Digital Marketing Agency Business Plan Example

Digital Marketing
Business
Plan
Original.. Fearless.. Independent..
Prepared By 10200 Bolsa Ave, Westminster, CA, 92683
John Doe [email protected]
(650) 359-3153 https://upmetrics.co

Table of Contents
Executive Summary 4
Introduction 5
Mission Statement 5
Vision Statement 6
Keys to Success 6
Objectives 6
Financial Highlights 7
3 Year profit forecast 7
Chart 7
Business Summary 8
Company Ownership 9
Startup Summary 9
Startup 10
Chart 10
Products and Services 12
Services 13
SWOT Analysis 14
Market Analysis 17
Market Trends 18
Target Market 18
Competitive advantage 19
Strategy 20
Pricing Strategy 21
Payment Options 21
Publicity and Advertising Strategy 21
Sales Forecast 22
Sales Yearly 22
Chart 22
Detailed Sales Forecast 22
Management Plan 24
Personnel Plan 25
Average Salaries 25
Financial Plan 27
Important Assumptions 28
1 / 36
Brake-even Analysis 28
Projected Profit and Loss 29
Profit Yearly 30
Chart 30
Gross Margin Yearly 30
Chart 30
Projected Cash Flow 31
Projected Balance Sheet 33
Business Ratios 34
2 / 36
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1.
Executive Summary
Introduction
Mission Statement
Vision Statement
Keys to Success
Objectives
Financial Highlights

Before you think about how to start a Digital Marketing Agency, you must
create a detailed Digital Marketing Agency business plan. It will not only guide
you in the initial phases of your startup but will also help you later on.
To unlock help try Upmetrics! 
Introduction
Web Spice Consultancy is a U.S based and world-class digital marketing

agency. We have been able to secure a standard and well – positioned office
facility in a central business district in Cape May – New Jersey.
We are a social media marketing company that is set to Tocompete

unlock helpintrythe highly 
Upmetrics!
competitive social media marketing industry not only in the United States
Start Writing here...
Mission Statement
Our mission is to provide professional and highly creative result-oriented digital

marketing services and other related advisory and consulting services that will
assist businesses, individuals, and non-profit organizations in promoting their
brands and reaching out to a wide range of potential customers all over the
globe.

Vision Statement
Our vision is to establish a standard and world-class digital marketing agencies

whose services and brand will not only be accepted in the United States of
America but also in other parts of the world.
Keys to Success
The following keys to success will be observed for the digital marketing agency
business plan in the United States:
Top-quality digital marketing services.

Building trust with clients.
Objectives
To build a well – structured advertising agency that can compete in the highly
competitive advertising agencies in the United States
To maintain professional and technical knowledge by attending educational

To unlock
workshops; reviewing professional publications, establishing help try Upmetrics! 
personal
networks, benchmarking state-of-the-art practices, and participating in

Financial Highlights
The company is seeking $2.5 million of financing to fund the acquisition of

Vihaan Advertising and its initial operations. This funding will cover the
purchase of Vihaan Advertising, marketing, purchase of extra software, and
hardware. Projected revenues for 2021 to 2023 are $200,000, $1.5 million, and
$2.2 million, respectively. Our target is to be the most popular advertisement
3 Year profit forecast
Sales Gross Margin Net Profit
Year1
Year2
Year3
0 2.00k 4.00k 6.00k 8.00k 10.00k 12.00k 14.00k 16.00k
Financial Year Sales Gross Margin Net Profit
Year1 10000 500 6000
Year2 12000 800 8000
Year3 14000 1200 10000

2.
Business Summary
Company Ownership
Startup Summary

Web Spice Consultancy is a U.S based and world-class marketing agency that
will be located in Cape May – New Jersey. We have been able to secure a
standard and well – positioned office facility in a central business district in
Cape May. We are a digital marketing agency that is set to compete in the
highly competitive digital marketing agencies in the United States.
Company Ownership
Web Spice Consultancy is founded by Rooney Wilberforce and his friend and
business partner for many years Festus Holloway. They both graduated from
Illinois Institute of Technology with BSc in Business Administration and they
have a combined experience that revolves around market researching, sales,
unlock help try Upmetrics! 
web designing, graphic designing, corporate branding, Toand advertising and
Startup Summary
Rooney Wilberforce and Festus Holloway will invest equally in the company.
They will also secure a long-term business loan. The following table and chart
show the projected initial start-up costs of Web Spice Consultancy.

