how to make a business plan for a marketing agency

How To Write a Marketing Agency Business Plan + Template

Creating a business plan is essential for any business, but it can be especially helpful for marketing agency businesses that want to improve their strategy and/or raise funding.

A well-crafted business plan not only outlines the vision for your company, but also documents a step-by-step roadmap of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.

This article provides an overview of the key elements that every marketing agency owner should include in their business plan.

Download the Digital Marketing Agency Business Plan Template

What is a Marketing Agency Business Plan?

A marketing agency business plan is a formal written document that describes your company’s business strategy and its feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write a Marketing Agency Business Plan?

A marketing agency business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Marketing Agency Business Plan

The following are the key components of a successful marketing agency business plan:

Executive Summary

The executive summary of a marketing agency business plan is a one to two page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your marketing agency
• Provide a short summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started, and provide a timeline of milestones your company has achieved.

If you are just starting your marketing agency , you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your marketing agency, mention this.

You will also include information about your chosen marketing agency business model and how, if applicable, it is different from other companies in your industry.

Industry Analysis

The industry or market analysis is an important component of a marketing agency business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

• What part of the marketing agency industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now (and if applicable, how do these trends support the success of your company)?

You should also include sources for the information you provide, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, the customers of a marketing agency may include small businesses, non-profit organizations, or even individuals.

You can include information about how your customers make the decision to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or marketing agency services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors.

Below are sample competitive advantages your marketing agency may have:

• Proven track record of success
• Strong client base
• Robust marketing strategy and execution
• Highly qualified and experienced team
• State-of-the-art technology and tools

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be clearly laid out, including the following 4 Ps.

• Product/Service : Detail your product/service offerings here. Document their features and benefits.
• Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
• Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
• Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, launch a direct mail campaign. Or, you may promote your marketing agency via public relations or word-of-mouth.

Operations Plan

This part of your marketing agency business plan should include the following information:

• How will you deliver your product/service to customers? For example, will you do it in person or over the phone only?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for a marketing agency include reaching $X in sales. Other examples include adding X new clients or launching a new website.

Management Team

List your team members here including their names and titles, as well as their expertise and experience relevant to your specific marketing agency industry. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

• Revenue : how much revenue you generate.
• Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss.

Sample Income Statement for a Startup Marketing Agency

Balance Sheet

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : All of the things you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Marketing Agency

Cash Flow Statement

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

• Cash Flow From Operations
• Cash Flow From Investments
• Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup marketing agency .

Sample Cash Flow Statement for a Startup Marketing Agency

You will also want to include an appendix section which will include:

• Your complete financial projections
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your marketing agency . It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it.

If you are seeking funding from investors or lenders, it is especially important to have a well-written business plan that demonstrates the expertise and experience of your management team, as well as your company’s potential for financial success. By taking the time to write a detailed and comprehensive business plan, you will give your marketing agency the best chance for success.  

Finish Your Marketing Agency Business Plan in 1 Day!

Wish there was a faster, easier way to finish your marketing agency business plan?

With our Ultimate Digital Marketing Agency Business Plan Template you can finish your plan in just 8 hours or less!

Other Helpful Articles

How To Write an Advertising Agency Business Plan + Template

How To Write a Creative Agency Business Plan + Template

How To Write a Digital Marketing Agency Business Plan + Template

How To Write a Digital Media Business Plan + Template

How To Write a Public Relations (PR) Agency Business Plan + Template

How To Write a Social Media Marketing Agency Business Plan + Template

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How to Start a Successful Marketing Agency from Scratch Opening a marketing agency is tough, but with the right strategy your business can take off.

By Timothy Carter Mar 17, 2021

Opinions expressed by Entrepreneur contributors are their own.

If you have experience in the marketing world or want to start a business that allows you to think creatively and recommend solutions for a diverse array of clients, launching a marketing agency could be a great option. The global market for digital marketing and advertising alone is estimated to be $322.5 billion and is projected to grow to $640.2 billion by the end of 2027 . And within this industry, you can capitalize on any number of subfields, including niche areas of expertise that don't have much competition and fast-growing areas with high potential for profitability.

Of course, starting a marketing agency from scratch isn't easy. To succeed you'll need to follow a few important principles and strategies.

Get experience (one way or another)

First, you'll want to gain experience. As a marketing agency CEO with virtually no marketing experience, you'd be hard-pressed to make insightful recommendations to your clients.

The most common path is to earn this experience for yourself. Start as a freelancer , providing small-scale marketing services to a limited number of clients. Or develop your abilities by working for an already established marketing agency.

Related: 10 Marketing Strategies to Fuel Your Business Growth

If you don't have much experience of your own and you want to get started sooner, you can leverage the experience of other professionals instead.

For example, you can:

Partner up. If you have a mind for business but limited marketing experience, consider partnering with a bona fide marketing expert who has limited business know-how. Complementary partnerships often work well.

Hire someone. You can also substitute your lack of experience with a roster of highly experienced employees. With the right team, your minimal experience is a nonissue.

Work with investors. If you have at least some experience, you can lean on the help of investors to guide you through the earliest stages of agency development.

Work with vendors. You can also work with vendors as the primary source of your recommendations. In this model your agency works more as a conduit than a direct source of marketing strategies or tactics.

Find a way to distinguish yourself

There are more than 40,000 advertising and related agencies in the United States. That's a lot of competition. To find clients and establish a reputation for your brand, you'll need a way to distinguish yourself.

