Business Overview

A creative agency helps businesses decide on a branding strategy to present to the public. From logos to slogans to blog content, creative agencies give a company a strong and consistent voice that will appeal to their target demographic. While an advertising service aims to spread the name of a company by buying media space, a creative agency will provide the public face of the company's values and mission. Creative agencies stimulate the local economy and support small businesses by giving their clients an edge in competitive industries.

Who is this business right for?

This business is good for those who spend all day long coming up with ideas. The best entrepreneur will understand that most ideas can not (and should not) ever be brought to fruition, but will still value the process of brainstorming. Also, anyone hoping to get into this business should be comfortable with presenting their work and interacting with a variety of people.

What happens during a typical day at a creative agency?

Each creative agency will have its own rhythm, but most will have the following basic duties:

  • Networking with potential clients
  • Creative duties (e.g., writing, drawing, etc.)
  • Pitching/selling relevant upgrades and new services
  • Completing brand books
  • Researching target demographics for clients

What is the target market?

The target market of a creative agency is any company that wants to improve their reputation, connect with customers, and boost sales. Generally (but not always), it’s small to medium businesses that hire creative agencies as they may not have the capital to hire full-time employees. Some creative agencies carve out a niche for themselves, such as only taking on food-related clients.

How does a creative agency make money?

Creative agencies may charge for their services with flat fees on a per project basis. Creative agencies may also choose to charge by billable hours, where everyone involved on projects has their own hourly rate. While fee-based projects may be more attractive to clients (because they’ll know immediately how their budget will be affected), billable hours eliminates the chances that the agency will underbid for a project.

What is the growth potential for a creative agency?

Creative agencies that prove their worth have a lot of room to grow — and small businesses can use all the help they can get. Creative agencies set themselves apart by showing their clients that their work is different, memorable, and effective at communicating a message to the public.