How to Write a Digital Marketing Agency Business Plan in 2023
When you try to find out a thing or two about writing a digital marketing agency business plan, you are bombarded by an endless barrage of more or less annoying acronyms such as SCOMS, SUCUTS, AMBERS or something along those lines -none of the aforementioned are actual business plan acronyms, at least to the author’s knowledge.
In other words, various business gurus are trying to sell you a prepackaged solution that is supposed to work for any company, no matter what it does or how it makes its money.
Like with all prepackaged solutions, the results are, at best, mediocre.
For a digital marketing agency, due to the exceptionally fluid and innovative niche, such an approach is almost guaranteed to fail. Instead, you have to dig in, brew yourself a gigantic pot of coffee, and really get down to it.
Of course, since we are living in the year 2023, there will be some specific things to look out for, too.
1.Who Is It for?
Inexperienced business owners almost invariably ignore the basic and eternal truth of writing a digital marketing agency business plan: focusing on the audience.
For example, you may be coming up with a business plan that will be used mostly for internal purposes. You will be laying out your goals and means to achieve those goals for your employees. You will let them know what is expected of them and what kind of performance will be considered satisfactory. It will also let them know how the company is doing and try to convince them to stay on board.
An internally-oriented business plan is also a great way to understand where you stand realistically, which is often a problem for digital marketing agencies.
Investors and Partners
Another kind of digital marketing agency business plan is aimed at investors and partners. This kind of business plan is intended to reinforce their trust and belief in your digital marketing agency. It goes without saying that this kind of business plan will be finance-heavy, dealing with cold, hard numbers.
Finally, your digital marketing agency business plan may be aimed at your existing and potential customers. It will be a borderline marketing tactic where you will point out all of the amazing things you are planning to accomplish and the tools that you intend to use. It can also be a great way to advertise the wide array of your services and introduce new ones.
For example, if you just started expanding and are now offering digital marketing strategy services, your customer-oriented business plan is the perfect “delivery mechanism” (to borrow from pharmaceutical terminology here) for this announcement.
It should be pointed out that your digital marketing agency business plan should also start introducing certain terms and concepts that will be more effective in the future, such as AI in digital marketing, natural language processing, data analytics, account-based marketing and so on.
There is nothing wrong with being ambitious in your digital marketing agency business plan, especially if it is aimed at investors and potential customers.
2.Know Your Market Very Well
A big part of knowing whether your agency will be successful is understanding your audience. Make sure your plan is clear about the definition of your target market—who will you be selling to and how many other agencies are already selling similar services?
Your ads won’t work if they don’t appeal to what your potential customers want or need. Research and find out as much as possible about the people you want to sell to.
Many business owners fall into the trap of believing that their products or services are “for everyone”— that is, anyone would be interested in or need the products. But even if you define your business as a full-service digital marketing agency that appeals to a broad market of diverse consumers, you need to identify who your ideal consumer is.
3.Numbers. Numbers. Numbers.
Whether you like figures or not, having a thorough understanding of the numbers that impact your business is a crucial component of an agency business plan. It does not matter who the audience for your former digital marketing business plan is, you will have to be excruciatingly precise with your numbers.
When you dig deep enough, a digital marketing agency business plan is never about the words. It is about the numbers.
- How many clients do you have at the moment?
- How many more do you plan on attracting?
- What are you doing to keep your clients?
- How much does your client retention cost?
- How much are you paying your outside partners?
- What kind of growth rate are you expecting?
- How do you plan on selling your services?
- How much will it cost to sell them?
- Are you planning on taking out a new business loan?
- What is your employee turnover rate?
All of this and much, much more has to be backed by numbers.
Simply put, without the numbers backing your claims, no one is going to believe you – not your employees, not your potential investors or partners, not your customers.
If you avoid numbers in your business plan, they will notice it and once they do, the first place they will go to is that you are trying to hide something.
One word of warning – this does not mean you should divulge absolutely everything about your finances. That being said, some transparency with your numbers can go a long way.
4.Focus on People
The people from the subheading above are your people, your employees.
The reason why they are making a feature in an article about a digital marketing agency business plan in 2023 is that 2023 will hopefully finally be the year when digital marketing agency owners and managers realize the value of the people in their employ.
The situation is such that employee loyalties are all but becoming a thing of the past and in an industry such as digital marketing, this is perhaps even more pronounced than in some other, “slower” industries. In addition to this, people are finally talking about the debilitating costs of high employee turnover which occurs when companies do not value the people who work for them.
It is because of all of this that you need to feature your people heavily in your digital marketing company business plan. (Of course, this is especially true if your digital marketing agency business plan is of the internally-oriented kind.)
You should outline all the ways in which you plan on retaining your best people and help them do their jobs better and raise their job titles.
You should write down all of the investments you will make in them and in making your company a better place to work. You should flesh out a clear-cut and results-driven hiring policy, as well as an onboarding one.
Everyone who gets a hold of your plan needs to understand that you are a digital marketing agency that understands the realities of the evolving workplace and that values its employees above everything else.