Startup
Amount
1.00M
750.00k
500.00k
250.00k
0
Expenses Assets Investment Loans
Category Amount
Expenses 45124
Assets 845411
Investment 124511
Loans 145212
STARTUP AMOUNT
Startup Expenses
Legal $1,000
Stationery etc. $1,000
Brochures $1,000
Advertising $20,000
Expensed Computer Equipment/Software $10,000
Insurance $0
Rent $1,500
Research and Development $0
Other $0
TOTAL STARTUP EXPENSES $34,500
Startup Assets

STARTUP AMOUNT
Cash Required $155,500
Other Current Assets $10,000
Long-term Assets $0
TOTAL ASSETS $165,500
Total Requirements $200,000

3.
Products and
Services

Before starting a digital marketing agency, you must take many things into
consideration such as you must consider what types of digital marketing
services will you be providing to your clients. Deciding your services is
extremely important since it helps you plan other components of your business
so make sure to consider it before you think about howTotounlock
start help
a digital
try Upmetrics! 
marketing agency.
Web Spice Consultancy was established with the aim of maximizing profits in
the Digital Marketing Agencies industry. We want to compete favorably with the
leading digital marketing agencies in the United States of America and the
world which is why we have put in place a competent team that will ensure that
we meet and even surpass our customers’ expectations.
Services
Search engine optimization Banner advertising
 (SEO)

Video advertising Rich media advertising
 
Sponsorship advertising Classifieds/directories
 
Lead generation Mobile messaging/email
 
Digital display advertising Mobile advertising
 
Social media management Other related digital marketing
  advisory and consulting

services

4.
SWOT Analysis

Web Spice Consultancy engaged the services of a core professional in the
area of business consulting and structuring to assist our organization in
building a well – structured digital marketing business that can favorably
compete in the highly competitive digital marketing agencies industry in the
United States and the world at large.

Strengths Weaknesses
Our core strength lies in the power of our As a new digital marketing agency in
team; our workforce. We have a team of Cape May – New Jersey, it might take
creative, result-driven, and highly some time for our organization to break
proficient digital marketing experts, a team into the market and gain acceptance
with excellent qualifications and especially from top profile clients in the
experience in various niche areas in the already saturated and highly competitive
digital marketing agencies industry and digital marketing agencies industry; that is
other related industry. perhaps our major weakness.
Aside from the synergy that exists in our Another weakness is that we may not
carefully selected digital marketing have the required cash to pump into
experts, our services will be measurable, promoting our business especially via
result-driven, and guided by best practices mainstream media (TV, Radio and
in the industry. Newspapers, etc) the way we would want
S to.
W
Opportunities Threats
No doubt, the opportunities available in Just like any other business, one of the
the digital marketing agencies industry is major threats that we are likely going to
massive considering the number of face is an economic downturn. It is a fact
individuals and corporate organizations that an economic downturn affects
with an active presence on the internet purchasing/spending power. Another
and of course the pretty large numbers of threat that may likely confront us is the
people who visit the internet / social media arrival of a digital marketing agency or
platforms on a daily basis and own mobile even a social media marketing company
phones/smartphones and other related in the same location where our target
gadgets. market exists and who may want to adopt
the same Business model as us.
As a standard and world-class digital
marketing agency, we are ready to take
advantage of any opportunity that is
available in the industry.
O T

