So you’re thinking about how to start an advertising company. The tech industry is one of the hottest industries to be in right now, and with good reason.
Advertising and marketing are essential for any business, whether a startup or an established corporation. By entering the advertising industry, you’ll be able to help businesses reach their target audiences and achieve their marketing goals while earning a hefty income for yourself.
But before you can start your advertising company, there are a few things you need to do first. In this article, we’re going to walk you through the process of how to start an advertising agency. We’ll give you everything you need to know, from developing the business concept to getting all the licensing and business requirements in order.
Without further ado, let’s get started!
Advertising Industry Overview
Every business needs marketing and advertising to reach its target audiences, which is why the advertising industry is essential. The industry includes various businesses and services, from ad agencies and marketing firms to media buying services and public relations.
In 2020, the global advertising and marketing industry was worth an estimated $350 billion. It’s projected to reach an astronomical $786.2 billion by 2026, a 13.9% growth from 2020 to 2026.
The United States is currently the largest advertising market in the world, followed by China, Japan, and Germany.
Developing the Business Concept
Now that you have an overview of the advertising industry, it’s time to start developing your business concept. First, you need to create a name for your advertising agency.
Your agency’s name should reflect the services you offer and/or the target audiences you’re trying to reach. For example, if you’re starting a luxury ad agency, your name might be something like “Beverly Hills Ad Agency” or “Fifth Avenue Ad Agency.”
Once you’ve settled on a name, you must write a business plan. Your business plan should include your advertising agency’s goals, how you will achieve those goals and a marketing strategy.
Requirements to Start an Advertising Agency
Now that you have your business concept, it’s time to start taking care of the legal requirements. To start an advertising agency, you need to comply with the following requirements:
Get a Business License
The first step to starting any business is getting a business license. You can apply for a business license online or in person at your local city hall or courthouse.
Get a DBA
If you’re operating your advertising agency under a name other than your own, you need to get a DBA (Doing Business As).
Get a Federal Tax ID
Also known as an EIN (Employer Identification Number), this is a nine-digit number used to identify your business for tax purposes. In addition, an EIN is required if you have any employees working for your advertising agency.
Get a State Tax ID
Similar to a federal tax ID, a state tax ID is used to identify your business for tax purposes.
Register Your Advertising Agency with the Secretary of State
This is required in most states and ensures that your business is legitimate.
How to Write a Business Plan for Your Ad Agency
As mentioned earlier, you will need a business plan for your advertising agency. A business plan is a document that outlines your business goals, how you will achieve those goals and your advertising agency’s marketing strategy.
To write a business plan for your ad agency, you need to include the following:
- An executive summary is a brief overview of your advertising agency, including your business goals and how you will achieve them.
- A market analysis is a detailed look at the advertising industry, your target market, and your competition.
- A company overview is a brief description of your advertising agency, including your mission statement and company values.
- Your marketing strategy is a detailed plan of how you will market your advertising agency to your target audience.
- Your financial projections are a detailed look at your advertising agency’s projected income and expenses.
A complete business plan goes a long way, so include as many details as possible. At the same time, your business plan should also be informative, inspiring, and factual.
Another important aspect of business plans is creating financial projections. This concept helps you figure out how much money you need to start your advertising company and how much money you can expect to make in the first year.
To create financial projections, you’ll need to do some research on the advertising industry and your specific niche. You can use data from the Bureau of Labor Statistics, as well as other industry reports.
Once you understand the advertising industry and your niche, you can start creating your financial projections. Make sure to include a detailed income statement, cash flow statement, and balance sheet.
Handle Your Invoicing & Payments with ReliaBills!
Running an advertising industry is hard work. You’ll need to handle multiple clients all at once and keep track of your finances. That’s why one aspect of doing business you shouldn’t overlook is invoicing and payment processing—both of which can be done using ReliaBills.
ReliaBills is an invoicing and payment processing platform capable of handling multiple clients and payments. With our recurring billing feature, you’ll be able to get paid even without having to ask for it!
With ReliaBills, you can create and send invoices in minutes, track payments, and get paid faster. Once you set up a recurring billing system, you’ll be able to automate every step of invoicing and payment processing.
ReliaBills simplifies everything, so you’ll get paid without having to go through hardships like chasing non-paying clients or dealing with nonprofits. Our platform creates a safe and secure system for you to send invoices and get paid for the advertising services you provide.
Invoicing and payment processing are part of the business. But that doesn’t mean you’ll have to spend a huge chunk of your time dealing with them. With ReliaBills, we’ll handle everything. All you need is to get started.
Visit our website at www.reliabills.com to learn more about our invoicing and payment processing services.
Starting an advertising company—or any other type of business, for that matter—isn’t easy. But if you’re prepared and have a solid business plan, you’ll be well on your way to success. And don’t forget about invoicing and payment processing! With ReliaBills, we’ll take care of everything for you.
We hope this guide has given you a better understanding of how to start an advertising company. If you have any questions or need help getting started, feel free to contact us, and we’ll be more than happy to assist you.