Today, entrepreneurs are simply faced with a huge selection of areas of activity, which opens up almost unlimited opportunities for them to earn money. However, what kind of niche is best to be occupied in order to invest a relatively small amount of money in the project and get a stable source of income? The answer is obvious - the advertising business. As everyone knows, even far from entrepreneurial activity, the success of any enterprise engaged in the production or sale of any goods and services depends on how it is positioned on the market and how many consumers know about its existence. Therefore, often organizations are forced to seek help from marketing companies. Thus, if you want to invest profitably, it is best to invest in this direction. And if you have absolutely no idea about this niche, then how to open an advertising agency from scratch will be described in detail later in this article.
general information
If you are considering opening your advertising agency, then you should have a clear idea of โโwhat this type of business is. The main task of your company will be to provide services to other organizations in the field of promoting its products on the market. In addition to advertising itself, you also need to advise clients on many issues, to develop and print printing products, positioning products on the World Wide Web and the mainstream media.
Advantages and disadvantages
Let's dwell on this in more detail. Any type of business has certain pros and cons, so if you decide to launch an advertising agency (how to open it, it will be described later), you should have a detailed idea of โโall its features in order to really assess the potential of a niche and the associated risks.
Among the main advantages of a business are the following:
- the demand for advertising services in the market;
- the presence of a regular clientele;
- ease in competition;
- quick payback and excellent profitability;
- low financial investments.
As for the shortcomings, there are not so many, but they are. The biggest among them is the high level of competition. The advertising business is very attractive in terms of necessary investment and profitability, so many entrepreneurs are trying to take their place in the market in this niche. Nevertheless, with proper planning and an original approach, you can bypass all the competitors of your city without any problems. Thus, if you want to start your own business, opening an advertising agency will be an ideal solution that does not require large initial financial investments and allows you to consistently earn regardless of seasonality.
Market research
Demand for advertising services has remained strong throughout the year, regardless of the fact that a huge number of companies offering such services are represented on the market. Therefore, when planning how to open an advertising agency, special attention should be paid to market analysis. This will allow us to assess the real prospects of the niche, as well as create an effective business model with high profitability.
Since there is high demand for advertising services, there are enough offers. Therefore, it is very important to highlight all potential competitors and carefully examine their services. So you can learn the main nuances and develop an original marketing company that will allow you to isolate an advertising agency against competitors and attract a large number of customers. But here it is very important to focus the attention of potential consumers on the strengths of the organization and the benefits that they will receive by deciding to use your services.
To do this, you need to be able to analyze the situation well and adapt to any conditions. If you do not have practical experience, and you do not know how to open an advertising agency from scratch, then it is best to form a professional team that will solve complex problems. Only in this way will the planning and implementation of the project be as effective as possible.
Strategic planning
So what you need to know about him? SWOT analysis is one of the methods of planning a business project, aimed at studying all the internal and external factors on which the success of the planned project depends.
According to professionals, for the success of an agency that provides advertising services, the following is required:
- Individual approach to each client;
- staff of professional employees;
- quality service;
- wide range of services;
- good material and technical equipment.
As for external factors that have a negative impact on the successful conduct of a business, the main ones are the lack of a reputation and a constant customer base, as well as a lot of competition. In order for an advertising agency (how to open a profitable business with minimal investment, you will learn a little later) to quickly reach breakeven and start generating first profit, you need to develop unique offers and services that competitors will not have. Only in this way can you attract the attention of consumers to your company.
In addition, external factors, which are also potential risks, include fluctuations in market prices, a drop in demand for advertising services, and the emergence of new technologies and products from competitors.
Target Group Search
Many aspiring entrepreneurs are wondering how to open an advertising agency. The Internet is full of various tips, but none of them mention that at the planning stage it is necessary to immediately begin the search for the target audience. Entering the market and positioning on it is one of the most difficult aspects when launching a project, especially in a highly competitive environment.
The main clientele of the company providing marketing services are existing enterprises and organizations. Your task is to study them, selecting those that may be of interest to your services. At the same time, one should take into account the fact that they are already clients of other advertising agencies, therefore, it is necessary to develop a commercial proposal in advance that can interest them.
