How to Start a Creative Agency And 14 Quick Tips to Lead It to Success
In the contemporary business ecosystem, where visual appeal and creative storytelling wield substantial influence, the demand for proficient graphic designers is on the rise.
If you're passionate about turning concepts into captivating visual narratives, venturing into a graphic design career can be a rewarding path.
This guide provides comprehensive insights and practical tips on how to become a successful graphic designer, exploring the necessary skills, educational avenues, and professional strategies to thrive in this dynamic and visually-driven field.
Whether you're a novice aspiring to enter the graphic design realm or a seasoned professional seeking to refine your craft, this guide is your roadmap to navigating the exciting and ever-evolving world of graphic design.
What is a Creative Agency?
A creative firm uses eye-catching, visually striking materials to assist businesses and entrepreneurs in developing a distinctive brand identity.
Examples include marketing materials, infographics and films, logos, slogans, and educational content for blogs.
An agency may specialise in one or two of those areas (such as graphic design or content writing) or provide a combination of all of those services (and more).
Thus, when researching how to launch a creative firm, don't forget to think about where you want to focus.
The Difference Between a Creative Agency and Other Agencies?
A creative agency differs from other types of agencies in its core focus on delivering innovative and visually compelling solutions across various mediums.
While each agency type serves specific functions, a creative agency stands out for its emphasis on artistic expression, design excellence, and strategic creativity.
Key Distinctions Between a Creative Agency and Other Agencies
Creative Expression
- Prioritizes artistic expression and unique design solutions.
- Focuses on creating visually appealing content and brand experiences.
Other Agencies
- May prioritize functional aspects over artistic expression.
- Emphasizes efficiency and functionality in their services.
Multidisciplinary Approach
Creative Agency
- Typically houses a diverse team with skills in design, copywriting, marketing, and other creative disciplines.
- Offers a comprehensive suite of creative services, often covering branding, advertising, and digital experiences.
Other Agencies
- Specializes in specific functions such as marketing, advertising, public relations, or digital strategy.
- Teams may consist of specialists in their respective fields.
Focus on Branding
Creative Agency
- Plays a pivotal role in shaping and enhancing a brand's visual identity.
- Develops brand guidelines, logos, and other visual elements that contribute to a consistent brand image.
Other Agencies
- While branding may be part of their services, it might not be the primary focus.
- Branding efforts may be integrated into a broader marketing or communication strategy.
Strategic Creativity
Creative Agency
- Blends creativity with strategic thinking to deliver impactful solutions.
- Aligns creative output with broader business goals and objectives.
Other Agencies
- While strategic, the emphasis may lean more towards data-driven decision-making than artistic interpretation.
- Strategies may be more focused on achieving specific marketing or communication objectives.
Client Collaboration
Creative Agency
- Works closely with clients to understand their brand identity and objectives.
- Values client input and collaboration throughout the creative process.
Other Agencies
- Collaborates with clients, but the focus may be more on meeting functional requirements.
- Client collaboration may center on achieving specific campaign or marketing goals.
Creative Agency Organization Chart
The organizational chart of a creative agency typically includes several key departments, each with a distinct role in the creative process. At the top is the executive management, which oversees the agency's direction and strategy.
The strategy and planning department focuses on understanding client needs and market trends to guide the creative process.
Media relations manage interactions with various media channels, ensuring optimal exposure for campaigns.
The marketing team works on promoting the agency and its services, while the digital creation department is responsible for producing digital content.
This structure fosters effective communication and collaboration, enabling the agency to adapt to client needs and maintain a dynamic team culture.
Read More: Mastering Creative Agency Project Management Strategy: A 2023 Guide
14 Quick Tips to Start a Creative Agency
You have found the perfect business idea, and now you are ready to take the next step. There is more to starting a business than just registering it with the state. We have put together this simple guide to starting your creative agency.
These steps will ensure that your new business is well planned out, registered properly, and legally compliant.
Tip 1: Plan your business
A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:
- What are the agency and ongoing costs?
- Who is your target market?
- How much can you charge customers?
- What will you name your business?
Luckily, we have done a lot of this research for you.
What are the costs involved in opening a creative agency?
The money you spend is heavily dependent on the image you want to portray to your clients. Technically, much of the work can be done with laptops, a few co-founders, and a coffee shop.
However, clients will be looking to work with agencies that have a professional look and feel. When holding meetings with clients, it may be helpful to have a dedicated office space.
Should you decide on an office, you'll need a Certificate of Occupancy (CO). The price of this will vary based on where you open.
