Digital Advertising Agency Business Plan Template

Written by Dave Lavinsky

Digital Advertising Agency Business Plan Template
Table of Contents
Table of Contents

If you’re looking to create a digital advertising agency business plan, you’ve come to the right place!

Over the past 25 years, the PlanPros team has helped over 1 million entrepreneurs and business owners write business plans….and many of them have started and grown successful digital advertising agency businesses. Below is an example of a business plan for a digital advertising agency business.

Digital Advertising Agency Business Plan Example

Below is our digital advertising agency business plan template and sample plan created using our ai business plan generator:
 

I. Executive Summary

Company Overview

AdWave Digital is a forward-thinking digital advertising agency based in the vibrant city of Ann Arbor, MI. We specialize in offering a wide range of digital advertising solutions tailored to meet the specific needs of small and medium-sized businesses. Our mission is to help our clients maximize their online presence and engagement with potential customers through innovative and effective digital advertising strategies. Our comprehensive services include search engine optimization (SEO), pay-per-click (PPC) advertising, content marketing, social media marketing, and email marketing. By leveraging the latest technologies and creative approaches, we aim to set our clients apart from their competition and drive their business success.

Success Factors

Our success is anchored in our ability to deliver customized digital advertising solutions that resonate with our clients’ unique needs and objectives. Key factors contributing to our accomplishments include a deep understanding of the digital advertising landscape, a commitment to using data-driven strategies, and a team of experienced professionals dedicated to achieving exceptional results. To date, we have established a strong track record of success, evidenced by our growing client base and positive feedback from businesses we have helped to thrive in competitive markets. Our ongoing investment in professional development and technology ensures we remain at the forefront of industry advancements, further solidifying our position as leaders in the digital advertising space.

Industry Analysis

The digital advertising industry is experiencing rapid growth and constant evolution, driven by increasing internet usage and technological advancements. This growth is creating a highly competitive landscape, where businesses must employ innovative and effective advertising strategies to capture attention and convert leads. The rise of social media platforms and mobile devices has opened new avenues for targeted advertising, making it crucial for companies like AdWave Digital to stay abreast of the latest trends and technologies. As businesses continue to allocate more of their marketing budgets to digital channels, the demand for specialized services like ours is expected to increase, providing significant growth opportunities for AdWave Digital in Ann Arbor and beyond.

Customer Analysis

We target small and medium-sized businesses in Ann Arbor, MI, a city known for its vibrant local market and competitive business environment. Our services are designed to meet the unique needs of these businesses, enabling them to enhance their online presence and effectively engage with their target audience. Local restaurants and cafes form a significant portion of our client base, benefiting from our targeted digital campaigns that emphasize their unique offerings and promotions. Additionally, we cater to the educational sector, including local colleges and universities, by providing specialized services that help them promote their programs and achievements to a wider audience. Understanding the diverse needs of these sectors allows us to tailor our solutions, ensuring maximum impact and client satisfaction.

Competitive Analysis

Our top competitors include established digital advertising firms within the Ann Arbor area and beyond. However, AdWave Digital sets itself apart through our highly customized approach, deep local market understanding, and commitment to leveraging the latest digital advertising technologies and strategies. Our competitive advantages lie in our ability to deliver measurable results, our dedication to client success, and our agile approach that allows us to adapt quickly to industry changes and client needs. By focusing on these strengths, we are well-positioned to outperform our competitors and become the preferred digital advertising partner for businesses in our target markets.

Marketing Plan

At AdWave Digital, our marketing plan is centered around a comprehensive suite of digital advertising services, including SEO, PPC, content marketing, social media marketing, and email marketing, all offered at competitive pricing. Our promotional strategy is multi-faceted, leveraging online marketing techniques to improve visibility and engagement. This includes optimizing our website for search engines, utilizing targeted PPC campaigns, and producing valuable content to establish our industry authority. Social media and email marketing will enable us to connect with our audience on a more personal level, while networking events and workshops will help us engage with the local business community directly. Additionally, a referral program will encourage our satisfied clients to spread the word about our services, further expanding our reach and client base.

Operations Plan

Our operations plan focuses on key processes essential for delivering high-quality digital advertising services. This includes ongoing market research to stay ahead of industry trends, client onboarding processes that ensure a clear understanding of client goals, and campaign development and management procedures that are both efficient and effective. Milestones include expanding our client base within the Ann Arbor area, launching targeted services for key sectors such as dining and education, and continuously enhancing our service offerings based on client feedback and technological advancements. Achieving these milestones will be crucial for our growth and success in the competitive digital advertising market.

