Advertising agency creation. Business plan for an advertising agency with calculations - how to open an advertising agency. How and why I purchased a Gazelle truck and a Roland plotter

The idea was presented by the magazine “I want my own business” - iwantbiz.ru. For those who want to gain more knowledge about small and medium-sized businesses, I recommend subscribing to the magazine. Entrepreneurial stories, stories of ordinary people, business plans and unusual points of view. All this is completed in a very high quality, beautiful gloss.

First, let's look at what an advertising agency is and what it comes with. In fact, by advertising agency, people often mean different enterprises with completely different activities. If we divide them into main areas, then an advertising agency is a company that:
1. Owns advertising space and rents it out
2. Produces advertising structures (signs, stands, etc.)
3. Sells advertising on the Internet (website creation, promotion, etc.)
4. Engaged exclusively in sales of advertising opportunities, outsourcing production and placement to the above companies
5. Engaged in solving the client’s problems in promoting his goods and services

These are the main types of advertising agencies that exist in Russia. There are also various mixed types, but this does not change the picture. You can start from scratch, or you can start by investing capital. More difficult and longer from scratch. With capital, everything is the same, only you can immediately rent an office, hire people and buy any production capacity. Therefore, below I will give a small plan for creating an advertising agency from scratch.

Briefly, the agency's plan looks like this:
1. Start of sales, first profit
2. Studying the supply and demand market from the inside
3. Increasing the range
4. Increasing material assets
5. Enterprise development, first employees
6. Business stabilization, cutting off unnecessary
7. Transition from work to management and beyond...

It is advisable to brew porridge from sales. It is personal sales and negotiations that will allow us to understand the psychology of clients, and these, after all, are either entrepreneurs, or management, or marketers. This experience will allow you to effectively train your advertising agents later, which will contribute to the development of the enterprise. Well, among other things, starting with sales will allow you to get your first profit without the first expenses, and this is good! It's not very fast - but good. It all depends on your desires and ambitions, but it is wiser to go slowly and go further than to take a sharp start and land in the first puddle you encounter. When sales experience is gradually combined with negotiation experience and business experience, the result is a thick mixture for a solid foundation.

You can start selling advertising without registering a business, without expenses, and even combining it with other work (if your schedule allows). And everything is absolutely legal. In general, the advertising range is extremely wide, and it is almost impossible to master it all alone. Therefore, it is better to choose the most promising areas and focus on them. It is very difficult to describe the entire possible range, but this is not necessary; soon after starting a business you will find out everything yourself.

So where to start? There are two ways here. If you have good sales skills or poor sales skills, but are confident in yourself, then you can choose the most profitable assortment. Otherwise, it is better to choose the easiest to sell range.

An easily sold assortment includes those advertisements that are in demand, inexpensive and in mass demand. This includes printing (printing banners, business cards, booklets, etc.), advertising in newspapers and small options for a profitable assortment. Small-scale options include low-budget advertising campaigns on television, etc., as well as the production of signs for offices, etc.

The main difference between a profitable and light assortment is the customer. Big profits come from large clients, but it is much easier to sell to small ones. Therefore, you first need to decide which path you will take. Sales begin with a call, and based on the initial plan, you will select businesses to call.

How to start selling what you don't own? Very simple! The point is that you can never have too many sales. Therefore, all companies that sell advertising are always happy to have good sellers. As a rule, many people look for freelancers themselves, i.e. people who will work on a flexible schedule and receive only a percentage of sales - this is profitable. All you need to do is call advertising companies and ask if you can work with them as a freelancer. From all the companies you have called, you need to choose a combination of good services and the lowest price. Then you can offer your customers a really, really good service or product.

But in order to avoid any discrepancies, you need to find out how the advertising company works with the client. This will all be clarified during the interview. For example, in outdoor advertising, after payment, the work of the designer begins, to whom someone delivers the customer’s wishes. When the graphic layout is ready, it is shown to the advertiser, who can make corrections, the layout is again finalized by the designer - and again to the customer. And so on until the advertiser is satisfied with the layout. Then the banner is printed. Then the banner is mounted on a billboard, house or somewhere else. This all entails a lot of work. The advertiser pays for everything, but some of the work may fall on you. And, most likely, this will be the work of conveying the advertiser’s wishes to the designer (at least the primary ones). All these points need to be clarified when you become a freelancer - what exactly you will need to do in order for the payment to go through quickly and accurately.

Web studios have their own standards of work, printing houses have their own, etc. All this is completely uncomplicated, but it is better to do everything gradually so as not to make any mistakes. To begin with, it is enough to work in one area, master everything, then add an assortment. This will be written about further – both about the beginning and about development.

After the start, you will begin to receive the first... refusals)) Or maybe immediate profit - that doesn’t matter. After all, the goal is not to work as a freelancer – but to own your own business! Therefore, all conversations with clients-advertisers and directors of employing agencies will lead to an understanding of the market from the inside. Supply and demand! That's the whole business - knowing what you need and where to get it (this is the essence of any business). These things vary in different cities and regions (especially countries). Moreover, they can differ in exactly the opposite way. That’s why I wrote about the best way to get reliable information about a business and make money from it along the way. These skills will be VERY useful in the future when hiring and training staff.

You may not sell very well at first, but we can train this skill. At first, I didn’t know how to sell at all, and the only thing that made me nervous was the sight of a telephone and the thought of meeting a client. But a huge number of advertising services and products are sold every day - the demand is huge. You need to be able to sell and you need to be able to learn. And everything will fall into place. There is no need to worry too much about failures in the beginning. For some people this is inevitable.

The next plan is to expand the range. In general, the whole plan and business is simple and logical. And all the cumbersomeness of this text is needed to describe as many details as possible. These details are important and can sometimes take months to understand, so as much detail as possible is essential to the speed of your business and plan.