Fortunately there are many options to do this. For example, you could focus on a specific type of client, based on their company size, industry or stage of growth. You could also focus on a specific area, appealing only to people in your city or state. Additionally, you could distinguish your brand by offering a unique voice or perspective on marketing in general.

Don't shy away from white labeling

One option for new agencies and inexperienced entrepreneurs is white labeling. Through white labeling you'll work with another agency, offering their services to your end clients as if they were your own. Depending on the nature of this relationship, you'll likely be able to devise strategies, execute tactics, and even produce reports through your partnered agency; and all these assets will be presented by your brand.

You'll pay upfront for these services, usually marking up the price slightly for your end client. Profit margins are reasonable, your client still gets a great price and you can rest assured that your clients are getting the best quality work.

Practice what you preach

As a marketing agency, it's important to practice what you preach. For example, let's say your agency formally recommends search engine optimization (SEO) to its clients. If your clients conduct a few basic searches for your agency's website and are unable to find it, this is a sign of your agency's incompetence, hypocrisy or both.

To make a good first impression and land more clients, you need to master all the strategies you're recommending.

Serve your first clients well

Your earliest clients are going to be some of the most important. This is your opportunity to prove what your agency can do, and oftentimes, early clients serve as a gateway to a potentially endless chain of referrals. Do whatever it takes to make these first clients happy, even if it means taking small losses or making additional sacrifices.

Related: Why I Spent Hours Conducting Research for My First Clients — All Before I Was Paid a Dime

Have a plan to scale

Marketing agency margins aren't amazing, especially if you're outsourcing most of your work. If you want to make money long-term, you'll need a plan to scale and attract more clients. There are many ways to do this, each with advantages and disadvantages. For example, you could dump more money into marketing and advertising, establish a referral program, or open up new locations in different cities.

Related: The 5 Stages Startups Must Go Through to Make that First $1 Million

Starting a marketing agency is tough, especially if you have little experience in the marketing industry. But with the right strategy and accommodation for these important points, your business has the potential to take off.

Chief Revenue Officer of SEO.co

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How to Write a Digital Marketing Agency Business Plan (with PDF Template)

SEOptimer now serves over 2,000 digital agencies around the world and through the years we've had the chance to connect with many of our agency customers to understand their early days in starting their agency. This is incredibly interesting to us because it helps us understand where and how they plan to grow so we can help build the features they need in SEOptimer.

This article is the 3rd in our series focused on starting a new digital agency. For some useful prior reading be sure to check out our previous articles:

• How to Start a Digital Marketing Agency : a comprehensive guide covering typical agency business models, services, hiring, training, new business, day to day management and more!
• Digital Agency Lean Canvas : a digital agency business model on a single page! The lean canvas is a popular documentation methodology borrowed from the tech startup world.

Don't be dismayed if it feels like there's a lot of other competing digital agencies in your city. This is perfectly normal. Digital marketing services like local SEO, for example, are dominated by small agencies. Search Engine Land reported that over 50% of local SEO agencies have 10 or fewer clients. Forbes Council Member Jon Hall says, this keeps the industry "weird" - aka diverse as its not dominated by a small handful of big agencies.

The first step in launching a new digital marketing agency is to write a plan. In this guide, we'll cover two of the more traditional ways to define a business plan document with handy downloadable templates:

• Digital Marketing Agency Business Plan Document (DOCX & PDF) Template
• Creative Agency Business Plan Deck (PPTX) Template

Why do you need a Digital Marketing Agency Business Plan?

The days of mandatory 50+ page business plans are long gone. The choice is now yours as to whether you define your digital agency business plan in an in-depth strategic document or not. Some agency founders find it useful to brainstorm this way and document their thought process in a long-form fashion across many pages. Other founders prefer creating shorter slide decks, others opt for a 1-page lean canvas version or some even write their plan in a wiki or business planning tool.

There is no right or wrong way to document your plan. You need to find the documentation method that suits you best. If you're unsure what suits you best, the following factors may help you decide:

Consideration #1: Who is the audience?

Think about who this document is for. Who will read it? In some cases it will just be you and the founding team. If you are raising money, obviously your investors will be a key audience.

You might also have business partners or board members who may be an audience too. When thnking through all these different groups, work backwards from the most optimal presentation format.

Consideration #2: Seek an unbiased third-party opinion

Devin Schumacher is the Founder of SEO agency SERP and says it's easy to get swept up in your own overly optimistic projections.

"Ask an experienced agency founder you trust or admire to sanity-check your plan. Seeking an objective opinion from a third-party detached from your new business is vital."

Devin makes a great point. This type of peer review methodology is commonplace in other industries but sometimes lacking amongst agency founders. Make sure you get at least 1 other unbiased opinion from someone who has already achieved success in your niche.

Don't fall into the trap of asking a friend or your accountant or someone you know personally to review your plan. Doing so will give you a biased opinion. You need an unbiased opinion from someone willing to give you objective feedback.

Consideration #3: Stand your ground

The whole point of a business plan is to take the time and effort to research the market, your competitors and potential clients. This document will distill all your insights into a strategic plan you can operationalize. As is always the case, unexpected distractions masquerading as opportunities (rightly or wrongly) will pop up in your field of view demanding your attention.

Perhaps it's a new client opportunity with a project slightly adjacent to your niche. Perhpas a hiring opportunity for a role you didn't plan to hire yet. Sometimes the hardest thing is to say no, when you're in the mindset of taking every opportunity for growth.

