best business plan for graphic design

How to write a business plan for a graphic design agency?

Writing a business plan for a graphic design agency can be an intimidating task, especially for those just starting.

This in-depth guide is designed to help entrepreneurs like you understand how to create a comprehensive business plan so that you can approach the exercise with method and confidence.

We'll cover: why writing a graphic design agency business plan is so important - both when starting up, and when running and growing the business - what information you need to include in your plan, how it should be structured, and what tools you can use to get the job done efficiently.

Let's get started!

In this guide:

Why write a business plan for a graphic design agency?

• What information is needed to create a business plan for a graphic design agency?
• What goes in the financial forecast for a graphic design agency?
• What goes in the written part of a graphic design agency business plan?
• What tool can I use to write my graphic design agency business plan?

Having a clear understanding of why you want to write a business plan for your graphic design agency will make it simpler for you to grasp the rationale behind its structure and content. So before delving into the plan's actual details, let's take a moment to remind ourselves of the primary reasons why you'd want to create a graphic design agency business plan.

To have a clear roadmap to grow the business

Small businesses rarely experience a constant and predictable environment. Economic cycles go up and down, while the business landscape is mutating constantly with new regulations, technologies, competitors, and consumer behaviours emerging when we least expect it.

In this dynamic context, it's essential to have a clear roadmap for your graphic design agency. Otherwise, you are navigating in the dark which is dangerous given that - as a business owner - your capital is at risk.

That's why crafting a well-thought-out business plan is crucial to ensure the long-term success and sustainability of your venture.

To create an effective business plan, you'll need to take a step-by-step approach. First, you'll have to assess your current position (if you're already in business), and then identify where you'd like your graphic design agency to be in the next three to five years.

Once you have a clear destination for your graphic design agency, you'll focus on three key areas:

• Resources: you'll determine the human, equipment, and capital resources needed to reach your goals successfully.
• Speed: you'll establish the optimal pace at which your business needs to grow if it is to meet its objectives within the desired timeframe.
• Risks: you'll identify and address potential risks you might encounter along the way.

By going through this process regularly, you'll be able to make informed decisions about resource allocation, paving the way for the long-term success of your business.

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To maintain visibility on future cash flows

Businesses can go for years without making a profit, but they go bust as soon as they run out of cash. That's why "cash is king", and maintaining visibility on your graphic design agency's future cash flows is critical.

How do I do that? That's simple: you need an up-to-date financial forecast.

The good news is that your graphic design agency business plan already contains a financial forecast (more on that later in this guide), so all you have to do is to keep it up-to-date.

To do this, you need to regularly compare the actual financial performance of your business to what was planned in your financial forecast, and adjust the forecast based on the current trajectory of your business.

Monitoring your graphic design agency's financial health will enable you to identify potential financial problems (such as an unexpected cash shortfall) early and to put in place corrective measures. It will also allow you to detect and capitalize on potential growth opportunities (higher demand from a given segment of customers for example).

To secure financing

Whether you are a startup or an existing business, writing a detailed graphic design agency business plan is essential when seeking financing from banks or investors.

This makes sense given what we've just seen: financiers want to ensure you have a clear roadmap and visibility on your future cash flows.

Banks will use the information included in the plan to assess your borrowing capacity (how much debt your business can support) and your ability to repay the loan before deciding whether they will extend credit to your business and on what terms.

Similarly, investors will review your plan carefully to assess if their investment can generate an attractive return on investment.

To do so, they will be looking for evidence that your graphic design agency has the potential for healthy growth, profitability, and cash flow generation over time.

Now that you understand why it is important to create a business plan for a graphic design agency, let's take a look at what information is needed to create one.

Information needed to create a business plan for a graphic design agency

You need the right data in order to project sales, investments and costs accurately in the financial forecast of your graphic design agency business plan.

Below, we'll cover three key pieces of information you should gather before drafting your business plan.

Carrying out market research for a graphic design agency

Before you begin writing your business plan for a graphic design agency, conducting market research is a critical step in ensuring precise and realistic financial projections.

Market research grants you valuable insights into your target customer base, competitors, pricing strategies, and other crucial factors that can impact the success of your business.

In the course of this research, you may stumble upon trends that could impact your graphic design agency.

Your market research may reveal that some clients may be looking for more complex or specialized graphic design services, such as 3D animation or motion graphics. Additionally, your research might uncover that there could be an increased demand for graphic design services that are tailored to social media platforms.

Such market trends play a pivotal role in revenue forecasting, as they provide essential data regarding potential customers' spending habits and preferences.

By integrating these findings into your financial projections, you can provide investors with more accurate information, enabling them to make well-informed decisions about investing in your graphic design agency.

Developing the sales and marketing plan for a graphic design agency

Budgeting sales and marketing expenses is essential before creating a graphic design agency business plan.

A comprehensive sales and marketing plan should provide an accurate projection of what actions need to be implemented to acquire and retain customers, how many people are needed to carry out these initiatives, and how much needs to be spent on promotions, advertising, and other aspects.

This helps ensure that the right amount of resources is allocated to these activities in order to hit the sales and growth objectives forecasted in your business plan.

The staffing and capital expenditure requirements of a graphic design agency

Whether you are starting or expanding a graphic design agency, it is important to have a clear plan for recruitment and capital expenditures (investment in equipment and real estate) in order to ensure the success of the business.

Both the recruitment and investment plans need to be coherent with the timing and level of growth planned in your forecast, and require appropriate funding.

A graphic design agency might incur staffing costs such as salaries for graphic designers, illustrators, copywriters, web developers, and other creative professionals. They might also need to purchase equipment such as computers, tablets, software licenses, cameras, lighting equipment, and other specialized tools for their projects.

In order to create a realistic financial forecast, you will also need to consider the other operating expenses associated with running the business on a day-to-day basis (insurance, bookkeeping, etc.). 

Once you have all the necessary information to create a business plan for your graphic design agency, it is time to start creating your financial forecast.

What goes into your graphic design agency's financial forecast?

The financial forecast of your graphic design agency's business plan will enable you to assess the growth, profitability, funding requirements, and cash generation potential of your business in the coming years.

The four key outputs of a financial forecast for a graphic design agency are:

• The profit and loss (P&L) statement ,
• The projected balance sheet ,
• The cash flow forecast ,
• And the sources and uses table .

Let's look at each of these in a bit more detail.

The projected P&L statement

Your graphic design agency forecasted P&L statement enables the reader of your business plan to get an idea of how much revenue and profits your business is expected to make in the near future.

Ideally, your reader will want to see:

• Growth above the inflation level
• Expanding profit margins
• Positive net profit throughout the plan

Expectations for an established graphic design agency will of course be different than for a startup. Existing businesses which have reached their cruising altitude might have slower growth and higher margins than ventures just being started.

The forecasted balance sheet of your graphic design agency

The projected balance sheet of your graphic design agency will enable the reader of your business plan to assess the overall financial health of your business.

It shows three elements: assets, liabilities and equity:

• Assets: are productive resources owned by the business, such as equipment, cash, and accounts receivable (money owed by clients).
• Liabilities: are debts owed to creditors, lenders, and other entities, such as accounts payable (money owed to suppliers).
• Equity: includes the sums invested by the shareholders or business owners and the profits and losses accumulated by the business to date (which are called retained earnings). It is a proxy for the value of the owner's stake in the business.

Analysing your graphic design agency projected balance sheet provides an understanding of your graphic design agency's working capital structure, investment and financing policies.

In particular, the readers of your plan can compare the level of financial debt on the balance sheet to the equity value to measure the level of financial risk (equity doesn't need to be reimbursed, while financial debt must be repaid, making it riskier).

They can also use your balance sheet to assess your graphic design agency's liquidity and solvency:

• A liquidity analysis: focuses on whether or not your business has sufficient cash and short-term assets to cover its liabilities due in the next 12 months.
• A solvency analysis: takes and longer view to assess whether or not your business has the capacity to repay its debts over the medium-term.

The cash flow forecast

As we've seen earlier in this guide, monitoring future cash flows is the key to success and the only way of ensuring that your graphic design agency has enough cash to operate.

As you can expect showing future cash flows is the main role of the cash flow forecast in your graphic design agency business plan.

It is best practice to organise the cash flow statement by nature in order to show the cash impact of the following areas:

• Cash flow generated from operations: the operating cash flow shows how much cash is generated or consumed by the business's commercial activities
• Cash flow from investing activities: the investing cash flow shows how much cash is being invested in capital expenditure (equipment, real estate, etc.) either to maintain the business's equipment or to expand its capabilities
• Cash flow from financing activities: the financing cash flow shows how much cash is raised or distributed to financiers

Looking at the cash flow forecast helps you to make sure that your business has enough cash to keep running, and can help you anticipate potential cash shortfalls.

Your graphic design agency business plan will normally include both yearly and monthly cash flow forecasts so that the readers can view the impact of seasonality on your business cash position and generation.

The initial financing plan

The sources and uses table or initial financing plan is a key component of your business plan when starting a graphic design agency.

It shows where the capital needed to set up the business will come from (sources) and how it will be spent (uses).

This table helps size the investment required to set up the graphic design agency, and understand how risks will be distributed between the business owners, and the financiers.

The sources and uses table also highlights what the starting cash position will be. This is key for startups as the business needs to have sufficient funding to sustain operations until the break-even point is reached.

Now that you have a clear understanding of what will go into the financial forecast of your graphic design agency business plan, let's have a look at the written part of the plan.

The written part of a graphic design agency business plan

The written part of a graphic design agency business plan is composed of 7 main sections:

• The executive summary
• The presentation of the company
• The products and services
• The market analysis
• The strategy
• The operations
• The financial plan

Throughout these sections, you will seek to provide the reader with the details and context needed for them to form a view on whether or not your business plan is achievable and your forecast a realistic possibility.

Let's go through the content of each section in more detail!

1. The executive summary

The first section of your graphic design agency's business plan is the executive summary which provides, as its name suggests, an enticing summary of your plan which should hook the reader and make them want to know more about your business.

When writing the executive summary, it is important to provide an overview of the business, the market, the key financials, and what you are asking from the reader.

Start with a brief introduction of the business, its name, concept, location, how long it has been in operation, and what makes it unique. Mention any services or products you plan to offer and who you sell to.

Then you should follow with an overview of the addressable market for your graphic design agency, current trends, and potential growth opportunities.

You should then include a summary of your key financial figures such as projected revenues, profits, and cash flows.

