Start-up | |
Requirements | |
Start-up Expenses | |
Legal | $500 |
Stationery etc. | $250 |
Brochures | $250 |
Other | $0 |
Total Start-up Expenses | $1,000 |
Start-up Assets | |
Cash Required | $22,200 |
Other Current Assets | $0 |
Long-term Assets | $19,800 |
Total Assets | $42,000 |
Total Requirements | $43,000 |
The Metolius Agency provides graphic design and visual communication services to established, primarily Eugene-based, companies. Some of the services offered are corporate identity, marquees, logos, branding, and packaging.
The pricing of the projects are typically estimated as a project-based cost. The project cost will be estimated by the approximate number of hours needed to complete the project. Generally, Kiev will be charging $75 an hour for his services.
The majority of services will be provided at The Metolius Agency’s office space. This office will be modern, practical, and sleek. This is very important because the office of a graphic designer is to a large degree a piece of their portfolio and reflects their work product. Therefore, a decent amount of money will be used to develop a proper appearing business office.
The Metolius Agency will be targeting small- to medium-sized companies. What these companies have in common is they have started as a small company with a good idea and have grown into a larger, more mature company that must now decide if they are going to maintain the current business strategy, or reinvigorate the company, employ professional service providers, and move to the next level.
The Metolius Agency has two distinct customer groups which they will concentrate on:
These companies started with a valuable concept and leveraged their original grassroots visual communication elements. Now that they have matured into a larger company, they can no longer rely on the original grassroots corporate identity. These companies are in need of a professional firm like The Metolius Agency to expand their identify and take them to that same level as their competitors and be able to compete.
Market Analysis | |||||||
Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |||
Potential Customers | Growth | CAGR | |||||
Small companies | 8% | 234 | 253 | 273 | 295 | 319 | 8.05% |
Medium companies | 7% | 145 | 155 | 166 | 178 | 190 | 6.99% |
Total | 7.65% | 379 | 408 | 439 | 473 | 509 | 7.65% |
The market segments will be targeted in a number of different ways. It must be noted that graphics firms generate visibility and sales not through advertising, but through networking and client referrals. The methods used for the target market segment strategy will be:
Within the last seven to 10 years, there has been a trend in the industry for the general advertising agencies, that previously only worked with advertising, to act as a full-service agency that not only prepares advertisements, but also does a lot of the creative work in-house instead of outsourcing it. This trend toward full-service agencies has continued. To a large degree it is occurring due to higher profit margins for the service providers. The Metolius Agency will be bucking this trend and concentrating on their specific skill set.
The following are examples of the different types of competitors:
The Metolius Agency’s marketing and sales strategy will utilize networking and referrals to develop visibility for the company. Prospective customers will be turned into qualified sales through a professional showing that displays Kiev’s portfolio of past work. The portfolio is key for making a positive impression regarding Kiev which illustrates his skill set and capacity as a creative designer.
As noted previously in the target market segment strategy, The Metolius Agency will rely on three activities in their marketing efforts. These include:
The sales strategy will be to utilize Kiev’s portfolio of past work to qualify a sales lead. Using a portfolio is very common within the industry to show past examples of work. Kiev’s strategy will be the development of several different portfolios, each one customized to a specific type of work. By having different portfolios, Kiev is able to better illustrate his proficiency with that specific skill set. In addition to the use of the portfolio, Kiev will do research on the prospective company and their industry so that he has specific knowledge of the needs the company may have and solutions that he can offer.
The first month of operation will be used to get the office set up and ready for business. Some of the time will be working with the interior designers to create a modern looking office space.
Months two through four will be somewhat slow as Kiev is developing clients. He is forecasted to take on some smaller projects. By month five Metolius will have developed larger projects and will continue to grow steadily.
Sales Forecast | |||
Year 1 | Year 2 | Year 3 | |
Sales | |||
Small companies | $29,339 | $50,697 | $58,849 |
Medium companies | $40,058 | $74,554 | $86,543 |
Total Sales | $69,397 | $125,251 | $145,392 |
Direct Cost of Sales | Year 1 | Year 2 | Year 3 |
Small companies | $880 | $1,521 | $1,765 |
Medium companies | $1,202 | $2,237 | $2,596 |
Subtotal Direct Cost of Sales | $2,082 | $3,758 | $4,362 |
The Metolius Agency will have several milestones early on:
Milestones | |||||
Milestone | Start Date | End Date | Budget | Manager | Department |
Business plan completion | 1/1/2001 | 2/1/2001 | $0 | ABC | Marketing |
Office set up | 1/1/2001 | 2/1/2001 | $0 | ABC | Department |
Establishment of the first major account | 1/1/2001 | 5/15/2001 | $0 | ABC | Department |
Profitability | 1/1/2001 | 9/31/01 | $0 | ABC | Department |
Totals | $0 |
The Metolius Agency’s competitive edge is based on Kiev’s diverse background of business and creativity. Typically, most creative agencies are staffed by right-brain creative types. These people are extremely aesthetically oriented. While this is certainly an asset in the field of graphic design, it can be limiting because while their work might be extremely creative, it might not “hit home” with non-creative types which make up a large portion in the business world.
Kiev’s background is based both in aesthetics and business. While Kiev always had a creative streak that he would use, his education was business oriented. This competitive edge allows The Metolius Agency to offer similar creative services other firms can offer, but also provide a unique business perspective.
The website will be used as a way to disseminate information regarding the firm, show past examples of work, provide the interested party will several ways of contacting The Metolius Agency. In today’s day and age, a website is almost a given, a standard source of information regarding the company.
The marketing strategy for the website will be based on inclusion of the Internet address in all materials that The Metolius Agency releases, as well as submission to popular websites. Submission to search engines is an art in itself as different search engines work in different ways so a customized submission is most effective.
