According to a Statista report, advertising agencies in the U.S. will potentially generate $45 billion of revenue in 2020. That’s a $5.5 billion increase from 2015’s total. For us, that prediction isn’t surprising. We all know how valuable advertising is in the business world. Companies are always willing to spend millions of dollars on ads for the promotion of their brand image. And the recipients of their ad expenses are none other than ad agencies.
If you want your ad agency to contribute significantly to that projected $45 billion, you need the help of investors. Investors can support the needs of your ad agency in a lot of ways. And, if you look at the history of bigtime ad agencies, almost all of them had investors who aided them in earning decent revenue and profit. However, investors won’t just give you their money on a silver platter. Before investing, they’ll assess your ad agency if it has these seven quality attributes.
A Dedicated Executive Management Team
As the owner of your ad agency, you are a part of its executive management team. So, pay attention to this. If investors see that you and your direct colleagues aren’t dedicated enough, they won’t hesitate to refuse your agency. Take note that investors want executives who can show commitment—those who are willing to take action in progressing the standing of their business. If you put yourself on an investor’s shoe, you would understand why they only invest in organizations with dedicated management teams.
If you were the investor, you wouldn’t want your money to be in the wrong hands. On top of that, you also wouldn’t want to waste your schedule entertaining a bad investment proposal. With those in mind, make sure to convince an investor that you and your colleagues are down to doing serious business.
Leaders Who See Them as Partners, Not Just Dollar Signs
It is expected of every agency owner that they approach investors due to their financial power. Although there’s nothing wrong with that kind of motive, it doesn’t help if that’s your only motive in looking for an investor. If an investor knows that you’re only after his or her money, that will give them a negative impression. Subsequently, they could lose morale and enthusiasm to invest in your agency.
When investors provide you with financial aid, they don’t just become your investors, but also your business partners. One of their reasons for investing is that they want to get involved with your agency. And you should give them that privilege. Let them have a say in your planning and management schemes. Immerse them into your objectives checklist and allow them to be aware of your agency’s ins and outs.
As we’ve mentioned earlier, investors can support your agency’s needs in a lot of ways. Aside from finances, they can offer guidance and contribute strategic business ideas.
Potential for Growth and Sustainability
Of course, investors will always opt for agencies that have strong potential for growth and sustainability. Agencies that don’t manifest such a potential don’t cut it for investors. They don’t want to risk their money on an agency that won’t be going anywhere but a dead end. Investors are willing to invest premium amounts to agencies with a lot of promise. That’s because a significant return on investment or ROI will be in place for them in the long run.
If your agency is new or less popular, that doesn’t hurt your chances of getting an investor. As long as it has the elements to become a stable business, investors will line up to support you financially.
Strong Presence in the Digital World
Today, every organization has a footing in the digital world, especially creative agencies like your ad agency. Nowadays, it’s almost impossible for businesses to grow without a website or a social media page. For that reason, investors prefer advertising agencies with a strong presence in the digital world.
Because your agency offers advertising services, for sure it already has its website and social media page. Just work on strengthening them further to attract the attention of potential investors.
Excellent Service and Creativity
Excellent service and creativity are the two most essential traits of advertising agencies. That said, those are also qualities that investors look for before investing. So, if your ad agency delivers excellent service to its clients and has a team of creative individuals, then it’s an eye candy in the investment marketplace.
If you think your agency needs improvement in this department, implement them as soon as you can. Optimize your operations to persuade investors that your agency is the real deal.
Positive Track Record
In general, among the marketing strategies of every company is saying they have a positive track record. They do that to attract customers. But there’s another reason, and that’s to convince investors. Investors will always opt to invest in companies with a positive track record. They don’t want to associate themselves with agencies with a lackluster or infamous reputation. For them, ad agencies with a colorful reputation is a money maker.
If your agency has a clean record, excellent feedback from clients, and significant rewards or achievements, you have a decent advantage.
Capable of Showing Results
Last but not least, investors want ad agencies that can walk the talk. In other words, agencies that are capable of showing results—those that can live up to expectations and meet goals. So, keep that in mind. Investors have every right to withdraw their investments if the results your agency produces doesn’t satisfy them. If that happens, your agency will have difficulties finding other investors moving forward. So, make sure to walk the talk always.
Embed all of these quality attributes on your advertising agency business plan and execute them. Admittedly, not all investors will do business with you, even if your agency met every requirement. That’s the reality in looking for investors. You win some, and you lose some. Nonetheless, there’ll be others who’ll give you a chance. So make sure to capitalize on them.