How to start a design agency: A 5-step action plan

Do you want creative control? Are you tired of working for a design agency that someone else owns? Starting your own design agency is difficult but not impossible. It takes a lot of hard work, planning and laying the right foundations. For example, you’ll need to research how to start a design agency from scratch and how to win and retain clients. Read on to discover an action plan on how to get started.

Consider a design agency as a creative partner to other businesses. They’re a skilled team that crafts visually appealing and impactful designs to enhance their client’s online and offline presence. From memorable logos to user-friendly websites, a design agency helps communicate a brand’s story effectively. Whether launching a new product, promoting a seasonal campaign, or refreshing a brand identity, a design agency possesses the expertise to turn a vision into reality.

There are a variety of different projects that a design agency could work on, such as:

Check out Christopher Doyle’s first-hand account of what it’s like to set up a design studio and what he learned from it.

Now that we’ve answered what a design agency is, let’s look into how to start a successful design agency.

When researching how to start a design agency, start by deciding who you want to work with. A team can help you fill gaps you aren’t skilled in. For example, you could hire a business or accounting expert while focusing on the job’s creative aspects.

When you find suitable suppliers or people to help you work on briefs, create long-term relationships with them. Nurturing your relationship will make them a part of your team, and you’ll get better service and help when something goes wrong.

Also try collaborating with other small agencies or creators. When you do this, you’re exposing your work to a new audience. If you collaborate with a creator who has different skills or different styles of work, it can help you broaden your perspective and enhance your creativity. When you gain more skills and creativity, you can collaborate with more people using the skills you’ve learned.

When you start a graphic design agency, you’ll need to learn how to run a business and manage your budget. In the early stages, focus on creating a survival budget – the minimum needed to cover essentials like food, bills, and business necessities such as software or studio rent. Prioritize clients and projects that generate the most income and ensure your agency turns a profit.

Goal-oriented approach: Set realistic goals for your agency, guiding everything from client selection to business decisions. When considering a new project or client, ask yourself:

If not, reconsider. Remember, it’s okay to start small and focus on what you need to survive rather than what you want to have.

Track your time: Maintain detailed timesheets to understand project costs and justify them to clients if needed. Use them to identify areas for cost reduction and as a reference for future project estimates. Over time, timesheets can reveal your most profitable clients and projects, helping you make informed business decisions.

Another aspect to consider is your proposals. When you write proposals, remember that your clients most likely aren’t creatives, and some may not have commissioned a design before. Because of this, you need to clearly explain your project’s stages and processes in a way your client can easily understand. You should include a complete idea of the work and details on how the project will be delivered.

Want a head start in creating a professional proposal? Check out a proposal template from Envato:

When explaining the project to your client, be transparent and exact. Tell your client the end result, milestones, the project cost, and when you expect payment. If you decide to invoice in stages, clearly state every stage at which you’ll invoice.

Invoicing in stages is a great way to ensure you get paid for your work. To do this, break down the project into key stages: design, development, implementation, and more. You should invoice at the end of each stage. If the client doesn’t pay, you are more protected this way.

When making a proposal, always include a realistic schedule. Be sure to consider how long it will take to complete a project and what other projects you have going on at the same time. Your schedule needs to have dates for every project milestone. Also ask your clients if they have any hard deadlines or holidays so you can plan around them. You want your schedule to work for both you and your client. When making a schedule, make sure you don’t over-promise. It’s better to turn in a project early than to risk your reputation and turn one in late.

If you want to know how to get clients for a design agency, start by building a good portfolio. A portfolio is a great tool to convince your clients that you’re fit for the job and show why they should trust you with the project, not your competitors. Use some of these portfolio templates to get you started:

If you can, include numbers in your portfolio. For example, if you redesigned a website for a client, include the improved number of daily visitors and their decreased bounce rate percentage. Your portfolio should showcase a range of works.

