence of new ways to promote the client’s product.
Wide range of suppliers.
Possibility of rapid and low-cost expansion of services provided.
Prerequisites for the development of the information industry.
High level of differentiation in this business sector.

Threats

A sharp change in the preferences of the service consumer.
High level of competition.
Price fluctuations.
An increase in the number of unemployed, a decrease in business activity and, as a result, a decrease in demand for the service.
There may be an increase in legislative restrictions and tightening of legal aspects in this industry.

There are a number of factors that the enterprise itself can influence. They are called internal. These include:

Strengths

Opportunity to offer clients exclusive services.
In-depth analysis of the market situation.
Offering a wide range of services.
Quality services.
Clear advertising policy.
Low cost.
Possibility of developing a system of discounts, gifts, promotions.

Weak sides

Lack of reputation, unknown company.
Lack of experience in this area.
Possible downtime due to delays in the supply of materials.
Weak motivation.
Lack of qualified workers, long search for them.

Opportunity Assessment

As mentioned above, the seasonality of individual enterprises has virtually no effect on the advertising agency. It can always find clients who need this service. Therefore, work will proceed as usual at any time of the year.

The organization will have a 5-day work week. The work schedule will be as follows:

Total: 40 hours per week.

This mode of operation does not violate labor laws. You don’t have to make up shifts, arrange part-time jobs, or pay overtime. One team will work as a single whole.

You can start working by hiring a minimum number of people. To provide a full range of services, the following specialists will be needed:

manager;
marketer;
artist (aka designer);
computer technology specialist;
operator;
Poster of advertisements.

Each of them will perform their functions and receive a certain salary.

The company will seek some services from other organizations (printing posters, banners, advertising in the media). The client will receive the final service. Once the company has developed, you can think about expansion. For example, about creating your own workshop for outdoor advertising or souvenirs.

Organizational and legal aspects

First you need to register your company. This could be an individual entrepreneur or an LLC. OKVED codes for this type of activity will be as follows:

40 – Advertising activities
13 — Research of market conditions and identification of public opinion
81 – Activities in the field of photography
22 — Printing execution of advertising materials
25 — Other printing activities
40 – Activities of news agencies
20 — Activities in the field of radio broadcasting and television

You don't necessarily need all of these codes. First you need to decide on the range of services provided. There may be others OKVED codes, the most basic ones are listed here. Please note that here are new codes that will be valid from 2016.

No licenses or patents to obtain not required.
If you turn to the All-Russian Classifier of Services to the Population (OKUN), you can see that advertising services belong to “Other Services”. An entrepreneur can calculate and pay UTII or simplified tax system. The second tax is possible in two versions - simplified tax system “Income” 6% or simplified tax system “income minus expenses” 6-15% (the rate is determined depending on the region).
To work with cashless payments, it is necessary.
Familiarize yourself with local laws governing the work of advertising agencies, as well as the procedure for providing services.
Placing advertisements in some public places requires permission to carry out this activity from the owner (for example, posting in elevators).
Notify Rospotrebnadzor about the start of your activities in order to avoid unpleasant moments.
Bring the premises into compliance with all standards developed by the fire department.
Remember that work on the simplified tax system can only begin after registering a cash register with the tax authorities. With UTII, KKM is optional.
Get a stamp with your own logo to sign contracts with your clients.
remember, that the lease agreement must be official.

When choosing a location, you need to decide what functions the office will perform. If you will meet with clients on their or neutral territory, then you can choose a budget option. Otherwise, you should look for an office in an accessible part of the city.

In any case, it is necessary to bring the room back to normal. The office must be respectable.

Marketing plan

Main components marketing strategy will be:

Using an integrated approach. This means that all intermediate actions are carried out by the company, including planning, market assessment, creation of printed products, work on the Internet and much more.
Focus on medium and small enterprises.
Offer average prices.
High level of service provided.
Advertising own products(working through all stages).

Since the organization is engaged in providing advertising services, then go somewhere for promotion own business no need. You can do this yourself. However, there will be costs here too. You'll have to spend money on raw materials various materials, as well as placement of contextual advertising on the Internet. The development and content of the site will be handled by .

Own website. Your employee can work it out. It is important to create a website that is understandable and pleasant for visitors. It is imperative to update information, inform about promotions and discounts. It makes sense to share your successes with site visitors by posting photos, reviews, and video reports.
Internet advertising. An important aspect, since many legal entities are looking for advertising agencies via the Internet. You can negotiate advertising with organizations that provide related services or those who are focused on working specifically with legal entities.
Distribution of offers, prices. This can also be done by an employee of the organization, namely a manager. He can also collect information about organizations, their contact details, and conduct negotiations.
Advertising in the media. This is also a fairly effective method. It is best to contact local television, shoot an interesting, catchy video and put it on the air. Radio advertising is also great. You can send a ready-made advertising layout to newspapers or magazines, paying only for placement.