A graduate student from the University of Oregon’s computer science department will be used for the development (writing the code, Kiev will be responsible for the creative work) of the website as well as the periodic maintenance of the site. A graduate student will be used because of their expertise and typical below market rate.
Upon graduation, Kiev went to work for Wieden & Kennedy in Portland. This was a wonderful experience as Kiev was surrounded by very bright, creative people. Kiev was given small projects, usually components of larger projects. While this was a good experience, he was unable to leverage his business skills under these circumstances.
After three years Kiev moved to Eugene and took a position with (name omitted), a large full-service advertising agency. The firm gave Kiev more management responsibility for his projects. After the third year, Kiev felt confident enough to entertain the idea of going out on his own and opening his own firm. After market research and writing a business plan, Kiev gave notice and opened up The Metolius Agency.
Kiev will be the sole employee through month seven at which time he will hire an assistant to help out with design execution, as well as some of the administrative details.
Personnel Plan | |||
Year 1 | Year 2 | Year 3 | |
Kiev | $42,000 | $42,000 | $42,000 |
Assistant | $17,280 | $34,560 | $34,560 |
Total People | 2 | 2 | 2 |
Total Payroll | $59,280 | $76,560 | $76,560 |
The following sections will outline important financial information.
The following table details important financial assumptions.
General Assumptions | |||
Year 1 | Year 2 | Year 3 | |
Plan Month | 1 | 2 | 3 |
Current Interest Rate | 10.00% | 10.00% | 10.00% |
Long-term Interest Rate | 10.00% | 10.00% | 10.00% |
Tax Rate | 30.00% | 30.00% | 30.00% |
Other | 0 | 0 | 0 |
The Break-even Analysis indicates that approximately $7,000 will be needed in monthly revenue to reach the break-even point.
Break-even Analysis | |
Monthly Revenue Break-even | $7,053 |
Assumptions: | |
Average Percent Variable Cost | 3% |
Estimated Monthly Fixed Cost | $6,841 |
The following table will indicate projected profit and loss.
Pro Forma Profit and Loss | |||
Year 1 | Year 2 | Year 3 | |
Sales | $69,397 | $125,251 | $145,392 |
Direct Cost of Sales | $2,082 | $3,758 | $4,362 |
Other Production Expenses | $0 | $0 | $0 |
Total Cost of Sales | $2,082 | $3,758 | $4,362 |
Gross Margin | $67,316 | $121,493 | $141,030 |
Gross Margin % | 97.00% | 97.00% | 97.00% |
Expenses | |||
Payroll | $59,280 | $76,560 | $76,560 |
Sales and Marketing and Other Expenses | $2,820 | $2,820 | $2,820 |
Depreciation | $2,400 | $2,400 | $2,400 |
Website maintenance | $600 | $600 | $600 |
Insurance | $900 | $900 | $900 |
Rent | $7,200 | $7,200 | $7,200 |
Payroll Taxes | $8,892 | $11,484 | $11,484 |
Other | $0 | $0 | $0 |
Total Operating Expenses | $82,092 | $101,964 | $101,964 |
Profit Before Interest and Taxes | ($14,776) | $19,529 | $39,066 |
EBITDA | ($12,376) | $21,929 | $41,466 |
Interest Expense | $0 | $0 | $0 |
Taxes Incurred | $0 | $5,859 | $11,720 |
Net Profit | ($14,776) | $13,670 | $27,347 |
Net Profit/Sales | -21.29% | 10.91% | 18.81% |
The following chart and table will indicate projected cash flow.
Pro Forma Cash Flow | |||
Year 1 | Year 2 | Year 3 | |
Cash Received | |||
Cash from Operations | |||
Cash Sales | $69,397 | $125,251 | $145,392 |
Subtotal Cash from Operations | $69,397 | $125,251 | $145,392 |
Additional Cash Received | |||
Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 |
New Other Liabilities (interest-free) | $0 | $0 | $0 |
New Long-term Liabilities | $0 | $0 | $0 |
Sales of Other Current Assets | $0 | $0 | $0 |
Sales of Long-term Assets | $0 | $0 | $0 |
New Investment Received | $0 | $0 | $0 |
Subtotal Cash Received | $69,397 | $125,251 | $145,392 |
Expenditures | Year 1 | Year 2 | Year 3 |
Expenditures from Operations | |||
Cash Spending | $59,280 | $76,560 | $76,560 |
Bill Payments | $20,322 | $32,111 | $38,554 |
Subtotal Spent on Operations | $79,602 | $108,671 | $115,114 |
Additional Cash Spent | |||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
Principal Repayment of Current Borrowing | $0 | $0 | $0 |
Other Liabilities Principal Repayment | $0 | $0 | $0 |
Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
Purchase Other Current Assets | $0 | $0 | $0 |
Purchase Long-term Assets | $0 | $0 | $0 |
Dividends | $0 | $0 | $0 |
Subtotal Cash Spent | $79,602 | $108,671 | $115,114 |
Net Cash Flow | ($10,205) | $16,580 | $30,278 |
Cash Balance | $11,995 | $28,575 | $58,853 |
The following table will indicate the projected balance sheet.