Having decided to work in an advertising niche, do not try to immediately cover the entire market. This is counterproductive, too costly and unprofitable. Determine in advance the type of business with whose representatives you want to work - small, medium or large. The type of rented premises and purchased equipment, as well as many other nuances, will depend on this.
Identification of main competitors
How to do it right? Opening an advertising agency from scratch is not a very troublesome process, but it requires taking into account many nuances, as well as a thorough study of the competitive environment, current market realities and financial planning. As practice shows, most novice entrepreneurs do not pay enough attention to identifying and studying potential rivals, because of which, subsequently, they simply do not withstand a tough fight. Therefore, at the very beginning of project planning, carefully read all the proposals that exist in your city to really understand what you will encounter in the process.
Price segment
Determining the prices of the goods and services provided is a key factor in bringing any company to business, because if the products are too cheap, you will receive less of the potential profit, and in the case of overpriced, consumers simply will not buy it. At the same time, trying to compete at prices with large organizations of federal importance is not the most productive solution, since it is simply impossible to crush them without a large share capital and reliable reputation in the market. The optimal solution is to provide services at an average cost, which are highly creative and unique. This model of conducting an advertising business is universal and allows companies to survive in almost any market conditions.
We determine the range of services provided
So, what does it take to open an advertising agency to build a profitable company? First you need to decide what types of services you will provide your customers.
In most cases, the main ones are as follows:
- development of promotional products;
- creation, content filling and website promotion;
- printing business cards ;
- outdoor advertising;
- souvenirs, for example, printing on mugs, textiles, etc .;
- banner printing;
- advertising in public transport;
- conducting advertising campaigns.
As related services, you can do the following:
- social marketing;
- development of names for companies and brands;
- strategic planning;
- consultation.
The wider the range of services, the higher the profitability of the enterprise. In more detail about what it takes to open an advertising agency, we will talk further.
Business Plan Development
What he really is? Having decided to open an advertising agency, a business plan will be your key to success, as it will create a clear plan for the development, launch, management and scaling of the project.
When compiling it, you need to consider the following aspects:
- current market situation;
- potential competition;
- timelines for reaching the level of profitability;
- volume of necessary investments.
In this case, the business plan for opening an advertising agency should be of two types - internal and external. The first will describe the business processes taking place in the company itself, and the second will describe interactions with customers, potential risks, and profit opportunities. All numbers should be real, not overpriced. It is best to make them more pessimistic, because, as practice shows, realities very often diverge from forecasts.
Project Launch: First Steps
How to open an advertising business? Where to begin?
The project implementation process consists of the following steps:
- Registration of the company and obtaining permits.
- Search and conclusion of a lease agreement for a suitable room.
- Creation of material and technical equipment.
- Hiring workers.
- Financial and marketing planning.
- Direct discovery.
Adhering to this plan, you can avoid the many pitfalls and mistakes made by absolutely all novice entrepreneurs.
Registration of legal documentation
At the first stages of work, it is best to register with state authorities as an individual entrepreneur with a general or simplified tax system. This is the most simple and quick way to start a business, in which you do not have to keep strict records and collect a large package of documents. You only need to submit an application and pay a state duty of a fixed size.
For documents, you will need to provide the following:
- passport;
- certificate of registration of an individual entrepreneur;
- document on registration with the tax office;
- premises lease agreement;
- permission of the fire service and sanitary and epidemiological station.
It will take you about one month to prepare the entire package of documents. If the deadlines are running out, you can contact the company that provides services and provides assistance in starting a business. In this case, everything can be done in just 1-2 weeks, but the financial costs of the project will be slightly higher.
Logistics Equipment
So, we examined in detail how to open an advertising agency, where to start, but for normal operation you need to purchase certain equipment. To conduct this type of business will require the following:
- printing kit;
- equipment for presentations;
- professional camera;
- video camera;
- 3 pcs or laptops;
- laser MFP with color printing;
- landline and mobile phones;
- office furniture;
- stationery.
With limited financial means, you can consider buying not new, but used equipment through bulletin boards or auctions at which confiscated goods are sold. However, it is best to immediately purchase new and high-quality equipment, since it is much less likely to fail. Also, for normal operation, you will need supplies. They are much more profitable to buy in bulk, so you should find suppliers in advance.
In fact, opening your own business is not difficult. The most important thing is to be able to develop it in order to receive a steady income.