Management Team

Our management team is comprised of experienced professionals with a passion for digital advertising and a deep understanding of the challenges and opportunities within the industry. Each member brings a unique set of skills and expertise, from strategic planning and creative development to technical implementation and client service. This diversity ensures a well-rounded approach to decision-making and problem-solving, driving our company towards its goals. Our commitment to professional development and staying at the forefront of industry trends further equips our team to lead AdWave Digital to new heights of success.

Financial Plan

AdWave Digital is seeking funding to support our growth objectives, including expanding our service offerings, enhancing our technology infrastructure, and increasing our market presence in Ann Arbor and beyond. The investment will be crucial for us to capitalize on the growing demand for digital advertising services, accelerate our client acquisition efforts, and continue delivering exceptional value to our clients. With this financial backing, we are confident in our ability to achieve our growth goals and establish AdWave Digital as a leading player in the digital advertising industry.

Summary

Below is an overview of our expected financial performance over the next five years:

FY 1 FY 2 FY 3 FY 4 FY 5
Revenues $2,473,311 $2,678,176 $2,900,009 $3,140,218 $3,400,323
Direct Expenses $1,161,553 $1,220,729 $1,282,919 $1,348,278 $1,416,967
Gross Profit $1,311,757 $1,457,446 $1,617,090 $1,791,939 $1,983,355
Gross Profit (%) 53% 54.4% 55.8% 57.1% 58.3%
Other Expenses $97,085 $100,030 $103,065 $106,192 $109,414
EBITDA $1,214,672 $1,357,415 $1,514,024 $1,685,746 $1,873,941
Depreciation $34,000 $34,000 $34,000 $34,000 $34,000
Amortization $0 $0 $0 $0 $0
Interest Expense $30,900 $30,900 $30,900 $30,900 $30,900
Income Tax Expense $402,420 $452,380 $507,193 $567,296 $633,164
Net Income $747,351 $840,135 $941,930 $1,053,550 $1,175,876

 

II. Company Overview

AdWave Digital is a new Digital Advertising Agency serving customers in Ann Arbor, MI. As a local digital advertising agency, we’ve noticed a gap in the market for high-quality digital advertising services. Recognizing this, our mission is to fill this void and offer unparalleled digital marketing solutions to businesses in the area, providing them with the tools they need to thrive in the digital space.

Our array of services is designed to meet the comprehensive needs of our clientele. We specialize in Search Engine Marketing (SEM), a crucial tool for increasing a website’s visibility in search engine results pages. Additionally, we understand the power of social media in today’s market, which is why our Social Media Marketing strategies are tailored to engage and expand your audience. Our expertise also extends to Display and Programmatic Advertising, ensuring your ads reach the right people at the right time. Content Marketing and Search Engine Optimization (SEO) are also key components of our service offerings, aimed at creating valuable, relevant content to attract and retain a clearly defined audience, and improving the quantity and quality of traffic to your website through organic search engine results, respectively.

Based in Ann Arbor, MI, AdWave Digital proudly serves customers within this vibrant community. Our deep understanding of the local market, combined with our global digital marketing insights, positions us uniquely to serve our clients with strategies that are both globally informed and locally nuanced.

Our confidence in our ability to succeed is grounded in several key factors. Firstly, our founder brings invaluable experience from previously running a successful digital advertising agency. This background has imbued our team with a profound understanding of what it takes to succeed in the digital advertising space. Moreover, we stand out from our competition by offering superior digital advertising solutions across a broader range of services. Our commitment to excellence and innovation ensures that we are always a step ahead, ready to leverage the latest trends and technologies to benefit our clients.

Since our inception on January 6, 2024, AdWave Digital has taken significant strides as a business. We are officially registered as an S Corporation, a testament to our professional and strategic approach to our business structure. Among our accomplishments, we take pride in having designed our distinctive logo, developed our memorable company name, and secured a prime location for our operations. These achievements not only mark the beginning of our journey but also lay a solid foundation for our future endeavors.

 

III. Industry Analysis

The Digital Advertising Agency industry in the United States is currently valued at approximately $50 billion. This market size is expected to continue growing at a steady rate, with a projected annual growth rate of 10% over the next five years. This growth can be attributed to the increasing shift towards online advertising and the rise of digital platforms as the primary medium for reaching target audiences.

