How to Start Your Own Design Agency & Turn it Into a Million Dollar Venture

Starting a design agency requires time, thought, and pure dedication. When taking the leap to start your own design agency, there are a million things on your mind, and it can be overwhelming. We can relate to it, because that's where we were three years ago. In three years, we scaled it to a $2M design agency.

At our award-winning digital and design agency Slam Media Lab, we’ve been able to perfect our methods through successfully collaborating with various businesses in need of SEO, Webflow design & development, content writing & strategy, and brand strategy & identity assistance. We’ve been able to create a hub of valuable information to start-up businesses owners, and we want to share it with the world.

We understand the trials and tribulations of starting a digital design agency, and that’s why Slam’s “How to Start an Agency” Course was created–to hold your hand through the in’s and out’s of starting a design agency. Our course dives deeper into the steps you need to take to create a thriving design agency, including tools and resources we recommend to use.

The course goes over several parts that go into starting your own design agency, including:

Setting up your business legally
Finding your niche and specializing
Getting your first clients (we'll go over 7 channels)
Creating a proposal that will crush your competitors
Legal & ops set-up
Access to all of our templates and resources
Recommendations on software to use
How to use ChatGPT to improve all your processes

Watch the trailer here:

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The course has been on a waitlist with over 1,000 people, and it's finally out! We've been floored by the excitement around it! For a limited time, the first 10 people who sign up with this link will get 75% OFF with code AGENCY100.

Now, this article will give you a preview of the course!

How to Start Your Own Design Agency that Stands Out

At Slam, we’ve gone through the process on making an award-winning agency that stands out. Here’s how we did it.

How to Find Your Niche

When trying to pick a niche, it can feel like there are endless markets to choose from. To make things easier, take it one step at a time. There are multiple methods to discover your niche, like looking for market keywords and studying competitors–all of which are important to consider trying. Start with research. In the course, we’ll dive into how to do it.

Generalist vs. Specialist

Some agencies don’t have or want a niche, which has its advantages like being adaptable and having a wide range of clients. However, they face the problem of blending in within a market and lacking a competitive edge to their agency. This becomes a bigger issue when met with clients who’re in search of experts in a specific industry. A specialist design agency provides more skill but may require collaboration with other vendors, while a generalist design agency is convenient, since everything is done by one entity. Below are some of the differences between generalist agencies and specialist agencies.

Generalist

Flexibility
Diverse portfolio
Transferable skills
Opportunity to grow expertise in an industry

Specialist

Mastery
Specific portfolio
Specialized set of skills
Proficient knowledge in an industry

Determine Your Services

Once you’ve figured out your niche, you’re ready to provide your services to that market. With the research you’ve collected about your niche, think about how your services will benefit and solve problems in that market. Here are examples of the services that Slam offers:

Brand Strategy & Identity Services: We help brands communicate their brand image through design by making sure there’s a purpose behind every visual choice: logos, colors, word choice, emails, presentations, anything the target audience will look at.
Content Writing & Strategy Services: In order to help build a social presence for businesses, we design and create social media posts, research audiences, and organize goal-tracking calendars.
Webflow Design & Development Services: When it comes to website design, we’re fully equipped with Webflow expertise. We’re able to build no-code websites that quickly gain traction.
SEO Services: Search Engine Optimization is the most important way to see high site traffic results. Through our use of keywords, data, and research, we’re able to help businesses’ clientele grow.

With digital design agencies, your client’s goal will usually require you to use digital marketing strategies to create an online presence for them. A large, positive online presence is a sure way to digitally reach a business’s target audience. So, it’s important to emphasize your agency’s ability to achieve this when deciding what your services are.

How to Start a Design Agency Financially

We self-funded our agency with around $1,000, demonstrating it's possible to start small and grow big. If you're on a tighter budget, don't worry - our course provides a roadmap for even more cost-effective strategies. In the Slam Agency Starter Course, we cover a range of critical start-up aspects, including:

The Legal Set-Up: We guide you through choosing the right business structure for your agency – be it an LLC, corporation, partnership, or sole proprietorship. This decision is crucial as it impacts your taxes, liability, and registration requirements.
The Operational Set-Up: We’ll guide you through how to set up the basics of your design agency, from buying a domain, setting you up your bank account, to invoicing.
Essential Tools: We'll introduce you to the essential tools and resources that streamline your start-up process, from legal documentation to business planning software.
Client Acquisition Strategies: Learn the art of attracting and closing clients, with proven tactics and personal insights from our own experiences.
Licensing and Permits: Get a clear understanding of the necessary licenses and permits required to legally operate your design agency, tailored to your specific business structure and location.
Long-Term Growth Planning: Beyond the initial steps, we delve into strategies for sustainable growth and scaling your business.

How to Start a Design Agency and Set Policies

Policies in your agency will be your rule book. They let you hold your team and your clients accountable to whatever agreements you’ve previously set. It’s how your agency will stay financially consistent and safe from possible legal problems.

Set Your Rates

Setting your rates for your services in a design agency depends on several factors, which are the following:

Your expenses
Your profit margin
Your value
Your pricing strategy

Researching on different platforms can help you understand the market spectrum and help your decision with pricing in a design agency. We thoroughly break all these factors down in our Slam Agency Starter Course.

Create Contracts

Running a design agency also means understanding your rights and ensuring that there is a legal bind between you and your client. Properly handling intellectual property rights is tricky territory to tread and may require help from a lawyer. Contracts like non-disclosure agreements (NDA’s) and Master Services agreements can be conducted through templates or a lawyer.