Social media is a powerful platform for displaying your work and attracting potential clients to your design agency. However, before diving in, ensure your brand identity and portfolio have solid foundations. Once those are established, explore popular social media platforms like LinkedIn, Instagram, Facebook, YouTube, X (formerly Twitter), and even TikTok to connect with your target audience.

Additionally, consider using platforms specifically designed for designers like Dribbble, Behance, and DeviantArt. These platforms provide a dedicated space to showcase your work, connect with potential clients, and collaborate with other creatives.

Remember, social media is about building relationships and showcasing your unique talents. Use these channels to establish your brand, engage with your audience, and attract new business opportunities.

Price doesn’t always align with how much time you spend on the project. Instead, the price should be based on how much value you add to the project. You should start by giving the client a rough estimate including:

Next, create a contract with the agreed-upon quote and terms.

After you’ve got your first clients, focus on building relationships with them and communicating clearly. Very few clients will come to you with a well-created design brief. Even if they do, you should rewrite the brief, putting it in your own words to ensure you understand it. This helps to manage expectations and allows the client to flag any misunderstandings before starting the work.

You must understand what the client wants from all angles.

When making decisions about your design, involve your client. If your clients feel they are part of the design process, they will be more open to your ideas. You can achieve better outcomes if they feel a sense of joint ownership. These outcomes can make the project run more smoothly. Clients will enjoy working with you and keep returning, helping you gain repeat business. And, most importantly, they’ll recommend you to others, so that clients start coming to you in future.

Here are five tips for starting a successful design agency:

When you understand how to start a graphic design agency and how design agencies get clients, you need to research what your one goal should be. This goal will be different for each individual. Some people might set a goal for financial security; others might want a work-life balance. It’s up to you to choose what you want. Once you’ve chosen your goal, you should ask yourself, with every business decision you make, if it will help you reach your goal. If it doesn’t, then you should reconsider doing it.

Don’t be afraid to set a big, ambitious goal. If you feel intimidated or unsure, check out Beci Orpin’s expert advice on avoiding impostor syndrome:

Treating your design agency as a product can help you find success. Try evaluating your agency in the following areas:

Give yourself a score for each area. This will help you see where you can improve. Once you know where to improve, make small changes to improve that area’s score. Don’t try to improve every area at once—instead, choose one area and work on that one first. Once you finish improving that area, move on to the next one. It could become overwhelming if you try to improve in multiple areas simultaneously.

Learn to say no to clients who aren’t worth your time. If you don’t like the brief, say no. If you don’t like that the client is haggling too much over the price, say no. Does the client want a large amount of work done in an unrealistic time? Say no. When you say yes to work you don’t like, you’ll be stuck doing that work and will become known for it.

If you get told no, don’t let it discourage you.

Setting boundaries protects your time and lets you focus on work you enjoy. Using creative project management software is a great way to have a clear overview of your workload, deadlines, and client commitments.

When you research how to start a design agency or how to get clients for a design agency, you’ll come across many articles with best practices. However, not every best practice will work for you. You need to find what works best for you and your design agency. This can mean anything from your software to how you communicate with employees and clients. Each agency will be different, and you should determine what works best for you and your agency.

You can join peer support groups for agency founders. Groups like this can give you connections and people who will support you. It’s a great way to get advice and gain knowledge from people in the same position as you.

If you don’t want to join a large network, find a small group of just a few people. If you join a smaller group, try to ensure you don’t have design agencies in the same field in that group. For example, you could create a group with a website agency, an SEO agency, and an animation agency. Being part of a group can help you make sure you’re held accountable for your goals while gaining advice and support.

Running a design agency can be difficult and sometimes feels like a rollercoaster. There will be moments that will test your will and moments that will make you happy. But now that you know how to start a design agency and get clients for it, you’re ready to start your journey today.

If you could use a PowerPoint template, resume template, or other digital elements to help you get set up, check out Envato. And keep reading the blog to get tips and inspiration from design experts like Jessica Walsh and Kristy Campbell.