Whether as a freelancer or in-house, copywriting can be a very lucrative and rewarding career. But are you done working for others and now want to start your own copywriting agency? Having the skills of a copywriter is just one step towards starting your own business. Take a look at our article below to learn more about exactly what you need to start your own copywriting agency.
Planning Your Business
A business plan is obviously required before you can actually start your business. When putting a plan together for your copywriting agency, take into account the start-up as well as ongoing costs, the markets that you wish to target, and of course the name of your agency. Moreover, you should also calculate how long it will take for you to break even and make a profit with your agency. If you’re overwhelmed by the prospect of creating a business plan, it might be worth it to pay someone to assist you.
Forming a Legal Entity
After you’re done creating a comprehensive business plan, it’s time to form a legal entity. You should consider establishing a legal business entity because if your business is sued, you can’t be held personally liable. When it comes to a legal entity, you can choose to establish a corporation, DBA, or LLC, etc. There are actually many other business structures that you can research as well.
Before you can actually open your business, you have to register for state and federal taxes. This is done by applying for a free EIN, which you can do through the IRS website or via email.
Business Bank Account
Credit and banking accounts that are dedicated to your business are essential when it comes to personal asset protection. You should open a bank account online where you can receive funds from investors and manage the overall cash flow of your business. A separate business bank account is recommended as it helps you keep your business and personal expenses completely separate, which will help make taxes a lot easier. Always make sure to research a bank’s interest and banking fees, customer service, and accessibility.
It’s very important that you keep detailed accounts of expenses, sources, and income related to your business. Doing so will help you understand the financial performance of your copywriting agency and determine if it can break even, and when.
Permits and Licenses
No matter the service or product that you’re selling, you must make sure to have the necessary permits and licenses for it. If you don’t have these, you may have to pay fines or even risk having your business shut down.
If you plan on hiring employees or renting an office building, you should make sure to acquire business insurance. All entrepreneurs and fresh business owners out there will tell you that you should never skip or lack insurance as a business owner! Business insurance takes care of certain legal requirements like worker’s compensation. Do this to keep your employees happy and secure, and to keep your own expenses down in the long run.
Brand Definition and Online Presence
Last but not least, you’ll have to work on your branding as well as your online presence. Keep in mind, however, that you shouldn’t start working on these two until you’ve completed all of the above. They are important, but the legal requirements for starting a business are vital.
The Bottom Line
Even though entity establishing, business accounting, and permit acquisition may seem boring to a copywriter, they are extremely important steps for starting your own agency. After all, you want to succeed as a business owner and not just as a good copywriter! You’ll have enough time for writing if you spend some time dealing with legal and business issues now. Good luck!