One of the key trends in the Digital Advertising Agency industry is the growing demand for personalized and targeted advertising campaigns. Advertisers are increasingly looking for agencies that can help them reach their specific target audience in a more effective and efficient manner. This trend bodes well for AdWave Digital, as the agency specializes in creating customized digital advertising strategies tailored to the unique needs of businesses in Ann Arbor, MI.

Another trend in the industry is the increasing use of data analytics and AI technology to optimize advertising campaigns and maximize ROI. AdWave Digital is well positioned to capitalize on this trend, as the agency leverages cutting-edge data analytics tools and AI technology to track and analyze campaign performance in real-time. This allows the agency to make data-driven decisions and continuously refine advertising strategies for optimal results.

 

IV. Customer Analysis

Below is a description of our target customers and their core needs.

Target Customers

We will target small and medium-sized businesses operating within the vibrant city of Ann Arbor, MI. These businesses are constantly seeking innovative ways to reach their local audience and stand out in a competitive market. Our services will tailor to their unique needs, offering them the digital advertising solutions that will maximize their online presence and engagement with potential customers.

Local restaurants and cafes will also form a significant part of our client base. Ann Arbor’s dining scene is eclectic and competitive, requiring establishments to employ creative marketing strategies to attract and retain customers. We will provide targeted digital advertising campaigns that highlight their unique offerings, special events, and promotions to draw in both new and returning patrons.

Moreover, we will target the educational sector, including colleges and universities in Ann Arbor. These institutions often look for ways to promote their programs, events, and achievements to a broader audience. We will offer specialized digital advertising services that cater to the educational sector’s needs, helping them reach prospective students, faculty, and the community effectively.

Customer Needs

AdWave Digital meets the critical need for high-quality digital advertising, catering to residents who demand excellence in their online marketing campaigns. Clients can expect innovative solutions that not only resonate with their target audience but also set them apart from the competition. This focus on quality ensures that every campaign is crafted with precision, leveraging the latest trends and technologies.

In today’s fast-paced digital world, businesses require advertising partners who understand the importance of staying ahead of the curve. AdWave Digital fulfills this need by providing cutting-edge strategies and tools that enable clients to capture the attention of their digital audience effectively. Our clients have access to a suite of services that are designed to maximize their online presence and drive meaningful engagement.

Moreover, AdWave Digital recognizes the necessity for personalized advertising strategies that align with each client’s unique brand identity and goals. Our team works closely with clients to develop customized plans that reflect their specific needs and objectives. By doing so, we ensure that every campaign not only reaches but also exceeds the expectations of our clients, delivering measurable results and a significant return on investment.

 

V. Competitive Analysis

Direct Competitors

AdWave Digital’s competitors include the following companies:

JCM Media Group offers a comprehensive suite of digital marketing services, including SEO, PPC, web design, and social media management. Their price points vary depending on the scope and scale of the project, aimed at providing customized solutions for businesses of all sizes. They generate revenue through project-based fees and ongoing service contracts, catering to clients primarily in the Michigan area and beyond. JCM Media Group operates out of Ann Arbor, MI, serving a diverse customer segment from small local businesses to larger corporations. Their key strength lies in their personalized approach and local market expertise. However, their focus on the Michigan area might limit their appeal to clients seeking more national or global reach.

Fivenson Studios specializes in branding, graphic design, and web development. Their services are tailored to meet the needs of small to medium-sized businesses, with price points designed to be affordable for this segment. Revenues for Fivenson Studios come from both one-time projects and ongoing maintenance agreements. Located in Ann Arbor, MI, they serve customers both locally and across the United States, leveraging a strong portfolio in design and development. Fivenson Studios’ strength is in their creative capabilities and customer service. A potential weakness is the competitive digital advertising space, which requires continuous innovation to stay ahead.

Pure Visibility offers digital marketing services focused on SEO, PPC, and analytics. Their pricing model is based on the complexity of the campaign and the desired outcomes, targeting mid to large-sized businesses. The company generates revenue through a mix of retainer-based consulting services and performance-based pricing. Pure Visibility is based in Ann Arbor, MI but serves clients globally, with a strong emphasis on data-driven strategies and measurable results. Their key strengths include a deep expertise in analytics and a results-oriented approach. However, their focus on larger clients might limit their accessibility to smaller businesses looking for digital advertising services.

