Are you about starting a modeling agency? If YES, here is a complete sample modeling agency business plan template & feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting a modeling agency. We also took it further by analyzing and drafting a sample modeling agency marketing plan template backed up by actionable guerrilla marketing ideas for modeling agencies. So let’s proceed to the business planning section.
If you are a public relation specialist cum brand manager and are looking for a business to delve into, then one of your options may be to start a modeling agency. The fact that everyone in business has a product or service to sell and would want professionals to model for them makes this line of business viable and profitable.
In this business, your level of profitability is dependent on your ability to come up with workable solutions to advertising cum publicity challenges of various businesses.
If you are sure this type of business is what you truly want to do after you must have conducted your feasibility studies and market research, then the next step to follow is to write a good business plan; a detailed blueprint of how you intend raising your seed capital, setting up the business, managing the flow of the business, sorting out tax and marketing your products amongst other areas of interest to you.
Below is a sample modeling agency business plan template that can help you to successfully write your own with little or no difficulty.
A Sample Modeling Agency Business Plan Template
1. Industry Overview
The modeling agencies industry comprises of agencies that represent fashion models in business dealings, such as auditions, bookings and contract negotiations. These agencies earn revenue via commission, usually from the deal they make with the model or another agency.
If you are a close observer of happenings in the Modeling Agencies industry, you will notice that the industry experienced growth over the past five years, with revenue expected to continue increasing.
Demand for this industry’s services depends on corporate advertising expenditures, as a significant portion of industry revenue is garnered through commissions and service fees gained from booking models in print, television, retail and internet advertising campaigns.
Revenue growth over the past five years has been further propelled by steady demand from major downstream markets such as cosmetic and beauty product brands, clothing retailers and international apparel brands. Furthermore, social media platforms have opened a new avenue for models and agents to generate revenue by endorsing and promoting products, though have also increased competition.
The modeling agencies industry is in the mature phase of its life cycle and luckily for the industry, the advent of digital media has provided an opportunity for the industry to explore and experience vibrant growth. Of course, the industry is becoming more concentrated, as seen by a few large global firms dominating the market and gaining huge market share of the available market.
Statistics has it that in the united states of America alone, there are about 7,461 licensed and registered modeling agencies responsible for employing about 13,780 employees and the industry rakes in a whooping sum of $1 billion annually with an annual growth rate projected at 5.3 percent.
It is important to state that the establishments with lion shares of the available market in this industry are IMG Models and Wilhelmina.
A recent report published by IBISWorld shows that the Modeling Agencies industry comprises establishments that represent fashion models in various business dealings, including auditions, bookings and contract negotiations. Model agencies and agents typically earn revenue via commission.
Agencies help models book deals with corporations, advertising firms, fashion designers, apparel retailers, photographers and other businesses that use models to represent their products in promotional campaigns or for artistic expression.
The report shows that the industry has experienced moderate growth over the past five years, as businesses increasingly hired models for commercials and other promotional campaigns. Demand for modeling services is highly driven by corporate marketing expenditures.
Over and above, modeling agencies cannot be phased out despite the change in branding approaches and the emergence of new media.
It is easier for modeling agencies to leverage on modern technology to reach – out to their target market. As a matter of fact, it is cost effective and far reaching for them to make use of social media platforms to carry out some of their advertising campaigns.
2. Executive Summary
Whitney Clarkson™ Modeling Agency, Inc. is a U.S based modeling agency that is located in Los Angeles – California. We have been able to secure a standard office facility in a central business district in Inglewood. We are set to compete in the highly competitive modeling industry not only in the United States market, but also in the global market because our clientele base will not be restricted to the United States.
Whitney Clarkson™ Modeling Agency, Inc. will offer robust modeling services to both corporate organization and individuals. Our core services will revolve around scouting talent, negotiating contracts, representing clients, managing models, advertising talent and training talent.
Our business goal is to become one of the leading modeling agencies in the United States of America with high profile clients scattered all around the globe.
Our workers are going to be selected from a pool of talented and highly creative modeling agents in and around Los Angeles – California and also from any part of the world as the business grows. We will make sure that we take all the members of our workforce through the required trainings that will position them to meet the expectation of the company.
At Whitney Clarkson™ Modeling Agency, Inc., our client’s best interest will always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s business needs precisely and completely.
Whitney Clarkson™ Modeling Agency, Inc. is founded by Whitney Clarkson and the business is a family business. Whitney Clarkson hails from Brooklyn, California, has B.A. in Communications at Northern Michigan University; M.S. degree in Computer Science at the University of Wisconsin-Milwaukee; and MBA from the University of Chicago Booth School of Business.
3. Our Products and Services
Whitney Clarkson™ Modeling Agency, Inc. was established with the aim of maximizing profits in the Modeling industry.
