HOW TO START

  AN ADVERTISING AGENCY
 GROUP MEMBERS :
 1. Daipayan Pal : 30905019172 (E)
 2. Akas Samajder : 30905019085 (A)
 3. Anurag Chatterjee : 30905019077(A)
 4. Doyel Layek : 30905019082 (A)
 5: Diya Dasgupta : 30905019165 (E)
 6: Himani Kumari : 30905019164 (E)
INTRODUCTION

 Starting your own advertising agency can be

a very rewarding and profitable career
choice. Competition is stiff, however, so
you'll have to make sure your company is a
step above all the rest. Opening, building,
and operating your own advertising agency
will require a lot of work and dedication,
but with proper preparation, you can
definitely make it in the field.
SOURCES
 Determine your goal for this business. Before starting your business, you need to define what your
final goals are. Is this a part-time commitment that you will do in your spare time from home, or do you
want to be the next big agency and open an office in Midtown Manhattan? Your goals will determine
how you run your agency, who you hire, how you budget, and almost everything about your business.
• Draw up a business plan. When starting any business, you will need to draw up your short and long-
term plans at some point. This is essential if you intend to get loans or investments, but also useful for
yourself so you can gather your thoughts and decide your intentions for growing your business. For your
advertising agency, your business plan should include at least the following.[3]
• A description of your business. Investors and banks will want to know what exactly your business does
and what kind of service it offers. Be specific when explaining your methods for advertising. There are a
lot of advertising agencies, so people may be cautious to invest unless you convince them that your
business will offer a service that other firms don't.
• A projection for the profitability of your firm. Investors will want to know that they will profit from your
business. You may want to consider using an accountant to help you come up with a short and long-term
outlook for your earnings to ensure it is as accurate as possible.
• A full breakdown of your costs. Investors and banks will want to see what you'll be putting their money
towards. Include all of the costs you have incurred, as well as the costs you anticipate incurring as you
build the firm. Remember to include an estimate of your day-to-day operating expenses as well- it may
take a few months to turn a profit from your business, so make sure you'll have the necessary capital to
stay open.
 PROCESSING
Decide who you will market to. You will probably take on a variety of clients from different fields,
but you may want to develop a specialty for your firm. If you or someone on your team has
background with hotels, for instance, you could market towards hotel advertising. Figuring out your
specific niche will help guide you to where you should concentrate your efforts for clients.
• Small businesses rarely attract attention from agencies because they usually don't spend a lot on
ads. This means there is also a potential market for advertising with small businesses, so don't
neglect them when looking for clients. You'll have to keep your rates fairly low to do this, however.

Consult your own contacts for referrals. Most companies find advertising agencies through personal
referrals, so cold-calling and random meetings probably won't go very far. To take advantage of this
fact, let all of your contacts know that you've started an agency and are looking for clients. Especially
focus on contacts who work with businesses, like lawyers or accountants. If you've worked in
advertising before, you probably have a long list of contacts you could tap into. If you're new to the
industry, you'll have to take advantage of any and all contacts you might have. [8]
•When meeting with your contacts, perhaps treat them to lunch or coffee. Bring your portfolio and be
prepared to talk about why your agency will do a good job. Remember, even if these are your friends,
you're relying on them to refer your agency to clients. Making a good impression is your number one
priority.
Attend conferences. There are usually several conferences in advertising and related
fields every year. Advertisers as well as clients looking for agencies attend these
conferences. Keep an eye out for these meetings in advertising journals and websites and
attend all that you can. Of course, bring your portfolio and do your best to meet everyone
you can. You never know who can go from a casual acquaintance to an important client.
•Sometimes conferences look for speakers or presenters. You should try to present at conferences as
well, instead of just attending. This will give you more publicity and ensure that more potential
clients will see you and hear you speak.
•Offer first-time deals. Many clients are interested in using an advertising firm, but resist because
they're unwilling to spend a lot of money for a first-time consultation. A good tactic for gaining
clients is to offer either a free or low-cost introductory session. In this meeting, you can talk with
your client about what services you offer, what you'll charge, and show him samples of your work.
The small financial cost of offering a free consult will be a worthwhile investment if you gain a
client out of it
SOURCES OF FINANCING

