How to Start an Agency and Avoid Rookie Mistakes in 2025

Trying to figure out how to start an agency? We’ve been there, scrolling endlessly, second-guessing everything, wondering if we needed a big team, slick branding, or just blind luck to get going. Truth is, you don’t need any of that upfront. 

In fact, to start an agency, choose a niche, offer one service, test demand, get early clients, and register your business. Then, set pricing, build a lead system, onboard properly, standardize operations, show proof, hire slowly, and scale with focus.

Moving forward, we’ll walk you through every step from finding a niche and building your first offer to getting clients and scaling smart. You’ll also know about some common mistakes that, as a founder, you should avoid carefully.

Key Findings

• Pick one niche, offer one service, and solve one clear problem. Build traction by proving results before scaling. Use cold outreach, micro-projects, and real conversations to get your first 3 to 5 clients.
• Don’t take any client who just pays, don’t undercharge, and don’t hire too soon. Plus, don’t dodge tough conversations.
• Agency Handy can help you list services, onboard clients, manage tasks, and receive payments all in one place. 

What is an Agency?

An agency is a business that usually offers a set of expert services for clients, like running ads, designing websites, handling HR, or creating SEO strategies. 

Agencies often act as extensions of their clients’ teams, solving real problems, managing complexity, and saving time.

Whether you’re figuring out how to start an agency from home or scaling to an office setup, the fundamentals remain the same.

What are the Types of Agency?

If you excel in words, visuals, code, or strategy, there’s a type of agency that matches your potential. The key is to choose a service that solves a clear problem and then delivers it better than the rest.

Here are some of the most common agency types founders build around:

• Digital Marketing Agency: Offers paid ads, analytics, email marketing, and lead funnels.
• Web Development Agency: Builds and maintains websites, apps, and backend systems.
• Creative Agency: Focuses on branding, visual design, and campaign concepts.
• Content Marketing & SEO Agency: Creates blog content, handles keyword research, and optimizes for search rankings.
• Advertising Agency: Specializes in media buying, ad placements, and high-impact messaging.
• Social Media Marketing Agency: Manages content calendars, audience engagement, and paid social campaigns.
• Full-Service Agency: Offers a mix of strategy, design, marketing, and tech under one roof.
• Influencer Marketing Agency: Connects brands with influencers and manages campaign execution.
• Public Relations (PR) Agency: Create narratives, manages reputation, and lands press placements.

How to Start an Agency Business: Step-by-Step Blueprint 

The strategies that we’ll break down are a step-by-step path we wish we had earlier. If you’re still freelancing, stuck overthinking, or trying to figure out where to begin, here’s what helped us go from “just an idea” to paying clients.

1. Pick a Profitable Niche (With Data)

Trying to be everything to everyone is the fastest way to get ignored and overwhelmed. So, what we’d suggest to you is to start with one thing. 

Just —

• One offer you can deliver better than most. 
• One type of client who needs it. 
• One outcome you know how to drive.

That’s your niche. And yes, it’s scary to narrow down. If you’re unsure how to find your niche, here’s a simple way to approach it —

• Look back: Which projects felt natural? What kind of work made time fly?
• Filter by energy: Which clients felt less like “work” and more like momentum?
• Zoom in on your edge: Where do you already have proof, experience, small wins, or insider insight?

Once you’ve got a rough idea, test it. Plus, you should go to Google Trends to check if demand is growing or dying. Even if you’re wondering how to start a digital marketing agency with no experience, this step is a must.

Then go to Reddit and see what people are frustrated with in that niche. And finally, scan Upwork, Indeed, or niche job boards. If people are hiring for it, that’s the signal.

2. Create Your Initial Service Offering

You might think that offering everything would help you land more clients. Well, it doesn’t. It just dilutes your focus and makes your work feel scattered.

So, start with one service. And here’s a question for you — 

• Would you trust the agency offering SEO, social media, email marketing, branding, and web design all at once? 
• Or the one that just says, “We do fast, reliable SEO audits for SaaS founders”?

