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Start A Digital Marketing Agency Business Plan & Documents

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JUL.29, 2021

Digital Marketing Agency Business Plan Template

digital marketing agency business plan sample

Digital marketing business plan for starting your own agency

The future of marketing is inevitably digital. There's no denying this and that makes digital marketing one of the most profitable businesses that you can start today. If you want a business plan for digital marketing agency, this document will tell you all there is to it. However, for a successful business, you need to know in detail about starting a small marketing business.

This is a business plans for restaurant that will walk you through all the things involved in starting this business from marketing to finances. One thing that you need to note before we get started is that just like a business plan for the cyber security, this is more of a services business than a products business.

Executive Summary

2.1 The Business

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Peck Digital Marketing will be a registered and insured digital marketing services provider in Dallas, Texas. The person owning this business, John Peck knows in detail how to start your own marketing agency and has a lot of experience in the field. The business will provide digital marketing services to businesses of all sizes and natures.

2.2 Management of Digital Marketing Agency

If you want to know how to run a digital marketing agency, the most important thing to consider is the management of the business. John will be the CEO and will have the decision-making power in the business. He will hire three managers to run the business.

The managers will be responsible for external relations, operations, and finance. They will run the day-to-day things of the business, but the supreme authority will rest with John himself in this internet marketing company business plan. All important matters will be reported to him.

2.3 Customers of Digital Marketing Agency

The next important thing in this strategic business plan for a marketing agency are the customers that this business will be serving. As digital marketing is a service needed by all businesses, the customers will be from a range of different industries. The main customers of this business will be:

  • Startups looking for digital marketing to promote their brand.
  • Small family-owned businesses looking to increase their reach.
  • Corporations who want to promote their services or improve their brand image.
  • Public service organizations looking to spread awareness.

2.4 Business Target

The target of this business, just like any judgement recovery business plan is to make money. This target is broken down into the following parts:

  • Establish a reputable name for the business, one people can trust and depend on.
  • Get permanent clients from small business and corporate sector.
  • Provide better services in the area than the competition.
  • Maintain the highest level of client satisfaction.

3 Years Profit Forecast - Digital Marketing Agency Business Plan Template

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Company Summary

3.1 Company Owner

John Peck is a retired Marine with interest in digital marketing. He started experimenting with digital marketing when he wanted to spread awareness and raise money for the war-wounded veterans. Following his retirement, John started his own non-profit digital marketing agency to provide services to charitable organizations. Now Joh wants to take this one step further.

3.2 Why the Digital Marketing Agency is being started?

The reason why this business is being started is another important part of this online marketing business plan pdf. The main reason behind John starting this business is that he got his legs amputated after the war and cannot do anything physically demanding. This is a business that he can run from his bed. The main motivation behind this, however, is to raise money for veterans. A large portion of the earnings of Peck Digital Marketing will be dedicated to retired servicemen who need money for their treatment or prosthetics.

3.3 How the Digital Marketing Agency will be started?

Step1: Feasibility Planning

The most important part of this marketing agency business plan sample is the feasibility of the business. That is covered in detail in this business plan web agency. You will get a clear picture of what needs to be done. John conducted a detailed feasibility study in which it was revealed that the business is not only viable but will also be hugely successful if done the right way. The main edge that John's business has is that it is being started to help the heroes of America.

Step2: Developing a Brand

This will not be a difficult step here because this is a business plan for a media company. This business will be helping other businesses establish their brands and hence it will not be difficult for them to make one for their own. Once this has been successfully done, nothing can prevent the business from being hugely successful.

Step3: Starting the Office

While the brand building process is going own, John's team will start making a physical office for the business. This will be located in downtown Dallas where most of the perspective clients have their offices.

Step4: Establishing an Online Presence

This will also be done in parallel with establishing the office. John's team will establish a website and all social media pages to give the brand a presence on the internet. Unlike a business plan for green house, this business needs to have a proper web presence.

Step5: Promotion and Marketing

This will be started in earlier stages of establishing the business. The brand will be promoted and marketed to make sure that all the people who matter for the business know it and are aware of what services it will be offering.