Pro Forma Balance Sheet | |||
Year 1 | Year 2 | Year 3 | |
Assets | |||
Current Assets | |||
Cash | $11,995 | $28,575 | $58,853 |
Other Current Assets | $0 | $0 | $0 |
Total Current Assets | $11,995 | $28,575 | $58,853 |
Long-term Assets | |||
Long-term Assets | $19,800 | $19,800 | $19,800 |
Accumulated Depreciation | $2,400 | $4,800 | $7,200 |
Total Long-term Assets | $17,400 | $15,000 | $12,600 |
Total Assets | $29,395 | $43,575 | $71,453 |
Liabilities and Capital | Year 1 | Year 2 | Year 3 |
Current Liabilities | |||
Accounts Payable | $2,172 | $2,681 | $3,213 |
Current Borrowing | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 |
Subtotal Current Liabilities | $2,172 | $2,681 | $3,213 |
Long-term Liabilities | $0 | $0 | $0 |
Total Liabilities | $2,172 | $2,681 | $3,213 |
Paid-in Capital | $43,000 | $43,000 | $43,000 |
Retained Earnings | ($1,000) | ($15,776) | ($2,106) |
Earnings | ($14,776) | $13,670 | $27,347 |
Total Capital | $27,224 | $40,894 | $68,240 |
Total Liabilities and Capital | $29,395 | $43,575 | $71,453 |
Net Worth | $27,224 | $40,894 | $68,240 |
The following table compares standard business ratios with the Standard Industry Code #7336, Graphic Design Services.
Ratio Analysis | ||||
Year 1 | Year 2 | Year 3 | Industry Profile | |
Sales Growth | 0.00% | 80.48% | 16.08% | 9.02% |
Percent of Total Assets | ||||
Other Current Assets | 0.00% | 0.00% | 0.00% | 52.57% |
Total Current Assets | 40.81% | 65.58% | 82.37% | 76.45% |
Long-term Assets | 59.19% | 34.42% | 17.63% | 23.55% |
Total Assets | 100.00% | 100.00% | 100.00% | 100.00% |
Current Liabilities | 7.39% | 6.15% | 4.50% | 34.45% |
Long-term Liabilities | 0.00% | 0.00% | 0.00% | 23.62% |
Total Liabilities | 7.39% | 6.15% | 4.50% | 58.07% |
Net Worth | 92.61% | 93.85% | 95.50% | 41.93% |
Percent of Sales | ||||
Sales | 100.00% | 100.00% | 100.00% | 100.00% |
Gross Margin | 97.00% | 97.00% | 97.00% | 100.00% |
Selling, General & Administrative Expenses | 118.29% | 86.09% | 78.19% | 77.05% |
Advertising Expenses | 1.47% | 0.81% | 0.70% | 1.42% |
Profit Before Interest and Taxes | -21.29% | 15.59% | 26.87% | 0.83% |
Main Ratios | ||||
Current | 5.52 | 10.66 | 18.32 | 1.51 |
Quick | 5.52 | 10.66 | 18.32 | 1.13 |
Total Debt to Total Assets | 7.39% | 6.15% | 4.50% | 66.33% |
Pre-tax Return on Net Worth | -54.28% | 47.76% | 57.25% | 2.06% |
Pre-tax Return on Assets | -50.27% | 44.82% | 54.67% | 6.12% |
Additional Ratios | Year 1 | Year 2 | Year 3 | |
Net Profit Margin | -21.29% | 10.91% | 18.81% | n.a |
Return on Equity | -54.28% | 33.43% | 40.07% | n.a |
Activity Ratios | ||||
Accounts Payable Turnover | 10.36 | 12.17 | 12.17 | n.a |
Payment Days | 27 | 27 | 28 | n.a |
Total Asset Turnover | 2.36 | 2.87 | 2.03 | n.a |
Debt Ratios | ||||
Debt to Net Worth | 0.08 | 0.07 | 0.05 | n.a |
Current Liab. to Liab. | 1.00 | 1.00 | 1.00 | n.a |
Liquidity Ratios | ||||
Net Working Capital | $9,824 | $25,894 | $55,640 | n.a |
Interest Coverage | 0.00 | 0.00 | 0.00 | n.a |
Additional Ratios | ||||
Assets to Sales | 0.42 | 0.35 | 0.49 | n.a |
Current Debt/Total Assets | 7% | 6% | 4% | n.a |
Acid Test | 5.52 | 10.66 | 18.32 | n.a |
Sales/Net Worth | 2.55 | 3.06 | 2.13 | n.a |
Dividend Payout | 0.00 | 0.00 | 0.00 | n.a |
Sales Forecast | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | |||||||||||||
Small companies | 0% | $0 | $600 | $1,500 | $1,360 | $1,820 | $2,296 | $2,811 | $3,240 | $3,558 | $3,769 | $3,936 | $4,450 |
Medium companies | 0% | $0 | $0 | $0 | $2,000 | $2,676 | $3,376 | $4,134 | $4,765 | $5,232 | $5,543 | $5,788 | $6,544 |
Total Sales | $0 | $600 | $1,500 | $3,360 | $4,496 | $5,672 | $6,945 | $8,005 | $8,790 | $9,312 | $9,724 | $10,994 | |
Direct Cost of Sales | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Small companies | $0 | $18 | $45 | $41 | $55 | $69 | $84 | $97 | $107 | $113 | $118 | $133 | |
Medium companies | $0 | $0 | $0 | $60 | $80 | $101 | $124 | $143 | $157 | $166 | $174 | $196 | |
Subtotal Direct Cost of Sales | $0 | $18 | $45 | $101 | $135 | $170 | $208 | $240 | $264 | $279 | $292 | $330 |
Personnel Plan | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Kiev | 0% | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 |
Assistant | 0% | $0 | $0 | $0 | $0 | $0 | $0 | $2,880 | $2,880 | $2,880 | $2,880 | $2,880 | $2,880 |
Total People | 1 | 1 | 1 | 1 | 1 | 1 | 2 | 2 | 2 | 2 | 2 | 2 | |
Total Payroll | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $6,380 | $6,380 | $6,380 | $6,380 | $6,380 | $6,380 |
General Assumptions | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Plan Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | |
Current Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Long-term Interest Rate | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | 10.00% | |
Tax Rate | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | 30.00% | |
Other | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Pro Forma Profit and Loss | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Sales | $0 | $600 | $1,500 | $3,360 | $4,496 | $5,672 | $6,945 | $8,005 | $8,790 | $9,312 | $9,724 | $10,994 | |
Direct Cost of Sales | $0 | $18 | $45 | $101 | $135 | $170 | $208 | $240 | $264 | $279 | $292 | $330 | |
Other Production Expenses | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Cost of Sales | $0 | $18 | $45 | $101 | $135 | $170 | $208 | $240 | $264 | $279 | $292 | $330 | |