5.
Market Analysis
Market Trends
Target Market
Competitive advantage

The most important component of an effective Digital Marketing Agency
business plan is its accurate market analysis. If you are starting on a smaller
scale, you can do the market analysis yourself by taking help from this Digital
Marketing Agency business plan sample or other Digital Marketing Agency
business plans available online. To unlock help try Upmetrics! 
Market Trends
No doubt, the Digital Marketing Agencies industry has benefited from the rapid
switch from traditional print advertising to digital advertisements. As more
consumers generate website traffic through the use of smartphones and
tablets, businesses have purchased digital advertising services to build brand
awareness across multiple screens and platforms.
Target Market
Before starting our digital marketing agency, we are certain that there is a wide
range of both corporate and individual clients who cannot successfully run their
businesses without the services and support of a standard digital marketing
agency; a company that can help them reach out to their target market.
In view of that, we have created strategies that will enable us to reach out to

Competitive advantage
Surviving in the business world as a digital marketing agency requires more

than your expertise, knowing how to conduct your business but also how to
network with key people that matters; decision-makers that can decide who will
get a contract or a business deal.
We are quite aware that to be highly competitive in the digital marketing

6.
Strategy
Pricing Strategy
Publicity and Advertising Strategy

After identifying the market demand, market trends, and the potential
customers of the startup, the next step is to define an effective strategy for
attracting those clients. Like marketing analysis, sales strategy is also an
important component of a Digital Marketing Agency business startup and must
be properly planned before you think about starting your Toown digital
unlock marketing
help try Upmetrics! 
agency business.
We are mindful of the fact that there is stiffer competition in the social media
marketing industry; hence we have been able to hire some of the best
marketing experts to handle our sales and marketing.
Our sales and marketing team will be recruited based on To unlock help try
their vast Upmetrics! 
experience
in the digital marketing agencies industry and they will be trained on a regular
Pricing Strategy
At Web Spice Consultancy we will keep the prices of our services below the
average market rate for all of our customers by keeping our overhead low and
by collecting payment in advance from corporate organizations who would hire
our services.
In addition, we will also offer special discounted rates to all our customers at
At Web Spice Consultancy, our payment policy will be all-inclusive because we

are quite aware that different people prefer different payment options as it suits
them. Here are the payment options that we will make available to our clients:
Payment by via bank transfer To unlock help try Upmetrics! 
Payment Options
Start writing here...
Publicity and Advertising Strategy

We have been able to work with our in house brand and publicity consultants to
help us map out publicity and advertising strategies that will help us walk our
way into the heart of our target market. We are set to become the number one
choice for both corporate clients and individual clients in the whole of the
unlock help try Upmetrics! 
United States and beyond which is why we have madeToprovisions for effective
The following is the sales forecast for three years. We have no cost of sales,
as all of our deliverables are electronic, and our labor costs are included in the
Personnel table.
Sales Forecast
Start writing here...
Sales Yearly
Institutions & Organizations Business Owners Online Companies

1.00M
750.00k
500.00k
250.00k
0
Year1 Year2 Year3
Financial Year Institutions & Organizations

… Business Owners Online Companies
Year1 45784 784574 32125
Year2 12451 457844 45125
Year3 32541 124515 45125
Detailed Sales Forecast

Detailed sales forecast data is provided in below table:

Sales Forecast Year 1 Year 2 Year 3
Unit Sales
Flyers & brochures 1,887,030 2,680,320 2,588,240
Billboards, banners & flags 802,370 815,430 823,540
Business & invitation cards 539,320 770,230 1,002,310
Digital advertising 265,450 322,390 393,320
TOTAL UNIT SALES 3,494,170 4,588,370 4,807,410
Unit Prices
Flyers & brochures $140,00 $150,00 $160,00
Billboards, banners & flags $600,00 $800,00 $1 000,00
Business & invitation cards $700,00 $800,00 $900,00
Digital advertising $650,00 $750,00 $850,00
Sales
Flyers & brochures $2,149,800 $2,784,000 $3 383 200
Billboards, banners & flags $120,050 $194,500 $268,500
TOTAL SALES
Direct Unit Costs
Flyers & brochures $0,70 $0,80 $0,90
Direct Cost of Sales
Flyers & brochures $989,300 $1,839,000 $2,679,700
Subtotal Direct Cost of Sales $1,294,100 $1,699,400 $2,104,700

