Advertising agency business plan

Advertising agency business plan
Advertising agency business plan
Advertising agency business plan

Advertising industry is developing with each passing year: Any startup company is interested in the rapid development and attracting customers. Professional assistance in this matter offer specialized advertising agencies. Due to the high demand for advertising services, it makes sense to start your own business in this direction. Below - a detailed business plan for an advertising agency from the ground up with the approximate calculations and forecasts on the development of 2019 year.

Advertising agency: project goals

Rhode company will be formulated as an enterprise for the production of advertising, placing the finished product advertising on the agency's advertising platforms.

The main objectives of the project:

  • – discovery and development of highly profitable advertising agency;
  • – profit at a high level;
  • – free filling niche advertising services market.

Summary of the future project, according to preliminary estimates will be the following:

  • – initial investments - about 2 million. rubles;
  • – return on investment - 10-24 of the month;
  • – net profit of the project - from 330 thousand rubles a month.

To prepare for the opening of an advertising agency is required to apply to the banking structure to obtain commercial loans for business development. Approximate size of the loan - 1 million. 900 thousand. That loan funds will be the main part of the initial investments in starting a business, so the total cost of the project will be equal to the size of the lending. The total amount of interest paid, or income of the investor, make 129,5 thousand rubles. Return the borrowed funds will be the first month of the enterprise. Provided that the interest rate on the loan in the amount of 17,5% the payback period should reach 18 months, and the overall economic impact of the project in question conditional life cycle - 1 million. 135 thousand.

These estimates are very approximate and will require confirmation. Therefore, in the financial part of the plan provides detailed cost estimates and future profits on all essential points.

Key features of the advertising business – video:

Advertising agency: features and characteristics of the object

Most modern companies do not engage in their own advertising.. In most cases, they entrust this task to professionals - advertising agencies, that allows you to save time and achieve greater efficiency. Agency experts analyze each situation, constitute a specific task, to-date for a specific client, create and approve a plan. According to the results management performed by the agency preparing the presentation and media plan, agreeing with the customer.

When planning a business opening, you need to consider all the problems, set before advertising, and therefore, and to its creators:

  • – informed about the range of goods or services, features and benefits of their use;
  • – Message potential customers about new products;
  • – the formation of the target audience tastes;
  • – suggestions on making seasonal shopping, which may be associated with any events, e.g. sales are common or discounts;
  • – call to purchase goods or services in a particular company, that promotes commercial interests;
  • – information about new or more suitable places the acquisition of goods;
  • – Post representatives of the target audience to expand the range of products or improve its quality;
  • – stimulation of demand among buyers.

In this way, the main task of the agency is to create advertising to attract attention of potential consumers to the subject of advertising - the product or service. At the heart of the majority of promotional products is a creative component - a creative approach allows to fix the image of a particular brand in the thinking of the potential customer and create a strong association of the goods - the company.

The most common advertising methods include direct placement in the Internet and media agency professionals, as well as the organization of PR events, promotional reasons - press tours, parties and other actions.

Agency advertising areas can be divided into 2 group - creative and media. The first type of business specializes in creating advertising, the second - on its location and deliver to the addressee. These two main directions can be combined in a single company, but there is also the agency more specialization. For example - the company, engaged in interactive marketing, Event Marketing, branding, communication design, and other areas. Their target audience may be somewhat longer, however, these companies have a sufficient audience due to the high level of provided services in a different direction.

Most advertising agencies have the following structure:

  1. – Department on work with clients - managers, perform a liaison function between the clients and the advertising agency directly;
  2. – Strategic Planning Department. In his office - planning communication, work with consumer research and strategy development campaign;
  3. – creative department - Department, creating a creative part of the product. At the basis of a strategy, previously developed by. This department employs copywriters, Create a text element of advertising, and specialists, responsible for visuals. At the head of this department is usually the creative director;
  4. – Production Department. Its representatives - designers and prepress professionals, directly working on the realization of the already established ideas;
  5. – media planning department - responsible for advertising in media outlets, having sufficient relevance;
  6. – the Department, responsible for advertising on television and in other media, on the Internet and outdoor advertising.

In this way, full service, and provides services performed, It includes aspects:

  1. – development and construction of a particular campaign strategy;
  2. – generate ideas for advertising;
  3. – media planning, providing for the establishment plan of campaign, structured according to the media;
  4. – buying advertising in the media according to the agreed with the customer deployment plan;
  5. – production of finished promotional products;
  6. – campaign effectiveness analysis.

The plan provides for the establishment of a medium-sized agency, so it can not be strictly structured due to the limited number of staff and the lack of a large number of departments. therefore, planning to open a company, should give preference to a multi-skilled. Some functions can be trusted partner companies, as well as to attract external experts.