Gross Margin | $0 | $582 | $1,455 | $3,259 | $4,361 | $5,502 | $6,737 | $7,765 | $8,526 | $9,033 | $9,432 | $10,664 | |
Gross Margin % | 0.00% | 97.00% | 97.00% | 97.00% | 97.00% | 97.00% | 97.00% | 97.00% | 97.00% | 97.00% | 97.00% | 97.00% | |
Expenses | |||||||||||||
Payroll | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $6,380 | $6,380 | $6,380 | $6,380 | $6,380 | $6,380 | |
Sales and Marketing and Other Expenses | $235 | $235 | $235 | $235 | $235 | $235 | $235 | $235 | $235 | $235 | $235 | $235 | |
Depreciation | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | $200 | |
Website maintenance | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | $50 | |
Insurance | $75 | $75 | $75 | $75 | $75 | $75 | $75 | $75 | $75 | $75 | $75 | $75 | |
Rent | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | $600 | |
Payroll Taxes | 15% | $525 | $525 | $525 | $525 | $525 | $525 | $957 | $957 | $957 | $957 | $957 | $957 |
Other | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Total Operating Expenses | $5,185 | $5,185 | $5,185 | $5,185 | $5,185 | $5,185 | $8,497 | $8,497 | $8,497 | $8,497 | $8,497 | $8,497 | |
Profit Before Interest and Taxes | ($5,185) | ($4,603) | ($3,730) | ($1,926) | ($824) | $317 | ($1,760) | ($732) | $29 | $536 | $935 | $2,167 | |
EBITDA | ($4,985) | ($4,403) | ($3,530) | ($1,726) | ($624) | $517 | ($1,560) | ($532) | $229 | $736 | $1,135 | $2,367 | |
Interest Expense | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Taxes Incurred | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Net Profit | ($5,185) | ($4,603) | ($3,730) | ($1,926) | ($824) | $317 | ($1,760) | ($732) | $29 | $536 | $935 | $2,167 | |
Net Profit/Sales | 0.00% | -767.17% | -248.67% | -57.32% | -18.33% | 5.58% | -25.34% | -9.14% | 0.33% | 5.75% | 9.62% | 19.71% |
Pro Forma Cash Flow | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Cash Received | |||||||||||||
Cash from Operations | |||||||||||||
Cash Sales | $0 | $600 | $1,500 | $3,360 | $4,496 | $5,672 | $6,945 | $8,005 | $8,790 | $9,312 | $9,724 | $10,994 | |
Subtotal Cash from Operations | $0 | $600 | $1,500 | $3,360 | $4,496 | $5,672 | $6,945 | $8,005 | $8,790 | $9,312 | $9,724 | $10,994 | |
Additional Cash Received | |||||||||||||
Sales Tax, VAT, HST/GST Received | 0.00% | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
New Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Other Liabilities (interest-free) | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Sales of Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
New Investment Received | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Received | $0 | $600 | $1,500 | $3,360 | $4,496 | $5,672 | $6,945 | $8,005 | $8,790 | $9,312 | $9,724 | $10,994 | |
Expenditures | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Expenditures from Operations | |||||||||||||
Cash Spending | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $3,500 | $6,380 | $6,380 | $6,380 | $6,380 | $6,380 | $6,380 | |
Bill Payments | $50 | $1,486 | $1,504 | $1,532 | $1,587 | $1,621 | $1,671 | $2,126 | $2,158 | $2,181 | $2,197 | $2,210 | |
Subtotal Spent on Operations | $3,550 | $4,986 | $5,004 | $5,032 | $5,087 | $5,121 | $8,051 | $8,506 | $8,538 | $8,561 | $8,577 | $8,590 | |
Additional Cash Spent | |||||||||||||
Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Principal Repayment of Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Other Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Long-term Liabilities Principal Repayment | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Purchase Long-term Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Dividends | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | |
Subtotal Cash Spent | $3,550 | $4,986 | $5,004 | $5,032 | $5,087 | $5,121 | $8,051 | $8,506 | $8,538 | $8,561 | $8,577 | $8,590 | |
Net Cash Flow | ($3,550) | ($4,386) | ($3,504) | ($1,672) | ($591) | $551 | ($1,106) | ($501) | $252 | $751 | $1,147 | $2,404 | |
Cash Balance | $18,651 | $14,265 | $10,761 | $9,089 | $8,498 | $9,049 | $7,943 | $7,442 | $7,693 | $8,444 | $9,592 | $11,995 |
Pro Forma Balance Sheet | |||||||||||||
Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | ||
Assets | Starting Balances | ||||||||||||
Current Assets | |||||||||||||
Cash | $22,200 | $18,651 | $14,265 | $10,761 | $9,089 | $8,498 | $9,049 | $7,943 | $7,442 | $7,693 | $8,444 | $9,592 | $11,995 |
Other Current Assets | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Current Assets | $22,200 | $18,651 | $14,265 | $10,761 | $9,089 | $8,498 | $9,049 | $7,943 | $7,442 | $7,693 | $8,444 | $9,592 | $11,995 |
Long-term Assets | |||||||||||||
Long-term Assets | $19,800 | $19,800 | $19,800 | $19,800 | $19,800 | $19,800 | $19,800 | $19,800 | $19,800 | $19,800 | $19,800 | $19,800 | $19,800 |
Accumulated Depreciation | $0 | $200 | $400 | $600 | $800 | $1,000 | $1,200 | $1,400 | $1,600 | $1,800 | $2,000 | $2,200 | $2,400 |
Total Long-term Assets | $19,800 | $19,600 | $19,400 | $19,200 | $19,000 | $18,800 | $18,600 | $18,400 | $18,200 | $18,000 | $17,800 | $17,600 | $17,400 |
Total Assets | $42,000 | $38,251 | $33,665 | $29,961 | $28,089 | $27,298 | $27,649 | $26,343 | $25,642 | $25,693 | $26,244 | $27,192 | $29,395 |
Liabilities and Capital | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 | Month 12 | |
Current Liabilities | |||||||||||||
