In the world of modern business, there are many ways to promote goods and services. The most affordable of them is the conduct of promotional activities, thematic events, merchandising, as well as the production of banners, flyers, POSM. This is not all that can promote a product. However, all of the above applies to advertising. A rare business can survive without advertising.
Entrepreneurs for Entrepreneurs
Demand creates supply. The need to attract customers has created a need for an advertising business.
Within one day, a person is faced with advertising at almost every step. Turning on the morning radio in the car or the TV in the kitchen, on the way to work, during a break for surfing social networks, just working at a manufacturing enterprise, going into a grocery store in the evening, going for a walk with the children ... An advertisement finds a person everywhere he goes nor walked and no matter what he did. Today it is the most effective way to manage people and make a profit.
Types of Advertising Agencies
The advertising sphere is quite extensive and accommodates a large number of both large transnational enterprises and representatives of small firms. As in any field, the advertising business can be divided according to the territorial scope:
- International Agenciesworking with major global brands operating in several countries. Such agencies offer a full range of services.
- National firms. This species works within one country. May act as a contractor for international enterprises, or as the main contractor for domestic customers.
- Regional agencies. Here the services are provided within a separate region, and it is possible to involve the client in the business. Small and medium-sized businesses with a small budget benefit from working with the third category due to their relatively low prices for the services provided.
The second classification is based on a list of work performed by the agency:
- Full cycle agencies can organize almost anything the advertiser wants. If only he had enough budget;
- Specialized agencies specializing in the production of promotional materials, staffing, signage or other individual work.
How to open your advertising agency from scratch
Own business is much nicer and more profitable than just working in a company, even if it is even a very high post in a large company. But only risk-ready people can try their luck in free business swimming.
What does it take to open an advertising agency from scratch and how to do it? First of all, you need to have a clear idea of what you have to face daily. Advertising is a constant communication with people. This is communication with customers, contractors, staff, subordinates, representatives of executive bodies of state power, and tax inspectorate.Therefore, you need to have good organizational skills, iron nerves, sociability and a great desire to do what you love.
Advertising Agency Business Plan
A good business usually starts with an investment. But how to open an advertising agency from scratch? If there is no money, but there is a desire, you can contact the bank for a loan or attract investors. This will be useful for those who are thinking about how to open an advertising agency with a "zero" in your pocket. Even if only one person is employed in the company, you will need money to prepare documents for opening a company, rent an office, pay for communication services, the Internet, courier services, social and tax deductions to the budgets of the region and the Russian Federation.
To attract money from the outside, you need at least an approximate business plan of an advertising agency. There is no need to delve into economic calculations and write two-volume essays on the topic: “Romashka Advertising Agency and Profit”. A business plan can be presented on two sheets, but the main thing is an understanding of the principle of its preparation for a novice businessman.
General principles of a business plan
So how to open an advertising agency from scratch? The general principles of a business plan are as follows:
- building relationships with first customers,
- list and cost of services offered by an advertising agency,
- ways to expand the customer base,
- time and financial costs of public relations,
- purchase of necessary furniture, equipment, office rental,
- recruitment and job descriptions,
- prospect of development of the agency in the short term.
You can list many more standard items of a business plan, but just remember that a document that is not always correctly executed leads to success.
A competent attitude to the business, without trying to conduct everything from and to only on your own in order to save, understanding what the client needs and the ability to invest in business development, rather than in your own salary, can help to quickly attract the right investor.
Form of incorporation
How to open an advertising agency from scratch? After the investor is found, it is time to think about in what form to register the case. In this case, two options are well suited: individual entrepreneurship or a limited liability organization.
To make the right choice, you need to know 6 significant differences between an individual entrepreneur and a limited liability company:
- For a businessman who wants to conduct advertising activities alone, without sharing power with anyone, it would be better to opt for IP registration. If the investor wants to participate in making decisions important for the fate of the company, you will have to open an LLC.
- An advertising agency may decline if an illiterate development strategy is pursued. In this case, the founder of the IP bears responsibility for the debts of the organization with his personal property. The society risks not only the personal belongings of the founders, but also the authorized capital.
- The sole founder can save on the services of an accountant. For him, there are special tax regimes - USN, UTII and patent. In the state of society, an accountant will be required unambiguously.
- Withdrawal of money is easier with an individualist's OPF. The founders of the company can only receive dividends. Payments are made no more than once per quarter, provided that this is the net profit of the agency, and the deduction of personal income tax in the amount of thirteen percent.
- Mandatory insurance premiums for an individual entrepreneur do not stop with the suspension of business activity. The company may not pay a penny if there is no profit, since payments depend only on the salaries of employees.
- The biggest difference is the future prospects of the advertising agency.An individual entrepreneur is suitable for working on small orders at the startup stage, but if you plan to develop to a large business and fulfill orders of ambitious proportions, it is worth choosing a limited liability company.
Advertising agency structure
How to open an advertising agency from scratch? One person can take over the orders, but this is in case the company is just starting its work. The distribution of labor leads to greater efficiency and, consequently, to greater profits.
The founder can do all the business of the enterprise on his own, appointing himself the director of an advertising agency. This is possible only through the conclusion of a contract for employment and the establishment of wages. Over time, one can hire a person with experience in a similar position and entrust him with all organizational activities.
In addition to the director, you must have at least one employee whose duties will include the direct sale of the services of an advertising agency.
Although the cost of salaries and equipment of the workplace will increase with the expansion of the staff, but the assistant director of work with clients and the designer will also be very useful. This will relieve the director’s lion's share of the time and tackle more important issues.
Registration cost
In order to assess how much it costs to open an advertising agency, you definitely need to evaluate the cost of renting offices in the area of interest to you, as well as what quality of furniture and what configuration would suit a business at the initial stage. Concluding contracts with mobile and Internet service providers will also be included in the cost estimate. The fixed component will be the state fee for opening an IP in the amount of 800 rubles, in the case of an LLC this amount will be 4000 rubles.
Full cycle agency
The most frequent occurrences were full-cycle advertising agencies. This means that it will be much easier to open an advertising agency from scratch, as there is someone to learn from. On the other hand, not everyone can resist competition.
Firms of a full cycle offer customers to entrust them with all the issues of advertising on billboards, on the radio, on the Internet. You can even order a movie clip on television, if the budget can handle it. But most often, such agencies conduct promotions.
Variety of activities
For food producers it would be appropriate to offer a tasting in the store. A new point of sale will be remembered if you arrange a colorful opening with life-size puppets, garlands of balls and a presenter. Specially hired consultants will increase sales of already beloved brands, and mystery shoppers and monitoring of competitors' prices will help to understand what needs to be changed.
All this is done by an advertising agency. All this relates to BTL advertising (low- and medium-budget projects with high returns for customers).
Narrow profile
Some people prefer to do no less creative work. Organizations involved in the manufacture of signboards, business cards, billboards require the purchase of specialized equipment. With good promotion, such a business can bring considerable profit.
Package of documents
What documents do I need to open an advertising agency? To establish an IP, you will need to provide:
- statement,
- copy of passport
- receipt of payment of a mandatory fee,
- notice of the choice of tax regime.
When registering an LLC, a package of documents will be drawn up by the minutes of the meeting of the founders, an application, a charter, a receipt confirming payment of the fee, and a certificate of ownership of the office.