Finally, you should detail any funding requirements in the ask section.

2. The presentation of the company

As you build your graphic design agency business plan, the second section deserves attention as it delves into the structure and ownership, location, and management team of your company.

In the structure and ownership part, you'll provide valuable insights into the legal structure of the business, the identities of the owners, and their respective investments and ownership stakes. This level of transparency is vital, particularly if you're seeking financing, as it clarifies which legal entity will receive the funds and who holds the reins of the business.

Moving to the location part, you'll offer a comprehensive view of the company's premises and articulate why this specific location is strategic for the business, emphasizing factors like catchment area, accessibility, and nearby amenities.

When describing the location of your graphic design agency, you may emphasize the potential for growth it has. You might highlight that it is in a region that is experiencing growth in terms of businesses and population. You could also point out that it is close to major transportation routes, allowing for easy access for customers and employees. Additionally, you may emphasize the diverse talent pool in the area, suggesting that your graphic design agency could benefit from the different mindsets and skill sets available. Finally, you could emphasize the potential for networking opportunities with other local businesses. All of these factors could make for an attractive investment opportunity.

Lastly, you should introduce your esteemed management team. Provide a thorough explanation of each member's role, background, and extensive experience.

It's equally important to highlight any past successes the management team has achieved and underscore the duration they've been working together. This information will instil trust in potential lenders or investors, showcasing the strength and expertise of your leadership team and their ability to deliver the business plan.

3. The products and services section

The products and services section of your graphic design agency business plan should include a detailed description of what your company sells to its customers. 

For example, your graphic design agency could offer logo design, website design, and brochure design to its customers. Logo design helps customers create a recognizable brand identity, while website design can help customers reach a wider audience. Brochure design can be used for print advertising to help customers promote their products and services. All of these services can help customers create a cohesive design that reflects their brand and values.

The reader will want to understand what makes your graphic design agency unique from other businesses in this competitive market.

When drafting this section, you should be precise about the categories of products or services you sell, the clients you are targeting and the channels that you are targeting them through. 

4. The market analysis

When outlining your market analysis in the graphic design agency business plan, it's essential to include comprehensive details about customers' demographics and segmentation, target market, competition, barriers to entry, and relevant regulations.

The primary aim of this section is to give the reader an understanding of the market size and appeal while demonstrating your expertise in the industry.

To begin, delve into the demographics and segmentation subsection, providing an overview of the addressable market for your graphic design agency, key marketplace trends, and introducing various customer segments and their preferences in terms of purchasing habits and budgets.

Next, shift your focus to the target market subsection, where you can zoom in on the specific customer segments your graphic design agency targets. Explain how your products and services are tailored to meet the unique needs of these customers.

For example, your target market might include small businesses who are looking to create a professional website or marketing materials. These businesses may not have the resources to hire a full-time graphic designer, but are willing to invest in high-quality design work to boost their brand recognition. Finally, the target market would include entrepreneurs who need a logo or other visuals to start their company.

In the competition subsection, introduce your main competitors and explain what sets your graphic design agency apart from them.

Finally, round off your market analysis by providing an overview of the main regulations that apply to your graphic design agency.

5. The strategy section

When writing the strategy section of a business plan for your graphic design agency, it is essential to include information about your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.

The competitive edge subsection should explain what sets your company apart from its competitors. This part is especially key if you are writing the business plan of a startup, as you have to make a name for yourself in the marketplace against established players.

The pricing strategy subsection should demonstrate how you intend to remain profitable while still offering competitive prices to your customers.

The sales & marketing plan should outline how you intend to reach out and acquire new customers, as well as retain existing ones with loyalty programs or special offers. 

The milestones subsection should outline what your company has achieved to date, and its main objectives for the years to come - along with dates so that everyone involved has clear expectations of when progress can be expected.

The risks and mitigants subsection should list the main risks that jeopardize the execution of your plan and explain what measures you have taken to minimize these. This is essential in order for investors or lenders to feel secure in investing in your venture.

Your graphic design agency could face financial risks, such as not collecting payments on time or not getting paid at all. Additionally, your agency might run into risks related to human resources, such as having to terminate a contract with a freelancer or having to hire a new employee if an existing one leaves. All of these things could lead to a decrease in business and a disruption in workflow.

6. The operations section

In your business plan, it's also essential to provide a detailed overview of the operations of your graphic design agency.

Start by covering your team, highlighting key roles and your recruitment plan to support the expected growth. Outline the qualifications and experience required for each role and your intended recruitment methods, whether through job boards, referrals, or headhunters.

Next, clearly state your graphic design agency's operating hours, allowing the reader to assess staffing levels adequately. Additionally, mention any plans for varying opening times during peak seasons and how you'll handle customer queries outside normal operating hours.

Then, shift your focus to the key assets and intellectual property (IP) necessary for your business. If you rely on licenses, trademarks, physical structures like equipment or property, or lease agreements, make sure to include them in this section.

You may have key assets such as a well-established brand and a portfolio of graphic designs that could be a valuable source of intellectual property. You might also have a suite of software tools, templates and artwork that could be used to create custom graphics and designs. These could be invaluable pieces of IP that can be used to create a competitive advantage for your agency.

Lastly, include a list of suppliers you plan to work with, detailing their services and main commercial terms, such as price, payment terms, and contract duration. Investors are interested in understanding why you've chosen specific suppliers, which may be due to higher-quality products or established relationships from previous ventures.

7. The presentation of the financial plan

The financial plan section is where we will present the financial forecast we talked about earlier in this guide.

Now that you have a clear idea of what goes in your graphic design agency business plan, let's look at the solutions you can use to draft yours.

What tool should I use to write my graphic design agency's business plan?

In this section, we will be reviewing the two main solutions for creating a graphic design agency business plan:

• Using specialized online business plan software,
• Outsourcing the plan to the business plan writer.

Using an online business plan software for your graphic design agency's business plan

The modern and most efficient way to write a graphic design agency business plan is to use business plan software .

There are several advantages to using specialized software:

• You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
• You are guided through the writing process by detailed instructions and examples for each part of the plan
• You can access a library of dozens of complete business plan samples and templates for inspiration
• You get a professional business plan, formatted and ready to be sent to your bank or investors
• You can easily track your actual financial performance against your financial forecast
• You can create scenarios to stress test your forecast's main assumptions
• You can easily update your forecast as time goes by to maintain visibility on future cash flows
• You have a friendly support team on standby to assist you when you are stuck

If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here .

Hiring a business plan writer to write your graphic design agency's business plan

Outsourcing your graphic design agency business plan to a business plan writer can also be a viable option.

These writers possess valuable experience in crafting business plans and creating accurate financial forecasts. Additionally, enlisting their services can save you precious time, enabling you to concentrate on the day-to-day operations of your business.

It's important to be mindful, though, that hiring business plan writers comes with a cost. You'll be paying not just for their time but also for the software they use, and their profit margin.

Based on experience, a complete business plan usually requires a budget of at least £1.5k ($2.0k) excluding tax, and more if revisions are needed after initial meetings with lenders or investors - changes often arise following these discussions.

When seeking investment, be cautious about spending too much on consulting fees. Investors prefer their funds to contribute directly to business growth. Thus, the amount you spend on business plan writing services and other consulting services should be negligible compared to the amount you raise.

Another aspect to consider is that while you'll receive the output of the business plan, you usually won't own the actual document. It will be saved in the consultant's business plan software, which will make updating the plan challenging without retaining the consultant on a retainer.

Given these factors, it's essential to carefully weigh the pros and cons of outsourcing your graphic design agency business plan to a business plan writer and decide what best suits your business's unique needs.

Why not create your graphic design agency's business plan using Word or Excel?

Using Microsoft Excel and Word (or their Google, Apple, or open-source equivalents) to write a graphic design agency business plan is a terrible idea.

For starters, creating an accurate and error-free financial forecast on Excel (or any spreadsheet) is very technical and requires both a strong grasp of accounting principles and solid skills in financial modelling.

As a result, it is unlikely anyone will trust your numbers unless - like us at The Business Plan Shop - you hold a degree in finance and accounting and have significant financial modelling experience in your past.

The second reason is that it is inefficient. Building forecasts on spreadsheets was the only option in the 1990s and early 2000s, nowadays technology has advanced and software can do it much faster and much more accurately.

And with the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.

Also, using software makes it easy to compare actuals vs. forecasts and maintain our forecasts up to date to maintain visibility on future cash flows - as we discussed earlier in this guide - whereas this is a pain to do with a spreadsheet.

That's for the forecast, but what about the written part of my graphic design agency business plan?

This part is less error-prone, but here also software brings tremendous gains in productivity:

• Word processors don't include instructions and examples for each part of your business plan
• Word processors don't update your numbers automatically when they change in your forecast
• Word processors don't handle the formatting for you

Overall, while Word or Excel may be viable options for creating a graphic design agency business plan for some entrepreneurs, it is by far not the best or most efficient solution.

• Using business plan software is a modern and cost-effective way of writing and maintaining business plans.
• A business plan is not a one-shot exercise as maintaining it current is the only way to keep visibility on your future cash flows.
• A business plan has 2 main parts: a financial forecast outlining the funding requirements of your graphic design agency and the expected growth, profits and cash flows for the next 3 to 5 years; and a written part which gives the reader the information needed to decide if they believe the forecast is achievable.

We hope that this in-depth guide met your expectations and that you now have a clear understanding of how to write your graphic design agency business plan. Do not hesitate to contact our friendly team if you have questions additional questions we haven't addressed here.

Also on The Business Plan Shop

• How to write a business plan to secure a bank loan?
• How to write a business plan to find a business partner
• One-page business plan template
• Market analysis in a business plan
• Key steps to write a business plan?
• Top mistakes to avoid in your business plan

Do you know entrepreneurs interested in starting or growing a graphic design agency? Share this article with them!

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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How to Start a Graphic Design Business in 10 Steps

BIG NEWS! We just released The Freelance Files , a collection of professional done-for-you email scripts, contracts, invoices, and more for smarter freelancing. The first 50 customers, save 50% with this link .

1. Find your first graphic design clients

2. set your pricing, 3. name your graphic design business, 4. build a basic website, 5. develop a simple business plan, 6. communicate with your clients, 7. deliver high-quality projects on-time, 8. write and send professional invoices, 9. collect payments from your design clients, 10. ask for referrals, repeat steps 5-10 regularly in order to grow.