Where to Start a Design Agency

For legalities, you need a location for your agency. This doesn’t need to be an office that all your employees physically work at, but it does need to be a legal address that your business can be registered under. Think of it as your agency’s headquarters. Below you’ll find the differences between remote and in-person work (if you haven’t already decided) and our tips on setting your agency’s location.

Remote vs. In-Person Work

Whether your agency is in-person or remote relies on what makes sense for your agency. If your employees can safely travel to and work in an office together, then in-person work may be the route you want to go down. If you find that traveling is problematic and your employees don’t interact much, then remote work may be better for your agency. Both methods have their pros and cons, but what it comes down to is what will help your agency flourish. Here is a layout of some common differences of remote and in-person work:

Remote

Work from your location of choice

Virtual meetings

Flexible time management

Individualistic work ethic

In-Person

Work at a designated location

Face-to-face meetings

Set schedules

Built-in socialization

Set Your Agency’s Location

No matter what work type you choose for your agency, there’s a process in choosing your work location. You’ll need to obtain a legal business address for your agency in order to register as a business. This is for legal business requirements, but having a permanent address also helps build a stable reputation for your agency. If you’re working outside of the state that your business is registered in, you should get a registered agent like one that Slam uses.

How to Start a Design Agency as an Employer

Your agency needs a team that you can rely on to meet your client’s goals. The roles in an agency vary from company to company, but here are the most common positions in design agencies:

CEO
Creative Director
Art Director
Account Manager
Copywriter
Graphic Designer

There are more roles that could be a part of your agency, depending on your current needs and size.

Manage Employment

A happy team will always reflect that in their work. So, ensure that your employees are taken care of. As the founder of a design agency, you have the duty of managing payroll, employee benefits, HR concerns, and insurance. Gusto is a tool that helps small businesses handle all these responsibilities.

Communication within your team plays a key factor in meeting your client’s goal. Slack is a tool used for internal communication and collaboration that serves as a digital workplace. Paired with efficient project management, your team could be working at their peak potential. Slam uses Notion to create client accounts, project timelines, meeting notes, and any important information for a project. It’s how we maintain our work ethic! We’ll offer free templates you can use in the course.

How to Start a Design Agency and Manage Processes

There’s a lot that goes into successfully completing a project in a design agency, and it can be scary to manage without order. Without a collective work process, your team can struggle meeting deadlines and client satisfaction. Project management guarantees constant workflow within your team. Here are few of the resources that Slam provides:

Go-To-Market Strategy Template: Our action plan to introduce a company to their desired market
Website Launch Checklist: Our quality and content checklist we double-check before we officially publish a website
Technical SEO Audit Template: Our guide to confirm that a website is fully optimized to reach as its largest target audience

Slam has done our part to help other agency’s run their business as methodically as they can. Using the marketing agency reporting tools we recommend will aid you in keeping your agency on track. Even more tools and templates can be found in our Slam Agency Starter Course.

How to Start a Design Agency and Gain Traction

Gaining support for your design agency is all about strategy–content strategy and marketing. An engaging website experience is one way to catch your audience’s attention. A great website should be fast, have quality content, and incorporate call-to-actions, all while being structured for SEO. At Slam, we are experts in B2B Web Design, helping other businesses create these appealing websites.

Publishing a blog will keep your website fresh for search engines and bring traffic to your website regularly. High-quality blog posts also build your reputation as a leader, if they include valuable information. Blogging with Webflow can make this process much easier with their templates and built-in SEO optimization.

How to Start a Design Agency and Create Client Relationships

Your agency’s source of income–your clients—is what will keep your agency afloat. The search for clients requires time and strategy, and the work that goes into keeping your clients is just as important. We’ll go over the steps that Slam recommends to take when finding clients and the tips we have to make sure your clients are satisfied.

Finding Clients

There are a number of ways to go about your search for a client. Here is Slam’s process in finding a client:

Referrals
Word of Mouth
Upwork
Targeted groups
Social Media
Cold Email
Content

If you want a full explanation of each of these client search methods, you’ll want to take a look at our Slam Agency Starter Course.

Keeping Clients

Maintaining a good relationship with your clients means keeping them in the loop of your project process and showing them that you genuinely care. For starters, empathy mapping causes your team to visually break down your client’s desires and mindset, which helps with decision-making. It covers who your client is, what they need to do, what they see, say, do, hear, think, and feel. Through empathizing with your client, you’ll be able to solve their dilemmas and meet their goal.

Client relationship management (CRM) tracks all interactions between your agency and your client, building a connection between the two. We’ll share a CRM template with you.

Success Stories

We’ve compiled all of these tips for client management through our own experience. We know what works, and we have proof of it. Check out how we designed a long-lasting website that aligned with our client’s fresh brand identity in our collaboration with Peer Health Exchange. They wanted a website that appealed to Gen Z and encouraged them to live healthier lives, and we did exactly what they asked and more.

In our collaboration with Fresh Approach, our goal was to emphasize their mission of creating a local food system through accessible community gardens and small farms. We created a brand identity for them that showcased this mission.

We were able to increase engagement for LTX Quest, a virtual digital conference for Latinx professionals, through high-quality content writing. To gain more traffic for our client, we created social media platforms filled with relevant writing and influencer branding.

Start your own Design Agency with Slam’s How to Start an Agency Course

Those are just a few of the many client success stories at Slam–examples of what your design agency could achieve with our help. To get a more in-depth explanation of everything it takes to start your own design agency and get resources and tools to help you in this process, sign up for the Slam Agency Starter Course!

Learn more about our Design Agency based in California here!

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