So, the range! The assortments are different in different cities, but the main ones are similar: advertising in the media, outdoor advertising, production of outdoor advertising (signs, illuminated letters and boxes, etc.), production of websites, printing services (business cards, calendars, booklets , forms, etc.), placement of online advertising, postal (to homes and offices, not e-mail) mailings, addressed and unaddressed, promotions, holding and design of exhibitions, design services, PR and promotion of enterprises. It seems that I briefly listed the main points. At least that's what most people work with.

By starting with selling a small assortment, you can figure out for yourself what else you can offer. Moreover, for this it is not even necessary to enter into cooperation agreements with advertising firms. Some are needed to get started, but later... I'll give you an example. You know that web studios will be happy with the new order and will not spare 20% to the one who delivers the client. You come to a client and offer, for example, to place outdoor advertising. The customer is not very interested, and you begin to find out what he does not like and what he would like. If it turns out that the client wants to get a website, then you can safely say that you provide such services and can show a portfolio (list of works). From memory, of course, you don’t remember either the price or the address of the work, because... Another person is engaged in this direction. You find out the customer’s wishes and leave. Then you call web studios, find one that will do everything well (that is, it has been around for a long time, they have a lot of work on the Internet and good reviews from clients) and offer them a client for 15-20%. Having received consent (few people will refuse), you send the addresses of THEIR work and their prices to the client’s email. This way, you always have a much larger assortment than you think!

But this is not possible everywhere. For example, television may refuse such a quick agreement to cooperate, but it may also agree. Here everything depends on the ability to offer, that is, again sales and negotiations. But in short, the larger the advertising firm, the more important it is to sign a contract for freelance work in advance.

It is also reasonable to increase material assets gradually and based on demand. For example, you have several clients who need urgent short-run printing, and need it regularly. You can buy a color laser printer and print this type of product yourself, but you need demand first. The same is true in other areas. You can find your own private designer who, having a permanent job, will make you a professional design cheaper than they do in a printing house. You can find a private webmaster, buy equipment for making signs, and much more.

The point is that flows of orders and cash (more precisely, cashlessness in the bank) will begin to flow through you. It is simply unreasonable not to take advantage of such wealth! Seeing where the demand is quite regular, you can acquire your own production facilities. This way you can significantly increase the flow of money into your pocket. At this point, official registration of the enterprise may already be required.

It is not possible to list the entire set of tangible and intangible assets that will allow us to produce services and products on our own. Here you need to think. Of course, you won’t be able to quickly acquire your own TV channel or radio wave, but instead of business cards, it’s quite possible to print A3 sheets on thick paper in a printing house. Then cut these sheets (by purchasing an inexpensive printing cutter) and sell them at the price of business cards. Thus, you can take an order for business cards, and, after printing a thick poster, cut the business cards yourself. This will reduce the cost of business cards and increase your profits. This is called feinting your ears. Need to think! Where can you save big with the same quality and speed? There are a lot of such options. But I wouldn’t advise you to waste too much time on trifles. Since the business is not planned to be small. Business cards are just an example (although it is quite real).

In addition to all of the above, you can start acquiring your own advertising space: designs for banners, your own newspaper or brochure, new types of advertising. You can also conduct promotions, send out leaflets and much more. And selling your own advertising is already MUCH more profitable than cutting business cards. These are real advertising tangible assets! Later, your designer for your office, your advertising agent for your advertising, your webmaster for your web studio and who knows what else?! Who will stop you when you know how to sell, know the market from the inside and personally know the work of almost all competitors and clients???

Thus, the build-up of material assets smoothly and logically transitions into the development of your enterprise. Yours! This, one might say, is the beginning of the transition to serious business. I don’t know how long it will take you to get there this way, it could take six months, or it could be faster.

But your own enterprise is not the same as working for yourself. It is advisable to take your time here. The thing is, you have no idea how lazy people are. Until you hired them, you could not notice this. There is no point in writing a lot - I still won’t be able to explain it in a way that will protect you from mistakes with the staff. You will find out everything yourself. Just find out gradually. First, hire one employee, teach, show, watch how he works. Then the second (or again the first, since mercenaries like to change jobs), etc. Once you understand how THEY work, you can easily hire many people and deal with turnover. But, in order to avoid big problems, it is better not to hire many people at once.

After the employees are working, and you have moved away from sales and are engaged in “paper work” and motivating employees, the moment comes when it is time to bring everything to stability. Rapid growth is behind us, the range is wide, material assets bring good profits and are gradually multiplying - everything is good. This is where you need to think about efficiency. There will almost certainly be a situation where too much assortment will hinder profits. It is difficult to support many different directions; it is more profitable to focus on the MOST profitable one. What will be the most profitable in your hometown will be determined by your personal experience. Then it is better to cut off everything that brings little profit and takes a lot of effort. This will increase the profitability of the main areas and the profitability of the entire enterprise (if done correctly).

This kind of cutting will make the transition to stability very (very, very) easier. Is it easier to maintain contact with ten clients than with a hundred? There will be less work for employees, and it will be easier for you to manage and train newcomers.

At this point, you can (if you want) switch to remote control. You can appoint a boss from among your employees or hire an executive director. This will reduce your income (for his salary and taxes on it), but will allow you to retire. More precisely, almost retire. It is better not to leave the enterprise to the mercy of fate, but to keep an eye on it, at least looking at reports once or twice a week and communicating with employees. At the same time, it is better for you to decide in which direction to develop and what material assets to add to your small empire. The hired person is not as interested in success and development as you are. Plus, you will have SO MUCH free time that you will be looking 2 steps ahead of your competitors and 10 steps ahead of your employees (including the director). This is a short business plan. In principle, I think that everything is already clear, and we can start.

Don't forget to buy the magazine - iwantbiz.ru/podpis.php. He doesn't impose templates, he destroys them! It shows the different paths that lead to places many want to go, but not many go. I wish you success on behalf of all the people who worked on the magazine. Buy it - you won't regret it!