Starting a graphic design business can be an exhilarating and exciting adventure whether you’re hoping to work for yourself full-time or just make a little extra money from an on-the-side design business.

And it’s pretty straightforward too if you’re willing to put in the work.

I’ve coached thousands of graphic designers over the last 10+ years through this blog , our podcast , and our mastermind group . So in this article, I’ll take everything I’ve learned after a decade of coaching to help you know exactly what to do to start a graphic design business . I’ve broken the process into 10 steps, which you’ll find below.

• Always start with finding clients—never anything else.
• Develop a solid business plan that includes your pricing structure, marketing strategy, and financial projections.
• Build a strong online presence and create a professional portfolio that showcases your skills and expertise.
• Establish relationships with other designers, freelancers, and industry professionals to build a strong network and generate referrals.
• Focus on providing exceptional customer service and building positive relationships with clients to ensure repeat business and ongoing success.

You might find it surprising, but my first step is to secure design clients.

What about crafting your portfolio, deciding on a business name, or obtaining a business license, you might ask?

Indeed, these elements are crucial.

However, I’ve observed many designers get lost in these preliminary tasks and burn out before they even engage with potential clients. Initiating a graphic design venture can become daunting if you start with the minutiae of business operations.

Therefore, we’ll kick off your design business on a positive note by securing your initial design clients. Once you have a few clients ready to compensate you for your work, you’ll be amazed at the surge of excitement, energy, and drive within you.

With this newfound momentum, you’ll find yourself well-equipped to address the remaining tasks.

Therefore, goal #1: find graphic design clients .

Where do you find graphic design clients?

If you’re a beginner at small business, you might be asking yourself: Where can I even begin to find my first design clients?

Lucky for you, finding graphic design clients has literally never been easier. There are hundreds of freelance job sites around the web to help you find exactly the kinds of clients you’re looking for.

For example, sites like Fiverr offer a huge marketplace of entry-level clients that can get you started when learning how to start a graphic design business. These most likely aren’t the kinds of clients you want to work with forever (although some may be), but they’re a great way to get some experience, a few portfolio pieces, some cash, and some confidence.

You can also find some nice entry-level work on sites like Upwork . Upwork is one of the most popular freelance marketplaces in the world and you’ll find access to thousands of graphic design jobs there.

To take action: here are 2 of our favorite sites to find design clients fast:

SolidGigs’ team of fellow freelancers combs through thousands of freelance job boards every weekday and posts the very best leads to your custom inbox.

You can learn more about SolidGigs here .

Next up is the largest freelance services marketplace in the world (at least I think it is). It’s called Upwork and lots of freelancers have built their own six-figure businesses on the back of this powerful platform, including this guy .

In the beginning, don’t be too picky

When you’re in the early stages, you might encounter seasoned freelancers and “experts” advising you to be choosy about your clientele.

They can afford such selectiveness, can’t they? After all, they’ve been at the helm of their small businesses for years, with client acquisition now a routine matter for them.

But you? You’re in immediate need of graphic design clients.

In the beginning, it’s wise to accept any reasonable graphic design work at a fair price. The potential of these initial projects is often underestimated.

At the very least, they’ll furnish you with confidence, experience, and valuable additions to your portfolio. In the best-case scenario, they might evolve into enduring, profitable business connections or serve as gateways to additional clientele.

Your client roster can be refined over time. However, for now, avoid being overly selective to the point where your graphic design venture never takes flight. This very trap has led to the downfall of many aspiring designers.

Now, let’s dive into the topic of your pricing structure.

Are you thinking of billing your clients on an hourly basis, per project, or according to the value you provide?

For those just beginning, hourly rates are straightforward and quite prevalent, but you might consider other pricing strategies as you gain more ground.

Figuring out what to charge graphic design clients

Deciding on your rates can be daunting. To assist, we’ve developed a complimentary calculator to help pinpoint your ideal charge.

But let’s be real—if you’re at a complete loss about your rates, just pick a starting point. Should a prospect hesitate at your quote, you might adjust downward slightly. Conversely, if there’s no negotiation from the client’s side, consider increasing your rate for the next project.

You’ll eventually find a sweet spot for your pricing. Make it a habit to reassess your rates regularly. You might be surprised at how much you can command as you progress.

With a few clients under your belt and the confidence for the long journey ahead, it’s time to establish the foundation of your solid small business, beginning with a thoughtfully chosen business name.

Deciding between using your own name or creating a business name

A common initial query for anyone starting in graphic design might be:

“Should I use my own name, or should I craft a unique business name?”

The straightforward answer is: it’s not overly critical. Choose something that resonates with you. Remember, you can always opt for a change down the line.

Delving deeper, the decision warrants some consideration.

While my suggestion is to select a name and forge ahead (bearing in mind that changes are feasible, albeit not ideal, but certainly manageable), the process of choosing your graphic design business’s name might necessitate more deliberation.

The name you settle on can influence various aspects of your design business, such as:

• Your potential to command higher rates for your design work.
• The ease with which people recall your brand.
• The type of design projects you’ll attract, including the industry, quality, and magnitude.
• The likelihood of being recommended by others.
• Your legal ability to operate without violating copyright or trademark laws.
• And much more…

My top advice for naming your graphic design business

To keep the process straightforward, here’s my prime piece of advice for naming:

Prioritize simplicity: ensure it’s easy to pronounce, remember, and spell

It’s tempting to get overly intricate, witty, or inventive with your design business’s name. Instead, aim for simplicity. Your business name should be easily articulated, spelled, and recalled by potential clients.

Make sure it’s available on the web

Before you fall in love with any name too much, you should check its availability around the web. Are the social media channels you hope to use (if any) available? Is there a domain that works well for your design company name?

In order to keep your ideas safe from domain squatters use something like Bluehost or Dreamhost  to check domain availability without risking it being parked or squatted.

Ensure you personally love it & it speaks to the vision of your company

While I really don’t want you to get paralyzed by the task of choosing a domain name (see the next point) it’s also critical that you feel good about your name and it speaks to the vision of your graphic design business.

You’re going to have to say the name of your business a lot. You’ll have to type it. You’ll have to speak it out loud. And if you feel silly about it or have to explain the context or feel the need to pronounce it for people, that’s going to get old really fast.

Don’t get paralyzed by decision

The biggest error I see people make in this regard is getting stuck on all the possible graphic design business names that are available.

The ultimate enemy here is indecision. Because while this is an important decision for your business, getting back to the revenue-driving decisions is far more critical at this stage.

For more help, you can also download my business-naming workbook which will walk you through an easy-to-follow process for naming your design business successfully.

The next step is to build a basic website. I say basic because, just like naming your design business, it’s easy to get stuck or paralyzed by the seemingly overwhelming task of building your website. That’s why you can use an AI website generator to speed up the process of designing a website but if not you can use other tools.

Lucky for you, there are loads of very easy-to-use and affordable website builders to build your first portfolio website .

My top beginner website builder recommendations

Here are my personal top picks. None of them requires you to learn to code and they’re all affordable.

• Wix is an easy-to-use website builder with hundreds of beautifully designed templates to choose from—all with drag-and-drop functionality. They’ve even got quite a few portfolio-centric options to get you started.
• WordPress may require a little bit more technical know-how (still no coding required) but it definitely gives you more flexibility in the long run. And because it continues to be the most-used website builder on the Internet, there are millions of tutorials to help you if you get stuck.
• Pixpa is designed specifically for creatives and includes cool add-ons like a client-proofing area or a simple gallery feature.

The “minimum viable” portfolio site

For years, I have preached the importance of what I call a minimum viable portfolio .

As a designer you care very much about how things look, making it far too easy to overdo things, keep adding more and more, editing, adjusting tweaking.

Which often leads to never publishing your portfolio. Which means no clients. And no graphic design business.

The better path (the one I hope you’ll take) is to aim for a “minimum-viable” portfolio.

The term “minimum-viable” answers the question “what is the least I can do to prove my portfolio can generate sales?”

Then start with that. It doesn’t mean, as you grow your business you can’t revisit your site and optimize it for getting more clients ? You can. And you should.

For now, your mission is to learn how to start a graphic design business and get it off the ground. All the fancy stuff can come later once you have revenue coming in.

Once you’ve got a few clients in the door, you’ve named your business, and you’ve got a minimum-viable portfolio site, you can finally start thinking more strategically about how to start a graphic design business the right way.

In my experience, the best next step is to develop a business plan .

Why isn’t that the first step on the list? Because I didn’t want you to get stuck forever in the “planning” stage only to never actually make it to the executing stage. Far too many design businesses (and businesses of all kinds) get lost in the planning stage and never see the light of day.

But not your design business. No. You are going to be different.

You only need a very basic business plan. In fact, it doesn’t need to be more than one page long. You can follow our freelance business plan template here and fill it out in less than 30 minutes.

For an even shorter business plan, grab a piece of paper or a computer and answer the following questions:

• What services will my design business provide?
• Who is the ideal client for my graphic design business?
• How much will my design business charge for the work I do?
• What are your monthly design business revenue goals?
• How many clients do I need each month to hit my revenue goals?
• Where/how will I find new design clients? Or how will I retain current design clients?

Answering these and similar questions will help you maintain traction and gain momentum when getting started.

One thing you’d find out extremely quickly is you have to wear a lot of different hats. Not only are you a graphic designer, but you’re also the bookkeeper, the marketing manager, and the account manager.

Communicating regularly and effectively with your clients is an absolute must. Luckily, you can interact with them in various ways; some examples are phone calls, emails, direct messaging on social media, and webinars.

Make your lines of communication open to nurture leads and clients. You can set up a toll-free number or a business email to make your graphic design business look more professional to prospects. Remember that addressing client concerns outright with a positive approach is key to good customer service.

If you want to exercise good communication, keep in mind that the clients are the people who keep your business afloat. The freelance designers who I see succeed the fastest are the ones that realize their clients aren’t some burden they have to deal with, but an essential and wonderful part of their graphic design business.

If you find yourself overwhelmed with all the client communication, try using a CRM tool to keep track of all client interactions.

If being unprofessional in your communication methods doesn’t kill your business, then failing to deliver on your promises will.

This is another huge fail-point for many designers because they mistakenly think the hardest work is finding design clients when in reality, it can often be more difficult to manage multiple projects and always deliver on time.

Project management tools can help you manage your projects and tasks, keeping you on track and ensuring you give your design clients a positive experience every time.

