How to Establish a Digital Marketing Agency in USA
Introduction
Digital marketing is one of the most important aspects of any business. Having a digital marketing agency helps to promote your brand and increase sales.
Digital marketing agencies are in high demand these days and it is easy to start one by following some simple steps. Here’s how you can get started with setting up an American-based digital marketing agency:
Create a Digital Marketing Plan
- Start by defining the problem.
- Make sure your goals are realistic and achievable.
- Don’t worry about what other people’s goals are.
- Be ambitious, but stay realistic.
Create a Business Plan
Once you have decided to start a digital marketing agency, the next step is to create a business plan. A business plan serves as an effective tool for explaining your vision of the company and how it will be organized. The document will also help you get funding from investors or banks by explaining your strategies and objectives, as well as providing financial projections that can be used when applying for loans. You can use this guide when writing your company’s business plan: Business Plan Guide – Entrepreneur Magazine 2018.[1]
A good business plan should include the following sections:
- Executive Summary: An overview of the entire document that gives readers an idea about what they are going to learn from reading more detail in other sections of the document;
- Company Description: A description of who owns and runs this company, how long it has been operating and what products/services are offered;
- Market Analysis/Opportunities & Threats (MOST): Detailed analysis about market trends, opportunities and threats faced by competitors within the same industry;
Prepare Finances
When you’re preparing to start a digital marketing agency, it’s important to consider the financial aspects of your business. Many new businesses fail because they don’t properly plan for their finances.
The first step is to create a budget for your operation, including projected expenses and anticipated revenues. You can use this budget when making decisions about hiring employees and other cost-related issues like office space or equipment purchases.
Next, create a financial plan that shows how you’ll pay back investors who help fund the startup costs of starting a digital marketing agency. This includes creating an additional set of projections that detail how much money will be required each year until all debts are repaid (and ideally, when they’ve been repaid).
You also need an accounting system in place so that you know where all of your money is going; otherwise, it may seem as though nothing is being saved for leaner times!
Obtain Funding
How to obtain funding for your digital marketing agency:
- Decide how much money you want to raise, and from whom.
- Identify the type of investor you want to attract (i.e., a venture capitalist, private equity fund or angel investor).
- Create a pitch deck that outlines your business model, financial projections and growth strategy.
Partner with Vendors
If you’re going to partner with external vendors, do your homework. You’ll want to make sure they have a reputation for being responsive, providing high-quality work and training, and offering the right kind of technology that will help you grow your business.
Hire Staff
You should hire staff that are passionate about the digital marketing industry. They should also be familiar with your market and be able to help you grow your business. In addition, they should be able to expand the business if needed because it is easier than when only one person is doing all of the work.
Get an Office Space
- How much space do you need?
Ideally, your office space should be large enough to accommodate at least two full-time staff members. You will also need a separate room or cubicle for your own use as the owner of the business. If possible, allocate at least one floor of the building exclusively for your company. That way, employees can focus on their work without having to step over clients in order to get from point A to point B.
- What kind of space do you need?
While some digital marketing agencies choose to rent space in an office building with others who run similar businesses, there are other options available as well—including coworking spaces and co-working facilities where entrepreneurs share offices and workspaces with each other while paying lower rates than they would if they were leasing an entire floor all by themselves. In addition, there are also many different types of shared offices that provide private rooms where clients can hold meetings with agency owners (and vice versa).
Register the Digital Marketing Agency as an LLC or Corporation.
- Registering your company as an LLC or corporation is a very important step to take. This will protect both you and your business. In the event of a lawsuit, it will also help shield you from lawsuits by others that may arise out of the work you do for clients.*
- You should register your digital marketing agency as an LLC or corporation because it helps to limit liability in the case of an accident or some other dispute. You’ll be able to limit what kinds of damages someone can seek against you by registering your digital marketing agency as an LLC or corporation.*
- The difference between forming a limited liability company (“LLC”) vs establishing a corporation is similar in many ways but there are important differences between these two forms of businesses which we discuss below.*
Apply for Insurance.
The second step to starting a Digital Marketing Agency is to apply for insurance.
Insurance is important because it protects you and your assets in case of an accident, lawsuit or other unforeseen circumstance. It can also cover any damages that might occur during a job like broken equipment or property damage.
It’s important to check with your bank, state and local business associations to see if they offer insurance plans as part of their services.
Takeaway:
The takeaway? You can do it. It’s not easy, but it is possible. You will need to put in the hard work and be smart about your business, strategic about your marketing and consistent with your marketing if you want to succeed as a digital marketing agency in United States of America.
Conclusion
We hope that this article has given you the tools to start your own digital marketing agency. The first step is always the hardest, but we believe in you and your business. Good luck on your journey!