Startup Cost - Digital Marketing Agency Business Plan Template

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Start-up Expenses
Legal $230,000
Consultants $0
Insurance $30,000
Rent $30,000
Research and Development $27,000
Expensed Equipment $54,000
Signs $4,000
TOTAL START-UP EXPENSES $375,000
Start-up Assets $347,000
Cash Required $354,000
Start-up Inventory $40,000
Other Current Assets $225,000
Long-term Assets $277,000
TOTAL ASSETS $1,243,000
Total Requirements $1,618,000
START-UP FUNDING
Start-up Expenses to Fund $375,000
Start-up Assets to Fund $1,243,000
TOTAL FUNDING REQUIRED $1,618,000
Assets
Non-cash Assets from Start-up $1,630,000
Cash Requirements from Start-up $385,000
Additional Cash Raised $53,000
Cash Balance on Starting Date $39,000
TOTAL ASSETS $2,107,000
Liabilities and Capital
Liabilities $29,000
Current Borrowing $0
Long-term Liabilities $0
Accounts Payable (Outstanding Bills) $45,000
Other Current Liabilities (interest-free) $0
TOTAL LIABILITIES $74,000
Capital
Planned Investment $1,618,000
Investor 1 $0
Investor 2 $0
Other $0
Additional Investment Requirement $0
TOTAL PLANNED INVESTMENT $1,618,000
Loss at Start-up (Start-up Expenses) $415,000
TOTAL CAPITAL $2,033,000
TOTAL CAPITAL AND LIABILITIES $2,107,000
Total Funding $1,618,000

Services

Since there can be a ton of services that can be included in a online marketing business proposal, we need to carefully choose which services to provide. To make things simple, this business plan template for marketing company will start with limited services and then the scope will be increased.

The internet marketing for services provided by this internet marketing business plan sample will include the following:

  • Brand Promotion

This service will be provided to both new and established brands. We will form a major portion of the services provided by Peck Digital Marketing.

  • Product and Service Marketing

Note

This will be one of the most important services provided under the umbrella of Peck Digital Marketing. This service will mostly be provided to established brands.

  • Awareness Campaigns

All types of public, private, corporate, and government awareness campaigns will also be covered by Peck Digital Marketing.

  • Fundraiser Promotion

This will be provided as a free service to help raise money for various causes.

 Marketing Analysis of Digital Marketing Agency

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With all that finalized, the next thing to be taken care of in this marketing agency business model is the marketing analysis. This is the portion of this sample business plan for marketing company where we see the trends of the market to assess the profitability of the venture. This will help us determine the ROI on the investment made for starting this business and the chances of success we are looking at.

5.1 Market Trends

If you want to start giving services of internet marketing for business, you need to know the market trends of the field. Luckily for anyone starting to start a marketing agency business plan, this filed has been growing steadily over the last decade and experts are of the view that it will only grow over the years to come. That makes entering into this business very profitable and the chances of being successful are high.

Now, just like we did in the law firm sample business plan, let's have a look at the market segmentation that we have for this business.

5.2 Marketing Segmentation

The customers of Peck Digital Marketing are expected to be from the following market segments:

Marketing Segmentation - Digital Marketing Agency Business Plan Template

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5.2.1 Corporate Clients

This segment will give us the most business. The clients will be smaller in number but larger in magnitude of business that they will conduct with us. We will form permanent alliances with these clients.

5.2.2 Entrepreneurs and Startups

This segment will need a different approach at digital marketing as it is one thing to market and promote an established corporation and a totally different one to do the same for a startup. 9

5.2.3 Small Businesses

Small businesses that need to increase their reach in the local, national and international market will make an important market segment for us.

5.2.4 Non-Profit Organizations

A wing of the business will be dedicated to working with non-profit organization on a no-profit-no-loss basis.

Market Analysis
Potential Customers Growth Year 1 Year 2 Year 3 Year 4 Year 5 CAGR
Corporate Clients 36% 39,000 41,000 43,000 45,000 47,000 10.00%
Entrepreneurs and Startups 28% 25,000 27,000 29,000 32,000 33,000 10.00%
Small Businesses 21% 22,000 23,000 25,000 27,000 28,000 10.00%
Non-Profit Organizations 15% 14,000 16,000 17,000 19,000 22,000 11.00%
Total 100% 100,000 107,000 114,000 123,000 130,000 10%

5.3 Business Target

  • To become a well-known name in the field of digital marketing in the area.
  • To provide the best all around digital marketing services.
  • To expand to other cities and states and get international clients.
  • To be the best digital marketing services provider in the USA ultimately.