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

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

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

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

Types of similar agencies

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

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

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

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

Possible range of services

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

Services include:

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

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

Registration and required documents

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

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

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

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

Signing agreements with partners

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

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

Selecting a location

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

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

Equipment purchase

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

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

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

Recruitment

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

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

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

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

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

Advertising and customer search

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

Potential problems and solutions

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

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

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

Opening and operating costs

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

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

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

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

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

Calculating project profitability

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

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

Don't want to do sales and production isn't for you? Find out how the advertising business works. Perhaps this way of earning money will suit you.

♦ Capital investments – 700,000 rubles
♦ Payback – up to 1 year

There is a misconception that creative people will never be able to open a profitable business and, on the contrary, entrepreneurs who are completely devoid of imagination will never launch a creative startup, preferring old proven methods.

However, there is a field of activity that combines creativity and business, which is suitable for both “physicists” and “lyricists”, which is quite easy to start from scratch.

If you don’t want to engage in buying and selling, and production is not for you, then ask how to open an advertising agency.

This creative and fun way to make money might be right for you.

Advertising business: what is it and how to open it

  • distributes outdoor advertising;
  • promotes the product in the media;
  • conducts PR campaigns, including political ones;
  • advertises its client on the Internet;
  • conducts SMS marketing.

These are the types of activities that most advertising agencies engage in.

Domestic businessmen who want to open an advertising business often focus on one thing.

They think for a long time about where to start, and in the end they begin to promote their client on the Internet (the most promising and inexpensive way of advertising) or they organize a PR agency, promoting the latest brand, politician or star.

On the one hand, opening a narrow-profile agency is profitable because you don’t need to hire a large staff or rent a giant office.

On the other hand, there is a risk that you will not be able to form a client base, because few people who need advertising will enter into contracts with several agencies to promote their product in different ways.

How should an advertising agency work if I decide to open one?


Advertising business owners have two options:

  1. Promote one client in various ways.
  2. Form a base of many clients of varying profitability.

The first option is not very popular in our country, unless we are talking about a political PR campaign (often advertising agencies are created by a specific politician to promote himself or herself).

But abroad, production giants prefer that PR specialists focus only on advertising their brand, without scattering themselves on others.

That is why companies such as Coca-Cola, Pepsi and others know where to start conquering the market of the next country: by opening a branch of an advertising agency in that country.

The main thing for you is to start forming a client base, and then you will get your bearings: if you manage to hook a big fish, you will only be engaged in promoting it, but if not, you can make good money on small clients, the main thing is that you have:

  • advertising space (agreements with the media, websites, etc.);
  • personnel who are capable of creating impeccable and creative PR products;
  • designs (banners, cubes, etc.);
  • normal technical equipment;
  • partnerships with, which will quickly and efficiently print the products you create in large quantities.

What is it impossible to open an advertising agency without?

    Creativity.

    You must be a creative person with a rich imagination.
    If you are a hopeless “physicist”, you will not be able to control the actions of your subordinates.

    Stress resistance.

    In the advertising business there are different examples.
    Sometimes products have to be remade several times until you please the client.
    Moreover, the customer will not always express his dissatisfaction politely and tolerantly.
    There are different types of entrepreneurs, and you need to learn to find a common language with everyone.

    Be a good psychologist.

    Again, you will have to deal with different clients.
    Some will come to you with ready-made ideas, expecting only their high-quality implementation in advertising products, and someone will contact you with the wording “I want this, I don’t know what” and you must quickly evaluate the client in order to understand what exactly he needs offer.

    Communication skills.

    You will have to communicate a lot with people, and if you start to blush in the company of strangers, then it makes sense to think about opening something other than an advertising agency.
    You can’t do this without communication skills.

    Be a good manager.

    The advertising business is still a business.
    If you are bursting with ideas, but are not able to organize the work of your staff, calculate your income, or figure out how to cut costs where possible, then your agency will quickly burn out.

Of course, the lack of these qualities should not necessarily prevent you from opening an advertising agency.

You can hire people who will have all the necessary qualities for the advertising business.

But it is still better if the boss sets an example for his subordinates and is well versed in the business he is involved in, which cannot be said about many unsuccessful businessmen.


If you decide to open an advertising agency from scratch, then you may want to take advice from professionals who know where to start in order to quickly build a client base and make your first profit:

  1. Come up with a creative name for your business.
    Customers will pay attention to your company name.
    They will understand that if you cannot come up with an interesting name for your company, then how can you come up with a creative and effective advertising campaign for them.
    The name of the agency should be short, memorable, and easily match the products that you will use to promote your business.
  2. Don't rush into trying to catch the big fish the day after you decide to open an advertising agency.
    Work with small companies, completing small orders for them.
    This way you will gain experience and learn to understand the customer better.
  3. When offering your services to potential clients, talk about your uniqueness.
    When calling clients, you cannot say the same thing to everyone over the phone: “Hello. Manya's name is Ivan Ivanovich.
    I decided to open an advertising agency and am offering you my services.” Tell us exactly how you differ from your competitors.
  4. Be sure to study your competitors: the advertising campaigns they ran, their pricing policy, what their customers were especially pleased and dissatisfied with (if possible), etc.
    This will help you avoid common mistakes at work.
  5. Don't forget that the advertising business also needs to be advertised.

How to advertise the advertising agency that you have decided to open?

The most effective ways to promote a new agency are:

    Phone calls.

    You take a directory of enterprises in your city and begin to methodically call them, informing them that a unique advertising agency has finally opened in your city, which can conduct an effective and original PR campaign from scratch.

    You need to get the email addresses of businesses in your city and send them letters offering cooperation.
    Work on the text of the letter to hook the client from the first lines, otherwise your message will end up in the trash before being read.

    Mass media.

