How to start your own Advertising Agency?

Start-up cost: $7,000–$20,000

Potential earnings: $35,000–$75,000

Typical fees: $75–$150 per hour, a monthly retainer, or a per-job basis

Advertising: Networking, ads in trade publications, participation in local chamber of commerce, and a Web site that is a true showcase of your company’s talents

Qualifications: Knowledge of design, layout, and typography; writing skills; experience working with businesses on brand and identity development

Equipment needed: Cell phone (with or without hands-free accessories); computer with Internet access and full suite of presentation and design software; high-resolution color printer, scanner; digital camera; fax; copy machine; business cards; letterhead; envelopes

Staff required: No

Hidden costs: Your high-end Web site will defi nitely cost you some money to design and host, but it’s worth its weight in gold for helping you quickly secure a high profi le in the marketplace.

What You Do

You’re probably not going to be doing the Cadillac ads for General Motors in the beginning, but if you are motivated and highly skilled you can build up a home-based ad agency serving clients in a specialized area. To get a foothold, you’ll need to have at least some experience from a larger agency or a list of potential clients who already know you and your work. Your participation in activities such as indoor soccer or squash, etc., could be your lead-in to a small but profi table market. Or you could specialize in one type of store, one product, or a type of service. You will get to know your client organizations well, and you will draw on all of your creativity, both written and graphic. New ways of getting a commercial message out to the public, including targeted e-messaging, high-end Web sites with e-commerce and exciting new brand-building capabilities are revolutionizing the advertising fi eld, so creativity extends into the nature of the business itself as well. Very few businesses can succeed without advertising in one way or another, so your creativity and awareness of market needs has many possible customers. You’ll need to educate your clients about the value of advertising, even when things don’t seem to be going very well for the company. In fact, that’s when they need you the most.

What You Need

High-end computers with the graphics and print-production software now available enable small agencies to produce outstanding ads that once required an entire art department. Setting up this equipment is expensive, though, and could cost from $3,000–$5,000. Bill out between $75–$150 per hour, or determine your rates on a per-job basis that takes into account how much work is actually involved in the project. Many ad agencies also work on monthly retainers of $500 or more; again, look at the workload and the time and expertise involved in each project. For presentations, you might also fi nd a laptop especially helpful, which could cost another $2,000–$3,000.

Keys to Success

Advertising is a rewarding occupation because it relies so heavily on ideas and inspiration, connected directly to business results. Successful ad agency personnel (in this case, you) develop close relationships with their clients. You’ll be serving an area or group that you know about and enjoy, and you’ll be using all of your talents to do so. As a one-man (or one-woman) band, you must be able to do all the facets of the advertising process, from sales to writing, design, and promotion. But remember that it may also be very wise to partner with a good Web design fi rm to add to your portfolio of services without adding a regular, full-time staff . While this is a fun and always challenging business, its one downside is that the pressure never lets up because the competition for clients can be shark-like.