The CO simply states that the office is safe for those inside and meets building standards, and can be obtained by the landlord should you choose to rent.
What are the ongoing expenses for a creative agency?
Owners should prepare for the following expenses:
- Rent/license renewals
- Office electronics/equipment
- Employee salaries
- Website costs
- New technology investments
- Networking expenses (e.g., client lunches, etc.)
Who is the target market?
The target market of a creative agency is any company that wants to improve its reputation, connect with customers, and boost sales.
Generally (but not always), it’s small to medium businesses that hire creative agencies as they may not have the capital to hire full-time employees. Some creative agencies carve out a niche, such as only taking on food-related clients.
Read More: 13 Essential Tools for Transforming Your Creative Agency's Operating Model
How does a creative agency make money?
Creative agencies may charge for their services with task based project, flat fees based, hourly based, per-project basis etc. Creative agencies may also choose to charge by billable hours, where everyone involved in projects has their hourly rate.
While fee-based projects may be more attractive to clients (because they’ll know immediately how their budget will be affected), billable hours eliminate the chances that the agency will underbid for a project.
How much profit can a creative agency make?
Because you’re not selling a product, you can keep the overhead low. With fifteen clients at an average of $2,000 a month, your agency could be pulling in as much as $25,000 a month (assuming equal profit share.)
How can you make your business more profitable?
Creative agencies can expand by offering advertising services or different marketing services. For example, instead of simply creating the content, creative agencies may want to do public outreach events on behalf of the company.
What will you name your business?
Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Creative Agency Name Generator
If you operate a sole proprietorship, you might want to operate under a business name other than your name.
When registering a business name, we recommend researching your business name by checking the following:
- Your state's business records
- Federal and state trademark records
- Social media platforms
- Web domain availability.
Tip 2: Form a legal entity
The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation.
Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your creative agency is issued. However, such entities, require you to hire a registered agent such as Northwest Registered Agent or LegalZoom to handle legal documents on behalf of your business.
You can start an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.
Tip 3: Register for taxes
You will need to register for a variety of state and federal taxes before you can open for business. To register for taxes you will need to apply for an EIN. It's really easy and free!
Small Business Taxes
Depending on which business structure you choose, you might have different options for how your business will be taxed. For example, some LLCs could benefit from being taxed as an S corporation (S corp).
Tip 4: Open a business bank account & credit card
Using dedicated business banking and credit accounts is essential for personal asset protection.
When your personal and business accounts are mixed, your assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.
Additionally, learning how to build and find your ideal business card with no annual cost can help you get credit cards and another financing in your business's name (instead of yours), better interest rates, higher lines of credit, and more.
Open a business bank account
- This separates your assets from your company's assets, which is necessary for personal asset protection.
- It also makes accounting and tax filing easier.
Open net-30 accounts
When it comes to establishing your business credit, net-30 vendors are considered the way to go.
The term "net-30," which is popular among vendors, refers to a business credit arrangement where the company pays the vendor within 30 days of receiving goods or services.
Net-30 credit terms are often used for businesses that need to obtain inventory quickly but do not have the cash on hand.
Besides establishing business relationships with vendors, net-30 credit accounts get reported to the major business credit bureaus (Dun & Bradstreet, Experian Business, and Equifax Business Credit).
This is how businesses build business credit so they can qualify for credit cards and other lines of credit.
Get a business credit card
- This helps you separate personal and business expenses by putting your business' expenses all in one place.
- It also builds your company's credit history, which can be useful to raise money and investment later on.
Tip 5: Set up business accounting
Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.
Tip 6: Obtain necessary permits and licenses
Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.
State & Local Business Licensing Requirements
Certain state permits and licenses may be needed to operate a creative agency. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.
For information about local licenses and permits
- Check with your town, city, or county clerk’s office
- Get assistance from one of the local associations listed in the US Small Business Associations directory of local business resources.
Services Agreement
Creative agencies should require clients to sign a services agreement before starting a new project.
This agreement should clarify client expectations and minimize the risk of legal disputes by setting out payment terms and conditions, service level expectations, and intellectual property ownership.
Recommended: Rocket Lawyer makes it easy to create a professional service agreement for your creative agency when you sign up for their premium membership.
For $39.95 per month, members receive access to hundreds of legal agreements and on-call attorneys to get complimentary legal advice.
Certificate of Occupancy
A creative agency is generally run out of an office. Businesses operating out of a physical location typically require a Certificate of Occupancy (CO). A CO confirms that all building codes, zoning laws, and government regulations have been met.
