16
Jan

the contacts for firms to want you to come up with ideas for them and how much could you make with a lil firm lets say 6 people also start up cost


Answer:
start up costs about $250K for good equipment, layers and location assuming you dont have to do much to renovate a property - although this is an area I would suggest you do. Your office represents your agency, and if its a boring, grey walled office, then clients will have a hard time hiring you.

Biggest expense of the year will be for your employees, average around $125K for salaries, benefits, etc, so for 6 that will be $750K.

You can bill out on average about $125/hr, or take a commission on advertising spending (go for the fee, guaranteed income), plus mark up various other expenses like printing, photography, etc. Bill back business expenses related to work on the clients (ie long distance phone, courriers, taxis, parking). Other expenses will be rent, insurance, carrying costs on equipment rentals, office costs, etc.

All that is easy. The hard part is finding and convincing clients to hire you for big projects. find them a few ways - look in industry magazines for articles on companies and if they are putting their business up for review, network the crap out of stuff through local trade shows, business associations, board of trades, then start knocking on doors and calling people. Figure out what your USP is (unique selling point) and approach those companies you think can best use your services.

Best thing you can do is ensure you have at least one solid client before starting anything

good luck

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This entry was posted on Wednesday, January 16th, 2008 at 9:53 pm and is filed under Advertising & Marketing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or TrackBack URI from your own site.

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