This can be especially important in the early days of your graphic design business since a few bad reviews or bad word-of-mouth reports around your local city could signify a real setback for you.

Once you’ve delivered your work to your clients and you’re ready to get paid , you’ll want to create and send a professional invoice.

The most basic option is to just write an invoice in Google Docs, Word, or InDesign and send it over via email. But I recommend eventually using a professional invoice tool —where you can create and send invoices quickly and efficiently.

Plus, using tools like these mean your clients can pay directly from the invoice when they open it on their computer. And, if after a while, your client forgets to pay the invoice, many of these apps will remind them for you automatically.

When you’re first learning how to start a graphic design business, the idea of doing work you love every day can be exhilarating.

In fact, depending on how much you hate your day job , you might be hoping this business can be an escape from your cubicle into work you actually care about. But if you get so caught up in the day-to-day creative work that you forget to manage your business properly, you won’t be in business for long.

Indeed, a business that doesn’t generate income essentially remains a hobby, underlining the paramount importance of securing payments.

Easing the Awkwardness of Payment Collection

Requesting payment can feel uncomfortable, particularly for those new to the business world. To mitigate this discomfort, consider two straightforward strategies:

1. Normalize the Payment

It’s essential to recognize that exchanging money for services rendered is a standard business practice, occurring daily across various industries. Launching a graphic design venture is no exception.

Your clients routinely pay for services, whether it’s shipping costs with FedEx, electrical repairs, or even the weekly office donuts. It’s all part of conducting business. By treating payment collection as a routine aspect of your operations, you’ll help normalize the process for both parties.

2. Simplify the Payment Process for Clients

Difficulty in receiving payments might indicate a cumbersome payment process for your clients. Given that people often juggle busy schedules or may procrastinate, simplifying the payment process can significantly benefit both you and your clients.

Employing an online payment tool that facilitates direct bank transfers can streamline transactions. As your business evolves, you might consider setting up recurring invoices or securely storing client credit card details for seamless future payments.

With more experience, you could even prioritize payment collection by requiring it before delivering the final product. This approach can prevent protracted disputes or the hassle of pursuing overdue payments, though it’s advisable to adopt this practice once your business is more established.

No matter how many times I ask business owners what the most common way of getting new business is, I always get the same response:

Word of mouth .

Asking your graphic design clients for referrals can be a really great way to establish yourself. If you’re not sure where to get started, you can download our referral-generating email template .

But asking for referrals for your graphic design business shouldn’t be awkward or difficult. In fact, with a lot of practice you might even get good enough to ask for referrals throughout your process without ever blatantly begging for them .

Remember, part of the challenge of learning how to start a design business is ensuring you have continuous design work every month (not just this month) and referrals are a fantastic way to keep the client pool full.

This brings me to my last (unofficial) step in this process:

If you want your graphic design business to grow, you’ll need to constantly be making adjustments to your pricing, your client communications processes, your invoicing habits, and lots more.

That’s the fun of building a small business.

It’s like any great design project: it takes a lot of brainstorming, tweaking, adjusting, and refining. It’s a lot of hard work.

But you can do it. I know you can. And we’re here to help. Subscribe to our newsletter and join our FB mastermind group for added support and we’ll help you wherever we can along the way.

Keep the conversation going...

Over 10,000 of us are having daily conversations over in our free Facebook group and we'd love to see you there. Join us!

Freelancing Growth

Written by Preston Lee

Editor at millo.co.

Preston Lee is the founder of Millo where he and his team have been helping freelancers thrive for over a decade. His advice has been featured by Entrepreneur , Inc , Forbes , Adobe, and many more.

Preston's Articles

Reviewed & edited by Adam Wright , at Millo.

At Millo, we strive to publish only the best, most trustworthy and reliable content for freelancers. You can learn more by reviewing our editorial policy .

Comments from the community

This is a very helpful article. It covers all the questions and doubts every beginner has.

Great Guide Greer!

Starting a new business …it’s not an easy task but you have written what exactly required to start a design business.

All these things are matter but the main thing is to know how the successful business owners like to shape the plans. We should check their footprints and follow –up them.

I think the best business plan is your words….

Keep up the awesome work!!!

Great and helpful blog to everyone. Thanks a lot for sharing this amazing article.

I’ve started freelancing a few months ago and a lot of what you wrote resonates with me. Especially the bit about finding good clients that you work well with.

I was also curious about how you get briefs from your clients. Do you have a template you get them to fill out or do you work with what they give you? I have recently found myself doing a lot of extra work which I feel is not on the initial brief but some how my client feels it is. It’s especially around brand ID stuff. Dose anyone find this difficult as well? Do you have any tips how I can ease my pain? Especially when there are multiple stakeholders in place who all feel like they require sign off, on every aspect of things.

Thanks for this, also i really appreciate those tools you recommended

thank you so much ,it helped me!

Very helpful .Thanks for sharing ☺

Hello April, I found this article very helpful! My question for you is what assets if any should I look forward into investing in, for example should I invest in some sort of printing machine, certain computer programs, scanners, etc.

Fantastic resource!

Structuring your business for taxes

When was this article published?

Great article! I really enjoy read each of sections. I only did a few of these aspects for my business, and i think i would add these steps to my business.

This was extremely helpful. Starting your own business is a daunting task and by breaking it down for viewers in such an organized and insightful manner is inspiring and palatable. I feel so inspired and motivated to begin.

i am totally agree with your all point. For me, one of the hard work is finding a reliable client for design business. I am enthusiast to follow your guidelines. Hope it will working for me to find few more client.

this article is very useful and have inspired me. thanks!

I wish everyone read this post before they startup.

How to make a proper portfolio for design and web firm. It would be great if you can send me some samples/

Very useful article thanks

Thank you for this great article, I like it, it’s very practical.

Great article

To tell about Web Design like producing a two Web pages can be skilled by just about anyone, but to build a self-sustaining work one needs the right tools, planning,training and experience. http://goo.gl/fsRNBT

Some great advice here. I have recently started my own Graphic and Design and Illustration business at http://nylelevi.com.com

Please take a look if you are interested in seeing what I do. You may even pick up some tips on how to present yourself online if you are planning to start your own business soon.

5 star on this one. copy/paste to clip board 😉

good ideas when you have enough capital

Great tips.. They can be applied not only to design business but to other kinds of businesses too.

I want to start my own business doing design

me too. Hope its moving forward for you. Reading this article and comments on my 9 to 5 London commute has made me think hard about next steps. I’d love to set my self up, just need to take the plunge i guess with lots of positive affirmations, 🙂

I started http://2cooldesign.co.za in 2005 and have never looked back, I’m always looking for more work. Want to be inspired, come see my awesome portfolio, Recommend me to your friends, please & thank you for taking a look ! All the best Guy Tasker creator of 2cooldesign.co.za Awesome Graphic design company based in South Africa. Online based Business, I work from home 🙂

Excellent article. Starting any business can be difficult, but if your passionate about what you want to achieve, it’s possible. It’s also advisable to participate in forums , you can learn and network with other professionals within the industry.

I fully agree with Mel on the emphasis upon work and letting it speak for itself. Also, as Kristine puts it, referrals are an essential customer-base but winning them requires a happy client network that will spread your word. Alongside putting up a team of incentive-driven, passionate & like-minded people, is something that greatly helps in the long run. They bring ideas, networks, energy and add a lot of support. Five year vision, six monthly targets, professional advisers, masters of business administration, etc. are sure-shot recipe, I feel, to bog down budding entrepreneurs, but become necessary when external opinions (investors, shareholders etc.) are unavoidable.

Hmmm… Great info!

On a side note, as I have learned from several business owners, clients are important, and so is marketing, but if you are good at what you do you really don’t have to spend as much time and cash on advertising as you think. Referrals help, but can and does give your client the impression you are looking to expand or take the focus away from them. It just needs to be tastefully done.

I’m thinking an infographic on the best ways to ask for a referral??

Otherwise this content is good. It seems a little heavy, as far as getting exposure etc, and simply to make money, but in my experience I’d rather focus on the work then what I’m trying to achieve financially (at least this is how it comes across) because if you’re good at what you do money will come 🙂

From my own experience, for a business the most important thing is Clients and Cash. Enough Cash at hand to keep rolling till Clients start filling in Cash and repeat. While most of your points address the Client angle, none of the points actual talk about Cash, for a new startup business keep the Cash register ringing is equally important 🙂

Great post, John! I would add that, along with the business plan, one should write a marketing plan. This plan should outline how the business owner will make the business plan a reality, from strategizing what to sell and when, to networking and proper utilization of social media. Without this supporting document, even the best business plan is just words.

Ah, #10! Can’t say enough about it….

I’m a believer in preframing for referrals. Each time I land a new account, I say to the Client, “I’m going to make you very happy. Your business will shine, you’ll feel like a rock star, and you will thrilled with the result. And when that happens, would you mind if I asked you to refer your colleagues/associates to me?” Of course, the response is always “I’d be happy to refer you – IF you impress me first!” Once the project is complete, I say to the Client “Remember when I asked you if you wouldn’t mind referring your colleagues/associates to me? What do you think, are you confident enough in my ability to send your friends or family my way?”

It’s a lot easier to ask for a referral when you’ve preframed your Client for it from the start. 95% of my work now is by referral/word of mouth, and I believe this is the reason. I rarely get a new client any other way anymore.

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Here is a free business plan sample for a graphic design services.

If you're passionate about graphic design and are considering turning your creativity into a career, you've landed on the perfect page.

In the content that follows, we will present you with a comprehensive business plan outline tailored for a graphic design venture.

As you might be aware, a strategic business plan is crucial for any aspiring entrepreneur. It serves as a roadmap, guiding you through establishing your brand, setting clear objectives, and outlining your approach to attract clients and grow your business.

To jumpstart your journey, you can utilize our graphic designer business plan template. Our team is also on standby to provide a free review and offer feedback on your completed plan.

How to draft a great business plan for your graphic design services?

A good business plan for a graphic designer must reflect the unique aspects of the creative services industry.

To start, it's important to provide a comprehensive overview of the design market. This includes current statistics and identifying emerging trends within the industry, similar to what we've incorporated in our graphic design business plan template .

Your business plan should articulate your vision clearly. Define your niche (such as logo design, branding, web design, etc.), identify your target market (startups, small businesses, large corporations, individual clients), and establish your unique value proposition (customized solutions, quick turnaround, specific design expertise).