You should start by picking a single service you know you can deliver consistently, for instance, blog content for B2B companies. Just solid execution! Then add landing pages. Later, you can layer in an email copy. 

Remember, don’t overextend. A few proven service ideas you can start with —

• SEO audits (one-time, high-trust)
• Blog post packages (recurring, scalable)
• Landing page design (great for showing quick wins)

Now, you’ll need to decide whether you productize it or keep it custom.

• If your work has a clear scope, timeline, and repeatable process (like monthly blog writing), productize it. It makes selling easier and speeds up delivery.
• If each project varies a lot, like a complex rebrand or custom-built website, you’re better off with a consultative, custom approach.

That’s where Agency Handy comes in. It gives you a clean way to present your services with clear pricing, tiered packages, optional trials, and even discount codes. So, clients know exactly what they’re getting before they book.

3. Build Your Lead Pipeline Before You Register Your Business

Before you spend weeks on branding or setting up an LLC, you must have leads. It’s mandatory. So, here are 8 founder-tested methods (including the ones we used) to get your first 3 to 5 clients.

1. Reach Out with Cold Emails (Not Cold Blasts)

Skip the generic mass emails. When you write like a real person who has researched the recipient, people respond. 

So, start by making a small, hyper-relevant list of 20 to 30 businesses you’d genuinely enjoy working with. Only the ones you know you can help.

In your message —

• Reference something specific about them (their blog, product, launch, social post).
• Offer one clear, helpful idea. No fluff, no “jump on a call” bait.
• Keep it under 100 words. Make it easy to read on a phone.

HubSpot’s data shows that salespeople spend a big part of their day, about 21%, writing cold emails. Well, that means the real edge isn’t the volume, but the relevance. 

2. Use Warm Intros from Your Existing Network

Most don’t realize this early on, but your best leads are 1 degree away. Past clients, old co-workers, college friends, Twitter mutuals.

In this case, send this kind of message —

“Hey [Name], I’ve just started offering [X service] and thought of you because [specific reason]. If it’s not something you need, I’d still appreciate an intro to someone who might. Happy to send over a one-pager.”

3. Offer a Free Micro-Project or Audit

If you’re unknown, offering a quick win-for-free can get your foot in the door. Think —

• 10-minute SEO audit
• Homepage teardown
• Social profile review
• Email subject line feedback

You must keep it short, useful, and actionable. 

4. Use Twitter & LinkedIn to Start Conversations (Not Pitchfests)

Roughly 55% of X users say they like content that teaches them something useful. Plus, statistics show that 89% of B2B marketers turn to LinkedIn for generating leads. And out of these, 62% report that it successfully brings in leads.”

So, post insights and share small wins. Comment on other people’s content with actual thoughts (not “great post”).

Then, when someone engages or follows, DM them like this —

“Saw you’re hiring for content help. Happy to send a few ideas or show samples if useful.”

5. Join Online Marketplaces for Built-in Demand

Freelancer platforms like Upwork, Contra, or Toptal have a bad rep. However,  that’s often because people jump in without a strategy.

When used right, they’re just marketplaces filled with ready-to-buy clients.

Here’s how to stand out —

• Fill out your profile completely.
• Position your service around outcomes, not deliverables.
• Apply to only 1 to 2 jobs a day. 
• Focus on fit over volume.

6. Create One Local Case Study (Even If You Work Remotely)

People trust local faces more than online avatars. So, find a small business in your area, like a gym, bakery, local SaaS, nonprofit and offer to —

• Design a landing page
• Run a small local ads test
• Clean up their SEO
• Fix website bugs

Then write a short case study and put your name on it. It signals: “I don’t just say I can help, I already have.”

7. Attend or Host a Micro-Event (No Fancy Venue Needed)

Some of our warmest leads didn’t come from ads or cold outreach. In fact, they came from casual conversations in rooms we created ourselves. 