We want to compete favorably with leading modeling agencies in the United States and of course throughout the globe which is why we have put in place a competent team that will ensure that we meet and even surpass our customers’ expectations. Our products and services offerings are listed below;
- Scouting talent
- Negotiating contracts
- Representing clients
- Managing models
- Advertising talent
- Training talent
4. Our Mission and Vision Statement
- Our vision is to establish a standard and world class modeling agency whose services and brand will not only be accepted in the United States of America, but also in other parts of the world.
- Our mission is to provide professional and highly creative modeling services and other related advisory and consulting services that will assist businesses and individuals in promoting their brands and reaching out to a wide range of potential customers all over the globe. We want to build a modeling agency that can favorably compete with other leading brands in the industry.
Our Business Structure
Whitney Clarkson™ Modeling Agency, Inc. is a world class modeling agency that intends starting small in Los Angeles – California, but hope to grow big in order to compete with leading modeling agencies such as IMG Models and Wilhelmina.
We are aware of the importance of building a solid business structure that can support the picture of the kind of world class business we want to own, which is why we are committed to only hiring the best hands within our area of operations.
At Whitney Clarkson™ Modeling Agency, Inc. we will ensure that we hire people that are qualified, hardworking, and creative, result driven, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders.
As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of the above, Whitney Clarkson™ Modeling Agency, Inc. have decided to hire qualified and competent hands to occupy the following positions;
- Chief Executive Officer
- Creative Director
- Modeling Specialist
- Human Resources and Admin Manager
- Sales and Marketing Executive
- Client Service Executive
5. Job Roles and Responsibilities
Chief Executive Officer – CEO:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, appraising job results and developing incentives
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Serves as project manager of the organization; works directly with employees and models
- Responsible for designing modeling concepts and winning business proposals for the organization
- Maintains professional and technical knowledge by attending educational workshops; reviewing professional publications; establishing personal networks; benchmarking state-of-the-art practices; participating in professional societies.
- Ensures that the organization work in line with international best practices.
Modeling Agency Specialist
- Accountable for handling core services such as scouting talent, negotiating contracts, representing clients, managing models, advertising talent and training talent
- Handles other related modeling advisory and consulting services
Human Resources and Admin Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Defines job positions for recruitment and managing interviewing process
- Carries out induction for new team members
- Responsible for training, evaluation and assessment of employees
- Oversees the smooth running of the daily office.
Sales and Marketing Manager
- Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Identifies development opportunities; follows up on development leads and contacts
- Creates new markets cum businesses for the organization
- Empowers and motivates the sales team to meet and surpass agreed targets
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for one or more properties.
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for Whitney Clarkson™ Modeling Agency, Inc.
- Serves as internal auditor for Whitney Clarkson™ Modeling Agency, Inc.
- Responsible for handling photo shoots of models for the organization
- Responsible for treating pictures, developing concepts, graphics and layouts for modeling illustrations.
- Researches and advices the organization on style, genre and other trendy info as it relates to modeling and international best practices.
Client Service Executive
- Welcomes clients and potential clients by greeting them in person, online or on the telephone; answering or directing inquiries.
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the creative director in an effective and timely manner
- Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries.
6. SWOT Analysis
Whitney Clarkson™ Modeling Agency, Inc. engaged the services of a professional in the area of business consulting and structuring to assist our organization in building a well – structured modeling agency that can favorably compete in the highly competitive modeling industry in the United States.
We know that if we get things right before starting our modeling agency, we will not have to struggle before attracting loyal clients and building our clientele base cum corporate profile to a level where we can breakeven in record time.
We hired the services of Dr. Collins Lamar, a HR and Business consultant with bias in business structuring to help us conduct SWOT analysis for our company and he did a pretty good job for us. Here is a of the result we got from the SWOT analysis that was conducted on behalf of Whitney Clarkson™ Modeling Agency, Inc.;
Our core strength lies in the power of our team; our workforce. We have a team of creative, result driven and highly proficient modeling experts, a team with excellent qualifications and experience in various niche areas in the modeling industry.
Aside from the synergy that exist in our carefully selected modeling experts, our services will be measurable, result driven and guided by best practices in the industry.
As a new modeling agency in Los Angeles – California, it might take some time for our organization to break into the market and gain acceptance especially from top profile clients in the already saturated and highly competitive modeling agencies industry; that is perhaps our major weakness.
Another weakness is that we may not have the required cash to pump into promoting our business especially via main stream media (TV, Radio and Newspapers et al) the way we would want to.
The opportunities available in the modeling industry is massive considering the number of individuals and businesses who want to reach out to their target market and increase their market shares, we are ready to take advantage of any opportunity that is available in the industry.
Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of modeling agencies in same location where our target market exists and who may want to adopt same Business model like us.