7.
Management Plan
Personnel Plan
Average Salaries

The management plan is also an important component of a Digital Marketing
Agency business plan since it gives you an estimate of the staff required for
your startup as well as the costs incurred on their salaries. So, make sure to
duly consider it before thinking about how to start a Digital Marketing Agency.
The management plan of the Digital Marketing AgencyTo business is try
unlock help as Upmetrics!
follows. 
Rooney Wilberforce will be responsible for tactical elements of the marketing

campaign and Festus Holloway will manage the technical aspects of the
campaign.
To unlock
Web Spice Consultancy is a digital marketing agency that try Upmetrics! 
helpstarting
intends
small in Cape May but hopes to grow big in order to compete favorably with
Personnel Plan
As a matter of fact, a profit-sharing arrangement will be made available to all

our senior management staff and it will be based on their performance for a
period of five years or more as agreed by the board of trustees of the company.
In view of the above, we have decided to hire qualified and competent hands to
occupy the following positions:
Average Salaries
Personnel Plan Year 1 Year 2 Year 3
Accountant $85 000 $95 000 $105 000
Receptionist $45 000 $50 000 $55 000
Creative Director $152 000 $159 000 $166 000
Human Resources and Admin Manager $152 000 $159 000 $166 000
Sales and Marketing Executive $152 000 $159 000 $166 000
Client Service Executive $145 000 $152 000 $159 000
Content Creator / Online Traffic Generator $50 000 $55 000 $60 000
Digital Marketing Specialist $42 000 $45 000 $48 000
Web Designer cum Graphic Artist $42 000 $45 000 $48 000

Personnel Plan Year 1 Year 2 Year 3
Total Salaries $304 000 $318 000 $332 000

8.
Financial Plan
Important Assumptions
Brake-even Analysis
Projected Profit and Loss
Projected Cash Flow
Projected Balance Sheet
Business Ratios

The last component of a Digital Marketing Agency Business plan is an in-depth
financial plan. The financial plan crafts a detailed map of all the expenses
needed for the startup and how these expenses will be met by the earned
profits. It is recommended that you use our financial planning tool for guiding
you through all financial aspects needed to be considered for starting
To unlock a Digital 
help try Upmetrics!
Marketing Agency.
The company is seeking $2.5 million of financing to fund the acquisition of

Vihaan Advertising and its initial operations. This funding will cover the
purchase of Vihaan Advertising, marketing, purchase of extra software, and
hardware.
Important Assumptions
The financial projections of the company are forecast on the basis of the following assumptions. These
assumptions are quite conservative and are expected to show deviation but to a limited level such that
the company’s major financial strategy will not be affected.
Year 1 Year 2 Year 3
Plan Month 1 2 3
Current Interest Rate 10,00% 11,00% 12,00%
Long-term Interest Rate 10,00% 10,00% 10,00%
Tax Rate 26,42% 27,76% 28,12%
Other 0 0 0
Brake-even Analysis
Monthly Units Break-even 5530
Monthly Revenue Break-even $159 740
Assumptions:
Average Per-Unit Revenue $260,87
Average Per-Unit Variable Cost $0,89
Estimated Monthly Fixed Cost $196 410

Projected Profit and Loss
Year 1 Year 2 Year 3
Sales $309 069 $385 934 $462 799
Direct Cost of Sales $15 100 $19 153 $23 206
Other $0 $0 $0
TOTAL COST OF SALES $15 100 $19 153 $23 206
Gross Margin $293 969 $366 781 $439 593
Gross Margin % 94,98% 94,72% 94,46%
Expenses
Payroll $138 036 $162 898 $187 760
Sales and Marketing and Other Expenses $1 850 $2 000 $2 150
Depreciation $2 070 $2 070 $2 070
Leased Equipment $0 $0 $0
Utilities $4 000 $4 250 $4 500
Insurance $1 800 $1 800 $1 800
Rent $6 500 $7 000 $7 500
Payroll Taxes $34 510 $40 726 $46 942
Other $0 $0 $0
Total Operating Expenses $188 766 $220 744 $252 722
Profit Before Interest and Taxes $105 205 $146 040 $186 875
EBITDA $107 275 $148 110 $188 945
Interest Expense $0 $0 $0
Taxes Incurred $26 838 $37 315 $47 792
Net Profit $78 367 $108 725 $139 083
Net Profit/Sales 30,00% 39,32% 48,64%