    Banners, cubes, notice boards, etc.
    The main thing is that your advertising is interesting and attracts attention.

    Don't underestimate their power in disseminating the information you need.

    Word of mouth.

    One satisfied client will tell another happy client about a great advertising agency that has opened, and you will quickly build a client base.

The presence of a website immediately suggests that you are a serious company with which you can do business.

How to open an advertising agency: calendar prospects

Launching a startup like advertising business, will not require a lengthy preparatory process.

If you decide to open an agency, then you need to take care of the standard steps: registration, finding suitable premises for work, recruiting staff, purchasing equipment and finding clients.

If you quickly implement all of the above and get smart assistants, you will be able to launch a startup from scratch in 5 months, or, in extreme cases, in six months.

StageJanFebruaryMarAprMay
Registration
Office search and renovation
Purchase of equipment
Recruitment
Search for first clients
Opening

How to open an advertising agency: the main stages of launching a startup


We have already talked about what needs to be done to open an advertising agency.

Now let’s take a closer look at all the stages of launching a startup.

Registration

Choose one of the suitable forms for opening an agency: individual entrepreneur, LLC, CJSC.

The simplest form in terms of registration is the individual entrepreneur, but the other two will require cooperation with a qualified lawyer, because it is quite difficult to figure out all the nuances of the procedure on your own.

Choose a form of taxation that will not bankrupt you at first when starting an advertising business, for example, UTII.

Room

However, it is not worth going to the remote outskirts, since it is unlikely that any businessman will want to travel so far to get acquainted with samples of your products.

If you nevertheless decide to save on rent and open an agency too far from the center, then be sure to take care of creating a website to make it easier for your clients to get to know you.

You should not invest too much money in renovating your rented premises.

You are not a restaurant, so you shouldn’t impress with the interior.

Neutral colored walls can be decorated with samples of your agency's best products.

But the area of ​​the room in which you will work depends on how large an advertising agency you decide to open.

If you are setting your sights on a modest business, then at first you can rent 1-2 rooms for an office in one of the office buildings for several employees.

Serious agencies need offices with a total area of ​​at least 50–60 square meters.

Staff


The number of employees you will need to hire depends on how large an advertising agency you decide to open.

To start a small agency you must hire:

  • two designers, one of whom will be involved in the production of a creative product, and the other will perform technical work: layout, etc.;
  • a manager whose main task is to attract new clients;
  • a cleaning lady - without her you will drown in dirt.

You will perform the functions of the head of an advertising agency: negotiate with clients, conclude contracts, arrange advertising in the media, etc.

If you can handle the accounting yourself, you will save money on the position of an accountant. Otherwise, you will have to hire an accountant or enter into an agreement with an outsourcing company.

You also cannot do without a programmer, since your main equipment is computers. He can be hired part-time.

QtySalary (in rub.)Total (in rub.)
Total: 74,000 rub.
Designers (technical and creative)2 20 000 40 000
Manager1 15 000 15 000
Cleaning woman1 9 000 9 000
Part-time programmer1 10 000 10 000

Equipment


Equipment for an advertising agency is expensive.

You will definitely need computers, and designers need powerful machines for their work, which are very expensive, printing and office equipment, furniture, office supplies, and so on.

The main costs for office equipment will be as follows:

Expense itemQtyCost (in rub.)Amount (in rub.)
Total: 500,000 rub.
Computers or laptops
4 40 000 160 000
Laser printer
1 10 000 10 000
Scanner
1 10 000 10 000
Xerox
1 30 000 30 000
Large format printing press
1 100 000 100 000
Cutting plotter
1 70 000 70 000
Telephone sets
2 1 000 2 000
Tables
4 4 000 16 000
Visitor and work chairs
8 2 000 16 000
Plumbing for the bathroom
10 000 10 000
Other 76 000 76 000

How to open an advertising agency and how much does it cost?


People interested in the topic of how to open an advertising agency are worried about the question “How much money will have to be invested in launching this startup?”

Those who were hoping for minimal spending will be disappointed.

As you can see, you need decent capital investments to open an advertising agency.

If you were unable to raise the required amount on your own, then it makes sense to think about attracting a partner who would take on part of the costs.

After all, not only one-time, but also monthly investments await you:

We offer you to watch a video about what you need,

If you open an advertising agency, how quickly will the expenses pay off?

Another way is personal visits by a director or manager to an organization that needs advertising.

You set the prices for your services yourself, focusing on the price level and financial capabilities of the residents of your region.

You can work in the low, middle or high price category.

  • script – 10–20,000 rubles;
  • company logo – 20–30,000 rubles;
  • banner layout – RUR 5–8,000;
  • layout in the media – 10–15,000 rubles;
  • original layout for a corporate publication – 20–30,000 rubles;
  • souvenirs – from 1,000 rubles;
  • full-fledged PR campaign – from 100,000 rubles. etc.

In addition to orders from clients, you will receive a percentage from advertising in the media (this should only be done after agreement with the client).

An income of 400–500,000 rubles per month is considered good.

It is very possible to have such an income if you manage to acquire at least ten regular customers, do not ignore small orders and constantly work to expand your customer base.

The main thing is that the income of your business should not be lower than 200,000 rubles per month (after all, this is exactly the amount of your monthly expenses), otherwise you will work at a loss, which means there’s no point open an advertising agency gets lost.

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First things first:

  • What success have I achieved by starting an advertising business from scratch?
  • Under what conditions did I start the advertising business and why the advertising business?

You can read about the successes I have achieved by starting from scratch and creating an advertising agency

But I will tell you in more detail in this article why I started my business by creating an advertising agency, without a penny to my name, and after a few years turned my undertaking into a business empire.

It all started from scratch. By chance (global downsizing and bankruptcy of the large enterprise where I worked at that moment), I was left without a job and practically without a means of subsistence for my entire family, which at that time consisted of three people.