You can include other methods in your advertising campaign. But it’s still not worth posting cheap advertisements. It’s better to go around to potential clients yourself, leave them your offers, business cards, and perhaps talk to the people responsible for advertising. But there is no need to be intrusive either.

Calculation of projected income

In the first months, revenue will be small. It all depends on the activity of employees and the number of attracted clients. We calculated average monthly revenue for the first year.

We will make calculations assuming 59-60% load. Then the income will be 280,000 rubles.

Production plan

The office will require minor renovations to operate. Some landlords rent out excellent premises, already furnished.

The equipment includes the cost of purchasing specific devices. Namely:

Set for printing and presentations.
Photo and video equipment.

Office equipment includes 3 computers and an MFP.

The furniture you will need is as follows:

chairs;
tables;
cabinets;
chairs for clients.

Job title	The number of employees	Type of salary	Total:
manager	1	salary (10,000) +5%	24,000 rubles
marketer	1	salary (12,000) +5.5%	27,400 rubles
artist (aka designer)	1	salary (12,000) +7%	31,600 rubles
computer specialist	1	salary (14,000) +6.5%	32,200 rubles
operator	1	salary	20,000 rubles
advertisement poster	1	salary	18,000 rubles
Total:	6	salary (5,000) +	153,200 rubles

Total wage costs – 153,200 rubles.

I would like to note that the manager partially performs the duties of a secretary. Makes calls and answers phone calls. He is also actively looking for clients and maintaining a database.

The marketer conducts market research, identifies the most effective methods of advertising, and, together with the manager, draws up a plan for further action.

The artist is engaged in the development of layouts and layout.

A computer technology specialist works with graphics, photo and video editors. He is also involved in developing the site and filling it out.

The operator is engaged in printing the necessary attributes. If necessary, negotiates with other companies to provide support services.

Organizational plan

Financial plan

Monthly revenue is: 280,000 rubles.

Initial costs: 414,800 rubles.

Profit before tax: 79,800 rubles.
Tax: 11,970 rubles. We calculated the simplified tax system (15% of the difference between income and expenses). Other calculation methods can also be used.
Net profit: 67,830 rubles.
Profitability: 24.23%.
Payback: from 7 months.

Risks

As you know, all risks can be minimized or avoided, regardless of whether they are internal or external. Let's consider the most important of them, and analyze methods of struggle.

Risk name	Negative impact on business	Ways to avoid
Changes in the economic situation in the country	Declining demand and subsequent reduction in profits	Active work in the field of forecasting and planning of own work.
Changing consumer preferences
Capture of a large market share by competitors		Studying the policies of competitors, tracking their work and successes. Using forecasting regarding their future actions.
Dumping policy from competitors
Changes in legislation, regulations		Mandatory study of all current acts. Monitoring the situation happening in the country. This needs to be done not only at the level of adopted legislative acts, but also at the level of draft laws.
Lack of employee motivation, unwillingness to work	Decrease in efficiency, decline in production volumes, sharp decline in the profitability of the enterprise and its profitability	Offer adequate wages. Working with employees, providing feedback to them (studying their desires, preferences and requirements). Creating a psychologically favorable environment in the team.
Client insolvency	Sharp deterioration in financial situation	A thorough study of the situation in the customer’s company before concluding a contract. Development of agreements that ensure security. Development of an advance payment clause.
Exposure to the elements, fires	Unforeseen costs, downtime, property damage	Insurance of this type of risk, their preliminary assessment.
Possible failure to fulfill one's own obligations to clients	Decrease in profits due to the allocation of funds for the payment of penalties and increased costs	Contacting insurance companies to obtain bonds (guarantees).

Important: Remember that you can independently create a business plan specifically for your business. To do this, read the articles:

One last request: We are all human and can make mistakes, leave something out, etc. Don't judge harshly if this business-the plan or others in the section seemed incomplete to you. If you have experience in this or that activity or you see a flaw and can add to the article, please let me know in the comments! This is the only way we can jointly make business plans more complete, detailed and up-to-date. Thank you for your attention!

In this material:

Where should you start with an advertising agency business plan? It depends on how exactly you plan to start in this business. Some people count on a good initial investment and expect it to be repaid very quickly, while others have to hope to start the project from scratch. Both have a good chance of succeeding in business.

Main mission of the project

This is the mission that an advertising agency fulfills because it helps hundreds and thousands of people succeed. Many people who have good organizational skills, feel the needs of potential customers and the mood of the market, are able to produce good goods and services, but cannot sell it all. For this reason, their projects fail, they are forced to close their enterprises, although all they lacked was competent promotion.