That’s kind of expected when 70% of attendees think in-person events provide the most useful training and professional content. 

For this, you just need to be in front of 5 to 10 people who share a common problem you can help solve. Book a co-working space for an hour. Or just host a 30-minute Zoom session. 

Give it a name like —

• “How to Fix Broken Landing Pages”
• “5 Fast SEO Wins for Local Businesses”
• “Agency Growth Lessons From Year 1”

Just show people you understand their world. And the best part? You get real-time feedback, direct conversations, and (if you do it right) one or two people who follow up with.

“Hey, do you offer this as a service?”

8. Build a Simple Landing Page to Capture Interest 

Don’t build a full website yet. Just set up a single page —

• Who you help
• What problem do you solve
• One example or testimonial (even if it’s a mock-up or unpaid project)
• Contact form or calendar link

4. Select a Business Structure

Before you worry about hiring or pitching clients, you’ve got to make it real. That means choosing a legal structure and deciding how you’ll run your team.

In fact, many agency owners ask how to start an agency in the USA, and the answer often starts here. 

Sole Proprietorship

It’s the fastest to set up, thanks to zero paperwork. But you’re the business. So, if a client sues or a debt goes unpaid, your personal assets are on the line. It’s ideal for side hustlers or solo freelancers and not great once you start scaling.

That said, some of the biggest names in business started this way, like eBay, Walmart, Kinko, etc.

Partnership

Same as above, but now two (or more) people are personally liable. They come together, share the work, split the profits, and legally co-own the business. It sounds ideal if you’ve got a trusted co-founder. 

But here’s the flip side: you also share every liability.

That means if your partner forgets to pay taxes, breaks a contract, or gets the agency into debt, you’re still on the hook. Even if you had nothing to do with it. That’s the part people often skip over when diving into a partnership.

LLC (Limited Liability Company)

The sweet spot for most small agencies. It keeps your personal assets protected, gives you tax flexibility, and doesn’t demand the overhead of a corporation. 

In fact, roughly 23% of limited liability companies (LLCs) are co-owned by two people.

C Corporation

If you’re thinking long-term, like raising capital, offering stock, maybe even going public, a C Corp gives you room to grow. It’s a separate legal entity, so your personal assets stay safe.

However, it’ll hit you with taxes, and that also twice. First on profits, then again when you pay yourself.

That’s why most bootstrapped agencies avoid it early on. But if you’re serious about investors, scaling fast, or issuing equity, this is the structure they’ll expect, especially VCs.

S Corporation

Similar to a C Corp., you still get limited liability protection. However, your profits pass through to you as the owner, and you only pay personal income tax on those earnings. 

That means no corporate tax layer, just one round of taxes instead of two. However, there are some limitations —

• You must be a U.S. citizen or resident.
• You can’t have more than 100 shareholders.
• You’re only allowed one class of stock.
• You need to pay yourself a “reasonable salary,” and then any extra profit can be taken as distributions (which are taxed less, but monitored closely by the IRS).

6. Set Your Pricing 

What you charge shapes your cash flow, your team’s workload, and how clients value what you do.

Before you set your pricing, you must figure out one thing first: your baseline rate. That means calculating how much it actually costs you to deliver the work. It should include people, tools, taxes, and even the boring stuff like hosting and support. 

Total that up, divide it by your billable hours, then add around 10% to keep you comfortably profitable. Once you get that number, choosing how to bill becomes a strategy. 

Here’s how you should do it —

Hourly

We used this early on. It’s straightforward: you work an hour, you bill an hour. Clean and simple, until it’s not. That’s because clients question timesheets, and timers become stressful. 

If you go this route, make sure you have time-tracking locked down and expectations clear.

Project-Based

This works better once you start packaging deliverables. You set a flat price, deliver the thing, and move on. But here’s the catch: scope creep is real. 

One vague email and suddenly you’re doing 20% more work for the same price. So, you need tight scopes and stronger contracts.