5.Be Realistic and Honest
Business plans should avoid fluff, be realistic and honest. The biggest mistake entrepreneurs can make when writing a business plan is to be overly optimistic with sales and future cost estimates.
Make sure your business plan demonstrates the compelling reasons why customers need your agency’s services and how you will achieve competitive differentiation in the digital marketing industry. Make the financials realistic, and look at worse-case scenarios so you get a view of what could go wrong and what you would need to do to put things right.
Must-Haves of a Solid Digital Marketing Agency Business Plan
Your business plan is more than just pages of objectives; it’s the embodiment of your vision and commitment to navigating the intricate world of digital marketing. So, this isn’t about just “making it” but about leading, innovating, and setting benchmarks.
If you’re unfamiliar with crafting a business plan or simply want to expedite the process when starting a digital marketing agency, consider leveraging artificial intelligence, editing the outputs and putting them into the final form. We offer prompts designed by ChatGPT-4 that can be utilized with GPT to maximize the advantages of AI in your planning.
1. A Comprehensive Market Analysis
Understanding the nuances of the digital marketing space is essential. Beyond just recognizing industry leaders or listing potential competitors, you should delve deep into identifying market gaps, emerging trends, and potential threats.
Can you identify areas of innovation that haven’t been tapped into yet? What about shifts in consumer behavior due to technological advancements or global events?
By providing detailed market analysis, you’re not only setting your agency up for a proactive approach but also showcasing to stakeholders that your strategies are rooted in research and foresight.
ChatGPT Prompt for Market Analysis:
“Provide a detailed market analysis for the digital marketing industry in 2023, focusing on emerging trends, potential threats, and untapped areas of innovation.”
2. Leveraging AI for Strategic Planning
It’s 2023, and artificial intelligence isn’t just a buzzword—it’s an integral component of any forward-thinking strategy. When building your business plan, illustrate how AI will fit into your operations and service offerings.
You can do this by showcasing how AI-driven insights can refine target audience segments, optimize ad spend, predict emerging consumer trends, or even enhance user experience on digital platforms. Think of AI as more than just a tool—it’s a collaborator that can significantly enhance your agency’s efficacy and efficiency.
ChatGPT Prompt for Strategic Planning:
“How can artificial intelligence be integrated into a digital marketing strategy in 2023? Provide insights on AI-driven tools and methodologies for audience targeting, ad optimization, and predicting consumer behavior.”
3. Clearly Defined Business Goals and Objectives
Every successful journey begins with a clear destination in mind. Your business plan should resonate with this philosophy. Are you aiming to be a local leader or have aspirations to expand globally? Do you want to specialize in a niche or provide a comprehensive suite of digital marketing agency services?
Break down these goals into quantifiable metrics—whether it’s revenue milestones, client acquisition numbers, or expansion timelines. Then, layer this with actionable strategies, ensuring that your objectives aren’t just aspirational but also achievable.
ChatGPT Prompt for Business Goals and Objectives:
“List clear and quantifiable business goals for a digital marketing agency aiming to expand its operations in 2023. Break these down into short-term and long-term objectives, with strategies to achieve each.“
4. Detailed Financial Projections and Budgeting
Transparency is key when it comes to finances.
Your business plan should provide crystal-clear financial forecasts, including revenue predictions, operating costs, profit margins, and potential ROI. But remember, it’s not just about showcasing profits.
Address potential financial risks and have contingency plans in place. You can also highlight planned investments, be it in technology, talent, or infrastructure. If you’re approaching stakeholders, they should be able to understand not just the ‘how much’ but also the ‘why’ behind each financial decision.
ChatGPT Prompt for Financial Projections:
“Draft a financial projection for a digital marketing agency in 2023, detailing expected revenue, operating costs, and potential ROI. Also, highlight potential financial risks and contingency plans.”
5. A Strong Emphasis on Talent Acquisition and Retention
People make businesses, and in the realm of digital marketing, this statement holds even more weight. Your plan should detail how you’ll attract top-notch talent to drive your agency’s vision.
Think recruitment drives, partnerships with top universities, or even apprenticeship programs. However, acquisition is just one side of the coin. Retention, often overlooked, can be your competitive advantage.
Detail out plans for continuous training, mentorship programs, competitive benefits, and perhaps even a glimpse into the agency culture you aim to cultivate. Making it clear that employees aren’t just resources, but invaluable assets will set your agency apart.
ChatGPT Prompt for Talent Acquisition and Retention:
“Provide strategies for talent acquisition and retention for a digital marketing agency aiming to establish itself as an industry leader in 2023. Include methods for recruitment, training programs, and creating a nurturing agency culture.”
If you are looking for a bulletproof, step-by-step business plan template for your digital marketing agency growth, we are sorry to disappoint. The reason why this article does not fit that description is that such a template does not exist.
We aimed to provide the most important things to keep in mind when coming up with a digital marketing agency business plan for 2023.
The rest will be up to you.