Market analysis is a critical component. This means understanding your competitors, staying abreast of design trends, and knowing your potential clients' needs and preferences.

For a graphic designer, it's essential to showcase your portfolio. Detail the range of services you offer - from print to digital design - and demonstrate how these services can solve the problems or meet the needs of your target audience.

The operational plan should outline your work environment, whether it's a home office or a rented studio space, your hardware and software setup, and your process for managing projects and client communications.

Quality of work is paramount in graphic design. Emphasize your design process, attention to detail, and commitment to delivering high-quality, impactful designs.

Discuss your marketing and sales strategy. How will you build your brand and attract new clients? Consider your promotional tactics, networking strategies, and client retention plans.

Having a digital strategy, including a professional website and an active presence on platforms like Instagram or Behance, is crucial for showcasing your work and reaching potential clients.

The financial section is vital. It should cover your pricing model, sales projections, operational expenses, and the point at which your business will become profitable.

As a graphic designer, your income may vary based on project size and frequency, so it's important to have a clear financial plan. For assistance, you can refer to our financial forecast for graphic designers .

Compared to other business plans, a graphic design plan must focus more on intellectual property rights, portfolio development, and client acquisition strategies.

A well-crafted business plan will not only help you clarify your business strategy but also attract clients or secure financing.

Lenders and investors are interested in a solid market analysis, realistic financial projections, and a clear understanding of how you will manage your design projects and client relationships.

By presenting a detailed and substantiated plan, you show your professionalism and dedication to the success of your graphic design business.

To achieve these goals efficiently, you can fill out our graphic design business plan template .

A free example of business plan for a graphic design services

Here, we will provide a concise and illustrative example of a business plan for a specific project.

This example aims to provide an overview of the essential components of a business plan. It is important to note that this version is only a summary. As it stands, this business plan is not sufficiently developed to support a profitability strategy or convince a bank to provide financing.

To be effective, the business plan should be significantly more detailed, including up-to-date market data, more persuasive arguments, a thorough market study, a three-year action plan, as well as detailed financial tables such as a projected income statement, projected balance sheet, cash flow budget, and break-even analysis.

All these elements have been thoroughly included by our experts in the business plan template they have designed for a graphic designer .

Here, we will follow the same structure as in our business plan template.

Market Opportunity

Market data and figures.

The graphic design industry is a dynamic and evolving field with significant impact on various sectors.

Recent estimates value the global graphic design market at over $45 billion, with expectations for continued growth as businesses increasingly rely on visual content to communicate with their audiences.

In the United States alone, there are over 250,000 graphic design businesses, contributing to an annual revenue of approximately $15 billion for the industry.

These figures underscore the critical role of graphic designers in branding, marketing, and multimedia industries, highlighting their economic importance.

The graphic design landscape is shaped by several emerging trends and technological advancements.

Minimalism continues to dominate design preferences, with a focus on simplicity and clean lines. This is complemented by bold typography and vibrant color schemes that capture attention.

There is a growing emphasis on personalized and custom graphics, as businesses seek to stand out in a crowded marketplace with unique visual identities.

Advancements in design software and tools, such as virtual reality and augmented reality, are opening new avenues for immersive and interactive designs.

Additionally, the rise of social media platforms has led to an increased demand for engaging and shareable graphic content.

Environmental consciousness is also influencing design choices, with a push towards sustainable practices and materials in print design.

These trends reflect the graphic design industry's adaptability and its role in shaping how businesses and individuals communicate visually in the digital age.

Success Factors

Several factors contribute to the success of a graphic designer or design firm.

First and foremost, the ability to produce high-quality, innovative designs that effectively communicate a client's message is paramount.

Creativity and a strong understanding of design principles are essential for delivering compelling visual content.

Staying current with the latest design software and technologies can provide a competitive edge and enable designers to offer cutting-edge solutions.

Networking and building strong relationships with clients and other industry professionals can lead to referrals and repeat business.

Excellent customer service and the ability to work within deadlines and budgets are also critical for client satisfaction and retention.

Ultimately, a graphic designer's success hinges on their ability to adapt to industry trends, manage projects efficiently, and consistently deliver designs that resonate with target audiences.

The Project

Project presentation.

Our graphic design venture is tailored to cater to the increasing need for professional and creative visual communication solutions. Situated in a vibrant business district or operating online, this service will offer a comprehensive suite of graphic design services, including branding, logo design, marketing materials, web design, and more, all crafted with a keen eye for detail and contemporary aesthetics.

The emphasis will be on delivering bespoke, impactful, and visually compelling designs that resonate with the target audience and enhance our clients' brand identity.

This graphic design initiative aims to become a go-to resource for businesses and individuals alike, seeking to elevate their visual presence in a competitive market.

Value Proposition

The value proposition of our graphic design service is centered around providing innovative and personalized design solutions that effectively communicate our clients' brand message.

Our dedication to artistic excellence, strategic thinking, and customer satisfaction offers a transformative visual experience, while supporting the marketing goals and brand recognition of our clients.

We are committed to fostering a collaborative environment where clients feel understood and valued, and aim to educate them on the importance of professional design in achieving business success.

Our graphic design service strives to be a cornerstone for clients, delivering not just designs, but a visual language that speaks directly to their audience and distinguishes them from the competition.

Project Owner

The project owner is a seasoned graphic designer with a passion for visual storytelling and a knack for translating ideas into compelling design concepts.

With a background in graphic design and a portfolio that showcases a wide range of successful projects, they are poised to create a graphic design service that is renowned for its creativity, client-focused approach, and ability to deliver results.

Driven by a mission to empower brands through design, they are committed to staying ahead of industry trends and leveraging their expertise to provide clients with cutting-edge visual solutions.

Their dedication to the craft of design and their desire to make a lasting impact on clients' businesses are the driving forces behind this venture, aiming to set a new standard in the graphic design landscape.

The Market Study

Target market.

The target market for a graphic design business can be segmented into various groups.

Firstly, there are small to medium-sized businesses in need of branding, marketing materials, and digital design services to establish and maintain their market presence.

Secondly, individual entrepreneurs and professionals who require personal branding and promotional designs to enhance their visibility and credibility in their respective fields.

Additionally, the market includes larger corporations seeking to outsource creative projects, such as annual reports, corporate identity packages, and advertising campaigns.

Lastly, other potential clients include non-profit organizations, educational institutions, and event planners looking for design services for campaigns, events, and informational materials.

SWOT Analysis

A SWOT analysis for a graphic design business might highlight the following:

Strengths could include a strong portfolio showcasing a wide range of design skills, a well-established network of clients, and a reputation for creativity and timely delivery.

Weaknesses might involve the challenge of staying updated with the latest design software and trends, or the potential for workload fluctuations due to project-based work.

Opportunities could arise from the growing need for digital design with the increase in online businesses, as well as the potential to expand services to include web design and social media management.

Threats may include intense competition from other freelance designers and design agencies, as well as the need to continuously adapt to changing design technologies and client preferences.

Competitor Analysis

Competitor analysis for a graphic design business shows a diverse and competitive landscape.

Direct competitors include other freelance graphic designers and design agencies that offer similar services.

These competitors vie for clients by showcasing their design expertise, client testimonials, and portfolio quality.

Competitive advantages may be found in specialized design services, niche market expertise, strong client relationships, and a unique creative approach.

Understanding the strengths and weaknesses of these competitors is crucial for carving out a unique market position and developing client acquisition and retention strategies.

Competitive Advantages

The competitive advantages of a graphic design business may revolve around personalized service and a unique design aesthetic.

Offering tailored design solutions that align with a client's brand identity and business goals can set a designer apart from competitors.

Additionally, staying abreast of design trends and incorporating innovative techniques can enhance the appeal of the services offered.

Building a reputation for reliability, effective communication, and exceeding client expectations can foster long-term relationships and lead to repeat business and referrals.

Transparency in the design process and clear pricing structures also contribute to building trust and satisfaction among clients.

You can also read our articles about: - how to offer graphic design services: a complete guide - the customer segments of a graphic design services - the competition study for a graphic design services

The Strategy

Development plan.

Our three-year development plan for the graphic design business is designed to be dynamic and responsive to the evolving market.

In the first year, we will concentrate on building a robust portfolio and establishing a strong online presence to attract a diverse client base.

The second year will be focused on expanding our services to include branding packages, web design, and digital marketing, thereby offering a comprehensive suite of design solutions to our clients.

In the third year, we aim to collaborate with advertising agencies and corporate clients to secure larger projects and recurring contracts.

Throughout this period, we will prioritize staying ahead of design trends, investing in cutting-edge software, and continuously improving our technical skills to deliver exceptional value to our clients.

Business Model Canvas

The Business Model Canvas for our graphic design business targets entrepreneurs, small businesses, and corporations in need of professional visual content.

Our value proposition is centered on delivering high-quality, custom design work that effectively communicates our clients' brand messages.

We offer our services through various online platforms, utilizing key resources such as our design software, creative expertise, and a network of professional contacts.

Key activities include client consultations, design creation, project management, and ongoing client support.

Our revenue streams are generated from project-based fees, retainer agreements, and design service packages, while our costs are mainly associated with software subscriptions, marketing, and professional development.

Access a detailed and editable real Business Model Canvas in our business plan template .

Marketing Strategy

Our marketing strategy is built on showcasing our design expertise and building relationships with clients.

We plan to create a strong portfolio that demonstrates our range of skills and past successes. This will be complemented by testimonials and case studies to build credibility.

Networking events, social media marketing, and collaborations with influencers in the design community will help us reach a wider audience.

We will also offer free resources, such as design tips and templates, to engage potential clients and position ourselves as thought leaders in the industry.

Risk Policy

The risk policy for our graphic design business focuses on mitigating risks associated with client acquisition, project delivery, and data security.

We will implement clear contracts to define project scopes and deliverables, ensuring client expectations are managed effectively.

Regular data backups and adherence to cybersecurity best practices will protect our work and client information.

Cost management strategies will be in place to maintain financial stability, and professional indemnity insurance will cover any potential legal issues related to our design work.

Our commitment is to provide high-quality design services while safeguarding our business and our clients' interests.

Why Our Project is Viable

We are confident in the viability of our graphic design business due to the ever-increasing demand for professional visual content across all sectors.

With a focus on creativity, client satisfaction, and adaptability, we are well-positioned to capture market share and build a reputable brand.