Accounts Payable | $0 | $1,436 | $1,453 | $1,479 | $1,533 | $1,566 | $1,600 | $2,055 | $2,085 | $2,108 | $2,123 | $2,135 | $2,172 |
Current Borrowing | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Other Current Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Subtotal Current Liabilities | $0 | $1,436 | $1,453 | $1,479 | $1,533 | $1,566 | $1,600 | $2,055 | $2,085 | $2,108 | $2,123 | $2,135 | $2,172 |
Long-term Liabilities | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 |
Total Liabilities | $0 | $1,436 | $1,453 | $1,479 | $1,533 | $1,566 | $1,600 | $2,055 | $2,085 | $2,108 | $2,123 | $2,135 | $2,172 |
Paid-in Capital | $43,000 | $43,000 | $43,000 | $43,000 | $43,000 | $43,000 | $43,000 | $43,000 | $43,000 | $43,000 | $43,000 | $43,000 | $43,000 |
Retained Earnings | ($1,000) | ($1,000) | ($1,000) | ($1,000) | ($1,000) | ($1,000) | ($1,000) | ($1,000) | ($1,000) | ($1,000) | ($1,000) | ($1,000) | ($1,000) |
Earnings | $0 | ($5,185) | ($9,788) | ($13,518) | ($15,444) | ($16,268) | ($15,951) | ($17,712) | ($18,444) | ($18,415) | ($17,879) | ($16,944) | ($14,776) |
Total Capital | $42,000 | $36,815 | $32,212 | $28,482 | $26,556 | $25,732 | $26,049 | $24,288 | $23,556 | $23,585 | $24,121 | $25,056 | $27,224 |
Total Liabilities and Capital | $42,000 | $38,251 | $33,665 | $29,961 | $28,089 | $27,298 | $27,649 | $26,343 | $25,642 | $25,693 | $26,244 | $27,192 | $29,395 |
Net Worth | $42,000 | $36,815 | $32,212 | $28,482 | $26,556 | $25,732 | $26,049 | $24,288 | $23,556 | $23,585 | $24,121 | $25,056 | $27,224 |
Fill-in-the-blanks and automatic financials make it easy.
No thanks, I prefer writing 40-page documents.
Discover the world’s #1 plan building software
By Joe Weller | September 9, 2020
Link copied
We’ve gathered the most useful collection of business plan PDF templates and samples, including options for organizations of any size and type.
On this page, you’ll find free PDF templates for a simple business plan , small business plan , startup business plan , and more.
These simple business plan PDF templates are ready to use and customizable to fit the needs of any organization.
This template contains a traditional business plan layout to help you map out each aspect, from a company overview to sales projections and a marketing strategy. This template includes a table of contents, as well as space for financing details that startups looking for funding may need to provide.
Download Simple Business Plan Template - PDF
This scannable business plan template allows you to easily identify the most important elements of your plan. Use this template to outline key details pertaining to your business and industry, product or service offerings, target customer segments (and channels to reach them), and to identify sources of revenue. There is also space to include key performance metrics and a timeline of activities.
Download Lean Business Plan Template - PDF
This template is designed to help you develop and implement a 90-day business plan by breaking it down into manageable chunks of time. Use the space provided to detail your main goals and deliverables for each timeframe, and then add the steps necessary to achieve your objectives. Assign task ownership and enter deadlines to ensure your plan stays on track every step of the way.
Download Simple 30-60-90 Day Business Plan Template
PDF | Smartsheet
The following single page business plan templates are designed to help you download your key ideas on paper, and can be used to create a pitch document to gain buy-in from partners, investors, and stakeholders.
Use this one-page template to summarize each aspect of your business concept in a clear and concise manner. Define the who, what, why, and how of your idea, and use the space at the bottom to create a SWOT analysis (strengths, weaknesses, opportunities, and threats) for your business.
Download One-Page Business Plan Template
If you’re looking for a specific type of analysis, check out our collection of SWOT templates .
This one-page business plan template employs the Lean management concept, and encourages you to focus on the key assumptions of your business idea. A Lean plan is not stagnant, so update it as goals and objectives change — the visual timeline at the bottom is ideal for detailing milestones.
Download One-Page Lean Business Plan Template - PDF
Use this business plan template to identify main goals and outline the necessary activities to achieve those goals in 30, 60, and 90-day increments. Easily customize this template to fit your needs while you track the status of each task and goal to keep your business plan on target.
Download One-Page 30-60-90 Day Business Plan Template
For additional single page plans, including an example of a one-page business plan , visit " One-Page Business Plan Templates with a Quick How-To Guide ."
These business plan templates are useful for small businesses that want to map out a way to meet organizational objectives, including how to structure, operate, and expand their business.
A small business can use this template to outline each critical component of a business plan. There is space to provide details about product or service offerings, target audience, customer reach strategy, competitive advantage, and more. Plus, there is space at the bottom of the document to include a SWOT analysis. Once complete, you can use the template as a basis to build out a more elaborate plan.