In this case, traditional advertising agencies, which act in a formulaic manner, quickly sink these projects, draining thousands of advertising budgets. They do not recommend bringing clients, but suggest using the advertising budget by completing a chain of simple actions, including developing a beautiful flyer or banner design, hanging or distributing printed materials. Their advertising is ineffective.

Customers are already tired of all this, although there is no particular alternative. The need for advertising is only increasing, but there is also considerable competition in this market. At the start, you need to try to distance yourself from competitors, to offer potential clients something that would distinguish them favorably from all other agencies. But the main thing is to bring real consumers to the customer. Set this mission for your advertising venture. If you manage to perform this task regularly, then there will be no end to customers.

What does it take to start traditionally?

What does a traditional advertising business look like and what does it take? Most advertising agencies offer the following range of development and creation services:

layouts;
banners;
business cards;
flyers;
logos.

Profitability in this area reaches 40-50%. For some reason, this is called a business based on creativity, but there is no smell of special creativity here, because basically some kind of hackneyed template or its processing is offered. Example of the cost of some services:

they offer to develop the script for 12-15 thousand rubles or more;
a logo costs from 20 thousand rubles;
development of a panel layout of 18 m2 - from 7-8 thousand rubles;
original layout of a corporate publication - from 20 thousand rubles;
advertising layout for a magazine - from 10 thousand rubles;
corporate identity - from 70 thousand rubles.

No one can guarantee that the money spent on the developed layout will somehow pay off. It is very good if a new enterprise:

may purchase or rent space on which advertising is carried out and lease or sublease it;
it produces advertising in the form of signs, stands, etc.;
has the potential to sell advertising via the Internet (creation of sales pages, business card sites, their promotion, etc.).

To do this, at the initial stage, the following investments in equipment will be required:

several computers with high performance for design work and software for them from 2 thousand dollars;
printing equipment used to produce signs, business cards, banners - from 15 thousand dollars;
good Internet channel and dedicated telephone line - depending on tariffs;
office furniture - from $500;
stationery, materials for making products - from $500.

In general, at the start you will have to count on an amount of 20 thousand dollars, because you will also need to create a company website, invest in promoting advertising services, pay for the rent of the premises while everything is being set up and repaired. Finally, finding staff and customers will take some time.

Personnel you will need:

designer;
creative;
agency services promotion manager.

As soon as everything is ready, the staff has been hired, the equipment has been purchased, you need to start looking for clients, although this should be done earlier.

Why start from scratch?

But you don’t have to buy expensive equipment. All you need is a computer and a phone, good internet- the minimum required for your own advertising agency. As for the necessary printing equipment, printing can be ordered from agencies that have it. There is no need to worry that once you produce printed materials for your client, they will intercept him.

First, they don't know that you are not a representative of the client themselves. And secondly, unlike this print shop, you don’t just provide a banner or some kind of layout. Your agency is not selling advertising. It solves the client’s problem of promoting his goods and services. And printed materials in this solution are only one of the tools, and not the main one, while traditional advertising ends there.

Therefore, in the business plan of an advertising agency (Appendix No. 1), there is no need to enter any value at all in the column that lists the costs of purchasing equipment and hiring personnel. Everyone has a computer and a telephone, and stable Internet does not require a lot of money.

Some people think that it takes a lot of money to start an advertising business. But that's not true. You need money to create your own image and brand. How to do it? 100% markup on services, even on business cards. Having received the order, taking a 50% advance payment, we have already paid for the order and broke even. The remaining 50% is your profit. Having received several thousand rubles in profit from your first order, invest in the provision of advertising services in your business. You can and should start working in the advertising business from scratch.

How to be different from others?

Whether you start with everything necessary equipment or from complete scratch, for the successful development of the project you will have to follow the basic principle - to combine technologies, people and their capabilities. It's easy to say, but not difficult to do if you approach the process creatively.

For example, many types of businesses prefer online advertising. This is especially true for small businesses, for which this type of promotion is very accessible and effective. At the same time, every day hundreds of thousands of people travel in the subway or other public transport. Almost everyone is on their own gadget, be it a smartphone or tablet. If at this time he sees an advertisement with an attractive title and a site address, he will be able to enter it through his own device.

But on the page of the Internet resource itself (selling page, business card website, one-page website), it is taken into circulation by the main appeal, pictures, special offers and the offer itself. That is, the task of printed products should not include selling the product or service itself, it should be an impetus for a potential client to move further along the sales funnel, which is built by the advertising agency. The advertising market has changed, now offline complements online advertising.