Profit Yearly
Profit
15.00k
10.00k
5.00k
0
Year1 Year2 Year3
Financial Year Profit
Year1 10000
Year2 12000
Year3 14000
Gross Margin Yearly
Gross Margin
15.00k
10.00k
5.00k
0
Year1 Year2 Year3
Financial Year Gross Margin
Year1 10000
Year2 12000
Year3 14000

Projected Cash Flow
Cash Received Year 1 Year 2 Year 3
Cash from Operations
Cash Sales $40 124 $45 046 $50 068
Cash from Receivables $7 023 $8 610 $9 297
SUBTOTAL CASH FROM OPERATIONS $47 143 $53 651 $59 359
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
SUBTOTAL CASH RECEIVED $47 143 $53 651 $55 359
Expenditures from Operations
Cash Spending $21 647 $24 204 $26 951
Bill Payments $13 539 $15 385 $170 631
SUBTOTAL SPENT ON OPERATIONS $35 296 $39 549 $43 582
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
SUBTOTAL CASH SPENT $35 296 $35 489 $43 882
Net Cash Flow $11 551 $13 167 $15 683

Cash Received Year 1 Year 2 Year 3
Cash Balance $21 823 $22 381 $28 239

Projected Balance Sheet
Assets Year 1 Year 2 Year 3
Current Assets
Cash $184 666 $218 525 $252 384
Accounts Receivable $12 613 $14 493 $16 373
Inventory $2 980 $3 450 $3 920
Other Current Assets $1 000 $1 000 $1 000
TOTAL CURRENT ASSETS $201 259 $237 468 $273 677
Long-term Assets
Long-term Assets $10 000 $10 000 $10 000
Accumulated Depreciation $12 420 $14 490 $16 560
TOTAL LONG-TERM ASSETS $980 $610 $240
TOTAL ASSETS $198 839 $232 978 $267 117
Current Liabilities
Accounts Payable $9 482 $10 792 $12 102
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
SUBTOTAL CURRENT LIABILITIES $9 482 $10 792 $12 102
Long-term Liabilities $0 $0 $0
TOTAL LIABILITIES $9 482 $10 792 $12 102
Paid-in Capital $30 000 $30 000 $30 000
Retained Earnings $48 651 $72 636 $96 621
Earnings $100 709 $119 555 $138 401
TOTAL CAPITAL $189 360 $222 190 $255 020
TOTAL LIABILITIES AND CAPITAL $198 839 $232 978 $267 117
Net Worth $182 060 $226 240 $270 420

Business Ratios
Year 1 Year 2 Year 3 Industry Profile
Sales Growth 4,35% 30,82% 63,29% 4,00%
Percent of Total Assets
Accounts Receivable 5,61% 4,71% 3,81% 9,70%
Inventory 1,85% 1,82% 1,79% 9,80%
Other Current Assets 1,75% 2,02% 2,29% 27,40%
Total Current Assets 138,53% 150,99% 163,45% 54,60%
Long-term Assets -9,47% -21,01% -32,55% 58,40%
TOTAL ASSETS 100,00% 100,00% 100,00% 100,00%
Current Liabilities 4,68% 3,04% 2,76% 27,30%
Long-term Liabilities 0,00% 0,00% 0,00% 25,80%
Total Liabilities 4,68% 3,04% 2,76% 54,10%
NET WORTH 99,32% 101,04% 102,76% 44,90%
Percent of Sales
Sales 100,00% 100,00% 100,00% 100,00%
Gross Margin 94,18% 93,85% 93,52% 0,00%
Selling, General & Administrative Expenses 74,29% 71,83% 69,37% 65,20%
Advertising Expenses 2,06% 1,11% 0,28% 1,40%
Profit Before Interest and Taxes 26,47% 29,30% 32,13% 2,86%
Main Ratios
Current 25,86 29,39 32,92 1,63
Quick 25,4 28,88 32,36 0,84
Total Debt to Total Assets 2,68% 1,04% 0,76% 67,10%
Pre-tax Return on Net Worth 66,83% 71,26% 75,69% 4,40%
Pre-tax Return on Assets 64,88% 69,75% 74,62% 9,00%
Additional Ratios
Net Profit Margin 19,20% 21,16% 23,12% N.A.
Return on Equity 47,79% 50,53% 53,27% N.A.

