In honor of all start up agencies & companies out there, we wanted to republish KINGSDAY Managing Director Sander Volten's guest blog post from Talent Zoo, 10 Reasons to Start an Agency in This Economy.
Without further ado ...
Starting a company / agency from scratch makes you hungry as hell! You are willing to do more work, in shorter time periods and obsessively review the quality of your product before it makes it to the client as a startup founder / team member.
In a recession, starting a business takes a boatload of confidence. Not only do you need to make ends meet, but the clients you are pursuing are fighting their own budget battles. You must have an overabundance of confidence to succeed.
Again, in a rough economic climate clients are forced to explore different ways / providers to help get things done. This is where you, a brand-spankin-new & hungry agency fits in!
Start ups must remain lean and obsess over their bottom line performance. Cash is king!
5. Independent Talent
Due to tough economic times, there is a slew of talented individuals who have decided to freelance their professional hours to the highest bidder. The Michael Jordan's of your industry are out there -- just waiting for you to engage them with work!
In advertising, the word 'new' is the most actionable adjective in the business. Use your 'new-ness' to your advantage when possible!
7. Procurement Departments
Procurement departments play a key role when bringing on new agency partners. Being lean and new will help your agency / company get into new business conversations.
8. Open Communication
With the rise of social communication channels, agencies & companies can no longer rely on a 1-way conversation. Being fluent in 2-way communication dialogues can make your agency / company the 'shiny new vendor' in the clients eye.
First and foremost, you need the skilled workforce (either full time or contract) & capabilities to perform the work you're pitching.
But, by picking a good location (we picked San Francisco // KINGSDAY picked Amsterdam) you have the ability to be brought in as a "local" vendor, whether you're servicing a client in Seattle or Paris, respectively.
10. Big Picture
Let's end on a POSITIVE note here.
You've likely lined up markets that are in the 8+ figure range in terms of annual spend. As a lean, new agency or company, all you need to capture is 0.001% of that spend and, voila, you will be profitable!
Now Get Out There & Start Your Own Agency or Company!