During these situations, revisit your agency business plan and remind yourself of your focus area niche and how you planned to grow within that niche.

Consideration #4: But, be ok with change

In fact this balance between sticking to the plan and pivoting the plan needs to be navigated by every digital agency founder. It's not easy and often you will be second-guessing yourself.

"Every agency owner I know has had to massively adjust their target audience, pricing structure, competitor analysis, and service offerings based on the way they grow over the first 2-5 years."

Rebekah says that founders need to be prepared for change, afterall, digital marketing is in constant flux and evolution, so change is the norm and we need to write business plans with flexibility in mind.

Trust your performance metrics and continue to do the things that have the biggest quantifiable business impact.

Typical Business Plan structures

We mentioned previously that there's no right or wrong way to document your business plan. So with that said, let's look at some typical marketing agency business plan templates that you can use. After considering all the factors above, choose the structure that works for you and your stakeholders best. We've outlined six of the more common options below:

Option #1: Written business document

This is the more traditional (and still valid) way to describe your business. A written business plan document in MS Word or Google Docs is still the most common way to document your digital marketing agency business plan.

This type of business plan is considered "long-form", ie: longer in length and suited to more descriptive language. Expect to write longer rationales, longer explanations with plenty of space for evidence, research, insights and strategy. This type of plan will likely be 30+ pages and feel comprehensive. This comprehensiveness is especially needed if external investors or business partners are involved who need to be convinced of the robustness of your plan.

Option #2: Slide deck

The PowerPoint Presentation (or Google Slides or Keynote) has become the go-to corporate communication format. Digital agency founders spend most of their time communicating to staff, clients and stakeholders in PowerPoint so it makes sense to use this format for the purposes of communicating the agency's overall business plan.

The fundamental difference between this option and the written document, is that a slide deck is a presentable format. So typically you might be in the room with your business partners, walking through the presentation on the screen. Whereas in option #1, a written document is not a compelling way to present an idea. It's much more suited as a sent document to be consumed in isolation. That's not to say that a slide deck can't be utilized this way, it's just more common that you would be presenting and talking through your plan with the slides serving as a visual backup to what you say.

There's also a good argument for doing both (ie written document AND slide deck). It comes down to who all the stakeholders are (eg investors, business partners or just you) and whether you intend to present your plan or just document your plan.

Option #3: Lean canvas

The Lean Canvas developed by leanstack.com is a business plan on a page split into 10 boxes. This planning document has become very popular in the tech/startup world and has since been adopted in many other industries, including digital agencies. Be sure to check out our previous article explaining how to use a Lean Canvas for your agency .

The entire business plan fits on a single page which means you obviously need to sweat on every single world and ensure only the most important details are included. We are big supporters of this format because this helps you prioritize and focus your efforts down to the fundamental aspects of your new business.

Option #4: Wiki

In the context of a business, a Wiki is usually an internal website with multiple interlinking articles. The biggest Wiki in the world is Wikipedia and if you want to get really meta, check out Wikipedia's wiki about wikis :

"A wiki (/wɪki/ WIK-ee) is a hypertext publication collaboratively edited and managed by its own audience directly using a web browser. A typical wiki contains multiple pages for the subjects or scope of the project."

Wiki's are generally perceived as internal knowledge bases so if your business plan has executional detail, this might be a good format for documenting processes and methodologies for staff.

Option #5: General Planning tool

Tools like Notion and Trello have grown massively in recent years as more people are working remotely and more work in general is being done collaboratively online.

These types of planning tools are designed to be multi-purpose and fall somewhere between a wiki and a specialized business planning tool.

How to construct the business plan

Now that we've covered the typical business plan structures let's look at the specifics of how you actually go about constructing the business plan and each of the main tasks you need to perform and sections of the business plan.

Market research data gathering

Customer/client research.

Rebekah Edwards, who we spoke to previously stresses the importance of market research with as many potential clients as you can. She interviewed several businesses in their target market when developing their service offerings and pricing. Some of the questions she thought were most helpful included:

• With no other information, what do you think X would cost from an agency? (X being the service in question.)
• What is the biggest roadblock for you to accomplish X in-house? (X being basic content/SEO projects, such as article creation/editing/uploading or strategizing new keywords.)
• How would you typically search for a digital marketing agency? (Referrals, social media, Google search, etc. — this helped us understand how to best market our services)
• If you already work with a digital marketing agency of any kind, what stood out? Why did you sign on the dotted line?
• Have there been digital marketing agencies you've specifically decided not to work with for any particular reason? What were the red flags or the issues with a fit that led you to say no?
• What matters most to you when working with a digital marketing agency? (Examples: data/analytics, frequent communication, hitting deadlines every time, price, niche of expertise, etc.)

Answers to these questions are invaluable as they help you position and market your new digital agency based on customer insight.

Competitor research

The importance of competitor research goes without saying. It's vital you have a good understanding of how your competitors are going to market, how they sell, who they target and what their rough price points are. If you have a friend who owns a small business, ask them to mystery shop at a competitor so they can report back to you what the sales process was like.

The way you position and sell your services should be informed by a combination of both customer insights and competitor insights. Addressing client needs whilst maintaining a unique selling proposition will set your new digital agency up for success!

Building out the business plan

Download our template: digital marketing agency business plan document.