About tom, how to create a successful advertising agency from scratch – in the video:

Opening stages of an advertising agency

The main stages of creating an advertising agency include:

  1. – strategy and the format of the future organization;
  2. – documentation, business entity and registration of license opening;
  3. – rent or purchase of office premises;
  4. – purchase and installation of equipment, Computers and office equipment;
  5. – State set;
  6. – advertising campaign, search customers.

In more detail the stages of the opening of an advertising agency for a period of two years are as follows:

stages Test conditions Deadlines
Home project 1 – 2 year
The conclusion of the investment agreement 1 project of the month first 30 banking days
Getting credit The availability of compulsory set of documents 1 month
Adding to the state register, registration with the administrative and tax authorities Conclude an investment agreement from 1 to 30 calendar days
choice of location, paperwork preliminary work 1 month
Buying equipment The conclusion of the investment agreement To 30 calendar days
Equipment installation Obtaining investment funds To 30 calendar days
recruitment production activity To 30 calendar days
Training The end stage of the production process To 30 days
marketing campaign 30 calendar days To 360 calendar days
End of project 12 – 24 of the month

The office of advertising agency

Much of the work in advertising agencies performed remotely, so the office does not need to open in the city center. But regardless of the geographic location required quality furnished reception, where will be held a meeting with clients.

Average advertising agency can be located in a standard office space 60 quarter. m. If the company will apply to the full range of enterprises, its area must be greater than: then it can be 100 and even more sq.m.. If, however, the first time the company's operations will include primarily the creative part, suitable minimum office, because of the staff will be able to perform their work remotely from home. All of these features will significantly save on rent payment facilities and utilities.

Regardless of, Will the agency be located in the central part of the city or in the sleeping area, it must be equipped with a noticeable signboard. This outdoor advertising will become one of the important methods of attracting customers. Entrance to the office to be properly equipped, making parking. The room itself is well planned zoning: as all employees will perform a different job, important, that their jobs were in different offices. Therefore, for the company of this kind is most suitable standard office building. such premises, usually, do not require major repairs, they often have a connection to the phone and internet, as well as a privileged geographic location.

Equipment

The main office equipment are:

  • – computers with high-quality software;
  • – peripherals;
  • – furniture: tables and chairs for staff, cabinets, chairs and armchairs for customers and partners, full equipment reception: posture reception, sofa for waiting visitors;
  • – if necessary - TV;
  • – bandpass repeater.

If you plan to open the agency of the complete cycle, the set of tools and materials will be more extensive:

  • – hot glue machines;
  • – laminators;
  • – cutters;
  • – embossing press;
  • – office board and projection equipment;
  • – document shredder;
  • – mini printing house;
  • – currency detector;
  • – Banknote Counter;
  • – various stationery.

All technical equipment is selected in this way., so that it meets existing quality standards and contributes to the company's productivity growth. All equipment must comply with safety standards for humans and the environment.. And the estimated costs of its acquisition must be included in the marketing plan of the project. In most cases, the technical part of the costs is the most expensive item in the business plan..

Staff

Creating and maintaining the reputation of an advertising agency requires the involvement of a competent and experienced staff. The main vacant positions, to be filled in first:

  • – director (at first he is an accountant and manager);
  • – media manager;
  • – Project Manager;
  • – event manager;
  • – Office Manager;
  • – online advertising manager;
  • – Sales Manager.

If the advertising agency will be a full cycle enterprise, the team will be more numerous. In this case, pickers will be needed., Folders, bookbinders and other workers, responsible for the execution of the technical part of the work.

The peculiarity of this industry is, that there are quite a lot of specialists on the market, but there is still a shortage of professional personnel. This is due to the fact, that the country still lacks a high-quality training system in the field of advertising. It takes about a month to search for suitable specialists., therefore, you should deal with staff recruitment in advance.

Official registration

Starting a business from scratch requires registration with the tax office. For the company, providing advertising services, both common forms are suitable - LLC and IP. If you plan a mini-format of the company without further expansion, you can definitely choose IP. With a larger project, which in the future should become a full-fledged complex for the development of advertising and the production of promotional products, it is better to immediately register a legal entity - LLC. A more suitable LLC will be in the presence of several founders.

If during planning it was decided to open a legal entity, it is necessary to study the provisions of the Federal Law "On Limited Liability Companies" (http://www.consultant.ru/cons/cgi/online.cgi?req=doc&base=LAW&n=296566&fld=134&dst=100111,0&rnd=0.16147056596242848#03107249151542164). The document details requirements, which the company must meet in order to obtain LLC status, as well as the introduction of authorized capital and other features.

