How to Start a Branding Agency Business

Part 1 - How to start a Branding Agency business - Background

A branding agency assists businesses in developing their public image. They design logos, craft slogans, and develop marketing strategies, all with one primary goal in mind – to develop a consistent voice and image that attracts their target demographic. Through creative branding, consumers gain critical knowledge regarding the organization’s mission and core values.

Our guide is in 3 parts:

• Part 1 - How to start a Branding Agency business - Background
• Part 2 - Our planner tool to see if this idea is the right fit for you
• Part 3 - Action plan to get started

What are the costs involved in opening a branding agency business?

As a branding agency, clients are looking to you to help bring their message to the public. Therefore, YOUR brand will play an integral role in building your portfolio. Start-up business owners will need to invest in office space, computers, software, and other creative tools that will help deliver results. Additional start-up costs incurred include office furniture and fixtures, utilities and internet, payroll, and insurance.

What are the ongoing expenses for a branding agency business?

Owners who operate conservatively have an opportunity to generate significant revenue without incurring high ongoing expenses. The following should be considered when developing a budget: 

• Rent and utilities 

• License renewals

• Equipment maintenance

• Investment in the latest technology 

• Website and marketing costs 

• Networking expenses, including travel and client lunches

• Employee salaries

Who is the target market?

In a broad sense, your target market is any new and/or existing business that needs your expertise in developing their brand. To ensure success, however, you will need to carve out a niche for yourself, taking on clients that you identify with in some way. Most branding agencies are hired by small to medium-sized businesses. With a pool of over 30 million to choose from, there are more than enough prospects to build a successful agency. 

How does a branding agency business make money?

Branding agencies generate revenue through the services they offer their clients. Some agencies charge a flat fee based on the scope of the project, while others bill an hourly rate. 

How much can you charge customers?

As previously mentioned, some agencies work on a fee-based schedule, others bill by the hour. Fee-based projects are typically more attractive for the customer, as it allows them to budget accordingly. Business owners opting for this approach are encouraged to carefully consider hours spent and overhead costs to ensure they don’t underbid for a project. 

How much profit can a branding agency business make?

With minimal overhead costs, well-managed agencies have the potential to turn a significant monthly profit. If you work with thirteen clients and charge an average of $2,500 per month, your agency will generate over $32,000 a month (before expenses.) 

How can you make your business more profitable?

Once you have developed a name for yourself, you will want to consider expanding your team and the services you offer. For example, some branding agencies host events for their clients, ensuring the organization’s brand remains consistent in everything they do.

Day-to-Day and Growth

What happens during a typical day at a branding agency business?

While every agency operates a little differently, there are a number of tasks that will remain consistent. These duties include: 

• Marketing and networking to gain new agency clients

• Developing pitches to prospective customers and upselling to current clients 

• Meeting with clients to gain an understanding of their branding needs

• Travel for client meetings and conventions

• Researching to identify client target demographics and their pain points consider defining the term “pain points; at first usage. Not all readers may be familiar with this term

• Creative duties, including designing, drawing, and writing

• Administrative duties

What are some skills and experiences that will help you build a successful branding agency business?

While some branding agency owners have found success without a business or marketing background, the skills and knowledge gained from this experience would prove invaluable. Strong interpersonal skills and an innate understanding of the public’s needs and pain points are also excellent skills to possess. Start-up entrepreneurs are encouraged to gain real-world experience before venturing out on their own. 

What is the growth potential for a branding agency business?

According to the Small Business Association (SBA), there are almost 31 million small businesses across the United States. Their success rate relies almost entirely on their brand. Branding agencies who are consistently able to deliver results have significant room for growth, both nationally and internationally. 

What are some insider tips for jump starting a branding agency business?

Most successful agency owners agree that your success starts with your own brand. It is critical that you show the public how your agency stands apart from the rest. How could you persuade a client to invest their hard-earned money into building a brand if you haven’t put the work in for yourself? Also, while it’s tempting to take on every prospective new client that walks through the door, this practice could negatively hurt your image. Selectively taking on clients whose vision and mission align with yours will set you both up for success. 

How and when to build a team

While it is not necessary to start out with hundreds of employees, it is recommended that you develop a well-rounded branding team. Consider your strengths and weaknesses and build a team that fills in the gaps and complements each other. This will help keep those creative juices flowing during brainstorming sessions and broaden your target demographic.

Part 2 - Is a Branding Agency business the right fit for you?

Part 3 - Action plan to launch your Branding Agency business in 90 days