Billboard advertising firms buy or rent small amounts of land to install billboards that show advertisements for their consumers. Signage on public benches and buses is another kind of outdoor billboard advertising. These corporations also purchase billboards from other companies and resell the advertising space for a profit. They offer a significant community service by allowing property owners to make money by leasing an underutilised section of their land to companies for advertising space.
Follow these ten steps to start a billboard advertising company:
Make a plan for your Billboard Advertising Company.
Create a legal entity for your billboard advertising company.
Tax Registration for your Billboard Advertising Company
Create a Business Bank Account and a Credit Card
Create an accounting system for your billboard advertising company.
Obtain the Required Permits and Licenses for Your Billboard Advertising Company
Insurance for Billboard Advertising Companies
Create a Billboard Advertising Company Brand.
Make a website for your Billboard Advertising Company.
Configure your Business Phone System
Starting a company entails more than just registering it with the state. This straightforward guide to launching your own billboard advertising firm has been put together by us. These stages will guarantee that your new company is well-planned, correctly registered, and legally compliant.
STEP 1: Make a business plan.
A well-thought-out strategy is vital for entrepreneur success. It will assist you in mapping out the intricacies of your organisation and uncovering some unknowns. Consider the following crucial topics:
What are the initial and continuing expenses?
Who is your intended audience?
How much money may you charge your customers?
What will you call your company?
Fortunately, we have done a lot of the legwork for you.
How much does it cost to start a billboard advertising company?
A billboard may cost anywhere from $26,000 to $300,000 to build, which sometimes requires financing from a bank or, more often, an outdoor leasing firm. A licence is necessary in certain states and towns, and the typical fee is about $200 per year. You may enquire at city hall about your city’s criteria. You’ll need to obtain zoning maps as well as a long-distance measuring gadget. A vehicle is also required to go to and from locations to collect data and conduct routine maintenance.
What are the recurring costs of a billboard advertising firm?
The following are ongoing expenditures for this sort of business:
Costs of property rental or leasing
Insurance against liability
Costs of electricity for billboard lights and electronic billboards
Repairs and maintenance
Construction expenses for erecting new billboards
Meetings with business colleagues and transportation to possible locations
Who is the intended audience?
Customers are company owners who want more people to know about their products, services, and locations. Clients might also be landowners looking to earn a profit by permitting advertising displays on their property in exchange for leasing a section of it to your firm.
What is the business model of a billboard advertising company?
A billboard advertising company generates revenue by selling outdoor advertising space on billboards, benches, or cars. Many people generate money by profitably selling their leases and permits to rivals. Prices may vary from $5,000 to $200,000 or more, depending on the location, level of exposure, and volume of traffic.
How much money may you charge your customers?
The amount of money you may charge clients is determined by a variety of criteria, including the location and kind of billboard. Billboards in high-traffic regions are in more demand than those in low-traffic ones. Prices are also influenced by the duration of the contract with the advertising agency. Regular billboards may cost anything from $1,500 to $100,000 per month. Advertising for various clients is rotated on electronic billboards. Small to medium-sized billboards may generate $300 to $2000 per month, while giant billboards can attract rates ranging from $1500 to $30,000.
How much money can a billboard advertising firm make?
In 2015, the industry average for yearly income for the top four billboard advertising businesses was $3.69 billion USD. Billboard firms may produce profits of up to 50% before depreciation, taxes, amortisation, and interest. It typically takes between 7 and 10 years to recoup the original cost of purchasing property and constructing a billboard. Profits grow dramatically after this is realised.
How can you increase the profitability of your company?
Creating and sticking to a sound business plan is one of the most effective strategies to increase the profitability of your company. This strategy should involve growth since many advertising businesses want a certain number of billboards before agreeing to engage with a new company. Another strategy to enhance your income is to design the billboards yourself rather than engaging another firm to do it.
STEP 2: Establish a legal entity
Sole proprietorship, partnership, limited liability company (LLC), and corporation are the most frequent business structure forms.
Creating a formal business organisation, such as an LLC or corporation, shields you from personal liability if your billboard advertising firm is sued.
STEP 3: File your taxes
Before you can begin for business, you must register for a number of state and federal taxes.
To register for taxes, you will need to get an EIN. It’s really simple and completely free!
Taxes on Small Businesses
Depending on the business form you choose, you may have multiple choices for how your company is taxed. Some LLCs, for example, may benefit from being taxed as a S company (S corp).
These guides will teach you more about small company taxes:
Taxes on LLCs
LLC vs. sole proprietorship
Corporation vs. LLC
S Corp vs. LLC
How to Form a S Corporation
S Corporation vs. C Corporation
There may be state taxes that apply to your company. In our state sales tax guides, you may learn more about state sales taxes and franchise taxes.