 Acquire start up capital. Even though advertising agencies are generally considered low-
cost start ups because they can be run from home, you'll still probably need loans or
investments to get started.[Generally you'll have two choices when looking for start up
capital, and will probably end up using both.
 Banks. You can get a loan from a bank for a few months to a few years, depending on the type of
loan. This can cover your opening costs and your first few months of operating expenses.
 Private investors. These can be friends, family, or other business owners interested in making an
investment. Make sure you define whether these people are just providing a loan that you will pay
back with interest, or if they're actually buying into your company. It would be helpful to draw up
a contract defining the terms of your agreement and having it notarized to prevent problems in the
future.
TECHNICAL ASSISTANCE

 Build a website. If a business doesn't have an online

presence, it is almost entirely invisible to a large section of its
potential market. To avoid this, make sure to make a great
website that details your firm and its work.[6]
 Include your contact information and anything your potential
clients will need to know about setting up a meeting. Also
include links to any articles or ad campaigns you've worked
on. Think of it as a digital portfolio.
 Keep your website updated. An outdated site looks
unprofessional and will make your business look unreliable.
 While it's expensive, you may want to hire a professional to
build your site. A cheaply-designed website is easy to spot
and could turn off potential clients. It is well worth the
investment to get a professionally-designed website if it
attracts clients.
MARKETING ASSISTANCE
 Put together a portfolio. Your selling point to potential clients will be your portfolio. This is a collection
of past work you've done in advertising. Many people who start advertising firms have worked in the
industry as employees and now want to be business owners. If this is the case, you'll have plenty of work
to put in your portfolio. If you haven't worked in the field, building a portfolio should be a top priority.
Take any small jobs you can get to add to your portfolio.
 If you're entirely new to advertising, you might want to consider working as an employee for a while first.
This will give you crucial experience and credentials that you can put into your portfolio when you start
your business.
 Consider doing a charity campaign. Often charitable organizations use ad agencies to design public
service announcements or campaigns. These often don't pay much or at all, but they are great exposure for
your agency. Consider these opportunities heavily if they come your way.
  Promote & market an advertising agency
 Where an advertising agency should place advertisements depends on the types of clients it hopes to
attract. For instance, an agency that targets local businesses may want to place advertisements in the area’s
newspapers and join the town’s chamber of commerce. In contrast, an agency that focuses on marketing
online may be better off using pay-per-click campaigns online.
LEGAL FORMALITIES & DOCUMENTATION
 Form a legal entity
 The most common business structure types are the sole proprietorship, partnership, 
limited liability company (LLC), and corporation.
 Establishing a legal business entity such as an LLC or corporation protects you from
being held personally liable if your advertising agency is sued.
 Register for taxes
 You will need to register for a variety of state and federal taxes before you can open for
business.
 In order to register for taxes you will need to apply for an EIN. It's really easy and free!
Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your
business to be shut down.

Federal Business Licensing Requirements​

Known as “truth-in-advertising” laws, these regulations protect consumers by requiring advertisers to
be truthful about their products and to be able to substantiate their claims. All businesses must
comply with advertising and marketing laws, and failure to do so could result in costly lawsuits and
civil penalties.​
The Federal Trade Commission (FTC) is the main federal agency that enforces advertising laws and
regulations.​

State & Local Business Licensing Requirements​

Certain state permits and licenses may be needed to operate an ad agency. Learn more about
licensing requirements in your state by visiting SBA’s reference to state licenses and permits.​
•Most businesses are required to collect sales tax on the goods or services they provide. To learn
more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses.​
•For information about local licenses and permits:​
•Check with your town, city or county clerk’s office​
•Get assistance from one of the local associations listed in 
US Small Business Associations directory of local business resources.​
•​
Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. 
Business Insurance protects your company’s financial wellbeing in the event of a covered loss.
There are several types of insurance policies created for different types of businesses with different risks.
If you’re unsure of the types of risks that your business may face, begin with General Liability
Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for
your business.
Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If
your business will have employees, it’s a good chance that your state will require you to carry Workers'
Compensation Coverage.
                       THANK YOU