To make edits to the document make sure to download our DOCX template which you can edit directly in Microsoft Word. However if you would prefer a printable PDF, we also provide this option too. Use these templates as a starting point to help you draft your digital marketing business plan:

Below are some of the highlight areas of the plan:

Market Research Findings

We suggest conducting three types of research to inform your marketing agency business plan:

• Qualitative research like one-on-one interviews, focus groups and meetings with prospective clients
• Quantitative reserach like online surveys, mass emails and multivariate testing
• Competitor analysis to determine their strengths and weaknesses

Unique Selling Proposition (USP) and Service Offering

Nailing your USP will be tough especially if you are in a competitive industry / city. Use the previous market research tasks to discover where the gaps are in the market and leverage these insights to position your new agency to be competitive AND different. Perform a SWOT analysis based on your new USP. Then you can determine your actual service offerings and pricing strategy.

Go-To-Market (GTM) Plan and Org Structure

Define your target market - the exact client types who you want to sell to and list the marketing and advertising activities that you will perform that would be most effective in reaching these types of people.

Also list your people (this might not be many on day 1!), sources of advice and support as well as the strategies you'll use to retain your staff and build their skills and knowledge.

Goals Sales Forecasting

This marketing agency business plan template includes goal setting for the next year and goal setting for the next 3 years. This page is structured to help you set SMART goals.

SMART goals are:

• Specific : In the '[Enter a goal]' section describe your goal clearly and ensure you attach a person responsible in the 'Who's responsible' section.
• Measureable : Ensure the actions you list in the 'Actions to achieve goal' have an objective outcome
• Achievable : Ensure you sense-check your goals with your team and all agree that they are attainable
• Relevant : Ensure this is a priority goal and will help your new agency grow
• Time-bound : Enter a due date to ensure the goal doesn't get forgotten

Use the Cash flow forecast table as a simple way to visualize cash-on-hand in your first 12 months. Add rows to estimate your monthly expenses like payroll, rent, utilities, subscriptions, insurance, fees and other ongoing costs.

Tools and Tech

Finally, list out all the tools and technology your new agency will likely need to run an efficient operation. We've listed SEOptimer for you already because it's one of the best, low-cost lead generation tools for your agency. Over 2,000 digital agencies use SEOptimer to generate white label site audits and embed an audit form on their agency website to capture new lead details.

Creative Agency Business Plan Slide Deck PPTX Template

If you prefer a slide deck template, use this creative agency business plan example in PowerPoint format:

Tim's background is in digital marketing working for both large and small digital agencies and diverse client types. He has a passion for tech, software and staying up to date on the latest search engine news.

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How to Write a Marketing Agency Business Plan to Get You More Growth

Today, digital marketing is essential for all businesses. Digital marketing may be highly helpful whether starting a business from scratch or developing an existing one.

At that point, a digital marketing agency becomes relevant. Just as there are many things that a digital marketing agency may accomplish, there are also many different options available to these agencies.

And running a successful digital marketing agency can be for you if you're a creative person with strong interpersonal and social media abilities.

To get started, all you need is a business plan for a digital marketing agency.

What is a business plan?

A business plan is a comprehensive document that outlines the key elements and strategies of a business venture. It serves as a roadmap, providing a detailed description of the business concept, its objectives, and the methods it will employ to achieve success. 

Typically structured into sections, a business plan covers aspects such as the business description, market analysis, organizational structure, product or service offerings, marketing and sales strategies, financial projections, and operational plans. 

It's interesting to note that roughly 70% of companies that survive for five years do so by adhering to a strategic business strategy.

The business plan acts as a communication tool, conveying the business idea to potential investors, partners, or stakeholders. It forces entrepreneurs to thoroughly evaluate and articulate their business model, target market, competitive landscape, and financial viability. 

A well-crafted business plan not only guides the company's growth but also helps in securing funding, attracting talent, and adapting to market changes. It is a dynamic document that evolves with the business, providing a foundation for strategic decision-making and long-term sustainability.

What do you meant by marketing agency?

A marketing agency is a professional service firm that assists businesses in planning, executing, and managing their marketing strategies and activities.

These agencies are typically composed of marketing experts who specialize in various areas such as advertising, branding, digital marketing, public relations, social media, and more. 

Marketing agencies work collaboratively with businesses to enhance their visibility, promote products or services, and achieve specific marketing objectives.

Services provided by marketing agencies can include market research, campaign development, creative design, content creation, media planning and buying, search engine optimization (SEO), social media management, and analytics. 

The goal is to help businesses effectively reach their target audience, build brand awareness, generate leads, and ultimately drive sales.

Marketing agencies may cater to diverse industries and business sizes, offering tailored solutions based on the unique needs and goals of their clients.

They play a crucial role in navigating the dynamic and competitive landscape of modern marketing, leveraging their expertise to optimize strategies and deliver measurable results for their clients.

What is the need for a business plan for a marketing agency? 

A business plan is indispensable for a marketing agency due to its multifaceted role in guiding, sustaining, and advancing the business. Firstly, it serves as a strategic compass, delineating the agency's mission, objectives, and the path to achieve them. 

This strategic clarity is pivotal for making informed decisions, setting priorities, and aligning the team toward common goals.

Market understanding is another critical facet. A well-researched business plan delves into the competitive landscape, target demographics, and industry trends. 