That is why blind copying of one element by a competitor will not bring clients to the customer. This means that even if the customer is offered to order printed products directly, this will not suit him. By placing an order directly from those who print the banner or flyer, he will save 1-2 thousand rubles, but overall he will lose: this tool will not fit into the overall sales system. This approach to working with customers can be built into offers not of any individual services, but of a whole complex, when cases are offered to potential clients of an advertising agency.

Expect to open your own website right away. A website is absolutely necessary, it’s not even discussed. Nobody canceled orders online. An agency is exactly the same small business that needs cheap and fast promotion. Try to focus on interpersonal relationships with clients, which play a big role. Observe the deadlines and accuracy of order fulfillment.

Use the power of social networks. Many people live in in social networks, so make it work for you, rather than you being in it. But the group should be conducted in an interesting and non-persistent manner. You don't need to sell it right away. Sales should be unobtrusive.

Create a short, convenient, memorable number. Parallel it with an email inbox so that people send an email and match the address with the phone number. There is no need to worry about a landline phone, since there is no urgent need for it. At a basic level, learn the graphic editor Photoshop or CorelDraw.

Place such a unique selling proposition (hereinafter referred to as USP) with a good offer on the agency’s website in order to differ from competitors. Example: free delivery of printed materials or a manager or designer coming to the customer’s office. Please note that the more time you spend on a client, the more responsiveness you can expect from him.

The USP is better to offer a range of services. Having made a banner, the customer will find that there is no one and nowhere to place it. Advertising is not running. One banner requires a range of services - design development, preparation of an offer, printing, finding a location and hanging. Offer all this to your clients in one package. You can enter into partnerships with other entrepreneurs to perform other services.

You need to post enthusiastic real reviews on the site, even if they are about the production of a slogan or business cards.

Some important points at work

First, be prepared for refusals; don’t let them be a disappointment to you. Know that everyone needs advertising and no one will refuse new clients. So this time you were unconvincing. Second, don’t offer a process, offer an end result. If you provide them with new clients, they will stay with you forever.

Where can you get ideas about recruiting customers for the agency and clients for them? They are everywhere. Pay attention to the example with low-quality advertising that is hanging, come up with your own version, test it using the network’s capabilities and offer it to a potential customer who is already wasting their budget on low-quality advertising.

Keep in mind that your first clients must be completely confident that you are being honest with them. Otherwise, they will run away, sensing any falsehood. Show yourself as a specialist, speak in a clear language, partner with large advertising agencies that may have customers that are not suitable for them in price and size.

Don't just show up and say you're a newbie. A website, business cards, your own style - all this shows the customer that you are a professional. Be sure to include all your first works in your portfolio so that it grows very quickly. Publish on the site materials about the emergence of innovations in the field of advertising, about new equipment, new technologies. This shows the professionalism of the agency itself. And this needs to be done as quickly as possible.

If it so happens that the customer needs a nosebleed to know how long you have been working in the market, do not lie. Showy efficiency is one thing, and outright lies are another. Admit that you haven’t been in this business for long, but you’re ready to be creative and show what the customer won’t find in other agencies with their formulaic thinking.

Many people are attracted to this business by the high margins and the ability to recoup investments in a few months. If you go the other way, offering clients not a process, but the end result, as few do, the agency can grow into large enterprise with millions of revolutions. Today there are no problems with the production of goods and services, but there is a high demand for their sale. The main thing is to learn how to satisfy this demand. And this is an art that needs to be comprehended.

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Why do you need to write a business plan? The answer to this question is obvious - to develop a clear business position. A detailed business plan is necessary in order to increase capital and, if possible, avoid getting into debt. Without it, a modern entrepreneur will not be able to achieve the desired success.

Business plan for an advertising company - what is its significance?

It is difficult to overestimate the importance of a business plan in the modern economy. You will never achieve a positive result at work if you do not plan your activities and predict the consequences of your work. A well-drafted document can easily be called the business card of an enterprise, the key to its effective development. It should be drawn up based on the chosen concept. One of the most important purposes of the plan is to enable the investor to look at your business from a new point of view and adequately evaluate it. Properly planned entrepreneurial activity is the key to rapid financial success.

A business plan is a document with the help of which the strategy and tactics of doing business are determined; it must clearly indicate the goals and production technologies. In addition, it examines aspects of the enterprise, takes into account problems that may arise in the process, and calculates methods for solving them. A business plan, as a rule, is developed for a period of at least 3–5 years, broken down into each year, and it is aimed at implementing a specific project. It can be developed both for a newly opened enterprise and for an existing one.