Retainers or Subscriptions

Now, this changed everything for us. Clients pay a recurring fee (monthly, quarterly, whatever works). So, you have a predictable revenue, smoother workload, and easier hiring. 

If you have ongoing services, like SEO, content, support, etc., this model brings stability. 

Commission-Based

We only used this when we controlled the outcome, like performance-based SEO or lead gen. You don’t get paid unless you hit the mark. It’s tempting to offer when you’re hungry for clients, but be careful. If the results depend on them too, you’re gambling your time.

Whatever model you land on, package it clearly. And never price below your baseline, no matter how tempting the sale looks.

7. Onboard Clients Like a Pro

Many new agencies mess this part up. They get their clients signed, and then silence. That’s why you must set up a proper onboarding process.

Here’s what we include every time —

• A short welcome email that’s warm, human, and to the point
• A signed contract with clear deliverables, payment terms, exit conditions.
• A strategic intake form where we ask about brand tone, audience, past campaigns, and blockers.
• A simple timeline to show them what happens next and when.

Plus, you can keep your templates in Google Docs and Notion. You can tweak and reuse them with zero friction. If you don’t have them ready yet, stop everything and build these first.

Then automate the stuff that usually creates friction. Instead of chasing clients for access and info, set up a client portal. This gives them one place to —

• Upload brand assets
• Fill in forms
• View what’s in progress
• See deadlines without asking

In this case, use Agency Handy to tie it all together. It gives you branded intake forms, order forms with built-in add-ons, automated task creation, Kanban boards for visibility, and file sharing with zero clutter. Clients can review work, leave comments, and approve tasks, all inside the same portal.

8. Standardize Your Operations

The sooner you standardize, the less chaos you deal with later. In that case, first —

• Map your client journey from first touch to final delivery. 
• Note every step: intake, strategy, execution, feedback, closeout. 

Next, build templates for anything you repeat —

• Client Intake Form – Name, goals, budget, brand context
• Project Timeline – Milestones, due dates, task owners
• Contract Template – Scope, fees, deadlines, kill clause

Store these in Google Docs, Notion, whatever’s easy to update and share.

Finally, define what “done” actually means. Clearly explain what’s delivered, how it’s reviewed, and who signs off. 

But wait, standardizing is only half the game. To stay efficient —

• Use capacity planning tools to track workload and know when to hire
• Lean on AI assistants for scheduling, support, and finance insights
• Adopt a WFM platform (think payroll, HR, bookkeeping) early.
• Prepare your team with collaboration tools that match how they actually work.

9. Start Building Your Personal Brand

When you launch your agency, the first hurdle is trust. Nobody buys from someone they don’t believe in. That’s why your personal brand matters more than your website or your service list.

One Reddit user put it better than any marketing book —

“Help someone one step behind you. Show what you did. Don’t act like a guru.”

And here’s how we approached it —

• Anchor your story: One sentence. Who you help, what you do, and why it matters. This keeps your message clean.
• Ask for honest mirrors: A few real people, like clients, friends, or even a past critic. “How would you describe me to a stranger?” Then listen without defending.
• Make yourself visible: Post one useful thing a day. It could be a comment, a tip, a short story. Build in public, even if it’s rough.
• Focus where it counts: Don’t be everywhere. Instead, pick one or two platforms. Go where your people already are.
• Show up again tomorrow: Brands don’t form in one post. It requires consistency, brick by brick, conversation by conversation.

Remember, you just need to be clear and consistent. 

10. Register Your Business & Set Up Finances

This is the part most founders don’t talk about but you can’t ignore it. Before you land your first client, get your legal and financial setup in order. It’s not glamorous, but it’ll save you headaches later.

Reddit user shared it perfectly —

“Start simple. A sole proprietorship works at first, but consider an LLC if you want liability protection and to look more legit.” That’s solid advice if you’re unsure how to start an agency company that’s both legit and protected from day one.