I did not have time to make any financial reserves, since literally six months before these events I purchased a new apartment, into which I not only invested all my money, but also borrowed a significant amount from relatives.

How to open an advertising agency from scratch?

So, at the time of creating my first business, I had the following:

  • Complete lack of work and complete lack of opportunity to get a job in your specialty;
  • A complete lack of free financial resources to start any of your own business, literally - not a penny to your name;
  • Large debts to relatives, which I undertook to pay off within the next two years. And I’ll tell you this - it wasn’t the sheep who coughed;
  • A complete lack of any business experience and a complete lack of understanding of what it is - the advertising business, what the main types of outdoor advertising are, the cost of placing outdoor advertising, etc. and so on.

What could I do in this situation and in the presence of such “attractive” assets?

There was only one thing left: to do something and somehow mouse

I began to think and analyze my capabilities and talents. It was quickly discovered that I didn’t have any special talents at all. The most ordinary person.

The only thing I could remember, and what warmed my soul at least a little, was that at school I was the editor of a wall newspaper. For some reason, someone decided that I could and did draw.

Looking ahead, I must admit that this opinion was and remains complete stupidity and nonsense. I didn’t know how to draw, I still don’t know how. But it was these memories that played a key role in my choice and in my future fate.

For some reason I thought that since I once knew how to make a wall newspaper, I could draw some kind of poster.

Where can the poster I drew be used?

At the same time, I had absolutely no understanding of materials for the production of outdoor advertising, and what equipment currently exists and is used on the market for the production of outdoor advertising.

By the way, my opinion that the ability to draw will give me a lot of advantages was complete stupidity and in order to create and run an advertising business it is not at all necessary to be able to draw.

But then I didn’t know this and, having decided that it was necessary to start with the advertising business, I began to study this issue.

I began to draw up a step-by-step algorithm of my possible actions in the form of sketches and graphs.

Outdoor advertising production is the key to business development without money!

As I reasoned:

  • I find a business in my city that needs to create a new advertising sign. (As it turned out, in a big city there are always a lot of such enterprises at all times);
  • Then I must come to the head of this enterprise and convince him to enter into an agreement with me to create a new advertising sign (impudent and spotlight). This is not an easy task, but for some reason I decided that this could be solved and did not focus much of my attention on this point;
  • This is the most important thing: since I didn’t have any money of my own that I could invest at the first stage to purchase the necessary materials and attract specialists, I decided (absolutely correctly, by the way, I decided) that to start I needed to receive an advance payment from the company and use this advance payment to create the sign itself;
  • After I purchase materials with an advance payment, hire specialists, do all the necessary work, I will hand over the work and receive the remaining remuneration, which will serve as an investment contribution to my next work. And so on ad infinitum.

Of course, at that time I was completely unaware of such concepts as: the outdoor advertising market, investment contribution, acceptance certificate, approval of the placement of outdoor advertising, what an individual entrepreneur is, etc. but as practice and subsequent events showed, my calculation turned out to be absolutely correct.

And so, having nothing of the word - in general, except for the desire to get out of the situation in which I and my family found myself in any way, I began to “spud up” nearby enterprises in the area of ​​​​my residence with my proposal.

I don’t remember how many enterprises I visited then, but I still found a company that agreed to enter into an agreement with me to carry out work on the production of an advertising sign for a store.

At this stage, I completely unexpectedly learned that in order to conclude an agreement with an enterprise, I, as one of the parties to the agreement, must have official status.

The minimum is an individual entrepreneur (I don’t remember what this status was called back then), but I said quite confidently at the first meeting: “This is natural”!

A contract for the production of outdoor advertising is a prerequisite for doing business.

The second “blow” for me was the news that you cannot just hang a sign on any enterprise (shop, bank, retail store) without the permission of the local authorities.

What was left to do? Climb and flounder with a smart look. Sorry, but hunger, as they say, is no big deal!

Fortunately, at that time, registering a private entrepreneur in Russia was inexpensive, and the whole process did not take me more than two or three days. To be honest, I don’t even remember how much exactly. I remember it was fast.

Then I went to get permission to place outdoor advertising from the local, district administration. I found out that such a permit is issued by the district architect, came to see him and quite honestly admitted that I did not know how to obtain such a permit.

I was lucky, the architect turned out to be a person with humor and understanding, he quickly told me what needed to be done and what documents to provide him with.

In general, five or six days after the first meeting with the director of the customer enterprise, all the necessary documents were ready, and I signed a contract for the work.

And then events began, which I simply call - a song!

Making illuminated outdoor advertising increases your chances of success!

The sign is large and illuminated. Yes, yes - light and seven meters long. Made of metal, plastic and three-dimensional letters. What did you think? The company doesn’t knit brooms.
Well, how to do it and most importantly – WHERE?

Where to create and mount this “monster”? No, of course, it was possible to rent a “nook” in the workshop of some production company, but, firstly, I did not yet have such experience and knowledge, and secondly, I simply would not have had enough money from the advance payment that I received for carrying out work.

I didn't fit into the budget in this case. No way.

I found the following solution: my sister’s friend had an empty dacha not far from the city, and I agreed with her that I would “work” at the dacha for a small favor, to help her with firewood. I undertook to buy firewood with the money that would be paid to me when I finished the sign.

Perhaps you ask me why I describe such banal things in such detail?
With one single purpose. So that many who read these lines and dream of creating their own business understand: “It’s not the Gods who burn the pots” and it’s really possible to start a business from complete scratch.

Two and a half months later (strictly within the terms of the contract), the sign was made by me and hung on the facade of the building of the enterprise with which I signed the contract.

I received the rest of the reward and invested this money in my next job. Before I describe how I found my next job and how I began to develop my advertising business, I will now give some small calculations with the help of which I started my own business.