Download Simple Small Business Plan Template
This fill-in-the-blank template walks you through each section of a business plan. Build upon the fill-in-the-blank content provided in each section to add information about your company, business idea, market analysis, implementation plan, timeline of milestones, and much more.
Download Fill-In-the-Blank Small Business Plan Template - PDF
Use this one-page template to create a scannable business plan that highlights the most essential parts of your organization’s strategy. Provide your business overview and management team details at the top, and then outline the target market, market size, competitive offerings, key objectives and success metrics, financial plan, and more.
Download One-Page Business Plan for Small Business - PDF
Startups can use these business plan templates to check the feasibility of their idea, and articulate their vision to potential investors.
Use this business plan template to organize and prepare each essential component of your startup plan. Outline key details relevant to your concept and organization, including your mission and vision statement, product or services offered, pricing structure, marketing strategy, financial plan, and more.
Download Startup Business Plan Template
Startups can use this sample 30-60-90 day plan to establish main goals and deliverables spanning a 90-day period. Customize the sample goals, deliverables, and activities provided on this template according to the needs of your business. Then, assign task owners and set due dates to help ensure your 90-day plan stays on track.
Download Sample 30-60-90 Day Business Plan for Startup Template
For additional resources to create your plan, visit “ Free Startup Business Plan Templates and Examples .”
Use these business plan PDF templates to outline your organization’s mission, your plan to make a positive impact in your community, and the steps you will take to achieve your nonprofit’s goals.
Use this customizable PDF template to develop a plan that details your organization’s purpose, objectives, and strategy. This template features a table of contents, with room to include your nonprofit’s mission and vision, key team and board members, program offerings, a market and industry analysis, promotional plan, financial plan, and more. This template also contains a visual timeline to display historic and future milestones.
Download Nonprofit Business Plan Template - PDF
This one-page plan serves as a good starting point for established and startup nonprofit organizations to jot down their fundamental goals and objectives. This template contains all the essential aspects of a business plan in a concise and scannable format, including the organizational overview, purpose, promotional plan, key objectives and success metrics, fundraising goals, and more.
Download One-Page Business Plan for Nonprofit Organization Template - PDF
Use these fill-in-the-blank templates as a foundation for creating a comprehensive roadmap that aligns your business strategy with your marketing, sales, and financial goals.
The fill-in-the-blank template contains all the vital parts of a business plan, with sample content that you can customize to fit your needs. There is room to include an executive summary, business description, market analysis, marketing plan, operations plan, financial statements, and more.
Download Simple Fill-In-the-Blank Business Plan Template - PDF
This business plan is designed with a Lean approach that encourages you to clarify and communicate your business idea in a clear and concise manner. This single page fill-in-the-blank template includes space to provide details about your management team, the problem you're solving, the solution, target customers, cost structure, and revenue streams. Use the timeline at the bottom to produce a visual illustration of key milestones.
Download Fill-In-the-Blank Lean Business Plan Template - PDF
For additional resources, take a look at " Free Fill-In-the-Blank Business Plan Templates ."
These sample business plan PDF templates can help you to develop an organized, thorough, and professional business plan.
This business plan example demonstrates a plan for a fictional food truck company. The sample includes all of the elements in a traditional business plan, which makes it a useful starting point for developing a plan specific to your business needs.
Download Basic Business Plan Sample - PDF
Use this sample outline as a starting point for your business plan. Shorten or expand the outline depending on your organization’s needs, and use it to develop a table of contents for your finalized plan.
Download Sample Business Plan Outline Template - PDF
Use this sample template to develop the financial portion of your business plan. The template provides space to include a financial overview, key assumptions, financial indicators, and business ratios. Complete the break-even analysis and add your financial statements to help prove the viability of your organization’s business plan.
Download Business Financial Plan Template
PDF | Smartsheet
For more free, downloadable templates for all aspects of your business, check out “ Free Business Templates for Organizations of All Sizes .”
Empower your people to go above and beyond with a flexible platform designed to match the needs of your team — and adapt as those needs change.
The Smartsheet platform makes it easy to plan, capture, manage, and report on work from anywhere, helping your team be more effective and get more done. Report on key metrics and get real-time visibility into work as it happens with roll-up reports, dashboards, and automated workflows built to keep your team connected and informed.
When teams have clarity into the work getting done, there’s no telling how much more they can accomplish in the same amount of time. Try Smartsheet for free, today.
Creating a business plan is essential for any business, but it can be especially helpful for creative agency businesses who 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 creative agency owner should include in their business plan.
Download the Ultimate Business Plan Template
A creative 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.
A creative 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.
The following are the key components of a successful creative agency business plan:
The executive summary of a creative 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.
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 creative 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 creative agency, mention this.
You will also include information about your chosen creative agency business model and how, if applicable, it is different from other companies in your industry.
The industry or market analysis is an important component of a creative agency business plan. Conduct thorough market research to determine industry trends and document the size of your market.
Questions to answer include:
You should also include sources for the information you provide, such as published research reports and expert opinions.
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 creative agency may include advertising agencies, marketing firms, small businesses, and non-profit organizations.
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 [sector] services with the right marketing.
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 creative agency may have:
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.
This part of your creative agency business plan should include the following information:
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 creative agency include reaching $X in sales. Other examples include adding new team members, launching a new service, or expanding to a new location.
List your team members here including their names and titles, as well as their expertise and experience relevant to your specific creative 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.