Tasks and goals of an advertising agency. Its target audience

The main task of an advertising agency as a business is to maximize advertising influence on the consumer. This issue can be resolved only through a creative approach to business. Advertising agency can be safely called a universal organization that must constantly interact with all participants in the advertising market. All employees of the enterprise must be fluent in communicating with clients and be able to pay attention not only to creative issues, but also to economic ones.

Highlight two main goals that are typical for many advertising messages:

developing awareness of the advertised object;
establishing relationships to the subject of advertising.

informs customers about the appearance of a new product;
informs about the qualities and advantages of products;
informs about possible new methods of using specific products;
informs about new prices;
explains the principle of operation of the product;
describes the services provided;
tries to eliminate misconceptions about the product.

try to persuade consumers to purchase a particular product;
convince customers to make a purchase immediately;
convince consumers to purchase new products;
change the presentation and evaluation of the product;
create a new image of the product in the consumer’s mind;
Don’t miss out on your existing loyal customers.

constantly remind the consumer about the availability of goods;
remind you that this particular product may be needed in the near future;
remind you of the place where you can purchase the product;
not to let the consumer forget about the main properties and superiority of a particular product.

In order to determine the target audience of an advertising agency, it is necessary to carry out marketing research. Exists two types of target audience:

target audience in the field of business;
target audience in terms of individual consumers.

The target audience includes not only direct buyers, but also those who take part in the decision on the acquisition. Example: advertising men's suits. In this particular case, the target audience will include women, since such purchases rarely occur without initiative from the weaker sex.

Relevance of the advertising services market

In the modern world, advertising is the engine of business. At the moment, no one doubts the relevance of advertising. Undoubtedly, it plays a leading role in the development of a market economy and is its primary component.

It is not without reason that advertising is the best guarantee of product quality. A quality product should be bright, simple and interesting. If advertising is organized according to all the rules, it will have a quick effect and contribute to the rapid sale of manufactured products.

How to open an advertising agency in accordance with the Law?

In the Russian Legislation “On Licensing of Certain Types of Activities”, work in the advertising business is not subject to mandatory licensing. You can or Closed Joint Stock Company.

In order for the company to operate officially, it must be in its own name. The next step is to open a bank account and order a custom stamp. When writing an application for an individual entrepreneur, you must indicate the type of activity of your advertising agency.

Required documents to register as an individual entrepreneur:

application written in form No. P21001;
copy of the main document;
receipt of payment of state duty (400 rubles).

Organizational matters

Selecting a room

The premises for an advertising agency may not be located in the city center. Most negotiations can take place on the customer’s premises, so for the agency to operate effectively, the location of the office cannot play a dominant role.

A beautifully decorated office can play into the hands of a budding businessman. Many clients prefer to meet with advertising agents in rented premises and club offices. It costs much less.

Some try to make a good impression on the customer and sometimes overact. The premises are furnished with expensive furniture and equipment, but, unfortunately, customers rarely delight advertising agents with their presence in their offices.

The premises are necessary for employees to work with documentation and take phone calls, to discuss their plans and ideas.

As mentioned above, the company’s employees usually go to the customer themselves, so you don’t need a large room. If they want to attract wealthy clients with a prestigious office location, they rent premises in the city center.

Equipment for advertising business

The equipment you will need is the following:

several computers,
modem,
scanner,
Fax,
Xerox;
landline phone.

Particular attention should be paid to technology for creative design.

In addition, do not forget about purchasing office furniture. It should be comfortable and practical. Computers for designers should be the most progressive. You shouldn't skimp on them.

The software must meet all the new requirements that exist in this area, otherwise your enterprise will not be successful.

Recruitment

The business plan should take into account the costs not only of personnel, but also of their number. A small agency will need a small number of employees.

Financial plan

Costs and estimated expenses for opening an advertising agency from scratch

Rent of premises - depending on the area of the city (from 1,000 to 4,000 dollars).
Renovation of the premises – $1,000–2,000.
Equipment and furniture costs: $10,000.

Employee salaries will directly depend on their work experience and percentage of transactions. An experienced designer will have to pay 2-3 times more than a beginner.

Additional costs may also apply. This includes, for example, wage hired driver with personal vehicle. Freelancers can be good helpers in this type of business - they will help you create high-quality creative projects.

Income

Everything will depend on the direction in which you are planning your advertising activities in business. Monthly income after six months of work is up to 50,000 rubles per month, after a year – 150,000 thousand rubles, and after two years – already more than 300 thousand rubles. per month.

Enterprise profitability– 30–40%. In the advertising business, only creativity can bring the greatest profitability. You can come up with the price for your services yourself. In advertising, a lot depends on your acting ability and the capabilities of the client.

Payback– from 4 months to 1 year. In no case should you refuse minor orders at the beginning of your journey. They can bring good income and strengthen relationships with entrepreneurs.

