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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
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.
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.
| 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:
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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 Customers | Growth | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | CAGR |
| Corporate Clients | 36% | 39,000 | 41,000 | 43,000 | 45,000 | 47,000 | 10.00% |
| Entrepreneurs and Startups | 28% | 25,000 | 27,000 | 29,000 | 32,000 | 33,000 | 10.00% |
| Small Businesses | 21% | 22,000 | 23,000 | 25,000 | 27,000 | 28,000 | 10.00% |
| Non-Profit Organizations | 15% | 14,000 | 16,000 | 17,000 | 19,000 | 22,000 | 11.00% |
| Total | 100% | 100,000 | 107,000 | 114,000 | 123,000 | 130,000 | 10% |
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
- We have the most talented and experienced team of all those operating in the area.
- John has a better chance at succeeding in this business because he wants to help veterans.
- 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
6.4 Sales Yearly
6.5 Sales Forecast
| Sales Forecast | |||
| Unit Sales | Year 1 | Year 2 | Year 3 |
| Brand Promotion | 41,000 | 43,460 | 46,068 |
| Product and Service Marketing | 40,000 | 42,400 | 44,944 |
| Awareness Campaigns | 56,000 | 59,360 | 62,922 |
| Fundraiser Promotion | 38,000 | 40,280 | 42,697 |
| TOTAL UNIT SALES | 175,000 | 185,500 | 196,630 |
| Unit Prices | Year 1 | Year 2 | Year 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 Costs | Year 1 | Year 2 | Year 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 1 | Year 2 | Year 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 1 | Year 2 | Year 3 | |
| Plan Month | 1 | 2 | 3 |
| Current Interest Rate | 8.18% | 8.22% | 8.28% |
| Long-term Interest Rate | 8.38% | 8.45% | 8.49% |
| Tax Rate | 24.10% | 24.60% | 25.66% |
| Other | 0 | 0 | 0 |
8.2 Break-even Analysis
| Break-Even Analysis | |
| Monthly Units Break-even | 5341 |
| 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 1 | Year 2 | Year 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/Sales | 0.27% | 2.38% | 3.20% |
8.3.1 Profit Monthly
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow
| Pro Forma Cash Flow | |||
| Cash Received | Year 1 | Year 2 | Year 3 |
| Cash from Operations | |||
| Cash Sales | $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 |
| Expenditures | Year 1 | Year 2 | Year 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 | |||
| Assets | Year 1 | Year 2 | Year 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 Capital | Year 4 | Year 5 | Year 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 1 | Year 2 | Year 3 | INDUSTRY PROFILE | |
| Sales Growth | 7.27% | 8.06% | 8.93% | 3.00% |
| Percent of Total Assets | ||||
| Accounts Receivable | 9.26% | 10.26% | 11.37% | 9.80% |
| Inventory | 5.40% | 5.98% | 6.63% | 9.90% |
| Other Current Assets | 2.16% | 2.39% | 2.65% | 2.40% |
| Total Current Assets | 150.02% | 150.90% | 152.00% | 158.00% |
| Long-term Assets | 11.52% | 11.55% | 11.61% | 12.00% |
| TOTAL ASSETS | 100.00% | 100.00% | 100.00% | 100.00% |
| Current Liabilities | 4.96% | 5.00% | 5.05% | 4.34% |
| Long-term Liabilities | 0.00% | 0.00% | 0.00% | 0.00% |
| Total Liabilities | 7.59% | 7.65% | 7.72% | 7.38% |
| NET WORTH | 100.68% | 101.49% | 102.42% | 110.00% |
| Percent of Sales | ||||
| Sales | 100.00% | 100.00% | 100.00% | 100.00% |
| Gross Margin | 95.72% | 98.30% | 101.06% | 99.00% |
| Selling, General & Administrative Expenses | 94.00% | 96.54% | 99.24% | 97.80% |
| Advertising Expenses | 1.57% | 1.61% | 1.66% | 1.40% |
| Profit Before Interest and Taxes | 42.20% | 43.34% | 44.55% | 33.90% |
| Main Ratios | ||||
| Current | 34 | 35 | 36 | 32 |
| Quick | 33 | 33.4 | 34.235 | 33 |
| Total Debt to Total Assets | 0.18% | 0.18% | 0.17% | 0.40% |
| Pre-tax Return on Net Worth | 74.01% | 74.50% | 75.00% | 75.00% |
| Pre-tax Return on Assets | 95.06% | 99.81% | 104.80% | 111.30% |
| Additional Ratios | Year 1 | Year 2 | Year 3 | |
| Net Profit Margin | 33.19% | 34.22% | 35.28% | N.A. |
| Return on Equity | 55.88% | 57.61% | 59.40% | N.A. |
| Activity Ratios | ||||
| Accounts Receivable Turnover | 7.7 | 7.8 | 7.8 | N.A. |
| Collection Days | 100 | 100 | 100 | N.A. |
| Inventory Turnover | 32.4 | 34.02 | 35 | N.A. |
| Accounts Payable Turnover | 15 | 16 | 16.3 | N.A. |
| Payment Days | 27 | 27 | 27 | N.A. |
| Total Asset Turnover | 2.5 | 2.5 | 2.6 | N.A. |
| Debt Ratios | ||||
| Debt to Net Worth | -0.04 | -0.03 | -0.04 | N.A. |
| Current Liab. to Liab. | 1 | 1 | 1 | N.A. |
| Liquidity Ratios | ||||
| Net Working Capital | $243,000 | $256,608 | $270,978 | N.A. |
| Interest Coverage | 0 | 0 | 0 | N.A. |
| Additional Ratios | ||||
| Assets to Sales | 0.85 | 0.87 | 0.87 | N.A. |
| Current Debt/Total Assets | 1% | 0% | 0% | N.A. |
| Acid Test | 29 | 29.11 | 29.18 | N.A. |
| Sales/Net Worth | 2.1 | 2.2 | 2.3 | N.A. |
| Dividend Payout | 0 | 0 | 0 | N.A. |
Digital Marketing Business Plan Sample in PDF
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