Competitive Advantages

At AdWave Digital, we pride ourselves on delivering unparalleled digital advertising services that set us apart from the competition. Our approach to digital marketing is not only innovative but also tailored to meet the unique needs of each of our clients. We understand the dynamic nature of the digital world and, as such, offer a comprehensive suite of advertisement services designed to capture the essence of our clients’ brands and engage their target audiences effectively. Our team of experts leverages the latest tools and technologies to ensure that our campaigns are not only creative but also result-driven, ensuring maximum visibility and engagement for our clients’ brands.

Furthermore, our competitive edge is significantly sharpened by our commitment to delivering better digital advertisements. We invest in cutting-edge research and development to stay ahead of industry trends, enabling us to craft advertising solutions that not only resonate with our audience but also outperform those of our competitors. This dedication to excellence and innovation allows us to offer a diverse range of advertising services, from social media marketing and SEO to pay-per-click advertising and email marketing campaigns. By prioritizing the needs of our clients and focusing on delivering measurable results, we not only meet but exceed expectations, establishing ourselves as a leader in the digital advertising space in Ann Arbor and beyond.

 

VI. Marketing Plan

Our marketing plan, included below, details our products/services, pricing and promotions plan.

Products, Services & Pricing

AdWave Digital emerges as a versatile player in the digital advertising space, offering a comprehensive suite of services designed to meet the diverse needs of its clientele. At the heart of its offerings is Search Engine Marketing (SEM), a crucial tool for businesses aiming to increase their visibility online and drive targeted traffic to their websites. Clients can expect to invest an average of $1,200 per month for SEM services, which includes campaign setup, management, and optimization to ensure the best possible return on investment.

Social Media Marketing stands as another pillar of AdWave Digital’s strategy, enabling businesses to tap into the vast audiences present on platforms like Facebook, Instagram, Twitter, and LinkedIn. With an average cost of $1,000 per month, clients can anticipate tailored campaigns that not only enhance their brand’s presence but also foster engagement and community building among their target demographic.

Display and Programmatic Advertising are integral to AdWave Digital’s approach, offering clients sophisticated solutions to reach potential customers through visually appealing ads across a wide array of websites and digital platforms. This service, priced at around $1,500 per month, leverages cutting-edge technology to place ads in the most impactful spaces, ensuring maximum visibility and engagement for the client’s brand.

Content Marketing is recognized for its ability to build brand authority and connect with audiences through compelling storytelling and valuable information. AdWave Digital crafts bespoke content strategies that align with clients’ brand values and goals, with services starting from $2,000 per month. This investment goes towards the creation of high-quality, SEO-friendly content designed to attract and retain a clearly defined audience.

Lastly, Search Engine Optimization (SEO) is a vital service offered by AdWave Digital, aimed at improving a website’s organic search rankings and overall visibility. For an average price of $1,000 per month, clients can expect comprehensive SEO strategies that include keyword research, on-page optimization, link building, and regular performance reporting. This ensures that clients’ websites are not only visible but also highly relevant to their target audiences.

AdWave Digital’s diverse range of services and competitive pricing structure positions it as a go-to digital advertising agency for businesses looking to make a significant impact online. Through a combination of strategic planning, creative execution, and continuous optimization, AdWave Digital helps its clients achieve their marketing objectives and drive sustainable growth.

Promotions Plan

At AdWave Digital, we understand the importance of a strong promotional strategy to attract customers and establish a robust presence in the digital advertising landscape. Our approach encompasses a variety of promotional methods, each tailored to meet the unique needs of our clients in Ann Arbor, MI, and beyond.

Online marketing stands at the core of our promotional efforts. We will leverage search engine optimization (SEO) to ensure our services rank highly on search engines, making it easier for potential clients to find us. Pay-per-click (PPC) advertising will also play a crucial role in our strategy, allowing us to target specific demographics with precision and efficiency. Additionally, content marketing will be utilized to establish our expertise in the digital advertising field, providing valuable insights and information through blog posts, whitepapers, and case studies.

Social media marketing is another pillar of our promotional strategy. We will actively engage with our audience on platforms where our target clients are most active, including LinkedIn, Facebook, Instagram, and Twitter. Through regular updates, engaging content, and interactive campaigns, we aim to build a community around our brand and foster strong relationships with our clients.

Email marketing will complement our online efforts, enabling us to reach out directly to potential and existing clients with personalized offers, news, and updates about our services. By segmenting our email list, we will ensure that our messages are relevant and valuable to each recipient, thereby increasing engagement and conversion rates.