Note: The calculations are completely approximate, I just don’t remember the real breakdown of prices and costs, but you can safely rely on them (multiplying by today’s coefficient) if someone decides to repeat my “exploits”:

  • The contract was concluded for a total amount = 10,000 rubles. (in prices of the year to which the described events relate);
  • Due to a limited budget, to develop the original layout of the future sign (to obtain permission from the administration and sign an agreement with the customer), I attracted a 1st year student from a local institute and paid him about 200 rubles;
  • All the materials from which the sign was subsequently made were purchased by me for an amount of approximately 25% of the contract amount or = 2,500 rubles;
  • Another 1000 rubles. I paid specialists from the local Pioneer Art House to make 8 volumetric letters for a sign out of epoxy resin;
  • At 500 rubles. It cost me a metal frame for the sign, which I ordered from the locksmith workshops of the local technical school;
  • At 200 rubles. It cost me transportation costs (delivery of the finished sign from the summer cottage to the store on the facade of which it should be mounted);
  • My last “big spending” was 100 rubles. which I will pay the local whips for helping me with all their free hordes to carry, load and mount the finished sign in place.

Total I spent from the money received as an advance = 50% of the contract amount:

200 + 2.500 + 1.000 +500 + 200 +100 = 4.500 rub.

Advance amount (50%) from 5000 rub. – 4,500 rub. (costs) = 500 rub.

500 rub. - this is the balance from the money I received as an advance, and on which I and my family “lived” while I performed work under the contract.

As a result, in two and a half months I earned more than 5,500 rubles, which was a much larger amount than I would have earned by continuing to work as a hired specialist at that enterprise, which, fortunately for me, went bankrupt.

This money was more than enough to continue my work and provide a tolerable life for my family until I finally “got up.”

High-quality materials for the production of outdoor advertising and design is an important understanding that I came to after completing my first job!

I was simply lucky and the 1st year student whom I hired to create the original layout of the first sign turned out to be a talented fellow, created a very attractive design and thanks to this fact I immediately received a second order.

Things went like this: when the first sign was completed, installed and the money was received, I immediately began looking for a second customer. Literally a couple of days later I found the owner of a large store, who, upon seeing a photograph of my first work (now I already had a “portfolio of completed work,” ha ha ha) immediately agreed to sign an agreement with me.

Such a quick decision and the unexpected reaction of the new customer led me to a healthy thought: the design and quality of the work performed plays a very important role in outdoor advertising.

And for his store I decided (at the expense of time) to create something truly masterpiece. An advertising sign that never existed in the city. I turned to the student again and told him that I needed a sign design for a store in the form of a world masterpiece of outdoor advertising.

- Easily! - the freshman answered me and came up with a sign design that became the calling card of my advertising agency for many years.

To bring such a design to life, we needed higher-level specialists like me, and a production facility with access roads. I again hired specialists from the house of pioneers (the leaders of the shipbuilding and aviation modeling circles are very handy people and are able to make real candy out of nothing).

They did it!

After the second sign was installed, orders poured in like a cornucopia.

Equipment for advertising business is the key to complete success!

Despite the fact that I had already completed the second order and received decent money, my production was at a primitive level, and I did not yet have the opportunity to purchase my own freight transport and, most importantly, I could not purchase special equipment for the production of outdoor advertising.

And without transport and special equipment, my work progressed slowly, I lost time and many customers, since my capabilities were limited. The first thing that urgently needed to be done was to purchase a Gazelle truck and a plotter for cutting vinyl film.

How and why I purchased a Gazelle truck and a Roland plotter

After I began to expand: I rented production space in the outbuilding of a local school and hired two full-time specialists to work for the campaign, I was sorely lacking a plotter for cutting vinyl film.

But I couldn’t buy it because I simply didn’t have enough money for everything, and I was still afraid to use a bank loan. Suddenly the decision came by itself.

For the company that ordered the second sign for the store from me, it was necessary to carry out work on the production of an advertising board located at a large traffic intersection.

The shield was huge, with an area of ​​approximately 100-150 sq.m.

In this case, all images had to be applied using vinyl film (a mandatory requirement of the customer).

Moreover, he took an active part in creating a sketch of the future billboard and the information was overloaded with text inserts.

No matter how I protested, the principle worked here: “He who pays calls the tune.”

It’s paradoxical, but it was an advertising board in production, which 90% required a plotter, that helped me buy this plotter, and the plotter helped me buy Gazelle. At the same time, I did not have money for either a plotter or a truck, and I purchased them with the profit received from the work performed.

Organization of advertising agency activities

Roland cutting plotter or how I got by without it

We did all the work on cutting the vinyl film during the production of the billboard by hand. We cut out all the images and texts using a regular stationery knife and regular sewing scissors.

They did this: after typing all the texts and images in full size on the computer, they printed the reverse images without filling, only in the form of outlines, if the letters and images were large, glued the A-4 sheets together and glued the reverse image of the letters onto a paper backing vinyl film.

Then we cut straight lines with a knife under a metal ruler, and curved lines with scissors. As a result, we received individual letters. By trimming the backing in the extreme corner, a letter or image was glued onto the background.

This is how we completed all the work (all the employees of my agency and even my household worked). Having completed the work, we received a reward and used this reward to purchase an excellent Roland plotter, which not only helped me purchase a truck, but also served my business faithfully for several years.

How did I buy a Gazelle truck without having enough money to buy it?

As soon as I purchased a plotter for cutting vinyl film, the range of services offered by my agency expanded and literally a couple of months later, a competition was announced in the city for work on preparing the City Day celebration.

As part of this celebration, the local administration decided to decorate the city with images of the city's coat of arms. Moreover, commercial structures were obliged to engage in such decoration. These were mainly shops.

Where can I get identical images of the coat of arms for outdoor use?

That's right: from those who can make and sell them. Who can make it? An advertising agency that has a plotter for carrying out such work. (Now everyone has the opportunity to purchase a plotter without problems, but then it was very rare).