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:
Your income statement should include:
Revenues | $ 336,090 | $ 450,940 | $ 605,000 | $ 811,730 | $ 1,089,100 |
$ 336,090 | $ 450,940 | $ 605,000 | $ 811,730 | $ 1,089,100 | |
Direct Cost | |||||
Direct Costs | $ 67,210 | $ 90,190 | $ 121,000 | $ 162,340 | $ 217,820 |
$ 67,210 | $ 90,190 | $ 121,000 | $ 162,340 | $ 217,820 | |
$ 268,880 | $ 360,750 | $ 484,000 | $ 649,390 | $ 871,280 | |
Salaries | $ 96,000 | $ 99,840 | $ 105,371 | $ 110,639 | $ 116,171 |
Marketing Expenses | $ 61,200 | $ 64,400 | $ 67,600 | $ 71,000 | $ 74,600 |
Rent/Utility Expenses | $ 36,400 | $ 37,500 | $ 38,700 | $ 39,800 | $ 41,000 |
Other Expenses | $ 9,200 | $ 9,200 | $ 9,200 | $ 9,400 | $ 9,500 |
$ 202,800 | $ 210,940 | $ 220,871 | $ 230,839 | $ 241,271 | |
EBITDA | $ 66,080 | $ 149,810 | $ 263,129 | $ 418,551 | $ 630,009 |
Depreciation | $ 5,200 | $ 5,200 | $ 5,200 | $ 5,200 | $ 4,200 |
EBIT | $ 60,880 | $ 144,610 | $ 257,929 | $ 413,351 | $ 625,809 |
Interest Expense | $ 7,600 | $ 7,600 | $ 7,600 | $ 7,600 | $ 7,600 |
$ 53,280 | $ 137,010 | $ 250,329 | $ 405,751 | $ 618,209 | |
Taxable Income | $ 53,280 | $ 137,010 | $ 250,329 | $ 405,751 | $ 618,209 |
Income Tax Expense | $ 18,700 | $ 47,900 | $ 87,600 | $ 142,000 | $ 216,400 |
$ 34,580 | $ 89,110 | $ 162,729 | $ 263,751 | $ 401,809 | |
10% | 20% | 27% | 32% | 37% |
Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:
Cash | $ 105,342 | $ 188,252 | $ 340,881 | $ 597,431 | $ 869,278 |
Other Current Assets | $ 41,600 | $ 55,800 | $ 74,800 | $ 90,200 | $ 121,000 |
Total Current Assets | $ 146,942 | $ 244,052 | $ 415,681 | $ 687,631 | $ 990,278 |
Fixed Assets | $ 25,000 | $ 25,000 | $ 25,000 | $ 25,000 | $ 25,000 |
Accum Depreciation | $ 5,200 | $ 10,400 | $ 15,600 | $ 20,800 | $ 25,000 |
Net fixed assets | $ 19,800 | $ 14,600 | $ 9,400 | $ 4,200 | $ 0 |
$ 166,742 | $ 258,652 | $ 425,081 | $ 691,831 | $ 990,278 | |
Current Liabilities | $ 23,300 | $ 26,100 | $ 29,800 | $ 32,800 | $ 38,300 |
Debt outstanding | $ 108,862 | $ 108,862 | $ 108,862 | $ 108,862 | $ 0 |
$ 132,162 | $ 134,962 | $ 138,662 | $ 141,662 | $ 38,300 | |
Share Capital | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Retained earnings | $ 34,580 | $ 123,690 | $ 286,419 | $ 550,170 | $ 951,978 |
$ 34,580 | $ 123,690 | $ 286,419 | $ 550,170 | $ 951,978 | |
$ 166,742 | $ 258,652 | $ 425,081 | $ 691,831 | $ 990,278 |
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:
Below is a sample of a projected cash flow statement for a startup creative agency .
Net Income (Loss) | $ 34,580 | $ 89,110 | $ 162,729 | $ 263,751 | $ 401,809 |
Change in Working Capital | $ (18,300) | $ (11,400) | $ (15,300) | $ (12,400) | $ (25,300) |
Plus Depreciation | $ 5,200 | $ 5,200 | $ 5,200 | $ 5,200 | $ 4,200 |
Net Cash Flow from Operations | $ 21,480 | $ 82,910 | $ 152,629 | $ 256,551 | $ 380,709 |
Fixed Assets | $ (25,000) | $ 0 | $ 0 | $ 0 | $ 0 |
Net Cash Flow from Investments | $ (25,000) | $ 0 | $ 0 | $ 0 | $ 0 |
Cash from Equity | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Cash from Debt financing | $ 108,862 | $ 0 | $ 0 | $ 0 | $ (108,862) |
Net Cash Flow from Financing | $ 108,862 | $ 0 | $ 0 | $ 0 | $ (108,862) |
Net Cash Flow | $ 105,342 | $ 82,910 | $ 152,629 | $ 256,551 | $ 271,847 |
Cash at Beginning of Period | $ 0 | $ 105,342 | $ 188,252 | $ 340,881 | $ 597,431 |
Cash at End of Period | $ 105,342 | $ 188,252 | $ 340,881 | $ 597,431 | $ 869,278 |
You will also want to include an appendix section which will include:
Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your creative 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 creative agency the best chance for success.
Wish there was a faster, easier way to finish your business plan?
With our Ultimate Business Plan Template you can finish your plan in just 8 hours or less!
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:
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:
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:
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.
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.
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.
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.
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:
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.
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.
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.
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.
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.
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.
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:
Answers to these questions are invaluable as they help you position and market your new digital agency based on customer insight.
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!
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:
We suggest conducting three types of research to inform your marketing agency business plan:
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.
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.
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:
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.
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.
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.
SEO Audit & Reporting Tool. Improve Your Website. Win More Customers. Get a Free Website Audit Instantly
Recent articles, related articles.
SEOptimer - SEO Audit & Reporting Tool. Improve Your Website. Win More Customers. Get a Free Website Audit Instantly
Written by Dave Lavinsky
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 >
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.
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.
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.
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.
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.
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:
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:
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:
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.
Don’t you wish there was a faster, easier way to finish your business plan?
With Growthink’s Ultimate Digital Marketing Agency Business Plan Template you can finish your plan in just 8 hours or less!