This knowledge is the bedrock for devising effective marketing strategies, ensuring the agency remains agile and responsive to market dynamics. A business plan adds 30% to the likelihood of expansion.

Financial planning is paramount for any business, and a marketing agency is no exception. The business plan outlines budgeting, revenue projections, and resource allocation. 

This financial roadmap not only aids in managing day-to-day expenses but is also crucial for securing funding from investors or financial institutions.

Client acquisition and retention strategies are elucidated in the business plan. It details the agency's unique value proposition, pricing models, and approaches to building and sustaining client relationships. 

This is pivotal for attracting clients and ensuring their satisfaction and long-term partnership.

Moreover, the business plan delves into operational aspects, delineating the organizational structure, roles, and responsibilities. This promotes internal efficiency, streamlining workflows and enhancing communication within the team.

Read More: What Does A Marketing Agency Do: A General Overview (clientvenue.com)

Things to Consider Before Writing a Digital Marketing Agency Business Plan?

Before diving into your digital marketing agency business plan, consider these key factors:

1. Market Research

Understand your target audience and industry trends. Analyze competitors and identify your unique selling points.

2. Services and Niche

Clearly define the digital marketing services you will offer. Consider specializing in a niche to stand out in the market.

3. Business Model

Decide on your pricing structure and payment terms. Explore retainer-based models or project-based pricing.

4. Legal Structure and Compliance

Choose a legal structure for your agency (LLC, Corporation, etc.). Ensure compliance with local business regulations and licensing.

5. SWOT Analysis:

Evaluate your agency's Strengths, Weaknesses, Opportunities, and Threats. Use this analysis to shape your business strategy.

6. Target Clients

Identify your ideal clients and industries. Tailor your services to meet the specific needs of your target market.

7. Marketing and Sales Strategy

Outline how you will market your agency. Define your sales process and customer acquisition strategies.

8. Team Structure and Skills

Determine the team structure and skills needed. Assess whether additional training or hiring is required.

9. Technology and Tools

Choose the digital marketing tools and platforms you'll use. Consider investments in automation and analytics tools.

10. Financial Projections

Develop detailed financial projections, including startup costs and operating expenses. Estimate revenue projections based on realistic client acquisition goals.

11. Client Retention and Expansion

Plan for client retention strategies. Consider how you'll expand services for existing clients.

12. Risk Management

Identify potential risks and outline strategies to mitigate them. Have contingency plans for unforeseen challenges.

13. Brand Identity

Create a strong brand identity for your agency. Ensure your branding is consistent across all channels.

14. Networking and Partnerships

Build relationships within the industry. Explore potential partnerships with other businesses.

15. Measuring Success

Define key performance indicators (KPIs) to measure success. Regularly assess and adjust your strategies based on performance data.

Taking the time to thoroughly consider these aspects will lay a solid foundation for your digital marketing agency business plan, increasing the likelihood of success in this dynamic and competitive industry.

Read More: 11 Key Strategies to Drive Growth in Marketing Agencies

What is Marketing Agency Structure?

A marketing agency structure is the organizational framework that shapes how you and your team collaborate and operate within your agency. It's influenced by your agency's size, the variety of marketing services you offer, and how you manage your clients.

In order for your marketing efforts to succeed, you need a well thought out and organized marketing agency structure in place.

The seven aspects below are critical when building your company's foundation:

• Service-Oriented Structure : Your agency's structure should align with the services offered. For instance, an agency focusing solely on social media marketing might benefit from a dedicated team for managing client profiles. In contrast, agencies offering a broader range of services will require multiple teams, each specialized in different services, with potential overlaps based on current needs.
• Size and Complexity : The size of the agency dictates its structure. Smaller firms might operate effectively with a few multi-skilled employees, while larger agencies require more complex, segmented teams. As the agency grows, its structure can evolve to accommodate new needs and complexities.
• Billing and Payment Process : The agency's approach to billing and payment influences its structure. If offering diverse services, a centralized team handling billing, project management, and client communications might be optimal. This ensures streamlined processes and clear client expectations.
• Reporting and Organizational Structure : The choice between a flat or hierarchical structure depends on the services offered and information access requirements. Effective reporting systems are essential for proactive problem management and avoiding data overload.
• Team Collaboration and Autonomy : The structure should reflect the working preferences of team members, balancing between autonomy for individual-driven tasks and collaboration for team-oriented projects. Effective communication is key to navigating potential challenges.
• Training and Skill Development : Training tailored to the services offered ensures team members are well-equipped and up-to-date. Structuring teams by specialty areas can facilitate focused learning and skill enhancement.
• Onboarding and Training Program : Efficient onboarding is crucial, regardless of the agency's service range. The training program should match the agency's operational approach, whether it's collaborative or centered around individual leadership.

How to Write a Business Plan for a Digital Marketing Agency 

A business plan is necessary if you want to launch a new digital marketing agency or grow your existing one. The following tutorial provides all the information you need to write each crucial part of your business plan for a digital marketing agency.

1. Executive Synopsis

Although it introduces your business plan, your executive summary should typically come last because it summarises all of the important parts of your document.

Your executive summary should draw the reader in right away. Tell them about the nature of your digital marketing agency and its current state. 

Are you a startup, for instance, running a chain of digital marketing agencies, or do you already have a digital marketing firm that you would like to expand? After that, give a brief synopsis of each of the areas that follow in your strategy. 