We are enthusiastic about the opportunity to enhance our clients' visual communication strategies while growing a sustainable and innovative design business.

We remain flexible to industry changes and client needs, and we are excited about the future prospects of our graphic design venture.

You can also read our articles about: - the Business Model Canvas of a graphic design services - the marketing strategy for a graphic design services

The Financial Plan

Of course, the text presented below is far from sufficient to serve as a solid and credible financial analysis for a bank or potential investor. They expect specific numbers, financial statements, and charts demonstrating the profitability of your project.

All these elements are available in our business plan template for a graphic designer and our financial plan for a graphic designer .

Initial expenses for our graphic design business include investing in high-quality design software, powerful computing equipment to handle complex design tasks, setting up a professional website portfolio, acquiring licenses for stock images and fonts, and costs related to brand creation and launching targeted marketing campaigns to reach potential clients.

Our revenue assumptions are based on a thorough analysis of the market demand for graphic design services, considering the importance of strong visual branding for businesses and the increasing need for digital content.

We anticipate a steady growth in client acquisition, starting modestly and expanding as our portfolio and reputation in the graphic design industry strengthen.

The projected income statement indicates expected revenues from our design services, production costs (software subscriptions, design assets), and operating expenses (workspace rent, marketing, salaries for any support staff, etc.).

This results in a forecasted net profit essential for assessing the profitability of our graphic design venture over time.

The projected balance sheet reflects assets specific to our business, such as design software, hardware, and any pre-paid subscriptions, and liabilities including debts and anticipated expenses.

It shows the overall financial health of our graphic design business at the end of each period.

Our projected cash flow budget details incoming and outgoing cash flows, allowing us to anticipate our cash needs at any given time. This will enable us to manage our finances effectively and avoid cash flow problems.

The projected financing plan lists the specific financing sources we plan to use to cover our startup expenses.

The working capital requirement for our graphic design business will be closely monitored to ensure we have the necessary liquidity to finance our daily operations, including software subscription fees, marketing efforts, and any outsourced services or staff salaries.

The break-even point specific to our project is the level of sales needed to cover all our costs, including startup expenses, and start making a profit.

It will indicate when our business will become profitable.

Performance indicators we will track include the profit margin rate on our design services, the liquidity ratio to assess our ability to cover short-term financial obligations, and the return on investment to measure the effectiveness of our capital invested in the business.

These indicators will help us evaluate the financial health and overall success of our graphic design business.

If you want to know more about the financial analysis of this type of activity, please read our article about the financial plan for a graphic design services .

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Graphic Design Business Plan Template & Guidebook

Are you looking to start a successful graphic design business? It doesn't have to be a daunting task. With the right plan, you can make sure your business has the best chance at success. The #1 Graphic Design Business Plan Template & Guidebook provides everything you need to create an organized, professional and detailed plan. With just a few simple steps, you'll be well on your way to launching a successful graphic design business.

Get worry-free services and support to launch your business starting at $0 plus state fees.

• How to Start a Profitable Graphic Design Business [11 Steps]
• 10+ Best & Profitable Graphic Design Business Ideas [2023]
• 25 Catchy Graphic Design Business Names:
• List of the Best Marketing Ideas For Your Graphic Design Service:

How to Write a Graphic Design Business Plan in 7 Steps:

1. describe the purpose of your graphic design business..

The first step to writing your business plan is to describe the purpose of your graphic design business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a graphic design business:

Our mission is to create stylish and innovative graphic design solutions that enhance our clients' brands and visibility in the marketplace, while providing excellent customer service and value.

2. Products & Services Offered by Your Graphic Design Business.

The next step is to outline your products and services for your graphic design business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

• What is my business?
• What are the products and/or services that I offer?
• Why am I offering these particular products and/or services?
• How do I differentiate myself from competitors with similar offerings?
• How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your graphic design business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your graphic design business includes the following elements:

Target market

• Who is your target market?
• What do these customers have in common?
• How many of them are there?
• How can you best reach them with your message or product?

Customer base 

• Who are your current customers? 
• Where did they come from (i.e., referrals)?
• How can their experience with your graphic design business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

• How does it work, what features does it have, and what are its benefits?
• Can anyone use this product or service regardless of age or gender?
• Can anyone visually see themselves using this product or service?
• How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

• Which companies are competing with yours today (and why)? 
• Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
• What specific advantages does each competitor offer over yours currently?

Marketing channels

• Which marketing channel do you intend to leverage to attract new customers?
• What is your estimated marketing budget needed?
• What is the projected cost to acquire a new customer?
• How many of your customers do you instead will return?

Form an LLC in your state!

4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

• The equipment and facilities needed
• Who will be involved in the business (employees, contractors)
• Financial requirements for each step
• Milestones & KPIs
• Location of your business
• Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a graphic design business?

• Computer & Design Software
• High Quality Printer
• Photography Equipment
• Advertising & Marketing Materials
• Business License or Permit (depending on local regulations)

5. Management & Organization of Your Graphic Design Business.

The second part of your graphic design business plan is to develop a management and organization section.

This section will cover all of the following:

• How many employees you need in order to run your graphic design business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
• The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
• How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Graphic Design Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a graphic design business varies based on many different variables, but below are a few different types of startup costs for a graphic design business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your graphic design business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your graphic design business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your graphic design business plan:

• Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
• Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
• Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
• Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
• Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
• Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

Frequently Asked Questions About Graphic Design Business Plans:

Why do you need a business plan for a graphic design business.

A business plan is an important tool for the success of any graphic design business. It can help by providing a clear understanding of the goals and objectives, developing strategies to reach those goals, and creating an action plan that outlines how those objectives will be met. Additionally, having a plan in place can help with financial planning, budgeting, and attracting potential investors or partners.

Who should you ask for help with your graphic design business plan?

When creating a business plan for a graphic design business, it is best to consult a professional business advisor or accountant. They can help assess any potential risks and provide advice on the most suitable financial structure for the business. Additionally, you could join a local entrepreneur group or organization such as SCORE or BizFilings that offers resources and advice for entrepreneurs.

Can you write a graphic design business plan yourself?

Yes, it’s possible to write a graphic design business plan yourself. It’s important to be organized and familiar with the components of a business plan before beginning. A good first step is to research and read business plans in the graphic design industry, as well as studying industry trends. After gaining an understanding of the industry, you can create an executive summary and market evaluation of your product or service. Additionally, be sure to include details about your management team, marketing strategy, pricing structure, financial projections and more.

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I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.

How to Start a Graphic Design Business

Starting a graphic design business can be very profitable. With proper planning, execution and hard work, you can enjoy great success. Below you will learn the keys to launching a successful graphic design business.

Importantly, a critical step in starting a graphic design business is to complete your business plan. To help you out, you should download Growthink’s Ultimate Business Plan Template here .

Download our Ultimate Business Plan Template here

14 Steps To Start a Graphic Design Business :

• Choose the Name for Your Graphic Design Business
• Develop Your Graphic Design Business Plan
• Choose the Legal Structure for Your Graphic Design Business
• Secure Startup Funding for Your Graphic Design Business (If Needed)
• Secure a Location for Your Business
• Register Your Graphic Design Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Graphic Design Business
• Buy or Lease the Right Graphic Design Business Equipment
• Develop Your Graphic Design Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Graphic Design Business
• Open for Business

1. Choose the Name for Your Graphic Design Business

The first step to starting a graphic design business is to choose your business’ name.  

This is a very important choice since your company name is your brand and will last for the lifetime of your business. Ideally you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your own graphic design business:

• Make sure the name is available . Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also check to see if a suitable domain name is available.
• Keep it simple . The best names are usually ones that are easy to remember, pronounce and spell.
• Think about marketing . Come up with a name that reflects the desired brand and/or focus of your graphic design business.

2. Develop Your Graphic Design Business Plan

One of the most important steps in starting a graphic design business is to develop your graphic design business plan . The process of creating your plan ensures that you fully understand your market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present to funding sources to raise capital for your business.

Your business plan should include the following sections:

• Executive Summary – this section should summarize your entire business plan so readers can quickly understand the key details of your own business.
• Company Overview – this section tells the reader about the history of your graphic design business and what type of graphic design business you operate. For example, are you a freelance graphic designer, in-house designer, or a graphic design studio?
• Industry Analysis – here you will document key information about the graphic design industry. Conduct market research and document how big the industry is and what trends are affecting it.
• Customer Analysis – in this section, you will document who your ideal or target customers are and their demographics. For example, how old are they? Where do they live? What do they find important when purchasing services like the ones you will offer?
• Competitive Analysis – here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
• Marketing Plan – your marketing plan should address the 4Ps: Product, Price, Promotions and Place.
• Product : Determine and document what products/services you will offer 
• Prices : Document the prices of your products/services
• Place : Where will your business be located and how will that location help you increase sales?
• Promotions : What promotional methods will you use to attract customers to your graphic design business? For example, you might decide to use pay-per-click advertising, public relations, search engine optimization and/or social media marketing.
• Operations Plan – here you will determine the key processes you will need to run your day-to-day operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
• Management Team – this section details the background of your company’s management team.
• Financial Plan – finally, the financial plan answers questions including the following:
• What startup costs will you incur?
• How will your graphic design business make money?
• What are your projected sales and expenses for the next five years?
• Do you need to raise funding to launch your business?

Finish Your Business Plan Today!

3. choose the legal structure for your graphic design business.

Next you need to choose a legal structure for your graphic design business and register it and your business name with the Secretary of State in each state where you operate your business.

Below are the five most common legal structures:

1) Sole proprietorship

A sole proprietorship is a business entity in which the business owner and the business are the same legal person. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business.

2) Partnerships

A partnership is a legal structure that is popular among small business owners. It is an agreement between two or more people who want to start a graphic design business together. The partners share in the profits and losses of the business. 

The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.

3) Limited Liability Company (LLC)

A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for a graphic design business include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.

4) C Corporation

A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for a graphic design business is that it offers limited liability to its owners. This means that the owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.

5) S Corporation

An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others.

Once you register your own business, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.

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4. Secure Startup Funding for Your Graphic Design Business (If Needed)

In developing your graphic design business plan , you might have determined that you need to raise funding to launch your business. 

If so, the main sources of funding for a graphic design business to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in a graphic design business that they believe has high potential for growth.

5. Secure a Location for Your Business

The first thing to consider when looking for a location for your graphic design business is your target market. You’ll want to find a location that is accessible and convenient for your customers. Additionally, you should consider the cost of rent and other business expenses when choosing a location. It’s important to secure a site that is affordable. 