Regardless of the form - LLC or SP, need to submit an application to the Federal Tax Service, in which to indicate the main personal data of the founder and the OKVED code according to a special classifier. All types of promotional activities in this document can be found under the code 73 (http://www.consultant.ru/document/cons_doc_LAW_163320/bf6c4c86ad799c6407ccba6d179cc26629e9e203/#dst104952). To be sure, that none of the services offered will go beyond the code selected by the classifier, agency founder can choose several thematic codes at once. To start a business in the advertising industry, you need to study such regulatory documents:

Federal Law of 13.03.2006 N 38-FZ About advertising

Federal Law of 08.02.1998 N 14-FZ Ob OOO

marketing campaign. Target audience and competitivenesss

The vast majority of modern enterprises, not only medium and large, resort to advertising services, but also small business. But most in demand, according to statistics, advertising specialists, medium and large companies. These are:

  • chain stores,
  • manufacturing enterprises,
  • FMCG companies (offering for sale consumer goods),
  • large law firms.

Naturally, that the services of advertising agencies are more in demand among enterprises, engaged in the sale of goods and services, and therefore, primarily targeted to a specific target audience.

Usually, they place high demands on advertising agencies in terms of deadlines, reliability and adequacy of salary.

Since the advertising market can already be considered formed, then this business plan should contain an accurate plan for the company to enter the TOP. It’s easier to organize the work of such an agency in the province, than in big cities, but there will certainly be orders less. therefore, according to preliminary estimates, more promising will be the opening of an advertising business in a big city, especially in Moscow or St. Petersburg.

There are several marketing features., intrinsic to this business. One of the most important is the impact of the economic crisis.. In previous years there was a serious crisis, as a result of which many market participants ceased to exist. As a result, only the strongest agencies remained on the market.. This factor, as well as increasing competition today, not so much full-cycle advertising companies are most relevant, how many agencies, offering a limited range of services.

The main positive feature, affecting market development, can be considered an increasing demand for the services of advertising agencies. Even companies, having own advertising department, turn to specialized specialists, to strengthen its market position.

Only in the capital at the moment more 2,5 thousands of advertising agencies. Moreover, as of 2015 to 2018 years, the industry growth rate was about 13%. In the future, this figure should grow. Wherein, on market research, over the past few years there has been a significant reformatting of the industry: advertising in the press strongly lost ground, giving way to the internet, especially social networks. In turn, outdoor advertising is experiencing significant restrictions from regulations. According to preliminary analysis, contextual online advertising leads the growth in relevance today. Its growth rate is 45 % upward trend. Display ad growth rate - 15%. In general, in the segment of online advertising, the growth rate stably remains the highest - it is 43 percent.

To summarize information about the marketing plan of the business, we can conclude, that the number of market participants is gradually growing, while the demand for advertising agency services remains at about the same level. It means, what you need to enter the market with a specific, different from existing, a strategy.

Before the opening, it is necessary to carry out a set of measures to form a consumer opinion and attract customers. Such methods will be effective in this.:

  • – design and development of your own website;
  • – advertising on their advertising platforms;
  • – creating thematic videos;
  • – advertising in themed media.

Effective methods of promoting a campaign include advertising on television, where a large number of potential customers will see them.

According to the established rule, any service will be promising, if its target audience includes at least 1 % from economically active population. In the case of Russia, the number of potential customers should be from 780 thousand, which under current conditions is very likely.

Risks and Prospects

The positive is, that the owner has a lot of information, helping to create new areas of profit, and useful connections. A number of other companies can be developed from such an agency over time.:

  • Design Studio,
  • PR agency,
  • consulting company and others.

The advertising agency’s strategic plan should be based on existing risks., peculiar to any private enterprise. The opening of an advertising agency is accompanied by such risks:

  1. – recurring economic crisis, decreasing demand in most segments of the country's services market;
  2. – the high level of competition;
  3. – significant financial investments, especially when creating a full-cycle agency;
  4. – shortage of highly qualified specialists in the industry.

The prospects of the future company depend on the success of choosing a market segment.. So, an advertising agency can serve such business segments:

– home offices: the characters here are individual entrepreneurs, conducting their own business and striving for the development and increase of clientele;

– small businesses, with less than 100 employees. They have a small budget, however, they are among the most important and numerical clients of advertising agencies;

– medium-sized companies, whose number does not reach 500 person;

– large firms. Such enterprises, the number of employees is more 500 person, are considered the most solvent clients. But this category is not numerous, and you will have to fight for its location with competing companies.

To fully enter the market, you should focus on all existing categories of potential customers. In this case, neither a possible crisis pose a threat, nor the activation of competitors.

