Do you want to know exactly how much it cost to start a digital marketing company? If YES, here is a detailed cost analysis for starting a digital marketing agency and raising finance.
Having provided you with a:
- Industry Overview
- Market Research and Feasibility
- Digital Marketing Agency Business Plan
- Business Name ideas
- Licenses and Permits
- Marketing Plan
- Cost of Starting a Digital Marketing Agency
- Marketing ideas & Strategies
We will consider how much it cost to start a digital marketing agency from scratch including the operating costs. Starting a digital marketing agency business can be cost effective; this is so because on the average, you are not expected to acquire expensive machines and equipment.
Basically what you should be concerned about is the amount needed to secure a standard office facility in a good and busy business district, the amount needed to furniture and equip the office, the amount to purchase the required software applications and internet facilities, the amount needed to pay bills, promote the business and obtain the appropriate business license and certifications.
How Much Does It Cost to Start a Digital Marketing Agency?
When it comes to starting a small scale digital marketing agency, the following expenditure should guide you;
- The Total Fee for incorporating the Business in the United States of America: $750.
- The budget for Liability insurance, permits and license: $2,500
- The Amount needed to acquire a suitable Office facility in a business district 6 months (Re – Construction of the facility inclusive): $40,000.
- The Cost for equipping the office (computers, software applications, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al): $5,000
- The Cost of Launching your official Website: $600
- Budget for paying at least two employees for 3 months and utility bills : $10,000
- Additional Expenditure (Business cards, Signage, Adverts and Promotions et al): $2,500
- Miscellaneous: $1,000
Going by the report from the research and feasibility studies conducted, you will need about $70,000 or less to set up a small scale digital marketing agency business in the United States of America. You will need over $100,000 U.S. dollars to successfully set – up a medium scale digital marketing agency business in the United States of America.
If you are considering starting a large scale digital marketing agency business with several professionals under your payroll and offices in key cities in the United States of America and other parts of the world, then you should look towards budgeting from $1 million United States dollars and above.
Financing Your Digital Marketing Agency
Starting a digital marketing agency business can be cost effective especially if you choose to run the business from your home, share office space with a friend or make use of virtual office. Securing a standard office is part of what will consume a large chunk of your start – up capital, but if you choose to start the business on a small scale, you may not have the need to go source for fund to finance the business.
No doubt when it comes to financing a business, one of the first thing and perhaps the major factors that you should consider is to write a good business plan. If you have a good and workable business plan in place, you may not have to labor yourself before convincing your bank, investors and your friends to invest in your business.
Here are some of the options you can explore when sourcing for start – up capital for your digital marketing agency business;
- Raising money from personal savings and sale of personal stocks and properties
- Raising money from investors and business partners
- Sell shares to interested investors
- Applying for loan from your bank / banks
- Pitching your business idea and applying for business grants and seed funding from donor organizations and angel investors
- Source for soft loans from your family members and your friends.