7. MARKET ANALYSIS
- Market Trends
Improvement in business conditions led to a substantial rebound in industry revenue, the industry has benefited from the rising popularity of digital and mobile media platforms and as economic growth continues, advertising spending will increase and stimulate demand.
External factors such as percentage of services conducted online and total advertising expenditure will impact the industry performance.
In recent time, individual behavior and demographics are being consolidated to convey more grounded measurements to the industry. Real time traffic, social media, and even camera analytics now provide accurate audience metrics for billboard sites. Digital metrics make it easier for modeling agencies to consider and integrate their advertising campaigns.
You will notice that within the last 10 years, modeling has completely transformed from having the fashion industry as their major players to having other players as clients. Meanwhile, the fashion industry still remains a big fish for modeling agencies.
Lastly, the modeling agencies industry will continue to evolve due to the advancement of computer technology and software application designs especially as it relates treating pictures and coming up with globally accepted concepts.
8. Our Target Market
Before starting our modeling agency, we are certain that there is a wide range of businesses that cannot successfully run their businesses without the services and support of a standard modeling agency; a company that can help them reach out to their target market and effectively promote their corporate brand and image.
In view of that, we have created strategies that will enable us reach out to various corporate organizations, government agencies and individuals who can’t afford to do without our services. We have conducted our market research and survey and we will ensure that we meet and surpass the expectations of our clients Below is a list of the people and organizations that we have specifically market our services to;
- Players in the fashion industry
- Manufacturers of products
- Branding and advertising agencies
- Banks, Insurance Companies and other related Financial Institutions
- Blue Chips Companies
- Manufacturers and Distributors
- Real Estate Owners, Developers, and Contractors
- The Government (Public Sector)
- Schools (High Schools, Colleges and Universities)
- Entrepreneurs and Startups
Our competitive advantage
Surviving in the business world as a modeling agency requires more than your expertise, but also how to network with key people that matters; decision makers that can decide who will get a modeling contract or a business deal.
We are quite aware that to be highly competitive in the modeling agencies industry means that you are not only expected to be able to deliver consistent and excellent services, but you must be result driven and able to meet set targets.
Part of our competitive advantages are ability to negotiate successfully with regulator, ability to provide services in diverse locations, having a high prior success rate, ability to effectively communicate and negotiate and having contacts within key markets and our ability to attract local support and patronage. So also, the power of our team; our workforce.
We have a team of creative, result driven and highly proficient modeling experts with experience in various niche areas in the industry. Aside from the synergy that exist in our carefully selected advertising cum digital marketing experts, our services will be measurable, result driven and guided by best practices in the industry.
Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and objectives.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Whitney Clarkson™ Modeling Agency, Inc. is established with the aim of maximizing profits in the modeling industry and we are going to go all the way to ensure that we do all it takes to meet and surpass the expectations of all our clients. Whitney Clarkson™ Modeling Agency, Inc. will generate income by offering the following services;
- Scouting talent
- Negotiating contracts
- Representing clients
- Managing models
- Advertising talent
- Training talent
10. Sales Forecast
Whitney Clarkson™ Modeling Agency, Inc. is well positioned to take on the available market in modeling agencies industry and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow our modeling agencies to enviable heights.
We have been able to examine the modeling agencies marketing space, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below is the sales projection for Whitney Clarkson™ Modeling Agency, Inc., it is based on the location of our business and of course the wide range of our modeling agency services we offer and our target market;
- First Fiscal Year: $200,000
- Second Fiscal Year: $500,000
- Third Fiscal Year: $750,000
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same modeling services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
We are mindful of the fact that there are stiff competitions in the modeling industry, so we hired some of the best marketing experts to handle our sales and marketing.
Our sales and marketing team were recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall business goal of Whitney Clarkson™ Modeling Agency, Inc.
Our corporate goal is to grow Whitney Clarkson™ Modeling Agency, Inc. to become one of the leading brands in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market in the United States of America.
Whitney Clarkson™ Modeling Agency, Inc. is set to make use of the following marketing and sales strategies to attract clients;
- Introduce our modeling agency by sending introductory letters alongside our brochure to players in the fashion industry, advertising and branding agencies, corporate organizations, government agencies and key stake holders.
- Promptness in bidding for modeling contracts from cooperate organizations
- Advertise our business in relevant fashion magazines, newspapers, TV and radio stations
- List our business on yellow pages’ ads (local directories)
- Attend relevant international and local expos, seminars, and business fairs et al
- Create different packages for different category of clients in order to work with their budgets and still deliver excellent services
- Leverage on the internet to promote our business
- Engage direct marketing approach
- Encourage word of mouth marketing from loyal and satisfied clients
11. Publicity and Advertising Strategy
We have been able to work with our in house brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.