5.4 Product Pricing

The prices for the services will be kept lower than the average of what competitors are charging. This will be used as a strategy to get permanent clients. Once we have the clients, then we can charge higher prices and make profit. However, we will offer the lowest prices to no-profit-no-loss bodies.

 Marketing Strategy

Having a proper marketing strategy is imperative for starting your own marketing agency. John will target the marketing strategy to reach out to every single customer that can be out there for the business. This is one of the most important parts of any digital advertising agency business plan and we will give it all the importance that it needs.

6.1 Competitive Analysis

  1. We have the most talented and experienced team of all those operating in the area.
  2. John has a better chance at succeeding in this business because he wants to help veterans.
  3. No service provider in the area is providing as comprehensive digital marketing services as we aim to.

6.2 Sales Strategy

  • Peck Digital Marketing will be advertised through print electronic and social media.
  • We will offer concessions and discounted packages for new customers to drive sales in the start.
  • We will provide our clients with marketing strategies and implement them to get solid results and nothing can be better than that for driving sales in this industry.

6.3 Sales Monthly

Sales Monthly - Digital Marketing Agency Business Plan Template

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6.4 Sales Yearly

Sales Yearly - Digital Marketing Agency Business Plan Template

6.5 Sales Forecast

Unit Sales - Digital Marketing Agency Business Plan Template

Sales Forecast
Unit Sales Year 1 Year 2 Year 3
Brand Promotion 41,000 43,460 46,068
Product and Service Marketing 40,000 42,400 44,944
Awareness Campaigns 56,000 59,360 62,922
Fundraiser Promotion 38,000 40,280 42,697
TOTAL UNIT SALES 175,000 185,500 196,630
Unit Prices Year 1 Year 2 Year 3
Brand Promotion $60.00 $69.60 $80.74
Product and Service Marketing $54.00 $62.64 $72.66
Awareness Campaigns $50.00 $58.00 $67.28
Fundraiser Promotion $55.00 $63.80 $74.01
Sales
Brand Promotion $2,460,000.00 $3,024,816.00 $3,719,313.75
Product and Service Marketing $2,160,000.00 $2,655,936.00 $3,265,738.91
Awareness Campaigns $2,800,000.00 $3,442,880.00 $4,233,365.25
Fundraiser Promotion $2,090,000.00 $2,569,864.00 $3,159,904.77
TOTAL SALES $9,510,000.00 $11,693,496.00 $14,378,322.68
Direct Unit Costs Year 1 Year 2 Year 3
Brand Promotion $58.00 $66.00 $76.00
Product and Service Marketing $52.00 $58.00 $68.00
Awareness Campaigns $48.00 $55.00 $62.00
Fundraiser Promotion $53.00 $60.00 $70.00
Direct Cost of Sales
Brand Promotion $2,378,000.00 $2,868,360.00 $3,501,137.60
Product and Service Marketing $2,080,000.00 $2,459,200.00 $3,056,192.00
Awareness Campaigns $2,688,000.00 $3,264,800.00 $3,901,139.20
Fundraiser Promotion $2,014,000.00 $2,416,800.00 $2,988,776.00
Subtotal Direct Cost of Sales $9,160,000.00 $11,009,160.00 $13,447,244.80

Personnel plan

If you want to know how to start online marketing company, you need to be clear about the staff that you will need to run the business. In this marketing agency business plan pdf, we will cover that in detail too. The staff that you need to effectively run the company will be the following:

7.1 Company Staff

The following people will be needed to run the business:

  • John Peck will be the owner and CEO of the business.
  • 2 Managers for operations, external relations marketing.
  • 4 Social media marketers.
  • 2 Google Ads specialists.
  • 2 Content writers.
  • 2 Web developers.
  • 1 Guard.
  • 1 Reception clerk.
  • 1 Telephone operator.