Networking events and local workshops will also form an integral part of our promotional strategy. By participating in and hosting events within the Ann Arbor area, we will establish ourselves as an active member of the local business community. This face-to-face engagement will not only help in building trust but also in understanding the specific needs of businesses in our locality, allowing us to tailor our services accordingly.

Lastly, we will implement a referral program that incentivizes our existing clients to refer new business to us. This approach will leverage the satisfaction of our current client base to drive growth and build our reputation in the market.

By combining these promotional methods, AdWave Digital is set to attract a wide range of clients, from startups looking for cost-effective digital advertising solutions to established businesses aiming to enhance their online presence. We are committed to delivering exceptional service and innovative solutions that meet the evolving needs of our clients in the digital age.

 

VII. Operations Plan

Our Operations Plan details:

  1. The key day-to-day processes that our business performs to serve our customers
  2. The key business milestones that our company expects to accomplish as we grow

 

Key Operational Processes

To ensure the success of AdWave Digital, there are several key day-to-day operational processes that we will perform.

  • Client Consultations: Conduct daily meetings with current and potential clients to understand their advertising needs, objectives, and budget constraints.
  • Market Research: Perform continuous market research to stay updated with the latest digital advertising trends, tools, and platforms that can benefit clients.
  • Campaign Development: Collaborate with the creative team to develop and design advertising campaigns that align with the client’s goals and target audience.
  • Campaign Execution: Execute advertising campaigns across various digital platforms, such as social media, search engines, and email, ensuring they are launched on schedule.
  • Data Analysis: Regularly monitor and analyze the performance of ongoing campaigns using analytics tools to measure their effectiveness and ROI.
  • Client Reporting: Prepare and present detailed reports to clients, highlighting the performance of their campaigns, insights gathered, and recommendations for improvement.
  • Financial Management: Manage invoices, payments, and budgeting for each campaign to ensure profitability and financial health of the agency.
  • Team Meetings: Hold daily briefings with the team to review project statuses, discuss challenges, and brainstorm solutions for enhancing campaign performance.
  • Professional Development: Encourage continuous learning and professional development among team members to keep skills sharp and knowledge up-to-date with industry standards.
  • Customer Service: Provide exceptional customer service, addressing any client concerns or questions promptly to maintain satisfaction and build long-term relationships.
  • Vendor Relations: Maintain good relationships with media vendors, platforms, and other third-party service providers to ensure the best rates and services for clients.
  • Quality Control: Routinely check all campaign materials for accuracy, brand consistency, and compliance with digital advertising standards before launch.

Milestones

AdWave Digital expects to complete the following milestones in the coming months in order to ensure its success:

  • Launch Our Digital Advertising Agency: This includes establishing a legal business entity, setting up business operations (office space, utilities, etc.), and launching marketing efforts to promote our services.
  • Build a Robust Online Presence: Develop a professional website and establish active profiles on key social media platforms tailored to our target market. This is crucial for showcasing our digital advertising capabilities and attracting clients.
  • Secure Initial Client Contracts: Focus on acquiring the first batch of clients by leveraging networking, direct outreach, and digital marketing campaigns. Securing early clients will not only generate initial revenue but also help refine our service offerings based on real-world feedback.
  • Develop a Portfolio of Successful Case Studies: As we start delivering results for our clients, it’s important to document these successes in case studies. This will serve as a powerful tool for demonstrating the value we bring to potential clients, thereby helping in sales and marketing efforts.
  • Reach $15,000/Month in Revenue: This financial milestone is critical for proving the viability of the business model and supporting ongoing operations without the need for external funding. Achieving this milestone will likely require a combination of increasing our client base and upselling additional services to existing clients.
  • Expand Service Offerings: Based on market demand and client feedback, introduce new services that complement our existing digital advertising solutions. This could include social media management, content creation, or SEO services. Expanding our offerings will help increase our market share and revenue.
  • Hire Additional Staff: As the client base grows and operations expand, it will become necessary to hire additional staff to maintain the quality of our services and support further growth. This includes not just digital advertising experts, but also sales, marketing, and administrative personnel.
  • Implement Scalable Processes and Technologies: To support growth and ensure efficient operations, invest in scalable processes and technologies. This includes project management tools, CRM systems, and automation technologies that enable us to deliver consistent, high-quality services as we scale.
  • Establish Strategic Partnerships: Form partnerships with complementary businesses, such as web design firms or marketing consultancies. These partnerships can help extend our reach, offer integrated solutions to clients, and drive additional revenue streams. Achieving these milestones will not only mitigate risks but also position AdWave Digital as a leading digital advertising agency in Ann Arbor, MI, and beyond.