Financial plan

The financial component of a business plan provides for the following main features:

1) First, the project load plan is calculated. It will take into account, that during the first 3-6 months the advertising agency will work mainly "for itself", than clients. It means, that the main focus will be mainly on advertising its own services. After the expiry of the above period, the break-even point must be reached.

2) In the initial analysis of the potential profit of the future enterprise, average figures are used., relevant for this market direction:

Expenses cost of, in dollars
rent of premises for a month (razovo for 6 months 12000 in. is.) 2000
premises Repair 6000
equipment 5000
furniture 20000
communal payments, per month 500
monthly payroll (razovo for 2 of the month 16000 in. is.) 8000
outdoor advertising 500
marketing, per month (once 6000 in. is.) 3000

The presented plan is standard, compiled without taking into account the individual nuances of a single plan. With regard to a specific plan and taking into account strictly planned cost items, you should calculate the expenditure part in several sections - starting, monthly and annual expenses. В этом ключе план расходов проекта будет следующим:

item of expenditure for 1 month, rub. За год, rub. One-off costs За год, rub.
Purchase (или аренда) room (from 60 m) 45000 540000 90000 630000
Purchase of equipment, 10 meals. 34000 815000 815000
Purchase of computer equipment 69000 69000
Creation and promotion, покупка скрипта, hosting, программного обеспечения 120000 120000
advertising costs 45000 540000 540000
Salary (for 12 months.) from 630000 from 7,5 million. from 7,5 million.
tax payments (for 12 months.) 190000 2 million. 275 thousand. 2 million. 275 thousand.
Unexpected expenses 110000 110000
in total from 700000 8 million. 700 thousand. 1 млн.204 тыс. 9,9 million.

When planning the enterprise income, следует рассмотреть средние цены на рекламные услуги, operating on the market. The minimum indicators will be as follows:

– advertising script - from 12 thousand and more;

– logo design - from 30 thousand;

– creating a corporate identity for a brand - over 70 thousand;

– development of an advertising layout for a magazine;

– creating an average billboard layout - from 8 thousand;

– development of an original layout of a corporate publication - 25 thousand and more.

The peculiarity of the advertising business is, that the product created in it does not have a specific cost price. The cost of advertising services almost entirely depends on their reputation in the market and the ability to recommend and sell their product to the client. However, although there can be no upper price limit in this industry, initially you need to build on the average market prices in your city and region.

2-year period considered in the plan – estimated time frame for opening and bringing an advertising agency to self-sufficiency. The plan for production volumes and sales of agency services for this period can be conditionally divided into two main stages:

Period Type of service The volume of production and sales of 1 months. (PC.) price, rub. Revenues from sales, rub.
1 – 12 monthly investment Production of texts from 60 texts from 340 21700 and more
1 – 12 monthly investment Creating audio clips from 15 rollers from 6800 107,5 thousand
1 – 12 monthly investment ad placement from 30 ethers from 23000 716,8 thousand.
1 – 12 monthly investment Manufacturing of printed products from 1000 per month from 120 120 thousand
13 – 24 month operation Production of texts from 64 texts from 380 24,5 thousand
13 – 24 month operation Creating audio clips from 16 rollers from 7530 from 120,5 thousand
13 – 24 month operation ad placement from 32 ethers from 25000 800 thousand
13 – 24 month operation Manufacturing of printed products from 1100 per month from 135 148,5 thousand

If the current market growth, component at the moment 13% in year, will remain at the same level, the annual sales volume of the enterprise will exceed 10 million. rubles.

The sales forecast is made based on such factors:

– analysis of consumer demand for advertising agencies;

– conclusions based on the analysis of the general state of the market for the provision of services in the advertising sphere;

– general conclusions regarding the state of the relevant market segment. The threshold of profitability during calculations will be the lowest, which will make the analysis as objective and accurate as possible.

taxes, obligatory for payment by any private enterprise, regardless of the type of activity and the chosen taxation system, following:

Name base Period tax rate
Tax on profits earned profit 1 month 20%
NDS added value 1 month 18%
Property tax value of property According to the schedule 2,2%
Income tax wages fund 1 month 13%
Social Security contributions wages fund 1 month 30%

so, business plan of an advertising agency is one of the modern and popular areas of the service sector. This industry is specific, since its target audience is business entities of various sizes. Since advertising services are not essential, this type of activity is significantly affected by crisis phenomena in the economy. At the same time, with a competent marketing campaign and high quality of services provided, demanded agencies even in economically unfavorable periods have a chance to maintain their positions.. With a successful start and active development, the payback of the enterprise occurs within 2 years old.

Important details of the advertising business – video:

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