In general, we spent a whole month, literally in two shifts, making and selling an image of the city’s coat of arms. With the profit received from the sale of coats of arms, I purchased my first Gazelle truck.

And a truck for an advertising agency engaged in outdoor advertising is of very serious importance. The fact is that 80% of the services of such an agency are the production of signs that need to be transported and installed, as a rule, at the second floor level.

Here, too, we showed ingenuity (we are rich in inventions): when installation of outdoor advertising was required, we loaded an ordinary wooden “goat” into the back of the Gazelle and mounted signs from it just at the level of the second floor.

From Startup to Success: Opening an advertising business!

Do you need a business plan for an advertising agency when starting out?

My example shows that it is not particularly necessary. Moreover, when I started, I didn’t even know what it really was. No, of course, I heard about the need to create your own business plan at the start, but when I started, I honestly had no time for it. I really wanted to eat.

Now, after many years, I believe that a business plan for starting a business is simply necessary. Business conditions have changed, including competitive ones, and a good business plan will not hurt.

But here, in my personal opinion, what kind of “evil joke” can happen. If you have no money at all, but want to create your own business, how can such a plan help you?

Well, do you think that to start you need to have two or three million rubles and what will change? Will you get this money? Hardly. Even from the bank you will not receive money to start a new business. Why waste extra money and time?

But if you have money and you want to know how not to lose it by creating an advertising agency, for example, for the production of outdoor advertising, then a business plan is simply necessary.

Conclusion

Once again I want to explain why this article was written. To illustrate that if you approach creating your own business with ingenuity, then it is quite possible to start a business without serious investments. As my personal experience in the advertising business shows, this is quite possible.

Aspiring entrepreneurs who dream of independence and making their own profit often consider the opportunity to create their own advertising business. Where to start and how difficult is it? Advertising is a very promising area, but at the same time it requires specific knowledge and the ability to combine a creative and pragmatic approach. How to put this into practice?

Advertising business - promising, but dangerous

Any modern business uses advertising to promote the market, increase the number of customers and eliminate competitors. Such services are needed by both small private firms and huge industrial giants (remember, even Gazprom advertises itself, although this company is essentially a monopolist).

On the other hand, competition in the advertising business is very high, and it will always be difficult for a start-up company to compete with large agencies offering a wide range of turnkey services. We tell you how to create a successful advertising company, even without impressive initial capital, and find your niche in the market.

What are the types of advertising agencies?

  1. Creative agencies or design studios - specialize in developing ideas for marketing campaigns, logos and branding, slogans. In general, they create the basis for further promotion of the client’s business.
  2. Internet agencies are engaged in advertising in the virtual space (contextual, targeting, any other types), as well as creating websites and maintaining accounts on social networks.
  3. Firms specializing in outdoor advertising produce posters, banners, banners. They can only do printing and installation, but sometimes they rent out advertising structures for advertising and develop their own sketches.
  4. Media buying companies, in the course of their work, promote clients through the media. They organize advertising campaigns on television, radio, print and online publications.
  5. PR agencies are essentially similar to media buying companies, but they work more comprehensively and create a positive image for the client among potential buyers (both in general and in a particular category).
  6. BTL agencies conduct promotions, special events, organize holidays and events that help increase the number of potential buyers and form a positive image of the company in them.
  7. Specialized advertising agencies - such companies are distinguished by their specialization in any market sector. For example, a company may specialize in advertising clothing, mobile or household appliances, and so on. They are not found on the market so often, as they lose in the competition due to a reduced client base.
  8. Marketing research companies. They are not advertising agencies in the usual sense of the word, since they do not advertise the client, but study the state of the market in his industry and the marketing campaigns of competitors (price level, potential audience, slogans and logos). In fact, like design studios, marketing research companies prepare the basis for further work by advertisers and marketers.
  9. Full-cycle or “universal” advertising agencies provide the entire list of the above services. They provide comprehensive customer service: from developing a brand name to a large-scale advertising campaign in the media space and placement on outdoor structures.

It is virtually impossible to build a full-cycle advertising agency from scratch: this requires impressive funds, a large team of professionals, experience and connections in this field. Therefore, you need to start with one industry, and if successful, develop and expand.

Also, all agencies can be divided into local and federal- that is, depending on the scale of the work. Most advertising agencies operate only at the local, regional level. It is quite difficult to reach the entire country, but you can make good money locally.

Which area of ​​work in advertising is more promising?

All of the above types of advertising agencies are widely represented on the market, operate successfully and bring stable profits to their owners. It is impossible to call any direction more promising, all types of advertising are equally in demand among clients. Therefore, you need to choose the direction that is closer and clearer to the entrepreneur.

You need to make your choice in the direction that is closer and clearer to the entrepreneur.

Who do advertising companies work with and why is it important to know?

The services of advertising firms are most often needed by businesses: to promote your products and increase profits. This largely explains the specifics of the work: you need to speak to entrepreneurs in the language of profit; the “wow effect” does not matter to them.

Which advertising agency should a beginner open?

If a novice entrepreneur is wondering how to open an advertising agency from scratch, it is better to opt for one of the non-universal, specialized varieties - for example, an online agency or an outdoor advertising company.

This option will help you spend less money on opening, hire employees faster, and pay for yourself in a short time. If successful, it will be possible to expand to a full cycle or representative offices in other regions, and if it fails, the losses incurred will not be so great.

Features of the work of certain types of advertising agencies

Many details of the work are revealed to entrepreneurs only after the start of activity. To help you form a more comprehensive understanding of the pros and cons of each type of advertising agency, let’s take a closer look at some of them.

Why is it difficult to work in outdoor advertising?