We are set to become the number one choice for clients in the whole of the United States and beyond which is why we have made provisions for effective publicity and advertisement of our modeling agency. Below are the platforms we intend to leverage on to promote and advertise Whitney Clarkson™ Modeling Agency, Inc.;
- Place adverts on both print (newspapers and fashion magazines) and electronic media platforms
- Sponsor relevant community based events/programs
- Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our services
- Install our billboards in strategic locations all around Los Angeles – California
- Engage in roadshow from time to time in targeted neighborhoods
- Distribute our fliers and handbills in target areas
- List Whitney Clarkson™ Modeling Agency, Inc. in local directories / yellow pages
- Advertise Whitney Clarkson™ Modeling Agency, Inc. in our official website and employ strategies that will help us pull traffic to the site.
- Ensure that all our staff members wear our branded shirts and all our vehicles are well branded with our company logo.
12. Our Pricing Strategy
At Whitney Clarkson™ Modeling Agency, Inc. we will keep the prices of our services below the average market rate for all of our customers by keeping our overhead low and by collecting payment in advance from corporate organizations who would hire our services.
In addition, we will also offer special discounted rates to all our customers at regular intervals. We are aware that there are some one – off jobs or government contracts which are always lucrative, we will ensure that we abide by the pricing model that is expected from contractors or organizations that bid for such contracts.
- Payment Options
The payment policy adopted by Whitney Clarkson™ Modeling Agency, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Whitney Clarkson™ Modeling Agency, Inc. will make available to her clients;
- Payment via bank transfer
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our client make payment for our services without any stress on their part. Our bank account numbers will be made available on our website and promotional materials. So also, any of the above mentioned methods will be used in paying our models
13. Startup Expenditure (Budget)
It is a known fact that in setting up any business, the amount or cost will depend on the approach and scale you want to undertake.
If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.
The materials and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.
As for the detailed cost analysis for starting a standard modeling agency; it might differ in other countries due to the value of their money. However, this is what it would cost us to setup Whitney Clarkson™ Modeling Agency, Inc. in the United of America;
- Business incorporating fees in the United States of America will cost – $750.
- The budget for Liability insurance, permits and license will cost – $3,500
- Leasing / renting an office space in a good location in Los Angeles – California that will accommodate the number of employees for at least 6 months (Re – Construction of the facility inclusive) will cost – $60,000.
- The cost for furnishing and equipping the office (cameras and accessories, computers, printers, projectors, markers, server / internet facility, furniture, telephones, filing cabinets, and electronics) will cost – $10,000
- The amount required to purchase the needed software applications – $3,500
- Launching an official Website will cost – $500
- The amount need to pay bills and staff members for at least 2 to 3 months – $40,000
- Additional Expenditure such as Business cards, Signage, Adverts and Promotions will cost – $5,000
- Miscellaneous – $5000
Going by the report from the market research and feasibility studies conducted, we will need about one hundred and fifty thousand (150,000) U.S. dollars to successfully set up a medium scale but standard modeling agency in the United States of America.
Generating Startup Capital for Whitney Clarkson™ Modeling Agency, Inc.
Whitney Clarkson™ Modeling Agency, Inc. will be owned, financed and managed by Whitney Clarkson and his immediate family members. They are the only financiers of the business which is why they decided to restrict the sourcing of the startup capital for the business to just three major sources.
- Generate part of the startup capital from personal savings and sale of his stocks
- Generate part of the startup capital from friends and other extended family members
- Generate a larger chunk of the startup capital from the bank (loan facility).
N.B: We have been able to generate about $50,000 (Personal savings $35,000 and soft loan from family members $15,000) and we are at the final stages of obtaining a loan facility of $100,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
14. Sustainability and Expansion Strategy
It is an established fact that, the future of a business lies in the number of loyal customers that they have, the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business close shop.
One of our major goals of starting Whitney Clarkson™ Modeling Agency, Inc. is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to offer our modeling agency services and other related advisory and consulting services a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.
Whitney Clarkson™ Modeling Agency, Inc. will make sure that the right foundation, structures and standard operating processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner of our business strategy.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of five years or more as determined by the board of the organization. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
- Business Name Availability Check: Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Securing a standard office facility in a good location in Los Angeles – California: Completed
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Conducting Feasibility Studies: Completed
- Generating part of the startup capital from the founders: Completed
- Writing of Business Plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents: In Progress
- Design of Logo for the business: Completed
- Secure trademark for our products: In Progress
- Printing of Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of the needed cameras and accessories, furniture, office equipment, software applications, electronic appliances and facility facelift: In progress
- Creating Official Website for the business: In Progress
- Creating Awareness for the business: In Progress
- Health and Safety and Fire Safety Arrangement: In Progress
- Establishing business relationship with vendors and key players in various industries: In Progress