STEP 4: Establish a company bank account and credit card
Personal asset protection requires the use of distinct business banking and credit accounts.
When you combine your personal and business accounts, your personal assets (your house, vehicle, and other possessions) are at danger if your company is sued. This is known as penetrating your company veil in business law.
Furthermore, understanding how to develop corporate credit may help you get credit cards and other financing in your company’s name (rather than your own), lower interest rates, larger lines of credit, and other benefits.
Establish a business bank account.
Opening a business bank account is not only required when asking for business financing, but it also:
Separates your personal assets from the assets of your firm, which is required for personal asset protection.
It simplifies bookkeeping and tax reporting.
Create a net 30 account.
Net 30 accounts are used to develop and grow company credit while also increasing cash flow. Businesses use a net 30 account to purchase items and refund the whole debt within a 30-day period.
Many net 30 credit suppliers submit information to the main business credit agencies (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how firms establish business credit in order to get approved for credit cards and other lines of credit.
Apply for a business credit card.
Obtaining a business credit card benefits you in the following ways:
Put all of your company’s costs in one location to separate personal and business spending.
Build your company’s credit history, which will be important for raising funds in the future.
STEP 5: Establish business accounting
Recording your numerous costs and sources of revenue is crucial to assessing your company’s financial status. Keeping precise and thorough accounting also makes yearly tax filing much easier.
STEP 6: Obtain all required permissions and licences
Failure to get appropriate permissions and licences may result in significant penalties or possibly the closure of your firm.
Requirements for Federal Business Licensing
The Highway Beautification Act of 1965 requires billboard advertising corporations to follow federal and state standards. A list of state laws may be found here.
Requirements for State and Local Business Licensing
Certain states may need business permissions and licences. Visit the SBA’s reference to state licences and permits to learn more about licencing requirements in your state.
Furthermore, local licencing or regulatory restrictions may apply. For further information, please visit:
Check with the clerk’s office in your town, city, or county.
Contact one of the local organisations mentioned in the US Small Business Associations database of local business resources for help.
STEP 7: Obtain commercial insurance.
Insurance, like licences and permits, is required for your company to operate safely and legally. In the case of a covered loss, business insurance protects your company’s financial well-being.
There are several sorts of insurance plans designed for various types of companies with varying risks. If you are unaware about the hazards that your company may encounter, start with General Liability Insurance. This is the most popular coverage required by small companies, so it’s a good place to start for yours.
Workers’ Compensation Insurance is another important insurance product that many companies need. If your company will have workers, your state may require you to purchase Workers’ Compensation insurance.
STEP 8: Establish your brand
Your company’s brand is what it stands for, as well as how the public perceives it. A strong brand will help your company stand out from the crowd.
How to Market and Promote a Billboard Advertising Company
One of the finest methods to advertise your billboard advertising firm is to stay up to date on industry changes and the innovative ways in which rivals are using them. Creating a blog on your website that contains a monthly profile of a different local company is an excellent approach to display your knowledge of and commitment to the community. Advertisers prefer to take advantage of holidays to provide excellent sales promotions and discounts to their clients. Sending out your own pre-holiday promotion offers is an excellent method to stay in touch with current consumers while also developing new business contacts.
How to Keep Customers Returning
Visiting your local chamber of commerce is an excellent opportunity to meet company owners who may benefit from billboard advertising. Another example is attending and funding community activities. When prospecting for new clients, it’s critical to have a portfolio that showcases your finest work, as well as data illustrating the link between billboard advertising in a given place and an increase in sales numbers. Developing a loyalty programme that gives discounts for long-term contracts is an excellent method to assure a consistent source of money while cultivating new prospects.
STEP 9: Create your company’s website.
After you’ve defined your brand and designed your logo, the next step is to build a website for your company.
While developing a website is an important step, some may be concerned that it is out of their grasp due to a lack of website-building skills. While this was a fair concern in 2015, online technology has made significant advances in recent years, making the lives of small company owners considerably easier.
The following are the primary reasons why you should not put off developing your website:
Every genuine company has a website, period. When it comes to bringing your company online, it doesn’t matter what size or sector it is.
Social media accounts, such as Facebook pages or LinkedIn company profiles, are not a substitute for your own business website.
STEP TEN: Install your company phone system.
Getting a phone for your company is one of the finest methods to keep your personal and professional lives distinct and private. That isn’t the only advantage; it also helps you automate your company, provides it legitimacy, and makes it simpler for prospective clients to identify and contact you.