• Give a succinct summary of the digital marketing sector. 
• Talk about the kind of digital marketing company you run. 
• Provide specifics about your direct rivals. Provide a synopsis of your intended clientele. 
• Give a brief overview of your marketing approach. Determine who the important team members are. 
• Provide a synopsis of your budget.

2. Company Overview

You will describe the kind of digital marketing agency you run in your company overview.

For instance, your company may focus on any of the following categories of digital marketing agencies:

1. Full Service Digital Marketing Agency : This category of agencies typically provides a wide range of digital marketing services and is larger than most other categories. 

Because they have the expertise completing particular tasks that businesses need done, including lead nurturing campaigns or website redesigns, businesses frequently collaborate with full-service digital marketing organisations. 

Additionally, these firms can bolster current marketing teams at a less expensive rate than it would be to expand them through new recruits.

2. SEO Digital Marketing Agency: the main goal of this kind of agency is to improve their clients' websites' search engine rankings and content.

3. Social Media Marketing Agency : Digital marketing agencies that specialise in social media strategy assist businesses in creating and managing a strong online presence on social media. 

They create content for social media and oversee their ads on Facebook, Instagram, and other social media platforms. Other services include managing influencer outreach for affiliate marketing and/or cross-promotion and responding to customer interactions on social media platforms.

4. Web design and digital marketing agencies: these firms are composed of a group of imaginative designers who develop unique, search engine-optimized websites for their customers. 

The business background and the type of digital marketing agency you will run should be covered in the company overview.

Provide responses to inquiries like: 

• When and why did you launch the company?
• What accomplishments have you made thus far? Reaching a certain number of clients served, serving a certain number of clients with favourable outcomes, and so on are examples of milestones.
• Your company's legal setup. Have you filed as an S-Corp? A Limited Liability Company? An individual business? Here is where you explain your legal structure.

3. Industry Analysis

You must include a summary of the digital marketing sector in your industry or market study.

Even while it might not appear required, this has several uses. 

First, you become knowledgeable by investigating the digital marketing sector. It aids in your comprehension of the market you are serving. 

Second, if you identify market trends using your study, market research can help you better your marketing plan. Demonstrating to readers your sector expertise is the third reason. You accomplish it by carrying out the study and incorporating it into your plan.

Your digital marketing agency business plan's industry analysis section should address the following queries:

• In terms of dollars, how large is the digital marketing industry?
• The market is it growing or shrinking?
• Who are the main rivals in the industry?
• Which companies dominate the market as suppliers?
• Which trends are having an impact on the sector?
• How much does the industry expect to grow over the next five to ten years?
• What is the size of the relevant market? In other words, what is the size of your digital marketing agency's possible target market? By determining the market size throughout the nation and then extrapolating that number to your local population, you can get an estimate of this kind.

4. Customer Analysis

Your digital marketing agency business plan needs to include a customer analysis section that lists all of the clients you now service and/or anticipate servicing. Examples of consumer segments include small and large corporations as well as nonprofit organisations.

As you may expect, the digital marketing business you run will be greatly influenced by the customer segment or segments you decide to target. It seems sense that charitable organisations would react differently to marketing campaigns than, say, major corporations.

Make an effort to identify the distinct psychographic and demographic profiles of your target audience. In terms of demographics, you should talk about the ages, genders, localities, and economic brackets of the possible clients you hope to work with.

Your target clients' demands and goals are clarified by psychographic profiles. Your ability to identify and categorise these needs will improve as you try to draw in and keep clients.

5. Competitive Analysis

The direct and indirect rivals that your company faces should be listed in your competitive analysis, with an emphasis on the latter. Other digital marketing agencies are direct rivals. 

Other options that clients must choose from that do not directly compete with your goods or service are known as indirect rivals. This covers freelancers, apps, and social networking sites. You should also bring up this kind of rivalry.

Give a brief synopsis of these rivals' businesses and list their advantages and disadvantages. Knowing everything about your competition will be impossible unless they employ you at one point. However, you ought to be able to learn important details about them, including

• Which kinds of customers do they cater to?
• What kind of digital marketing company do they operate?
• How much do they charge (premium, inexpensive, etc.)?
• What skills do they possess?
• What shortcomings do they have? 

6. Marketing Plan

The four Ps are traditionally included in a marketing plan: product, price, place, and promotion. Your marketing plan for a digital marketing agency should contain the following elements:

Product: You should restate the kind of digital marketing agency that you listed in your company overview in the product area. Next, provide specifics about the goods and services you plan to provide. For instance, would you offer public relations, social media management, SEO management, or website design?

Price : Keep a record of the rates you will charge and their relative value to those of your rivals. Your plan's product and price subsections essentially list the goods and/or services you provide together with their associated costs.

Place: The address of your digital marketing firm is the place in question. Note the location of your agency and how the site will contribute to your success. For instance, is your digital marketing company based entirely online, in a busy business district, a freestanding office, or a retail district? Talk about how your website might be the best place for your clients to visit.

Promotions: The last section of your marketing plan for your digital marketing agency is where you detail your strategy for attracting prospective clients to your location(s).

7. Operations Plan

Your operations strategy outlines how you will achieve your goals, which were previously detailed in the sections of your business plan. The two separate sections that make up your operations strategy are as follows.

All of the daily short-term procedures that go into managing your digital marketing agency, such as staff meetings, billing clients, planning and scheduling ad campaigns, and client communication, are considered everyday short-term operations. 