Outdoor advertising, that is, the placement of posters and banners on special structures installed on the streets or buildings of the city, is a constantly in demand service. The fact is that any such poster is seen by thousands of people in just 24 hours. Such advertising is remembered, slogans and pictures are ingrained in the memory, and the number of potential buyers or clients of the company increases daily.

However, before entering the field of outdoor advertising, you need to know the following facts. Firstly, all advertising structures belong to the local authorities. City administrations compete for the right to use them between advertising agencies approximately once every 5 years based on an auction principle. That is, the one who paid the most for it gets to use the structure. If you didn't make it in time for the auction, wait a few years for the next one.

Secondly, the price of one design at auction can exceed a million rubles. The fact is that in a few years, investing in rent in a busy place will pay for itself 2-3 times. Beginning businessmen, as a rule, do not have significant capital, and therefore they cannot compete for designs.

Thirdly, printing and manufacturing large posters, banners and banners also requires specialized equipment, which is very difficult to buy for less than 800 thousand - 1 million rubles. Outdoor advertising is made not only from paper, but can also include metal, plastic and LED elements. To create all this well, you need special equipment. Fourthly, to place banners and streamers you will need a car, preferably with a crane.

Thus, work in the field of outdoor advertising is complicated by the need to spend significant funds on the initial organization of the business.

Internet advertising: what are the prospects and difficulties

Advertising on the Internet is also in demand among customers, because the audience in the virtual space is constantly growing. If a person knows how to set up contextual advertising and ads on social networks, he can work for some time as an individual entrepreneur. Then the funds earned can be invested in expanding the staff and renting an office.

Online advertising can bring good profits, but the situation is complicated by the fact that most companies prefer to find freelancers to set up contextual and targeted ads or train existing employees to do this.

Therefore, an online agency should offer a wider range of services: create turnkey websites, run groups on social networks, create unique content. In this case, attracting customers will be much easier.

What kind of employees does an advertising agency need?

  • managers (look for clients, take orders, communicate with clients);
  • designers (develop banners, posters, signs, logos);
  • marketers (create a full-fledged advertising campaign for clients);
  • specialists in contextual and targeted advertising;
  • clerk or accountant (these functions can be taken on by the entrepreneur himself);
  • employees for the production and installation of outdoor advertising (if the company works with outdoor structures).

Minimum costs: is it possible to open without money?

To open any business you need capital, and an advertising company is no exception. It is clear that the more money, the more confident an entrepreneur will feel. But is there a minimum threshold for the amount required to open your own company?

Much depends on the type of company that the entrepreneur plans to develop. It is impossible to work in the field of outdoor advertising without any expenses: even if you have your own premises and a car, you need to purchase equipment for printing and making banners. You can reduce costs by taking an advance payment from customers for consumables. In any case, it is almost impossible to do without 500-800 thousand rubles.

Internet agencies and creative design studios are less expensive. To get started, you only need a fairly powerful computer (or laptop), as well as knowledge in the relevant field. Experience shows that some contextual and targeted advertising adjusters manage to earn initial capital for a business with their own hands (without loans and employees).

Internet agencies and creative design studios are less expensive.

When will your business investment pay off?

The answer to the question about the payback of advertising agencies depends on the amount of initial investment. Overall, this is a fast-paying business.- most successful owners of advertising agencies return all funds spent within 8-12 months.

The main factor for such a quick payback is the high prices for any services. The production and placement of large banners usually involves a markup for clients of over 50% of their actual cost. And such “intangible” services as the development of slogans or logos - even more than 100%.

Why an advertising firm does not need a business plan

In theory, any enterprise necessarily needs a business plan: it helps to assess available prospects and resources, plan expenses and income. But advertising is a special business, which in many ways develops irrationally. It is more suitable for those who do not like planning and know how to act quickly in an unfamiliar situation.

Of course, you need to plan all expenses and indicate the payback period, understand what services you will provide in the first months of work, and what services you want to grow to. But it’s not worth describing all the actions in detail: in many ways you’ll still have to improvise.

An advertising agency also needs to advertise or where to find first clients

It is better to immediately exclude placement on external structures from the list- it's too expensive. Ads on the Internet, your own website and active groups on social networks will become a good business card and attract customers.

But it is more likely that in order to attract your first clients you will need to contact companies directly: call and send emails, offer your services, convince them of the benefits of working with you.

Advertising is an area where reputation matters a lot. Most businessmen will not want to cooperate with an advertising company that has just entered the market and does not have an impressive portfolio. Therefore, getting your first clients is the most difficult task. Take the initiative, act through your acquaintances, but find the first customers and do the job perfectly for them.

Summary: is it worth opening your own advertising agency?

Opening an advertising agency is not a simple matter. Quick payback is also questionable, especially if the entrepreneur is involved with advertising structures. Therefore, when drawing up a business plan (or even before that), it is worth thoroughly analyzing all the advantages and disadvantages of working in the advertising field.

Benefits of starting an advertising company

  1. Stable and high demand for advertising services. The modern market is developing largely thanks to advertising, so a professional company will always be in demand among clients.
  2. Opportunity for creative and entrepreneurial self-realization.
  3. Quite a quick return on investment (up to 1 year, with the right start - in 4-5 months).

Risks and dangers of the advertising business

  1. High competition, including with advanced and large full-cycle companies. Many potential clients do not risk contacting newcomers. In addition, it is more convenient to get all services at once (advertising on the Internet, in the media, on outdoor structures) from one company than to contact several. Therefore, it is difficult for highly specialized start-up companies to compete with the “full cycle”.
  2. Dependence on reputation. First, the company will be hampered by the reputation of a newcomer, and then by reviews from dissatisfied customers. In the course of their work, advertisers have to deal with a variety of businessmen who have their own opinions on every issue.

Advertisers must skillfully balance fulfilling clients' desires (some of which may be extraordinary) with professional standards. In fact, one dissatisfied client review will outweigh all previous achievements, which means you need to strictly monitor your own image.