In what cases is the Law on the side of an Individual Entrepreneur? from our authors for all small business owners.

Freight transportation as a promising activity with great financial returns:

Promotion of advertising services

At the very beginning of your career, there is no point in heavily advertising your company. This should not be done for one simple reason: excessive activity can attract a lot of unnecessary attention from competitors.

Promotion of advertising services will greatly depend on the operating principles of the advertising agency and on the connections your employees have. At first, this will provide the company with a certain number of necessary orders. The most important thing is to develop your own portfolio. It may take you a long time to create it (about a year). Until then, you shouldn’t take orders from reputable clients. First you need to learn from small and medium-sized businessmen. Beginning advertising agencies through the media - reference books. Small companies in search of advertising campaigns turn to such means mass media. Attend various events where you advertise your company and talk about its projects.

There is such a thing as “direct sales”. What does it mean? The company's managers themselves call clients and offer them their services. This option can only be advantageous in one case – if your agency has a completely unique product. Advertising in the media and direct sales in the first year of the company’s operation will bring it only 25% of customers, the rest will only come from connections of your employees.

And finally...

In order to achieve good success in this business, you need to be a creative person. Another important character trait is communication skills, without which it will be very difficult to find a common language with clients.

MS Word Volume: 41 pages

Business plan

Reviews (135)

The first steps to opening an advertising agency are usually the most difficult. So many problems need to be solved! And, above all, choose the right company format that will suit both your desires and your capabilities. It’s good if you are familiar with the basic parameters of an advertising agency, you understand what company formats generally exist in the domestic market. And if not? Fortunately, this is not a reason to give up your goal; the main thing is to arm yourself with the necessary knowledge.

So, let's define the basics of an advertising agency. What do you need when starting a new company? First of all, you should determine the format of your company. This will allow you to calculate the approximate budget of the advertising agency and decide whether you can handle such a project financially. Many entrepreneurs prefer to start with a small company that primarily provides intermediary services. Small staff, modest orders and equally modest incomes. According to experts, such companies have virtually no chance of achieving success in this market segment.

Counting on high profits, it will take a lot to invest in the development of the company. When opening an LLC to provide advertising services, prepare in advance a package of documents for registering an advertising agency so that there are no problems with regulatory authorities. You can also save money on office rent, since negotiations with the majority of clients will be conducted on their territory. So huge areas and European-quality renovations are not at all what you need. But if you are going to produce an intellectual product yourself, you shouldn’t skimp on the technical equipment of your office. Designers will need powerful computers and quality software.

Creative personnel are the soil on which high-quality advertising services are nurtured. But good specialists need to be paid a good salary, otherwise they will go to your competitors. To work in many areas, today it has become convenient to hire freelancers who can bring new ideas. To open and organize the work of a new type of advertising agency, you will need a staff of 6-8 people, no less. And remember that mistakes in such a business are unacceptable. The slightest mistake can lead to clients avoiding your agency. Regardless of whether you are taking on a business such as advertising in transport or on advertising projections, everything must be performed at a high level.

A professional example of a business plan for opening an advertising agency from scratch with ready-made calculations will help a beginner and an experienced businessman to reduce risks to a minimum and overcome all difficulties without loss for themselves. It describes in detail the sequence of actions when creating this business. You will learn what responsibilities the director of an advertising agency may have, and you will understand how to calculate the payback of an advertising campaign and other events. Having chosen the right direction for yourself, you will constantly move forward towards your intended goal, and nothing will stop you from achieving it and staying on top of success.

How to turn from a small, unknown advertising agency into a monster advertising business, earning tens of thousands of dollars monthly? The best minds in the advertising business struggle with this question every year, but not everyone manages to find the exact answer. Opening a business like a modest advertising workshop is not so difficult, but growing it into a competitive company is much more difficult. Only an active advertising policy will lead you to the pinnacle of success; the main thing is to choose the right direction.

There is no point in opening an advertising agency if you do not have sufficient financial resources and connections in this business. Otherwise, you will always feel that you are constantly missing something - either money, or experienced specialists, or normal orders. As a result, such a deficit will result in banal bankruptcy, when you are left with nothing. By the way, you can open an advertising company from scratch, but sell ready business you're unlikely to succeed.

So, what does it take to open a successful advertising agency, where to start? And, most importantly, in what direction should we develop? In order to open his own business - an advertising agency - from scratch, an entrepreneur needs experience. But even more, he needs experienced advertising business specialists - creative, out-of-the-box thinkers, capable of as soon as possible bring success to your company. It is clear that such people do not lie along the road and the employment center is also unlikely to help you find them. A person who knows how to establish contacts with advertisers and ask for discounts from companies that own advertising space is most likely already working at some advertising agency.