7.2 Average Salary of Employees

Personnel Plan
Year 1 Year 2 Year 3
Operations Manager $14,000 $15,400 $16,940
External Relations Marketing Manager $13,000 $14,300 $15,730
Social Media Marketers $38,000 $41,800 $45,980
Google ads Specialists $20,000 $22,000 $24,200
Content Writers $20,000 $22,000 $24,200
Web Developers $18,000 $19,800 $21,780
Reception Clerk $8,000 $8,800 $9,680
Telephone operator $7,000 $7,700 $8,470
Guard $10,000 $11,000 $12,100
Total Salaries $148,000 $162,800 $179,080

Financial Plan

The last thing that we need to talk about in any internet marketing business plan examples is the finances involved in starting the business. Unlike the business plan for janitorial services, the demand for starting capital will be higher here. After thorough enterprise due diligence, here are the expenses involved in starting this business.

  • The cost of setting up the office.
  • The cost of buying office equipment.
  • The salaries of employees for the time before we start making profit.
  • The cost of marketing and promoting the business.

8.1 Important Assumptions

General Assumptions
Year 1 Year 2 Year 3
Plan Month 1 2 3
Current Interest Rate 8.18% 8.22% 8.28%
Long-term Interest Rate 8.38% 8.45% 8.49%
Tax Rate 24.10% 24.60% 25.66%
Other 0 0 0

8.2 Break-even Analysis

Break-even Analysis - Digital Marketing Agency Business Plan Template

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Break-Even Analysis
Monthly Units Break-even 5341
Monthly Revenue Break-even $131,700
Assumptions:
Average Per-Unit Revenue $233.00
Average Per-Unit Variable Cost $0.64
Estimated Monthly Fixed Cost $163,000

8.3 Projected Profit and Loss

Pro Forma Profit And Loss
Year 1 Year 2 Year 3
Sales $9,510,000 $11,693,496 $14,378,323
Direct Cost of Sales $9,160,000 $11,009,160 $13,447,245
Other $0 $0 $0
TOTAL COST OF SALES $9,160,000 $11,009,160 $13,447,245
Gross Margin $350,000 $684,336 $931,078
Gross Margin % 3.68% 5.85% 6.48%
Expenses
Payroll $148,000 $162,800 $179,080
Sales and Marketing and Other Expenses $132,000 $135,000 $136,000
Depreciation $2,180 $2,200 $2,400
Leased Equipment $0 $0 $0
Utilities $2,800 $3,000 $3,100
Insurance $2,100 $2,100 $2,100
Rent $2,900 $3,000 $3,100
Payroll Taxes $28,000 $29,000 $30,000
Other $0 $0 $0
Total Operating Expenses $317,980 $337,100 $355,780
Profit Before Interest and Taxes $32,020 $347,236 $575,298
EBITDA $32,020 $347,236 $575,298
Interest Expense $0 $0 $0
Taxes Incurred $6,404 $69,447 $115,060
Net Profit $25,616 $277,789 $460,238
Net Profit/Sales 0.27% 2.38% 3.20%

8.3.1 Profit Monthly

Profit Monthly - Digital Marketing Agency Business Plan Template

8.3.2 Profit Yearly

Profit Yearly - Digital Marketing Agency Business Plan Template

8.3.3 Gross Margin Monthly

Gross Margin Monthly - Digital Marketing Agency Business Plan Template

8.3.4 Gross Margin Yearly

Gross Margin Yearly - Digital Marketing Agency Business Plan Template

8.4 Projected Cash Flow

Projected Cash Flow - Digital Marketing Agency Business Plan Template

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Pro Forma Cash Flow
Cash Received Year 1 Year 2 Year 3
Cash from Operations
Cash Sales $55,000 $59,400 $64,152
Cash from Receivables $20,000 $21,600 $23,328
SUBTOTAL CASH FROM OPERATIONS $75,000 $81,750 $88,290
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 $75,000 $82,000 $89,000
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $40,000 $42,000 $43,000
Bill Payments $24,000 $25,000 $28,000
SUBTOTAL SPENT ON OPERATIONS $64,000 $67,000 $71,000
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 $65,000 $70,200 $75,816
Net Cash Flow $20,000 $22,000 $24,000
Cash Balance $27,000 $29,000 $32,000