6. Register Your Graphic Design Business with the IRS

Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).

Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.

Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.

7. Open a Business Bank Account

It is important to establish a bank account in your graphic design business’ name. This process is fairly simple and involves the following steps:

• Identify and contact the bank you want to use
• Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
• Complete the bank’s application form and provide all relevant information
• Meet with a banker to discuss your business needs and establish a relationship with them

8. Get a Business Credit Card

You should get a business credit card for your graphic design business to help you separate personal and business expenses.

You can either apply for a business credit card through your bank or apply for one through a credit card company.

When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.

Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.

9. Get the Required Business Licenses and Permits

The licenses and permits you need to start a graphic design business will vary depending on your location. However, some of the most common licenses and permits you may need include a business license, a trade name registration, and a zoning permit.

10. Get Business Insurance for Your Graphic Design Business

There are a few different types of insurance you will need to operate a graphic design business.

Some business insurance policies you should consider for your graphic design business include:

• General liability insurance : This covers accidents and injuries that occur on your property. It also covers damages caused by your employees or products.
• Workers’ compensation insurance : If you have employees, this type of policy works with your general liability policy to protect against workplace injuries and accidents. It also covers medical expenses and lost wages.
• Commercial property insurance : This covers damage to your property caused by fire, theft, or vandalism.
• Business interruption insurance : This covers lost income and expenses if your business is forced to close due to a covered event.
• Professional liability insurance : This protects your business against claims of professional negligence.

Find an insurance agent, tell them about your business and its needs, and they will recommend policies that fit those needs. 

11. Buy or Lease the Right Graphic Design Business Equipment

To start a graphic design business, you will need some basic equipment. This includes a computer, software, printer, and scanner. You may also want to invest in a graphics tablet to help with your design work.

12. Develop Your Graphic Design Business Marketing Materials

Marketing materials will be required to attract and retain customers to your graphic design business.

The key marketing materials you will need are as follows:

• Logo : Spend some time developing a good logo for your graphic design business. Your logo will be printed on company stationery, business cards, marketing materials and so forth. The right logo can increase customer trust and awareness of your brand.
• Website : Likewise, a professional graphic design business website provides prospective clients with information about the services you offer, your company’s history, and contact information. Importantly, remember that the look and feel of your website will affect how customers perceive you.
• Social Media Accounts : establish social media accounts in your company’s name. Accounts on Facebook, Twitter, LinkedIn and/or other social media platforms will help customers and others find and interact with your graphic design business.

13. Purchase and Setup the Software Needed to Run Your Graphic Design Business

To start a graphic design business, you will need design software. You may also need software for designing websites, creating logos and illustrations, and editing videos. 

14. Open for Business

You are now ready to open your graphic design business. If you followed the steps above, you should be in a great position to build a successful business. Below are answers to frequently asked questions that might further help you.

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How to Start a Graphic Design Business FAQs

Where can i download a graphic design business plan pdf.

You can download our graphic design business plan PDF  here. This is a business plan template you can use in PDF format.

How much does it cost to start a graphic design business?

To start a graphic design business, it will cost approximately $5,000. This includes setting up a basic website and purchasing necessary software. You will also need to factor in the cost of marketing and advertising your new business.

Is it hard to start a graphic design business?

No, it is not hard to start a graphic design business if you have the skills and motivation to get started. There are online resources and tools that can help you learn how to start and grow your business. Additionally, there are a number of online marketplaces where you can sell your designs.

How can I start a graphic design business with no experience?

There are a few ways to start a graphic design business with no experience. One way is to find a mentor to guide you through the process. Another way is to take some online courses or read some books about graphic design. You could also try volunteering for a graphic design company to get some experience.

What type of graphic design business is most profitable?

The type of graphic design business that is most profitable specializes in creating logos and brand identities. This is because there is a high demand for logo and brand design services, and businesses are willing to pay a premium for high-quality work.

What are the ongoing expenses for a graphic design business?

The ongoing expenses for a graphic design business can vary depending on the size of the business and the services offered. Some common expenses include marketing and advertising, website maintenance, software and hardware upgrades, and employee salaries.

How does a graphic design business make money?

A graphic design business usually makes money by charging a fee for services. A freelance graphic design business may also make money by selling products such as fonts, templates, or other design-related items. A graphic design business may also earn revenue through advertising or affiliate marketing.

Is owning a graphic design business profitable?

Yes, owning a graphic design business can be profitable. Graphic designers are in high demand, as businesses increasingly rely on visuals to communicate their messages. In addition, freelance graphic designers often have the flexibility to work from home, which can save on overhead costs. Furthermore, there is a growing trend of businesses outsourcing their graphic design needs, which can provide a steady stream of work for a graphic design business.

Why do graphic design businesses fail?

One of the main reasons graphic design companies fail is because they do not have a clear business plan or strategy. To be successful, you need to have a plan for how you will market your business, find graphic design clients, and keep your existing clients happy. You also need to be realistic about how much revenue you can generate and how much you can afford to spend on marketing and overhead.

Other Helpful Business Plan Articles & Templates

10 steps to the perfect business plan for your creative venture

The perfect business plan is your first step to success in the creative sector.

Writing the perfect business plan is one of the most important first steps to launch your own creative venture, but it can also be one of the most daunting. It's the first real stage in properly planning your venture, which can help make your dream design business feel a lot more real, but it can also be hard to know where to start. You might even be tempted to skip this step altogether, but would be a mistake.

The perfect business plan provides clarity and direction for your whole enterprise. It can help you raise cash from banks and or other investors, but even if you're not looking for that, it can help you home in on a gap in the market and work out how your design business will fill it (and turn a profit in the process).

So before you start looking at website wireframes, choosing a logo or shopping around for studio space, it's time to put pen to paper. Your plan should be focused, readable, and most importantly explain why your business will be a success. In the guide below, we'll look at the 10 traditional ingredients that any business plan should cover, with pointers on what to include in each. For more tips on setting up your creative venture, see our guide to how to start a design business and how to improve your graphic design skills .

The perfect business plan: what should it include?

There's no one layout or formula for the perfect business plan, but there are general conventions on what a business plan should include. Exactly how you write it will depend a little on who you're writing for – for example, if you aim to present it to a bank or other potential investors or just to serve as a guide for yourself and colleagues. 

The best business plans are usually fairly brief and keep things simple. They succinctly explain what you want to do, how you will get there and what you need to do to reach that goal. While there are no set rules, we'll look at the more traditional elements to include in your business plan below.

01. Write an executive summary

An executive summary essentially summarises your design business in a quick, succinct pitch. This is the part that investors or banks will read first so it needs to be concise and to the point; certainly no more than a couple of pages. Above all it needs to explain your business idea. 

The executive summary should include your company name and the reason you chose it, your mission statement, details of your product or service, and basic information about your company’s leadership team, employees, and location. You should also make sure you cover what makes your creative business different, who will you sell your services to and a list of short- and long-term goals. For example, where exactly do you see your business in five or so years?

You'll also want to include details on financial goals and growth plans, especially if you plan to seek investors. Set out the turnover you expect to make and the cash you think you'll have at the end of the first year; plus where you'll get money from (grants etc); and how much money you plan to invest yourself.

02. Compose an elevator pitch

An 'elevator pitch' is a much briefer summary of your business that serves to sell it to potential investors, or to clients, in few words. It should be possible to read an elevator pitch in under two minutes. The idea is that you could deliver it to any potential investor you might happen to cross in an elevator, but don't worry if that kind of meeting doesn't tend to happen to you; the pitch will still prove useful for understanding the real selling point of your future business. 

Your elevator pitch should include the name of your business, your mission, what your design business will do, who it will do that for and what makes it different. It should be direct, to the point and free from any kind of jargon or waffle.

03. Describe yourself (and any partners)

The next section in the perfect business plan should describe the people behind the business – that means you (and your partners if you have any). You should outline your experience and training, why you want to start your creative business and why you will make it a success. 

Do the same for every partner in the business and attach well-crafted résumés (see our guide to the perfect résumé for creatives ). The aim of this section is to show investors why you have the know-how to make your business successful, and also to allow you and your partners to take stock of your strengths and how you plan to use them.

04. Define your design business's offering

The next thing to include in the business plan for your design venture is to define the service that you're going to deliver. This should be more specific than you might first think because unless you're planning to launch a fully fledged agency, you're probably not going to be able to cover everything. Are you going to offer graphic design, motion design, web design, mobile, 3D? Are you going to cater to anyone and everyone or will you aim to serve a specific industry or niche?

Remember that any bank or other potential investor will probably know very little about the subject area, so try to describe exactly what the services will entail and what your business's output will be. Don't worry if it sounds patronising or overly simplified. You may know what motion graphics means, but will your bank manager? You should also mention here whether you plan to expand into other services in the future. So if you're starting in graphic design, are you planning to expand to offer full branding services?

05. Describe your clients

The perfect business plan doesn't only describe who you are and what your business will offer; it also offers a very clear description of your target customer. Where are they based? What needs do they have and how will you fulfil them? Asking these questions can be a good test of just how well you understand the client you're aiming at and may reveal a need to do more research. Be sure you really understand your target customer and there's more chance an investor will understand.

You need to describe your typical client and what makes them buy design services, whether you have worked with them before and whether you have any future jobs lined up already. Try to be as detailed as possible. If you've already worked for a specific client in some capacity (maybe in a freelance job) explain this here too since this demonstrates an ability to generate business.

06. Do a SWOT analysis

Remember that your customers aren't the only influence on your business. There are also competitors and the state of the economy as a whole. How big is the market you'll serve? How much is the market expected to grow in the future? Who will be your main competitors now and can you expect more competition in the future? These are some of the questions you'll need to answer in your market analysis. 

You should make a simple SWOT analysis (strengths, weaknesses, opportunities, threats) to define the opportunities and threats in your market and compare them to your business’s strengths and weaknesses. Draw up a list of competing businesses, both big and small. Analyses what they do well and what they do badly, and consider what will make your offering different. Opportunities are external factors that could make your business thrive (is the market changing? are clients demanding a certain kind of work that you do well?). Threats are the same but opposite (if you're an illustration studio and budgets dry up, what will you do?).

This research will help to define where there are gaps and where you need to focus (once you've done this, go back through your sections and make sure your business still seems relevant. Any market research you can do in the field (perhaps talking to past clients and getting their take on the market) can be included here as well).