Here’s the checklist you should follow —

• Pick your business structure: Sole proprietorship is the fastest way to get going. But if you want limited liability, tax flexibility, and a more legit presence, go with an LLC or S-Corp. 
• Register your business: This step makes your business legally real. You’ll file basic details, like your business name, address, owner(s), and registered agent. Expect a filing fee (usually $50–$300). Once approved, your agency officially exists in the eyes of the state.
• Get your tax IDs: It’s your business’s Social Security number. You’ll need it to open a business bank account, hire contractors, and file taxes. It’s free and easy—just apply online through the IRS.
• Open a business bank account: Don’t mix your agency’s money with your personal funds. A dedicated bank account keeps finances clean, helps you track expenses, and makes tax season way less painful. 
• Set up bookkeeping: Start simple, like Google Sheets or Wave, is fine in the beginning. Track what you earn, what you spend, and what you owe. Get in the habit of updating weekly.
• Cover compliance: Depending on your city/state, you may need business licenses, sales tax permits, or insurance. If you’re hiring across borders, know the difference between a contractor and an employee.

Handle this now, not when a client asks for your W-9 or your Stripe account freezes. 

11. Hire Your First Team Members Strategically

When you go from freelancing to building an agency, the real shift is this: you stop doing everything alone. But hiring too early? That can weigh you down before you’re ready.

Most Reddit agency founders say the same thing. 

In fact, one user shared how they maxed out at five clients solo before they brought in a part-time hire to ease the load. Another built a 3 to 5-person team and kept net profit over 60%. 

Now, here’s how to hire smartly —

• Start with hands: Hire someone who helps deliver the work, like a designer, copywriter, or developer, not an admin or project manager. You should execute first because coordination can wait.
• Test with freelancers: If you’re not drowning in work yet, work with freelancers. It gives you flexibility and shows you exactly what kind of support you’ll need when it’s time to commit.
• Look for full-stack employees: Early on, you don’t need someone who does just one thing well. You need someone who can design, write, troubleshoot, and still show up with ideas.
• Track your time: One Reddit user said that he ran 1,600 billable hours a year per person. That meant about 16 clients max, and that was pushing it. So, use data to know when to hire.
• Stay close to the work: Keep sales in your hands for as long as you can. It sharpens your positioning, keeps you in tune with real objections, and helps you sell solutions

12. Build a Simple Website That Converts

You need a site that makes people trust you fast. If your website can say “Here’s what we do. Here’s who it’s for. Here’s how to work with us” and you’re 90% ahead.

Arnaud Belinga, the Co-founder of Breakcold, headlined his site with “Twitter is underrated by startups,” and that headline alone sold his first few retainers. 

So, don’t write for investors; instead, write for the humans hiring you. 

Here’s a practical approach that won’t waste your time —

• Clarify Your Goal: Is the site for lead gen? Pre-orders? Positioning? Pick a single purpose. A focused site converts better than one trying to impress everyone. Aim for the visitor ready to hit “Let’s talk.”
• Pick the Right Tool: Platforms like Squarespace, Wix, or Typedream let you go from idea to live site in hours. If you’re going the WordPress route, just know what you’re signing up for plugin upkeep, security patches, and regular maintenance. Use it only if you need custom control.
• Optimize for Phones First: Most people will visit your site on their phones. If your call-to-action gets buried beneath a carousel or stretched image, you’ve lost them. Keep mobile UX crisp, fast, and obvious.
• Keep it Clean: Launch with Google Analytics, watch your bounce rates, page flows, and CTA clicks. Plus, make small tweaks weekly and don’t wait for perfection.

13. Go-to-Market: Get Traffic and Clients

Getting clients isn’t just about reach, it’s about resonance. Even Reddit user u/kavin_kn, who pulled in 13K visits in 3 months, took over a year to get there. 

So, here’s the smart way to land clients and traffic from day one.

1. Know Who You Want

Before you spend a dollar or a day on content, figure out who it’s for. Agencies that try to serve everyone end up resonating with no one.