 

VIII. Management Team

Our management team has the experience and expertise to successfully execute on our business plan.

Management Team Members

AdWave Digital management team, which includes the following members, has the experience and expertise to successfully execute on our business plan:

Amira Patel, President

With a robust background in the digital advertising sphere, Amira Patel stands as a beacon of success and innovation within AdWave Digital. Before ascending to the helm as President, Patel carved a niche for herself by spearheading a digital advertising agency, steering it towards unprecedented success. Her journey is marked by a relentless pursuit of excellence and a deep understanding of the digital landscape. This experience not only honed her skills in strategic planning and execution but also ingrained in her the importance of adaptive leadership in the ever-evolving digital market. Patel’s adeptness at navigating the digital advertising world, combined with her proven track record, positions her uniquely to guide AdWave Digital towards achieving lasting success in the competitive industry.

 

IX. Financial Plan

Summary

Below is an overview of our expected financial performance over the next five years:

FY 1 FY 2 FY 3 FY 4 FY 5
Revenues $2,473,311 $2,678,176 $2,900,009 $3,140,218 $3,400,323
Direct Expenses $1,161,553 $1,220,729 $1,282,919 $1,348,278 $1,416,967
Gross Profit $1,311,757 $1,457,446 $1,617,090 $1,791,939 $1,983,355
Gross Profit (%) 53% 54.4% 55.8% 57.1% 58.3%
Other Expenses $97,085 $100,030 $103,065 $106,192 $109,414
EBITDA $1,214,672 $1,357,415 $1,514,024 $1,685,746 $1,873,941
Depreciation $34,000 $34,000 $34,000 $34,000 $34,000
Amortization $0 $0 $0 $0 $0
Interest Expense $30,900 $30,900 $30,900 $30,900 $30,900
Income Tax Expense $402,420 $452,380 $507,193 $567,296 $633,164
Net Income $747,351 $840,135 $941,930 $1,053,550 $1,175,876

Funding Requirements/Use of Funds

To accomplish our growth goals, AdWave Digital needs $309,000 in funding. Key uses of this funding will be as follows:

Capital Investments
Location Buildout $100,000
Furniture $20,000
Equipment, Machines, and Computers $50,000
Non Capital Investments
Working Capital $50,000
Initial Rent/Lease (3 months) $15,000
Staff Salaries for the First 3 Months $60,000
Initial Marketing and Advertising $10,000
Supplies $2,000
Insurance $2,000

Financial Projections

financial projection digital advertising agency business plan

5 Year Annual Income Statement

FY 1 FY 2 FY 3 FY 4 FY 5
Revenues
Revenues $2,473,311 $2,678,176 $2,900,009 $3,140,218 $3,400,323
Total Revenues $2,473,311 $2,678,176 $2,900,009 $3,140,218 $3,400,323
Direct Costs
Direct Costs $1,161,553 $1,220,729 $1,282,919 $1,348,278 $1,416,967
Total Direct Costs $1,161,553 $1,220,729 $1,282,919 $1,348,278 $1,416,967
GROSS PROFIT $1,311,757 $1,457,446 $1,617,090 $1,791,939 $1,983,355
GROSS PROFIT % 53% 54.4% 55.8% 57.1% 58.3%
Other Expenses
Salaries $72,814 $75,023 $77,299 $79,644 $82,060
Marketing Expenses $6,067 $6,251 $6,441 $6,637 $6,838
Rent/Utility Expenses $6,067 $6,251 $6,441 $6,637 $6,838
Other Expenses $12,135 $12,503 $12,883 $13,274 $13,676
Total Other Expenses $97,085 $100,030 $103,065 $106,192 $109,414
EBITDA $1,214,672 $1,357,415 $1,514,024 $1,685,746 $1,873,941
Depreciation $34,000 $34,000 $34,000 $34,000 $34,000
Amortization $0 $0 $0 $0 $0
EBIT $1,180,672 $1,323,415 $1,480,024 $1,651,746 $1,839,941
Interest Expense $30,900 $30,900 $30,900 $30,900 $30,900
PRETAX INCOME $1,149,772 $1,292,515 $1,449,124 $1,620,846 $1,809,041
Net Operating Loss $0 $0 $0 $0 $0
Use of Net Operating Loss $0 $0 $0 $0 $0
Taxable Income $1,149,772 $1,292,515 $1,449,124 $1,620,846 $1,809,041
Income Tax Expense $402,420 $452,380 $507,193 $567,296 $633,164
NET INCOME $747,351 $840,135 $941,930 $1,053,550 $1,175,876
Net Profit Margin (%) 30.2% 31.4% 32.5% 33.6% 34.6%