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
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:
Think about ways you will outperform your competition and document them in this section of your 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:
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.
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.
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.
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 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.
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:
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.
You can download our digital marketing agency business plan PDF or use our sample digital marketing agency business plan to help you get started on your own business plan.
If you are looking for the quickest and easiest way to complete your business plan, Growthink’s Ultimate Digital Marketing Agency Business Plan Template has numerous features not available in the free template including its financial projections template which automatically calculates your complete five-year financial projections including income statements, balance sheets, and cash flow statements.
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.
Don’t you wish there was a faster, easier way to finish your Digital Marketing Agency business plan?
Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success. Click here to see how Growthink’s business plan advisors can give you a winning business plan.
Phone 8 (496) 575-02-20 8 (496) 575-02-20
Phone 8 (496) 511-20-80 8 (496) 511-20-80
IMAGES
COMMENTS
Sales software. Free and premium plans. Service Hub. Customer service software. Free and premium plans. Content Hub. Content marketing software. Free and premium plans. A collection of professionally designed Agency | Business Plans templates available for PDF. Download, customize, and send in minutes.
Finally, you should detail any funding requirements in the ask section. 2. The presentation of the company. As you build your graphic design agency business plan, the second section deserves attention as it delves into the structure and ownership, location, and management team of your company.
Get access to Upmetrics software, invite your team members and start writing your business plan. 1. Get tried and tested tips. Upmetrics business plan builder gives you everything you need to stay in sync and guides you on every step of your business plan writing. 3. Stunning business plan cover pages.
The real value lies in the process of thinking about your creative business in a systematic way. • Brainstorm your ideas and research into a practical plan. It typically takes at least a week to complete a good plan. Most of that time is spent in research and re-thinking your ideas and assumptions.
The Metolius Agency provides graphic design and visual communication services to established, primarily Eugene-based, companies. Some of the services offered are corporate identity, marquees, logos, branding, and packaging. The pricing of the projects are typically estimated as a project-based cost. The project cost will be estimated by the ...
Lean Business Plan Template PDF. This scannable business plan template allows you to easily identify the most important elements of your plan. Use this template to outline key details pertaining to your business and industry, product or service offerings, target customer segments (and channels to reach them), and to identify sources of revenue.
Writing an Effective Creative Agency Business Plan. The following are the key components of a successful creative agency business plan:. Executive Summary. The executive summary of a creative 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.
Traditionally, a marketing plan includes the four P's: Product, Price, Place, and Promotion. For a advertising agency business plan, your marketing plan should include the following: Product: In the product section, you should reiterate the type of advertising agency company that you documented in your Company Analysis.
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.
Business Plan for Creative Agency - Free download as PDF File (.pdf), Text File (.txt) or read online for free. Business Plan for setting up a Creative Agency
Download Template. Create a Business Plan. Advertising is an art form and if you are a talented ad artist, there is no better time than today to start your own advertising agency. Be it in digital form or traditional print media form—Ads make an impact. Be it in a storytelling video, copywriting, or carousel form—Ads reign the hold.
A 10% market share in our first year of this business plan. n increase of 15% in gross margins within the second year of operationAn increase i. the market share by a minimum of 10% for each of the first five years.Currently, there are no quality full-service entertainment business models with the company's beliefs and way of ap.
801 templates. Create a blank Business Plan. Dark Blue And Green Modern Business Plan Cover Page. Document by shadow.diamond. Green Professional Strategic Business Plan Executive Summary. Document by Antler. Blue White Simple Business Plan Cover Page. Document by Magic Power.
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.
6. Real-time and Collaborative. Invite your team members to initiate conversations, discuss ideas and strategies in real-time, share respective feedback, and write your business plan. Join over 100k+ entrepreneurs who have used Upmetrics to create their business plans. Start writing your business plan today.
The company is seeking $2.5 million of financing to fund the acquisition of Vihaan Advertising and its initial operations. This funding will cover the purchase of Vihaan Advertising, marketing, purchase of extra software, and hardware. Projected revenues for 2021 to 2023 are $200,000, $1.5 million, and.
Advertising Agency Business plan - Free download as PDF File (.pdf), Text File (.txt) or read online for free. We have provided you with this plan to give you ideas for topics you might wish to cover in a business plan for your specific industry or type of business.
Here you go; download our free digital marketing business plan pdf to start. It's a modern business plan template specifically designed for your digital marketing business. Use the example business plan as a guide for writing your own. After getting started with Upmetrics, you can copy this sample business plan into your business plan and ...
Business Plan Concept Design Studio - Free download as PDF File (.pdf), Text File (.txt) or read online for free. Concept design Studio, Inc. Is seeking N$20,000 (twenty thousand Namibia dollars) cash plus a N$20,000 line of credit in start-up funding for a graphic design, web site and interactive media design business.
A mix of the charming, modern, and tried and true. See all. Apelsin Hotel. 43. from $48/night. Apart Hotel Yantar. 2. from $28/night. Elektrostal Hotel.
Search 71 Elektrostal', Moscow Oblast, Russia design and build companies to find the best design and build company for your project. See the top reviewed local design and build companies in Elektrostal', Moscow Oblast, Russia on Houzz.
See Google profile, Hours, Phone, Website and more for this business. 2.0 Cybo Score. Review on Cybo. Business People Phone Postal Code Address Web Email. Log In. BROWSE: Countries Area Codes Postal Codes Categories Add a Business. Moscow Oblast » Elektrostal. State Housing Inspectorate of the Moscow Region. 5 reviews . Ulitsa Korneyeva, 6 ...
Cities near Elektrostal. Places of interest. Pavlovskiy Posad Noginsk. Travel guide resource for your visit to Elektrostal. Discover the best of Elektrostal so you can plan your trip right.