Your long-term objectives are the benchmarks you want to reach. These could be the days you intend to schedule your Xth session or the goal of earning $X in income. It might also correspond with your plans to move your digital marketing company to an other city. 

8. Management Team

A solid management team is necessary to showcase the potential for the success of your digital marketing organisation. Emphasise the backgrounds of your important individuals, highlighting the abilities and experiences that demonstrate their capacity to expand a business. 

It would be ideal if you have direct experience managing digital marketing companies, as does any team member. If so, emphasise your experience and knowledge. Additionally, emphasise any experience you believe will contribute to your company's success.

If there are gaps in your staff, think about forming an advisory board. Two to eight people who could mentor your company would make up an advisory board. They would assist in offering clarification and tactical direction.  

9. Financial Plan

Your five-year financial statement, broken down monthly or quarterly for the first year and then annually after that, should be included in your financial plan. The cash flow, balance sheet, and income statements are parts of your financial statements.

Income Statement: A profit and loss statement, or P&L, is a more popular term for an income statement. To determine whether you made a profit or not, it first displays your revenue and then deducts your costs.

Balance Sheets: Liabilities and assets are displayed on balance sheets. Balance sheets might contain a lot of information, so attempt to distil them down to the essential details you should be aware of. 

Cash Flow Statement: You can make sure you never run out of money by using your cash flow statement to estimate how much you'll need to launch or expand your company.

The majority of entrepreneurs and company owners are unaware that it is possible to make a profit but still run out of money and file for bankruptcy. 

10. Appendix

Include all of your financial estimates in the appendix of your strategy, along with any additional documentation that strengthens it. For instance, you may attach the lease for your office space or a list of the digital marketing services you want to provide.

How ClientVenue can help a marketing agency in project management?

ClientVenue's capabilities extend beyond conventional project management tools, providing a centralized platform where teams can seamlessly collaborate, communicate, and execute tasks with precision.

From initial project ideation to the final deliverables, ClientVenue ensures that every phase is meticulously organized and effortlessly executed. 

The platform facilitates real-time communication, breaking down silos within teams and fostering a collaborative environment that accelerates project timelines.

ClientVenue also allows agencies to efficiently gather client feedback, share project updates, and provide transparent insights into project progress. This not only strengthens the client-agency relationship but also ensures that projects align seamlessly with client expectations.

As we delve into the nuanced ways in which ClientVenue transforms project management for marketing agencies, it becomes evident that this platform is more than a tool – it's a strategic partner in navigating the complexities of modern marketing endeavors.

Read More: Top 10 Best Marketing Agency Project Management Tool

ClientVenue can significantly enhance project management for marketing agencies through its robust features:

1. Task Management

Efficiently organize tasks related to marketing campaigns, ensuring that each aspect of a project is clearly defined, assigned, and tracked.

2. Collaboration Tools

Foster seamless collaboration among team members. ClientVenue's collaboration features facilitate communication, file sharing, and real-time updates, enhancing teamwork.

3. Client Communication

Streamline client communication with dedicated channels or spaces for client interactions. This ensures that client feedback, approvals, and requests are centralized, reducing the chances of miscommunication.

4. Timeline and Milestones

Create project timelines and milestones, providing a visual representation of the project's progress. This helps in setting expectations, managing deadlines, and ensuring timely delivery.

5. Resource Allocation

Efficiently allocate resources by having a clear overview of team members' workloads. This prevents overloading individuals and ensures tasks are distributed evenly.

6. Document Management

Centralize document storage for marketing materials, campaign assets, and other relevant files. This makes it easy for team members to access and reference materials as needed.

7. Budget Tracking

Monitor project budgets and expenses within ClientVenue. This feature helps in controlling costs, avoiding overruns, and ensuring that projects stay within financial constraints.

8. Client Feedback Loop

Establish a structured feedback loop with clients, ensuring that their input is seamlessly integrated into the project. This not only improves client satisfaction but also contributes to the overall project quality.

9. Reporting and Analytics

Utilize reporting features to track key project metrics. This data-driven approach allows marketing agencies to assess project performance, identify areas for improvement, and make informed decisions.

10. Integration Capabilities

Integrate ClientVenue with other tools and platforms used in marketing, such as CRM systems, analytics tools, or design software. This ensures a cohesive workflow and avoids silos of information.

By leveraging these features, ClientVenue empowers marketing agencies to streamline their project management processes, enhance collaboration, and ultimately deliver successful and well-executed campaigns for their clients.

Read More: Top 12 Project Management Software for Marketing Agencies

In conclusion, crafting a comprehensive marketing agency business plan sets the stage for success and opens doors to remarkable opportunities, such as securing a coveted spot on The Today Show. 

A well-thought-out business plan's strategic planning, market analysis, and goal-setting provide a roadmap for growth, innovation, and visibility.

As marketing agencies navigate the dynamic landscape of media exposure, having a tool like ClientVenue becomes invaluable. ClientVenue streamlines project management, ensuring seamless collaboration, effective communication, and efficient resource allocation. 

With features designed to enhance client interactions, manage timelines, and monitor budgets, ClientVenue empowers marketing agencies to meet and exceed client expectations.

In the fast-paced world of media, standing out requires creativity and organizational excellence. ClientVenue acts as a catalyst for achieving both, enabling marketing agencies to envision success on platforms like The Today Show and work towards it systematically. 

Elevate your agency's potential with ClientVenue – where innovation meets efficiency, and every project is poised for success.