If you plan to lease a location:
- It is generally the landlord’s responsibility to obtain a CO.
- Before leasing, confirm that your landlord has or can obtain a valid CO that applies to a creative agency.
- After a major renovation, a new CO often needs to be issued. Suppose your place of business will be renovated before opening. In that case, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.
If you plan to purchase or build a location:
- You will be responsible for obtaining a valid CO from a local government authority.
- Review all building codes and zoning requirements for your business’ location to ensure your creative agency will be in compliance and able to obtain a CO.
Tip 7: Get business insurance
Just as with licenses and permits, your business needs insurance to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.
There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance.
This is the most common coverage that small businesses need, so it’s a great place to start for your business.
Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.
Tip 8: Define your brand
Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.
How to promote & market a creative agency
Advertising an agency generally comes in the form of online ads or even physical flyers. If you’re aiming for businesses around town, you’ll need to establish a local presence by networking at local events.
You’ll need to invest time and money in SEO tactics for more national campaigns to start getting your name out. Until you can generate word-of-mouth business, being seen in search engine searches will be your best way to spark interest.
How to keep customers coming back
Creative agencies should be aiming to give companies a unifying theme when it comes to their marketing techniques. Keep clients coming back by presenting a strategy they can implement in every department.
Aim to increase the client’s revenue by increasing public awareness of their brand amongst their target demographic.
Tip 9: Create your business website
After you define your brand and create a logo, the next step is to create a website for your business.
While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience.
While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that simplify small business owners' lives.
Here are the main reasons why you shouldn’t delay building your website:
- All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
- Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
- Website builder tools like GoDaddy or Dorik AI Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.
Other popular website builders are WordPress, Wix, Weebly, Squarespace, and Shopify. for professional guidance and a more targeted approach, look into lucrative studio, which creates websites for all platforms to give your new business an effective digital presence.
Tip 10: Set up your business phone system
Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.
Many services are available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use.
You can read about our top picks in the Best Business VoIP Providers section of this article.
Phone systems make a small business feel larger and give it an air of legitimacy. Potential customers know that a company with a phone number is serious, but a company with only a Gmail or Skype account does not have its affairs in order.
When it comes to phone systems for small businesses, there is a wide range of price tags with a wide range of features.
Since every business is unique, it's essential to research before selecting a VoIP system. One of the most popular solutions is RingCentral. Make sure to read through this RingCentral pricing guide so weigh in your options before making your final decision.
Tip 11: Set up a dedicated email address for your business
Providing customers with an email address that is separate from your account helps to create a professional image and provides the opportunity to establish accountability by assigning responsibility for customer interactions to specific employees.
It also makes it possible for you and your employees to use different professional email addresses on networking sites like LinkedIn.
The exact steps involved in getting this process started will depend on how your business currently manages its communications; if one person manages all of your company’s emails, then adding a new address that forwards to their existing accounts might be as simple as changing the settings in an email client (i.e., Gmail) or phone system (i.e., Google Voice).
If not, or if you’d prefer to manage all of your business’ emails from a single account, then the new address will need to be set up as a “catch-all” address that forwards any message sent to it to an existing inbox.
Your new email can then be used on social media sites like LinkedIn or Twitter, and provide customers with the ability to contact you directly through portals that they already use.
To learn more about setting up a dedicated business email address check out our article called How to Set Up a Dedicated Email Address for Your Business.
Read More: Top 6 Marketing and Creative Project Management Tools
Tip 12: Set Up HelpDesk
A helpdesk system is an excellent way for customers to get in touch with you, especially if they need assistance right away.
It also makes it possible to track all your customer requests, manage staff responsibilities more effectively, and transform the process of getting feedback into something positive for both your business and your customers.
Some of the most popular helpdesk systems include FreshDesk, Zendesk, Kayako, Salesforce Desk, GrooveHQ, HelpSpot, Voxie, Authen.it, TeamSupport, Grovo, Uservoice, HelpFlow Cloud, Get Satisfaction Desk, Desk.com, and Zoho Desk.
Tip 13: Set up a blog
Blogging is a great way to grow your business because it allows you to distribute useful content to current and potential customers, engage more directly with them through comments, and increase your efforts.
Some of the most popular blogging platforms include WordPress, Blogger, Tumblr, and LiveJournal.
It's best to use a hosting service specifically for your blog, as this will allow you to control the look and feel of your website more easily.
Additionally, it will allow you to easily set up and share business tools like calendars, document sharing, group discussion forums, and photo albums - for example, for announcements, sales contests , updates and other special events.
