9 Things To Consider When Starting an Agency

In simple terms, an agency is a team of experts that businesses hire. Why? Because sometimes they need skills they don't have. Agencies bring new ideas and skills to help their clients grow and succeed.

Agencies offer lots of different services. Here are a few examples:

• Marketing Agencies: They help businesses with marketing plans, social media, branding, and getting leads.
• Digital Marketing Agencies: They focus on online marketing like search engine optimization (SEO), pay-per-click advertising (PPC), content marketing, and website design.
• Creative Agencies: They handle things like graphic design, ad campaign development, video production, and brand identity creation.
• Public Relations (PR) Agencies: They help businesses connect with the media, manage their brand, and write press releases.
• Web Development Agencies: They design, build, and maintain websites and web apps.
• Influencer Marketing Agencies: They connect businesses with influencers to promote products and services on social media.

Agencies can specialize in one area or offer a wide range of services. It all depends on what their clients need.

The cost to start an agency can vary. It depends on what type of agency you want to start and your plans and goals. Starting a small specialized agency will likely cost less than starting a big, full-service marketing agency.

But, you should plan to spend a few thousand dollars to get your agency going. This will cover things like legal fees, software subscriptions, website development, and initial marketing efforts. 

Starting an agency isn't about luck. It's about planning. These simple steps will turn your dream into reality.

Your focus is what sets you apart. It's what you're really good at and passionate about. This will make it easier to market your agency. Clients trust experts, not jacks-of-all-trades. Start by finding what you're really good at. Then, see if there's a demand for it.

Don't be afraid to get specific. Instead of a “digital marketing agency,” how about SEO for online shops or social media for healthcare? The more specific you are, the easier it is to stand out.

Your business plan is your road map. It helps you see where you're going. Here are some key things that you should include:

• Executive Summary: This is a brief overview of your business idea, your market, and what sets you apart.
• Market Analysis: Who are your competitors? What's happening in your industry? What does your niche need?
• Services Offered: Be specific. Don't just say “marketing.” List out things like website design, SEO, content creation, etc.
• Pricing Model: How will you charge? By the hour, by the project, or on retainer? Look at how others in your niche price their services.
• Marketing and Sales Strategy: How will you find and attract clients? List the tactics you’ll use.
• Financial Projections: Estimate your revenues and expenses. Project your profit margins.

A good business plan helps you spot potential problems before they happen and make good decisions sooner rather than later. 

The right legal structure protects you and your business. Here are some common options:

• Sole Proprietorship: This is the simplest and cheapest, but offers no liability protection. Your personal assets could be at risk.
• LLC (Limited Liability Company): A popular choice for small businesses. An LLC separates your personal and business assets. It's a bit more paperwork, but usually worth it.
• Corporation: This is usually for larger businesses. It offers the strongest protection, but can involve more taxes and complex paperwork

Remember, rules vary by location. So, research the process for setting up a business in your area.

You'll need to choose a business name, decide on a structure, file paperwork, get an EIN from the IRS, and get any required licenses.

It's a good idea to talk to a lawyer or accountant. They can help you choose the best structure and handle tax issues.

The permits and licenses you need will depend on where you are and what services you offer. For example, a web design agency might need different permits than a marketing agency that advertises alcohol.

Do your homework. Check with your local government (city, county, state) to make sure you're following all the rules. A good place to start is often your city or state's business development website. Don't skip this step. Operating without the right licenses can lead to big fines or even shut down your business.

Your brand is so much more than just a logo or colors. It's the personality and promise that you show the world. A strong brand helps you attract the right clients, stand out from the crowd, and build loyalty.

Here's how to create a great brand:

• Define Your Values: What does your agency stand for? Are you all about innovative ideas, personalized service, or getting results? Let your values shine in your messaging.
• Understand Your Target Audience: Who are your dream clients? Shape your brand image, voice, and services to match their needs and likes.
• Develop a Visual Identity: Your logo, website design, and marketing materials should be consistent and memorable. You might want to work with a designer.
• Tell Your Story: Share your agency's journey, successes, and even challenges. This helps you connect with potential clients on a personal level.

Armed with a strong brand, you're ready to make a great first impression. But that’s only the first step. Read on to learn more about how you can put your brand to work and establish an online presence, a key step for starting an agency from home. 

Your website is where potential clients go to see your work and decide if you're the right fit. Social media is where you connect with your audience, show your personality, and build relationships. Here's how to set up your online presence:

Your Website

Think of it as your online home. It should be professional, easy to use, and show off your brand. Don't just tell people what you do, show them.