Therefore, when planning to open your own advertising agency, think about how to attract good advertisers to this business. To do this, you may have to resort to the most unimaginable tricks, and increased salary in this case it will be only one of the baits. And it’s not a fact that, having received a tempting business offer from your advertising agency, such a specialist will enthusiastically throw himself on your neck. Moving to a new, unknown company is a risky step, and in order to convince an experienced manager or designer to change jobs, you will have to try very hard.

Having mastered the features of promotion in a business such as an advertising agency, you can take the first step towards the development of the company. And, having decided, for example, to open your own workshop, an outdoor advertising company, you will already know in which direction to move so that success comes to you. But in order to achieve this, to keep luck in your hands, you need to be guided by a competent advertising agency business plan. In this document you will find a lot of important information, you will find out how profitable advertising can be and what difficulties an entrepreneur who decides to open his own business risks facing.

Outdoor advertising is one of the most effective ways to promote new products and services. It is not for nothing that almost all large firms and enterprises resort to it. Therefore, many entrepreneurs who are well versed in this market segment decide to open a business on outdoor advertising and billboards.

Business and advertising are absolutely inseparable things. And while new firms and companies are opening, the services of advertising agencies that are ready to actively help businessmen break into their niche will also be in demand. Despite the high level of competition that reigns among agencies providing advertising services, it is impossible to say that this business is absolutely hopeless.

Business related to outdoor advertising is classified as passive. You simply rent out billboards, just like you rent out any space - office or industrial premises. The costs of outdoor advertising are not comparable to the level of profit if you manage to establish work with clients. All this suggests that opening an advertising agency for the production of outdoor advertising promises very good income for its owner.

The billboard business is very similar to regular rentals. How to open such an agency? There are some features in this business, which are very important to take into account to achieve optimal results. There is no special equipment required to open an advertising agency. First of all, the entrepreneur needs to find a suitable place for advertising structures and constantly maintain their technical condition. Such structures are very susceptible to the influence of various climatic factors. Constant exposure to precipitation and wind can lead to structural damage, which should be noticed and repaired in time.

When planning to open an advertising company, carefully study the rules for installing billboards. Firstly, its maximum visual accessibility should be ensured, taking into account seasonal factors. For example, if in winter bare tree branches do not interfere much with the perception of the image, then in summer the situation will change for a much worse time. In addition, a business such as an advertising agency, even if it is a mini-company, implies a clear understanding of working with the target audience. It is better to advertise products for children in the immediate vicinity of kindergartens and educational institutions, and sports equipment - not far from sports schools, swimming pools, and stadiums. If you plan to build a business on real estate advertising, then billboards must be placed near new buildings under construction.

When planning to organize an advertising business, your own advertising agency, think in advance about your strategy for finding clients, since your profit directly depends on the number of orders. Develop sample agreements with the advertising agent and with the advertiser. If you want to start producing outdoor advertising not only on billboards, but also on houses, get acquainted with the current legislation, which prescribes the rules for placing advertising on residential buildings. As the experience of creating advertising not only in our country but also abroad shows, entrepreneurs who are guided by a clear plan of action achieve success. To do this, you should always have a professional advertising agency business plan at hand to help you choose the right direction.

It is impossible to imagine any type of business without advertising, so many people are thinking about opening their own agency. The demand for such services has not subsided for a long time. The relevance of the advertising business is difficult to underestimate.

In Russia, like any other country, many large and small entrepreneurs use the services of such companies. But to have a highly profitable company, it is not enough to create a company and hire employees. We need to develop, expand the range of services and offer customers truly high-quality products.

The advantages include the high profitability of the company with proper organization of work. Such services are in great demand, so problems with finding clients usually do not arise. Also, the advantages include relatively small capital investments at the start.

The disadvantages include a lot of competition in the market. At the initial stages of work you will have to work with small and medium-sized entrepreneurs. The income may be small, but it will allow you to build a good reputation and portfolio, which will give you the opportunity to find larger clients.

Types of similar agencies

Before opening a company you must decide on its format. She may be:

full service agency;
design studio (specializing in the development of signs, logos, styles, and so on);
a narrow-profile agency that specializes in one type of advertising;
manufacturing company (production of business cards, banners, souvenirs, etc.);
buyer (advertising on TV, radio and other media).

It is easier for a company that provides a full range of services to get promoted, but it will also require a large amount of money to open.

Interesting information about this type of business is presented in the following video:

Possible range of services

Nowadays, advertising has different forms, ranging from printed materials to banners on the Internet. You need to decide what services you will provide, since the full range may not be affordable for you at the start.