Start by —

• Narrowing your audience (e.g. fitness coaches, SaaS founders, local restaurants)
• Mapping their biggest pain points
• Identifying what success looks like for them

As Reddit user AnnieInTeal put it: “Think about the perfect client… Who makes decisions?” Then go meet them where they are; online or off.

2. Multiply Your Message Across Channels

One piece of content shouldn’t live and die as a blog post. Repurpose everything to squeeze maximum value with minimal burnout. For example —

• Turn blog posts into Twitter threads, LinkedIn carousels, and Instagram reels.
• Case studies can become slide decks for webinars, or quote graphics for social proof.
• Ask clients for voice testimonials, then use tools like Descript to turn them into captions for short videos.
• Create lead magnets by stitching together 3 to 5 posts into a downloadable PDF + Loom walk-through.

3. Teach Before You Pitch (Workshops + Webinars)

Most clients don’t want a sales call right away. Instead, they want clarity. Hosting educational sessions gives you FaceTime without the hard sell. So, run —

• In-person workshops through coworking spaces or niche meetups
• Webinars using Zoom or Crowdcast focused on solving one specific problem
• Partnered sessions with non-competing service providers

These events position you as a helper first, expert second and eventually, their agency of choice.

4. Stay In Their Feed with Retargeting

Most visitors won’t convert the first time. In fact, website visitors who see retargeting ads have a 70% higher chance of conversion.

Actually, retargeting brings them back when they’re more ready. Here’s the play —

• Segment your visitors by behavior, like blog readers (top of funnel), service page viewers (mid), contact page bouncers (bottom).
• Serve content based on the stage that is blog posts → whitepapers → testimonials → “ready to chat?”
• Use Meta Ads, Google Ads, or LinkedIn, depending on where your clients hang out.

5. Join the Right Slack Groups (or Create One)

Slack is filled with hyper-niche communities where your ideal clients ask for help in real time. Do this —

• Search for Slack groups related to your niche (e.g. IndieHackers, OnlineGeniuses)
• Offer genuine advice, don’t pitch
• Build 1-on-1 conversations from public threads

Reddit user mayaalahmed uses a version of this on LinkedIn by running 5 to 10 profiles to scale DM outreach. Slack’s just a more curated version of the same idea.

If you can’t find the right group? Build it yourself. Start a mastermind on Slack or Facebook focused on your audience’s main challenge. 

6. Guest Post Where It Matters

Guest posting builds trust and puts you in front of ready audiences. But don’t post everywhere rather target —

• High-authority platforms in your niche (do proper research on this)
• Industry blogs your clients actually read (ask them!)
• Podcasts or YouTube channels where you can be a guest

This gets you backlinks, brand exposure, and a credibility halo. Plus, it’s a great way to repurpose deeper content into quick hits.

7. Ask. Refer. Repeat.

Most importantly, ask for introductions and referrals. Recent findings show that referred customers spend more and, surprisingly, refer 30 to 57% more new customers than non-referred ones.

In that case —

• Past clients already trust you. So, ask them if they know 1 to 2 people who could use your help.
• Build a referral program with rewards (discounts, free consults, shout-outs)
• Partner with complimentary service providers and trade leads (e.g. copywriters, developers, designers)

Done right, referrals are warm, qualified, and pre-sold. And all you had to do was ask.

14. Use Social Proof Early

Starting an agency means you’re unknown at first. But that doesn’t mean you’re untrustworthy. The right kind of proof, shown in the right places, earns belief faster than any pitch you’ll write.

People Believe People

In fact, 82% of buyers rely on product ratings and reviews as much as they do on suggestions from a close friend or family member. It’s wild. But it makes sense. When we’re unsure, we look sideways before we move forward.

If you’re building from scratch, start there.

• Share real reviews, even if you’ve only got a few.
• Got a DM where a client loved your work? Screenshot it. That little informal proof is often more powerful than a polished testimonial with stock headshots.
• Use casual language that sounds like your customers, not like corporate-speak.