You should also consider installing social media plugins on your blog so you can easily share posts with visitors who are registered members of the most popular social media sites - for example: Facebook, Twitter, LinkedIn .
This will make it easier for people to find your business online and will help expand your blog's reach by allowing people to share your content with their friends.
Tip 14: Use video blogs to build trust
Video blogs are becoming more popular every day because they are easier to create than written blogs, can be shared instantly via social media, are highly engaging, and are great for building trust between brands and customers. By exploring corporate video production, you will open a lot of new content opportunities that customers will be interested to watch, to learn more about your brand and work environment.
To create a video blog, all you need is a webcam, a microphone, or even just your mobile phone.
You can then upload the finished videos to YouTube, Vimeo, BlipTV, or another hosting service that allows you to share your content more easily through social networking sites like Facebook and Twitter.
Once you download the files, you can embed them in your blog or website. This will make it easier for visitors to find your videos and share them with their friends.
Additionally, it will help boost your SEO efforts by increasing the number of inbound links – for example, from other webmasters – to your site. For best results, you should try to create as much video content as possible.
Here are some ideas: Product demos and tutorials, how-to guides Video blogs (where you talk directly into the camera).
Webinar Listening sessions - for example, customer interviews, phone surveys, or feedback discussions on the website.
Events - for example, corporate parties and conferences. Training and orientation sessions for new employees.
How ClientVenue Can help you manage your Creative Agency And Lead it to Success
ClientVenue serves as an all-encompassing solution for creative agencies, providing a range of features that contribute to efficient management and lead the agency to success. Here's how ClientVenue can help manage a creative agency effectively:
1. Project Management
- Centralized Dashboard: Access a centralized dashboard to oversee all ongoing projects, tasks, and deadlines.
- Task Allocation: Assign tasks to team members, set priorities, and track project progress seamlessly.
Read More: Top 8 Creative Agency Project Management Software in 2023
2. Team Collaboration
- Collaborative Workspace: Create a collaborative environment by facilitating communication and document sharing among team members.
- Task Dependencies: Manage task dependencies to ensure a smooth workflow and project timeline.
3. Intuitive dashboard
Foster teamwork with an intuitive dashboard and easy-to-use interface. Facilitate communication, enhance collaboration, and keep everyone on the same page.
4. Analytics and Reporting
- Performance Metrics: Utilize analytics tools to measure project performance and identify areas for improvement.
- Profitability Analysis: Assess project profitability and make data-driven decisions for resource allocation.
5. Document Management
- Secure File Repository: Organize and store all creative assets, documents, and contracts in a secure file repository.
- Version Control: Manage version control for design files and track changes throughout the project.
6. Client Onboarding
Create a positive client experience from the start. ClientVenue's onboarding features streamline client interactions, making the process seamless and professional.
7. Client Feedback and Approvals
- Feedback Consolidation: Streamline the feedback process by collecting client comments and revisions in one place.
- Approval Workflow: Set up an efficient approval workflow to ensure timely client sign-offs.
Read More: The 8 Best CRM for Creatives To Manage Their Work
8. Client Database
- Comprehensive Profiles: Maintain detailed client profiles, including contact information, project history, and preferences.
- CRM Integration: Integrate with CRM tools for effective client relationship management.
9. Invoicing and Billing
Automated Invoicing: Generate and send professional invoices directly through ClientVenue.
Expense Tracking: Monitor project-related expenses and maintain accurate financial records.
Conclusion
In the dynamic landscape of creative agencies, the right tools can make all the difference in transforming visions into successful realities. Enter ClientVenue, the comprehensive solution designed to propel your creative agency to new heights of efficiency and success.
With many features tailored specifically for creative agencies, ClientVenue stands out as the go-to platform for streamlining your workflow, enhancing collaboration, and ensuring that your projects meet and exceed client expectations.
From intuitive project management to seamless communication channels and robust collaboration tools, ClientVenue is crafted to empower creative agencies to unleash their full potential.
Imagine a platform that effortlessly integrates project timelines, client feedback, and resource management, allowing you to focus on what you do best – creativity.
ClientVenue's user-friendly interface, coupled with powerful functionalities, positions it as the catalyst for elevating your agency's performance.
In the quest to start and lead a successful creative agency, the choice of tools is pivotal. ClientVenue emerges not just as a tool but as a strategic partner, aligning seamlessly with the unique challenges and aspirations of creative agencies.
As you embark on building and leading a creative agency to unprecedented success, let ClientVenue be your guiding force, turning every project into a masterpiece and ensuring your agency's ascent to unparalleled creative heights.