Show off your best work (case studies or a portfolio), make it easy for people to get in touch, and include testimonials to build trust. You can use platforms like WordPress or Squarespace to get started quickly.

Social Media

Pick 2 to 3 platforms where your ideal clients hang out (like LinkedIn for B2B or Instagram for creative visuals). Use your brand colors and a sharp logo, and write a compelling "About" section that speaks to your target audience.

It’s also a good idea to attach links to your site and product on your social media pages. For example, on my LinkedIn page, I’ve tied in links to my workshop and newsletter, as well as a link to sign up with Founder OS. 

I also use my LinkedIn to share my experience and expertise as an entrepreneur. Here’s a good example of a post about finding your niche. What does this do? It shows my audience that I know what I’m talking about, and makes them more likely to try my service. 

Stay active — Post a mix of helpful content, industry trends, and behind-the-scenes peeks at your agency. Remember, consistency is key.

Your website and social media are where you start conversations, show off your skills, and invite potential clients into your world. Now here comes the good part.

Starting your own agency can mean doing many jobs at once. But when you get more clients and projects, it's time to strategically grow your team.

• When To Hire: Are you super busy all the time? Are you saying no to projects because you're out of time? Or are you rushing to meet deadlines and the quality is suffering? If you said yes to any of these, you need help. Figure out which jobs you can give to someone else. This way, you can focus on the important stuff — like working with clients and growing your business.
• Employees vs. Freelancers: If you're just starting, having a mix of part-time employees and freelancers can be a good idea. Employees are there all the time for your business, while freelancers bring special skills when you need them. This also helps you control your budget. Think about whether the work is ongoing (better for employees) or project-based (great for freelancers).

When you have a great team, you can do more work and make your clients happy. But there's more. Now, let's talk about how to show off your skills and get your dream clients.

Don't be a "hidden gem." A smart marketing plan will make sure the right people notice your agency. Like any successful business, your marketing plan needs a guide. Decide who your target audience is, how much you want to spend, and which channels you'll use to reach possible clients. And don't forget to set goals that you can measure.

Here are some marketing channels to think about:

• Content Marketing: Regular blog posts, case studies, and industry insights can show you're an expert and bring in organic traffic from search engines.
• Networking: Go to industry events, both online and in-person, to meet potential clients and make connections. Don't overlook the power of referrals.
• Paid Advertising: Use platforms like Google Ads and targeted social media campaigns to reach specific audiences
• Partnerships: Work with businesses that complement yours to promote your services and reach new markets.

With a strong marketing strategy, your agency will be seen and attract the right leads. We’re near the end, but we can’t stop here. Read on to discover the final step and learn how to close deals and build a list of happy clients. 

Attracting clients is key to your agency's success. Here are some ways to get those first projects and start building a solid list of clients:

• Use your Network: Reach out to old workmates, business contacts, and even friends and family. Let them know about your new business — you never know who might need your help or have a great referral. 
• Online Marketplaces: Think about using freelancer platforms like Upwork or Fiverr for initial projects to build your portfolio and client feedback. But don't rely on them too much in the long run, as it might limit how much you can earn. 
• Cold Outreach: This needs a little research, but sending direct emails or LinkedIn messages to targeted businesses can work. Make your approach personal, show how your services solve their needs, and show off your past work. 
• Pitching Like a Pro: When potential clients are interested, a great pitch is key. Research the company well, make your presentation personal, and highlight the value you offer, not just a list of features.

Always have clear contracts that outline project details, timelines, and pricing. Good communication and going above and beyond will lead to more work and stronger client relationships. 
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Conclusion

Starting your own agency is an exciting journey. Yes, it takes careful planning: finding your niche, creating a strong brand, building your online presence, and getting those dream clients. It sets the stage for success.

Being your own boss isn’t always easy. But the fun part is facing the challenges, always learning, and seeing your dream come to life. The rewards of running a successful agency — freedom, making a difference, doing what you love — make it all worth it.

If you're ready to reach for the stars and aim for that $5M milestone, Founder OS is here to help. Think of it as your success toolkit: a supportive community, expert advice, proven strategies — everything you need to grow your agency with confidence. With my Founder OS newsletter, I’m giving you three practical tips for growth every Saturday. In just 19 months, I built myself 1.6 million followers across social platforms. And you can too.

Ready to write your success story? Start by signing up for our free Vision Board System, or check out our Newsletter OS and discover the power of creating a money-making newsletter. Let's turn those big dreams into reality.