Services include:

placement of outdoor advertising, including banners, signs and billboards;
production of printed products (flyers, brochures, business cards, etc.)
placement of information in the media;
carrying out promotions and PR;
creating videos and commercials;
website promotion;
production and distribution of souvenirs and so on.

To make it easier to decide on a direction, you need to study the market in your region. Find out what types of services are in greatest demand and what services your competitors provide. Remember, to interest your customers, you need to offer them something new, something that others don’t have.

Registration and required documents

After you have decided on the concept and direction of activity, you need to register the company. To register, select one of the organizational and legal forms: .

The package of required documents depends on the chosen form. You can find out what documents are needed at the tax office. You also need to pay a state fee:

for individual entrepreneurs in the amount of 800 rubles;
for LLC in the amount of 6,500 rubles.

When registering an LLC, you need to pay half (its minimum amount is 10,000 rubles), and the second half is paid during the first year of the company’s activity.

Signing agreements with partners

In most cases, the agency needs to collaborate with production bases. For example, if you are engaged in printing products, then you need to work with a printing house.

Be careful when searching for partners. Don't agree to the first offer. Study the terms of cooperation in detail, find out about the company’s reputation. This will help in the future to avoid unscrupulous partners who will let you down at the most inopportune moment.

Selecting a location

The next step is to find an office. The size of the room depends on how many people will work in it. Typically, meetings with clients take place on neutral territory or at the customer's premises. Despite this, it is advisable for the office to be located near the city center or in a well-developed area.

It should be convenient to get to, since the customer may want to visit you at the office.

Equipment purchase

When renovations are completed in the selected premises, you can purchase equipment. You definitely need to purchase:

several computers;
Printer;
Xerox;
scanner;
telephone sets for multi-channel communication;
devices for connecting the Internet.

Keep in mind that designers need powerful computers. You also need to take care of installing the necessary software.

Recruitment

When selecting employees, remember that the success of your company depends on the experience and qualifications of the staff. To minimize the risk of bankruptcy, hire personnel with experience in the advertising field. Such workers will be able to perform their work efficiently and on time. In addition, they often have their own clientele who will use the services of your agency.

The number of employees depends on the size of the company and the number of services provided. For a medium-sized company, you need to hire:

creative director responsible for developing new ideas;
two managers who will search for customers;
two designers, one of whom is responsible for the development of the advertising product, and the second for the layout;
directors, who will negotiate with customers and sign contracts with them.

But it is not advisable to hire an accountant. It is better to seek help from.

It is also advisable to have several freelancers on hand. They will help in-house designers get the job done when an emergency happens.

Advertising and customer search

To find customers, you need to create a database of potential clients. Decide what industry you would like to work in. For example, your priority is to develop advertising for cafes and restaurants or companies specializing in a certain production.
It is necessary to write down the names of companies, their phone numbers and emails. The manager then contacts them and offers agency services. But keep in mind that you can find clients this way if you offer them something new.
Don't forget about the so-called word of mouth. If you do your work efficiently, clients will tell their partners, colleagues and acquaintances about you.

Potential problems and solutions

Many agencies close within a short period of opening. The fact is that this type of business also has problem areas. But if you approach possible problems correctly, your company will be able to operate for a long time and generate good income.

The main potential problem is the lack of clients. This is due to a lot of competition in this business segment. But the problem is completely solvable, you need:

choose a catchy company name so that it is easy to remember;
after opening the agency, place information about it in city directories, since many potential clients often use it;
at the start, work with small and medium-sized entrepreneurs to earn experience and reputation, which will make it possible to conclude contracts with large and prestigious customers.

Opening and operating costs

Investments at the start depend on the size of the company, the number of employees and other factors. Below are approximate costs:

rental of premises – 60 thousand rubles;
office renovation – 25 thousand rubles;
purchase of furniture - from 25 thousand rubles;
Internet and telephone connection – up to 10 thousand rubles;
purchase of equipment – from 125 thousand rubles.

After the first month of work, it is necessary to pay salaries to employees:

director – 30-40 thousand rubles;
designers - 20-25 thousand rubles;
managers - 10-12 thousand +% of transactions.

You also need to pay for the services of an accountant (5 thousand rubles), allocate funds for bonuses, pay taxes, telephone, internet, and purchase consumables.

Calculating project profitability

It is quite difficult to calculate how much income your company will generate. This is due to the fact that each agency sets its own markups, but usually at least 40% of the order value is profit. In addition, profitability is influenced by cooperation with partners and their prices for work.

With an average pace of work and completing two to three orders per week, the company’s income is 200-300 thousand rubles per month. A good company can make a profit of up to 600 thousand per month.