5 Year Annual Balance Sheet

FY 1 FY 2 FY 3 FY 4 FY 5
ASSETS
Cash $814,840 $1,676,662 $2,639,087 $3,717,489 $4,602,683
Other Current Assets $212,300 $229,884 $248,926 $261,684 $283,360
Total Current Assets $1,027,140 $1,906,547 $2,888,013 $3,979,174 $4,886,043
Intangible Assets $0 $0 $0 $0 $0
Acc Amortization $0 $0 $0 $0 $0
Net Intangibles $0 $0 $0 $0 $0
Fixed Assets $170,000 $170,000 $170,000 $170,000 $170,000
Accum Depreciation $34,000 $68,000 $102,000 $136,000 $170,000
Net fixed assets $136,000 $102,000 $68,000 $34,000 $0
Preliminary Exp $0 $0 $0 $0 $0
TOTAL ASSETS $1,163,140 $2,008,547 $2,956,013 $4,013,174 $4,886,043
LIABILITIES & EQUITY
Current Liabilities $106,788 $112,060 $117,595 $121,205 $127,198
Debt outstanding $309,000 $309,000 $309,000 $309,000 $0
Total Liabilities $415,788 $421,060 $426,595 $430,205 $127,198
Share Capital $0 $0 $0 $0 $0
Retained earnings $747,351 $1,587,487 $2,529,418 $3,582,968 $4,758,845
Total Equity $747,351 $1,587,487 $2,529,418 $3,582,968 $4,758,845
TOTAL LIABILITIES & EQUITY $1,163,140 $2,008,547 $2,956,013 $4,013,174 $4,886,043

5 Year Annual Cash Flow Statement

FY 1 FY 2 FY 3 FY 4 FY 5
CASH FLOW FROM OPERATIONS
Net Income (Loss) $747,351 $840,135 $941,930 $1,053,550 $1,175,876
Change in Working Capital ($105,511) ($12,313) ($13,506) ($9,148) ($15,682)
Plus Depreciation $34,000 $34,000 $34,000 $34,000 $34,000
Plus Amortization $0 $0 $0 $0 $0
Net Cash Flow from Operations $675,840 $861,822 $962,424 $1,078,402 $1,194,194
CASH FLOW FROM INVESTMENTS
Fixed Assets ($170,000) $0 $0 $0 $0
Intangible Assets $0 $0 $0 $0 $0
Net Cash Flow from Investments ($170,000) $0 $0 $0 $0
CASH FLOW FROM FINANCING
Cash from Equity $0 $0 $0 $0 $0
Cash from Debt financing $309,000 $0 $0 $0 ($309,000)
Net Cash Flow from Financing $309,000 $0 $0 $0 ($309,000)
Net Cash Flow $814,840 $861,822 $962,424 $1,078,402 $885,194
Cash at Beginning of Period $0 $814,840 $1,676,662 $2,639,087 $3,717,489
$814,840 $1,676,662 $2,639,087 $3,717,489 $4,602,683

 

What Is a Digital Advertising Agency Business Plan?

A digital advertising agency business plan is a document that outlines the strategies you have developed to start and/or grow your digital advertising agency business. Among other things, it details information about your industry, customers and competitors to help ensure your company is positioned properly to succeed. Your digital advertising agency business plan also assesses how much funding you will need to grow your business and proves, via your financial forecasts, why the business is viable.
 

Why You Need a Business Plan for your Digital Advertising Agency Business

A business plan is required if you are seeking funding for your digital advertising agency business. Investors and lenders will review your plan to ensure it meets their criteria before providing you with capital. In addition, a digital advertising agency business plan helps you and your team stay focused. It documents the strategies you must follow and gives you financial projections you should strive to achieve and against which you can judge your performance.
 

Digital Advertising Agency Business Plan Template PDF

Download our Digital Advertising Agency Business Plan PDF to help guide you as you create your business plan for your own digital advertising agency business.
 

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