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

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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.

Advertising Agency Business Plan - 3 Years Profit Forecast

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:

Advertising Agency Business Plan - Startup Cost

The detailed start-up requirements are given below:

Start-up Expenses 
Legal$55 300
Insurance$32 750
Rent$32 500
Research and Development$32 750
Expensed Equipment$32 750
Signs$1 250
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 Requirements$245 000
Start-up Expenses to Fund$151 875
Start-up Assets to Fund$123 000
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
Liabilities and Capital$0
Current Borrowing$0
Long-term Liabilities$0
Accounts Payable (Outstanding Bills)$0
Other Current Liabilities (interest-free)$0
Capital$620 125
Planned Investment$620 125
Investor 1$0
Investor 2$0
Additional Investment Requirement$0
Loss at Start-up (Start-up Expenses)$313 125
Total Funding$255 000


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:

advertising agency marketing plan - Marketing Segmentation

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 CustomersGrowthYear 1Year 2Year 3Year 4Year 5CAGR
Institutions & Organizations32%11 43313 34416 55318 74520 54513,43%
Business Owners48%22 33432 34443 66552 54466 43210,00%
Online Companies20%12 86714 43315 99917 56519 13115,32%
Total100%46 63460 12176 21788 854106 1089,54%

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.


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

Advertising Agency Business Plan - Sales Monthly

6.4 Sales Yearly

Advertising Agency Business Plan - Sales Yearly

6.5 Sales Forecast

Advertising Agency Business Plan - Unit Sales
Sales Forecast   
Unit SalesYear 1Year 2Year 3
Flyers & brochures1 887 0302 680 3202 588 240
Billboards, banners & flags802 370815 430823 540
Business & invitation cards539 3207702301 002 310
Digital advertising265 450322 390393 320
TOTAL UNIT SALES3 494 1704 588 3704 807 410
Unit PricesYear 1Year 2Year 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
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$249 850
Direct Unit Costs$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 1Year 2Year 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 1Year 2Year 3
Plan Month123
Current Interest Rate10,00%11,00%12,00%
Long-term Interest Rate10,00%10,00%10,00%
Tax Rate26,42%27,76%28,12%

8.2 Brake-even Analysis

Advertising Agency Business Plan - Brake-even Analysis
 Brake-Even Analysis 
Monthly Units Break-even5530
Monthly Revenue Break-even$159 740
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 1Year 2Year 3
Sales$309 069$385 934$462 799
Direct Cost of Sales$15 100$19 153$23 206
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%
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
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/Sales30,00%39,32%48,64%

8.3.1 Profit Monthly

Advertising Agency Business Plan - Profit Monthly

8.3.2 Profit Yearly

Advertising Agency Business Plan - Profit Yearly

8.3.3 Gross Margin Monthly

Advertising Agency Business Plan - Gross Margin Monthly

8.3.4 Gross Margin Yearly

Advertising Agency Business Plan - Gross Margin Yearly

8.4 Projected Cash Flow

Advertising Agency Business Plan - Projected Cash Flow
Pro Forma Cash Flow   
Cash ReceivedYear 1Year 2Year 3
Cash from Operations   
Cash Sales$40 124$45 046$50 068
Cash from Receivables$7 023$8 610$9 297
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
ExpendituresYear 1Year 2Year 3
Expenditures from Operations   
Cash Spending$21 647$24 204$26 951
Bill Payments$13 539$15 385$170 631
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
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   
AssetsYear 1Year 2Year 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 ASSETS$198 839$232 978$267 117
Liabilities and CapitalYear 1Year 2Year 3
Current Liabilities   
Accounts Payable$9 482$10 792$12 102
Current Borrowing$0$0$0
Other Current Liabilities$0$0$0
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    
Sales Growth4,35%30,82%63,29%4,00%
Percent of Total Assets    
Accounts Receivable5,61%4,71%3,81%9,70%
Other Current Assets1,75%2,02%2,29%27,40%
Total Current Assets138,53%150,99%163,45%54,60%
Long-term Assets-9,47%-21,01%-32,55%58,40%
TOTAL ASSETS100,00%100,00%100,00%100,00%
Current Liabilities4,68%3,04%2,76%27,30%
Long-term Liabilities0,00%0,00%0,00%25,80%
Total Liabilities4,68%3,04%2,76%54,10%
NET WORTH99,32%101,04%102,76%44,90%
Percent of Sales    
Gross Margin94,18%93,85%93,52%0,00%
Selling, General & Administrative Expenses74,29%71,83%69,37%65,20%
Advertising Expenses2,06%1,11%0,28%1,40%
Profit Before Interest and Taxes26,47%29,30%32,13%2,86%
Main Ratios    
Total Debt to Total Assets2,68%1,04%0,76%67,10%
Pre-tax Return on Net Worth66,83%71,26%75,69%4,40%
Pre-tax Return on Assets64,88%69,75%74,62%9,00%
Additional RatiosYear 1Year 2Year 3 
Net Profit Margin19,20%21,16%23,12%N.A.
Return on Equity47,79%50,53%53,27%N.A.
Activity Ratios    
Accounts Receivable Turnover4,564,564,56N.A.
Collection Days9299106N.A.
Inventory Turnover19,722,5525,4N.A.
Accounts Payable Turnover14,1714,6715,17N.A.
Payment Days272727N.A.
Total Asset Turnover1,841,551,26N.A.
Debt Ratios    
Debt to Net Worth0-0,02-0,04N.A.
Current Liab. to Liab.111N.A.
Liquidity Ratios    
Net Working Capital$120 943$140 664$160 385N.A.
Interest Coverage000N.A.
Additional Ratios    
Assets to Sales0,450,480,51N.A.
Current Debt/Total Assets4%3%2%N.A.
Acid Test23,6627,0130,36N.A.
Sales/Net Worth1,681,290,9N.A.
Dividend Payout000N.A.

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