Modeling Agency Business Plan, Marketing Plan, How To Guide, and Funding Directory
The Modeling Agency Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Modeling Agency business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.
Your Business Planning Package will be immediately emailed to you after you make your purchase.
Product Specifications (please see images below):
- Bank/Investor Ready
- Complete Industry Research for the Industry
- 3 Year Excel Financial Model
- Business Plan (26 to 30 pages)
- Marketing Plan (24 to 28 pages)
- 425+ Page Funding Directory
- PowerPoint Presentation
- Loan Amortization and ROI Tools
- Three SWOT Analysis Templates
- How to Start a Business Guide
- Easy to Use Instructions
- All Documents Delivered in Word, Excel, and PowerPoint Format
- Meets SBA Requirements
Modeling agencies provide a plethora of representation services to both men and women that appear in catalogs, magazines, billboards, and other advertisements that promote apparel and lifestyle products. These businesses are able to generate very high gross margins from their services by securing employment contracts, managing endorsements, managing investments, and providing a host of other services so that individual models can simply focus on their careers rather than the business aspects to their operations.
Typically, the startup costs associated with the new modeling agency range anywhere from $15,000 to $100,000 depending on the number of agents that will be on staff at the onset of operations. The gross margins generated from modeling services typically ranges anywhere from 85% to 95% depending on what expenses are included as the cost of goods sold. These businesses are relatively immune from negative changes in the economy given that these companies are able to render a service that is in continued demand among models. The demand for individual models for print and media advertisement does not wane during times of economic recession. However, some businesses may experience slight declines in revenues given that they will decrease the number of large-scale advertising campaigns are undertaken during economic recessions.
The vast majority of modeling agencies are developed using capital from the entrepreneur or from a group of investors. When bank financing is acquired, it is usually for an established modeling agency that is looking for expansion capital. In any event, a modeling agency business plan is going to be required. This business plan should feature a three-year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page that features information that is standard to the modeling management industry. As it relates to the industry, there are approximately 7,200 modeling agencies throughout the country that operate on a full-time basis. These businesses generate in excess of $1 billion a year of revenue and provide jobs for about 15,000 people. This industry is expected to have a growth rate that is equal to that of the economy in general.
With the business plan, an examination of the demographics of models to be targeted should be included as well. This includes an examination of the estimated annual revenues that will be produced via modeling services. One of the other things that needs to be discussed as well is the demographics of the companies will be targeted in regards to placing models for advertisements. This includes examining annual revenues, annual profits, number of employees on staff, and their budget that they maintain each year for advertising and modeling. This information can be easily sourced among a number of both public and private information channels.
A modeling agency marketing plan is going to be needed as well. This marketing plan should focus significantly on obtaining contracts among aspiring models. This includes attending large-scale events, searching social media platforms, and maintaining an expansive online presence. As it relates to proprietary website, it should have information regarding the company services, percentage of fees taken for representation, and how to potentially become a client of the business. Most of these online platforms allow aspiring models to send head shots and other relevant information directly to the company.
A presence on social media is also extremely important for a modeling agency given that many aspiring models will promote themselves through social media channels. Pages should be maintained on FaceBook, Twitter, Instagram, and Google+ in order to develop a substantial brand-name visibility for the business. A social media manager can be hired to manage his aspect of the business on an ongoing basis. It should be noted that at the onset of operations most entrepreneurs maintain the year social media platform profiles on her own until such time within reach profitability.
One of the most important things as well as the continually attend large-scale modeling shows and training events so that representation can be secured by individuals. There are always a number of major events that occur on an ongoing basis that allow models to be easily targeted by the potential companies that can represent them.
A modeling agency SWOT analysis should be produced as well. As it relates to strengths, modeling agencies have low barriers to entry, generate very high gross margins from their services, and remain profitable in most economic climates. While the startup costs are low, there is a significant amount of competition that needs to be dealt with on an ongoing basis. One of the nice things are going operating a modeling agency is that once they are established they remain highly profitable moving forward.
For weaknesses, these businesses do have a significant number of operating expenses. This includes travel costs, office costs, and a number of other related expenses to securing employment contracts on behalf of retained models. As such, a strong overview of the company’s cash flow needs to be reviewed on a day-to-day basis to ensure that the business can remain afloat while the employment contracts are being secured. As discussed above, modeling agencies are in a significant amount of competition with each other in order to attract top talent.
For opportunities, modeling agencies can readily expand by continually acquiring additional contracts with in demand models. Also, these businesses can hire additional modeling agents and modeling scouts to secure individuals who are up-and-coming but not yet been recognized by the industry as a whole. Once these businesses are profitable, most banks and lenders are willing to extend a working capital line of credit in order to ensure that these businesses can expand over a three-year to five-year period.
For threats, outside of major competitive issues and a potential major economic recession – there’s really nothing that would impact the way that he modeling agency conducts their operations. This is not an industry that is going to be subject to any level of automation, and the demand among apparel manufacturers, clothing stores, and related entities for in demand models will not change.
As such, a modeling agency can be a highly lucrative investment for someone has an understanding of the industry, how to secure contracts with models, and how to properly place their clients with advertisers, apparel companies, media companies, and other entities that have ongoing modeling needs.