Year 1 Year 2 Year 3 Industry Profile
Activity Ratios
Accounts Receivable Turnover 4,56 4,56 4,56 N.A.
Collection Days 92 99 106 N.A.
Inventory Turnover 19,7 22,55 25,4 N.A.
Accounts Payable Turnover 14,17 14,67 15,17 N.A.
Payment Days 27 27 27 N.A.
Total Asset Turnover 1,84 1,55 1,26 N.A.
Debt Ratios
Debt to Net Worth 0 -0,02 -0,04 N.A.
Current Liab. to Liab. 1 1 1 N.A.
Liquidity Ratios
Net Working Capital $120 943 $140 664 $160 385 N.A.
Interest Coverage 0 0 0 N.A.
Additional Ratios
Assets to Sales 0,45 0,48 0,51 N.A.
Current Debt/Total Assets 4% 3% 2% N.A.
Acid Test 23,66 27,01 30,36 N.A.
Sales/Net Worth 1,68 1,29 0,9 N.A.
Dividend Payout 0 0 0 N.A.

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Digital Marketing

Original.. Fearless.. Independent..

Prepared By 10200 Bolsa Ave, Westminster, CA, 92683

John Doe [email protected]

(650) 359-3153 https://upmetrics.co

200+ Sample business plans

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Conduct accurate financial projections

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[YEAR ] Bus ines s Plan | D igital Mar k eting 3 / 36

[YEAR ] Bus ines s Plan | D igital Mar k eting 4 / 36

To unlock help try Upmetrics! 

Web Spice Consultancy is a U.S based and world-class digital marketing

We are a social media marketing company that is set to Tocompete

Our mission is to provide professional and highly creative result-oriented digital

Start Writing here...

[YEAR ] Bus ines s Plan | D igital Mar k eting 5 / 36

Our vision is to establish a standard and world-class digital marketing agencies

To unlock help try Upmetrics! 

Start Writing here...

Top-quality digital marketing services.

Start Writing here...

To maintain professional and technical knowledge by attending educational

[YEAR ] Bus ines s Plan | D igital Mar k eting 6 / 36

The company is seeking $2.5 million of financing to fund the acquisition of

Start Writing here...

3 Year profit forecast

Sales Gross Margin Net Profit

0 2.00k 4.00k 6.00k 8.00k 10.00k 12.00k 14.00k 16.00k

Financial Year Sales Gross Margin Net Profit

Year1 10000 500 6000

Year2 12000 800 8000

Year3 14000 1200 10000

[YEAR ] Bus ines s Plan | D igital Mar k eting 7 / 36

[YEAR ] Bus ines s Plan | D igital Mar k eting 8 / 36

Start Writing here...

Start Writing here...

To unlock help try Upmetrics! 

Start Writing here...

[YEAR ] Bus ines s Plan | D igital Mar k eting 9 / 36

Stationery etc. $1,000

Expensed Computer Equipment/Software $10,000

Research and Development $0

TOTAL STARTUP EXPENSES $34,500

[YEAR ] Bus ines s Plan | D igital Mar k eting 10 / 36

Cash Required $155,500

Other Current Assets $10,000

TOTAL ASSETS $165,500

Total Requirements $200,000

[YEAR ] Bus ines s Plan | D igital Mar k eting 11 / 36

[YEAR ] Bus ines s Plan | D igital Mar k eting 12 / 36

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[YEAR ] Bus ines s Plan | D igital Mar k eting 13 / 36

[YEAR ] Bus ines s Plan | D igital Mar k eting 14 / 36

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