Embed it Everywhere

Most founders only show testimonials on a single “Reviews” page. Don’t do that. Instead, scatter social proof where people actually hesitate:

• Near your CTAs: Place a strong quote next to your “Book a call” or “Get proposal” buttons.
• Inside proposals: Pull a stat, result, or review from a similar past client and slide it next to your pricing or scope.
• On pricing pages: Add a short, punchy line from a happy customer who paid the same.
• In your footer or headers: Use certification seals or logos of brands you’ve helped, even if it was a single freelance gig.

Use Proof People Can See and Feel

There’s a difference between saying, “We helped a SaaS client grow” and showing, “+117% growth in MRR for a SaaS founder in 90 days.” 

Here’s a quick proof stack worth using early —

• Screenshots > Formal quotes. They’re raw, unfiltered, and believable.
• User counts and volume stats, like “12 clients in our first 6 months,” are humble but powerful.
• Client logos, even if it’s one or two, you should use them.
• Ask for a quick Loom-style video, “what it was like working with us.”
• A simple before-and-after table micro case study works wonders.

Top Mistakes First-Time Agency Founders Make

Here’s a grounded look at the most common (and painful) mistakes new agency founders make.

Taking on any client

In the early days, it’s tempting to say yes to anyone with a pulse and a wallet. But not every dollar is worth it.

• Bad-fit clients drain energy, ignore boundaries, and often ask for work outside the scope.
• One Reddit founder, u/CRM_Guru_Greg, warned about small businesses that blur the lines between service and “do it for me” expectations.

Instead, build a simple “ideal client” checklist and politely pass on projects that don’t align.

Undercharging

Many founders think cheaper means more competitive. Well, it doesn’t. It usually means you attract bargain hunters who expect premium work for the cost of coffee. In fact, setting low prices can flood you with low-fit small businesses that burn your time and erode your margins.

So, price for value, show your process, and don’t apologize for your rate.

Hiring Too Fast

You land your first few deals, panic, and start hiring. Sound familiar? That rush can haunt you later. Redditor u/SnooDogs2115 admitted to outsourcing developers too soon just to scale cheaply, and ended up paying twice to rebuild everything. 

Therefore, hire only when the work justifies it. If it’s still chaos, fix the process.

Avoiding Hard Conversations

You can’t build a strong agency if you’re scared to be direct. We learned this the hard way. Early on, we kept quiet when clients asked for out-of-scope work. We said “we’ll figure it out” instead of “that’s not part of the deal.” 

And we paid for it, in lost time, broken trust, and stressed-out team members.

Guess what, saying uncomfortable things early saves you later. If a client is pushing boundaries, tell them. If a teammate is underperforming, talk to them. 

And if a partner’s not pulling their weight, reset expectations before resentment piles up.

Final Words

How to start an agency comes down to this: you pick a niche, offer one service that solves a real problem, and land your first few clients before scaling. If you’re low on time, begin solo and stay lean. 

Again, if you’ve got a budget, invest in systems early. For DIYers, clarity beats complexity. For funded founders, speed needs structure.

Now, when you’re ready to present offers, take payments, and manage client work, Agency Handy can help. It gives you client portal, service pages, intake forms, task boards, and delivery tools, all in one spot.

FAQs

Should I start an LLC before making money?

You don’t need an LLC to start earning, but forming one early helps shield your personal assets from business risks. If you’re serious about protecting yourself, setting up an LLC before your first sale is smart, though not legally required.

Can I start an agency with no experience?

Yes, you can start an agency without prior experience. Learn fast, pick one niche, build trust online, connect with people, and focus on doing good work. What counts most is proof of value.

What is an SME agency?

An SME agency serves small to mid-sized businesses, typically firms with limited staff and modest revenue. It helps these companies grow by offering focused services tailored to lean teams and real-world budgets.