8.5 Projected Balance Sheet

Pro Forma Balance Sheet
Assets Year 1 Year 2 Year 3
Current Assets
Cash $283,000 $316,960 $348,656
Accounts Receivable $24,000 $26,880 $30,213
Inventory $4,200 $4,704 $4,900
Other Current Assets $1,000 $1,000 $1,000
TOTAL CURRENT ASSETS $292,000 $327,040 $367,593
Long-term Assets
Long-term Assets $10,000 $10,000 $10,000
Accumulated Depreciation $19,500 $21,840 $24,570
TOTAL LONG-TERM ASSETS $23,600 $26,432 $29,736
TOTAL ASSETS $295,000 $330,400 $371,700
Liabilities and Capital Year 4 Year 5 Year 6
Current Liabilities
Accounts Payable $19,000 $21,280 $23,919
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
SUBTOTAL CURRENT LIABILITIES $19,000 $21,280 $23,919
Long-term Liabilities $0 $0 $0
TOTAL LIABILITIES $16,400 $18,368 $20,646
Paid-in Capital $30,000 $30,000 $31,000
Retained Earnings $56,000 $61,040 $67,144
Earnings $198,000 $215,820 $237,402
TOTAL CAPITAL $293,000 $319,370 $351,307
TOTAL LIABILITIES AND CAPITAL $309,400 $330,400 $371,700
Net Worth $299,000 $325,910 $358,501

8.6 Business Ratios

Ratio Analysis
Year 1 Year 2 Year 3 INDUSTRY PROFILE
Sales Growth 7.27% 8.06% 8.93% 3.00%
Percent of Total Assets
Accounts Receivable 9.26% 10.26% 11.37% 9.80%
Inventory 5.40% 5.98% 6.63% 9.90%
Other Current Assets 2.16% 2.39% 2.65% 2.40%
Total Current Assets 150.02% 150.90% 152.00% 158.00%
Long-term Assets 11.52% 11.55% 11.61% 12.00%
TOTAL ASSETS 100.00% 100.00% 100.00% 100.00%
Current Liabilities 4.96% 5.00% 5.05% 4.34%
Long-term Liabilities 0.00% 0.00% 0.00% 0.00%
Total Liabilities 7.59% 7.65% 7.72% 7.38%
NET WORTH 100.68% 101.49% 102.42% 110.00%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 95.72% 98.30% 101.06% 99.00%
Selling, General & Administrative Expenses 94.00% 96.54% 99.24% 97.80%
Advertising Expenses 1.57% 1.61% 1.66% 1.40%
Profit Before Interest and Taxes 42.20% 43.34% 44.55% 33.90%
Main Ratios
Current 34 35 36 32
Quick 33 33.4 34.235 33
Total Debt to Total Assets 0.18% 0.18% 0.17% 0.40%
Pre-tax Return on Net Worth 74.01% 74.50% 75.00% 75.00%
Pre-tax Return on Assets 95.06% 99.81% 104.80% 111.30%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin 33.19% 34.22% 35.28% N.A.
Return on Equity 55.88% 57.61% 59.40% N.A.
Activity Ratios
Accounts Receivable Turnover 7.7 7.8 7.8 N.A.
Collection Days 100 100 100 N.A.
Inventory Turnover 32.4 34.02 35 N.A.
Accounts Payable Turnover 15 16 16.3 N.A.
Payment Days 27 27 27 N.A.
Total Asset Turnover 2.5 2.5 2.6 N.A.
Debt Ratios
Debt to Net Worth -0.04 -0.03 -0.04 N.A.
Current Liab. to Liab. 1 1 1 N.A.
Liquidity Ratios
Net Working Capital $243,000 $256,608 $270,978 N.A.
Interest Coverage 0 0 0 N.A.
Additional Ratios
Assets to Sales 0.85 0.87 0.87 N.A.
Current Debt/Total Assets 1% 0% 0% N.A.
Acid Test 29 29.11 29.18 N.A.
Sales/Net Worth 2.1 2.2 2.3 N.A.
Dividend Payout 0 0 0 N.A.

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Start A Digital Marketing Agency Business Plan & Documents

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