Register now

Client portal | productized services | workflow automations create delightful experiences. ‍.

If you like this article, you might want to checkout Clientvenue. With ClientVenue , you can easily onboard new clients, manage project tasks and timelines, track time and expenses, collaborate with your team, generate reports, and create and send invoices. Click here to start with a free trial.

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Digital Marketing Agency Business Plan Template

Written by Dave Lavinsky

Digital Marketing Agency Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their digital marketing agencies.

If you’re unfamiliar with creating a digital marketing agency business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a digital marketing agency business plan step-by-step so you can create your plan today.

Download our Ultimate Digital Marketing Agency Business Plan Template here >

What is a Digital Marketing Agency Business Plan?

A business plan provides a snapshot of your digital marketing agency as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Digital Marketing Agency

If you’re looking to start a digital marketing agency or grow your existing digital marketing agency, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your digital marketing agency to improve your chances of success. Your digital marketing agency business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Digital Marketing Agency Businesses

With regards to funding, the main sources of funding for a digital marketing agency are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for digital marketing agencies.

Finish Your Business Plan Today!

How to write a business plan for a digital marketing agency.

If you want to start a digital marketing agency or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your digital marketing agency business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of digital marketing agency you are running and the status. For example, are you a startup, do you have a digital marketing agency that you would like to grow, or are you operating a chain of digital marketing agencies?

Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overv iew of the digital marketing industry.
• Discuss the type of digital marketing agency you are operating.
• Detail your direct competitors. Give an overview of your target customers.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of digital marketing agency you are operating.

For example, your agency might specialize in one of the following types of digital marketing agencies:

• Full Service Digital Marketing Agency : this type of digital marketing agency tends to be larger than most other types of agencies and offers a variety of digital marketing services. Businesses often partner with full-service digital marketing agencies because they have the experience doing specific projects that the businesses need done, such as lead nurture campaigns or a website redesign. These agencies can also bring added muscle to existing marketing departments at a lower cost than it would take to build them out with new hires.
• SEO Digital Marketing Agency: this type of agency focuses primarily on helping their clients’ websites and website content rank high on search engine results.
• Social Media Digital Marketing Agency: this type of digital marketing agency helps companies establish and maintain an effective social media presence. They produce social media content and manage their advertisements on social media sites, such as Facebook and Instagram. Other services offered are responding to customer interactions on social media platforms and can also manage influencer outreach for cross promotion and/or affiliate marketing.
• Web Design Digital Marketing Agency: this type of agency is a team of creative designers who build customized and optimized websites for their clients’ businesses.

In addition to explaining the type of digital marketing agency you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of clients served, the number of clients with positive outcomes, reaching X number of clients served, etc.
• Your legal business structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the digital marketing industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the digital marketing industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your digital marketing agency business plan:

• How big is the digital marketing industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your digital marketing agency? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your digital marketing agency business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: large companies, small businesses, and nonprofits.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of digital marketing agency you operate. Clearly, nonprofits would respond to different marketing promotions than large companies, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other digital marketing agencies.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes social media platforms, apps, and freelancers. You need to mention such competition as well.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of clients do they serve?
• What type of digital marketing agency are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide non digital marketing services?
• Will you offer products or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a digital marketing agency business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type o f digital marketing agency that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide website design, SEO management, social media management, or public relations?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of yo ur plan, yo u are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your digital marketing agency. Document where your agency is situated and mention how the site will impact your success. For example, is your digital marketing agency located in a busy retail district, a business district, a standalone office, or purely online? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your digital marketing agency marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Reach out to websites
• Distribute flyers
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your digital marketing agency business, including client communication, planning and scheduling advertisement campaigns, staff meetings, billing clients, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to book your Xth session, or when you hope to reach $X in revenue. It could also be when you expect to expand your digital marketing agency to a new city.  

Management Team

To demonstrate your digital marketing agency’s potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing digital marketing agencies. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a digital marketing agency or successfully running an advertising and/or public relations agency.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance s heet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you book 5 clients per day, and/or offer advertising packages that can be customized ? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your digital marketing agency, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a digital marketing agency:

• Cost of equipment and office supplies
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or a list of digital marketing services you plan to offer.  

Writing a business plan for your digital marketing agency is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the digital marketing industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful digital marketing agency.  

Digital Marketing Agency Business Plan FAQs

What is the easiest way to complete my digital marketing agency business plan.

Growthink's Ultimate Digital Marketing Agency Business Plan Template allows you to quickly and easily write your digital marketing agency business plan.

How Do You Start a Digital Marketing Agency?

Starting a digital marketing agency is easy with these 14 steps:

• Choose the Name for Your Digital Marketing Agency
• Create Your Digital Marketing Agency Business Plan
• Choose the Legal Structure for Your Digital Marketing Agency
• Secure Startup Funding for Your Digital Marketing Agency (If Needed)
• Secure a Location for Your Business
• Register Your Digital Marketing Agency with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Digital Marketing Agency
• Buy or Lease the Right Digital Marketing Agency Equipment
• Develop Your Digital Marketing Agency Marketing Materials
• Purchase and Setup the Software Needed to Run Your Digital Marketing Agency
• Open for Business

Where Can I Download a Digital Marketing Agency Business Plan PDF?

You can download our free digital marketing agency business plan template PDF here . This is a sample digital marketing agency business plan template you can use in PDF format.

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