07. Outline your marketing strategy

How are you going to reach potential customers? Word of mouth? Advertising? Promotional material? Social media? Your own website? This is a question that should ideally be answered after carrying out market research to find out how potential clients find and contract the services you'll be providing. 

Make sure the marketing strategy you define in your business plan outlines the expected costs for all of these things because, with the possible exception of word of mouth, they're far from free (see finance below).

08. Define your USP

Once you've carried out a SWOT analysis, including analysis of your competitors, you're ready to define your USP, or unique selling point. This is incredibly important to include this in your business plan. It sums up in a nutshell why a client choose your business over another creative business? So what will you do better? 

A USP is usually summed up in a single sentence; two at the most. This can be a challenge but the shorter the better since that will make it easier to focus on delivering it. 

09. Forecast your budgets

Now it's time to explain how you'll actually make money. Consider details such as how long you spend on projects and how you'll charge for this. If you'll have an hourly rate that state what that will be. You also need to say how you'll get paid (almost certainly on invoice).

You'll also need to define your costs here. This will be of great interest to any potential investors, so pay great attention to it. You'll need to outline both one-off costs such as the equipment you'll need to set up to regular outgoings such as staff, rent (explain where you'll be working from), software subscriptions, bills and insurance.

Calculate your total costs per month and other costs of running the business and define How much income you will need each month to realistically survive as a business, and how much you aim to make. A cash-flow forecast shows how much money will enter and leave your design business and will help identify whether you're going to be able to make things work financially. This can be a sobering moment. 

Be pessimistic and realistic. Don't assume you will be working flat out at your maximum rate from the start because it's unlikely that you'll achieve that. It’s better to underestimate how you'll perform and overachieve than the other way around. In this section, you also need to outline any financial needs you have for potential investors. In this case, outline the length of time your request will cover and give a detailed description of how you'll use the funds.

10. Make a backup plan

Finally, what if things don't work out. We've stressed the importance of taking the time to make the perfect business plan, but a plan is a plan and something things turn out differently. This is why it's important that you also have a back-up plan.

If things aren't working out, what will you change in the short or long term in order to turn things around. If you aren't making money, do you plans ready for what you could do to make the business more profitable? Could you sacrifice international clients/pitches for local ones? Could you employ freelancers as and when they are needed instead of hiring a junior designer full-time? Could you downsize your planned studio space or switch to a coworking space (See our guide to the world's coolest coworking spaces for inspiration).

There's a lot to think about when writing a business plan for a creative business, but with careful consideration, it can help you prepare for the undertaking ahead and keep you focused no matter what challenges you face. If you're passionate about making your business a success, writing your plan will be the first step on that path.

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Joe is a regular freelance journalist and editor at Creative Bloq. He writes news, features and buying guides and keeps track of the best equipment and software for creatives, from video editing programs to monitors and accessories. A veteran news writer and photographer, he now works as a project manager at the London and Buenos Aires-based design, production and branding agency Hermana Creatives. There he manages a team of designers, photographers and video editors who specialise in producing visual content and design assets for the hospitality sector. He also dances Argentine tango.

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How to Start a Graphic Design Business in 14 Steps (In-Depth Guide)

Updated:   January 25, 2024

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The graphic design business is on the way up, earning more than $7 billion in 2022. The compound annual growth rate (CAGR) from 2022 to 2029 is projected at 9.8%. This means the market could reach more than $14 billion by 2029.

This steady growth presents a lucrative opportunity for aspiring business owners looking to monetize their creative talents. However, the graphic design space comes with its fair share of challenges. Aspiring graphic designers must not only hone their artistic abilities but also develop sharp business acumen to stand out from the ever-increasing competition.

This guide offers insight on how to start a graphic design business. Topics include market research, competitive analysis, registering an EIN, obtaining business insurance, forming an LLC, and customer focus.

1. Conduct Graphic Design Market Research

Market research is an integral part of starting a business as a graphic designer. It helps you understand the marketplace, design a business plan, learn about trends in the market, and more. Some of the details you’ll learn through graphic design market research include:

• The best prospects can be found in specialized niche markets like website design, animation, sticker creation, traditional marketing graphical content, marketing materials, and logo creation.
• Catering to local small businesses is especially profitable as they invest heavily in building memorable brands on tight budgets.
• Industry profit margins range from 9% for general design firms to 17% for niche service providers.
• With low startup costs, profitability can be achieved relatively quickly.
• Standing out requires not just creative talent but equally sharp business skills.
• Strategically identifying profitable niches, ideal customer profiles, and early marketing efforts are key to success.
• Utilizing digital channels to establish authority and generate leads is the most cost-effective initially.

Small businesses especially prefer to engage local talent. Industry analysis indicates a high-growth market with rewarding opportunities. Achieving profitability requires strategic positioning, and a dual focus on design and business capabilities to overcome initial hurdles.

2. Analyze the Competition

Firstly, identify direct competitors in your locality using online business directories like Yelp.

Some ways to learn about competitors as a business owner running a freelance graphic design business include:

• Analyze the services offered, pricing models, clientele mix, and marketing content across their websites and social media pages.
• Drive-by visits allow assessment of office location, signage, interiors, and foot traffic.
• Expand research to indirect competitors like general design firms offering similar services.
• Building niche expertise gives an edge here.
• Evaluate industry leaders nationally for inspiration on positioning tactics too.
• Monitoring online sentiment across review sites and social media highlights pain points to avoid.
• It also surfaces what makes competitors stand out positively.
• Track their digital analytics using SimilarWeb to benchmark monthly traffic, lead sources, and engagement.

Competitive analysis among freelance graphic designers provides insight into seasonal trends, successful promotions, and overall traction. These provide an informed blueprint to launch your differentiated services.

3. Costs to Start a Graphic Design Business

Starting a graphic design business requires careful financial planning and cost considerations before taking the entrepreneurial plunge. There will be startup and ongoing costs throughout the life of running your own graphic design business. Here we’ll break those business expenses down.

Start-Up Costs

The starting costs focus on one-time investments to lay the operational groundwork. These startup costs are essential to obtaining your business license, drawing in prospective clients, building a business website, leasing office space, and more. Here are some common startup costs:

• Legal Fees: Business formation and trademark registration could cost $700 and upwards depending on entity type and state regulations. Sole proprietors can register a DBA for under $100.
• Equipment: A MacBook Pro or iMac for design work costs between $1300 – $4000 new based on specifications.
• Additional monitors to expand the workspace run from $250. Software like Adobe CC has monthly plans from $20.98 per user but annual options save overall.
• Office Space: Coworking spaces offer flexible membership plans to operate from $150 to $500 monthly across major US cities.
• Renting office space starts from $15 per sq. ft. Leasing full-time can cost $2,000+ monthly.
• Consulting & Advisory Services: Getting input from a Small Business Development Center consultant or SCORE mentor helps avoid costly mistakes. Fees range from $100 to $150 per hour.

In total, graphic designers can launch functional agencies with as little as $2,500 upfront if opting for more budget-friendly or DIY approaches. Of course, investing more upfront in high-end tools and dedicated office space provides more credibility.

Ongoing Costs

Every business faces ongoing expenses to keep the company going. Balancing business finances requires a firm understanding of where these costs come from. Common ongoing expenses to factor into your budget include:

• Salaries: Based on PayScale data, the average junior graphic designer’s salary starts from $36,000 annually. More experienced senior designers can earn $65,000+ per year.
• Software and Cloud Services: Besides main Adobe apps, additional subscriptions like file sharing systems ($30 to $75 per user monthly) prove handy along with website and hosting packages ($15 to $45 monthly).
• Marketing & Advertising: Dedicate 5-10% of total revenue towards self-promotion across digital channels and offline options like print, sponsorships, and events. Costs scale accordingly.

On the higher end, investing $15,000 upfront in equipment, hire, and promotion allows for broader capabilities and capacity. Eventually, achieving annual revenues of $40,000 helps attain healthy profit margins given capped overheads.

4. Form a Legal Business Entity

The right business structure is key for graphic designers to balance legal protections, tax implications, and operating flexibility as entrepreneurial ventures. Common legal business entities include sole proprietorships, partnerships, limited liability companies, and corporations.

Sole Proprietorships

Offer the easiest setup with no formal registration needed in most states. However, the owner assumes unlimited liability for debts and claims. Income gets reported on personal returns. This works well for freelancers but assets remain at risk as businesses scale.

Partnerships

Allow sharing ownership between two or more designers. A formal partnership agreement governs rights and profit distributions. However, every partner bears responsibility for collective liabilities too. Decision conflicts also tend to emerge frequently.

Provide the best of both worlds – limited liability shield along with pass-through taxation. Ownership splits are flexible via percentage membership interests. Costs range from $100 onwards for state registration and the only annual legal need is a return filing. This hybrid structure works perfectly for small creative agencies.

Corporations

Ensure the highest business liability protection but come with more complex compliance in terms of taxes, record-keeping, and reporting. Ownership via stocks also complicates profit-sharing. Incorporating generally benefits larger design firms managing bigger financial and legal risks.

5. Register Your Business For Taxes

An Employer Identification Number (EIN) serves as a unique tax ID for business entities to identify themselves to tax authorities. Even small graphic design firms structured as sole proprietors or single-member LLCs require one by law for various reasons:

• Filing and paying estimated taxes tied to company income
• Opening business bank accounts
• Processing payments from clients
• Managing employees down the line

Applying online takes less than 15 minutes via the official IRS portal. Simply provide entity details, ownership information, and contact data as prompted. Both domestic and foreign businesses can qualify for free. Once submitted, the EIN gets issued immediately.

This ID number then goes on all official tax paperwork. Schedule C filers report it when submitting 1040 returns. Incorporated firms use it across quarterly reporting documents like 941, 940, and W-2/W-3 forms.

Those making physical goods also need sales tax permits in their particular state. Registering for relevant licenses, accounts and certificates ensures full compliance. Fees depend on individual locality rules but the application process remains straightforward.

6. Setup Your Accounting

Proper financial management is crucial for graphic design business owners to maximize profits and ensure full legal compliance. Implementing the right accounting systems and expert support from the start prevents issues down the line.

Accounting Software

Using small business accounting software like QuickBooks automatically tracks income, expenses, account reconciliations, and taxes without manual effort. Seamless connectivity with bank/credit card feeds, invoicing, and payroll simplifies reporting needs. Plans start from $25 per month with the core system covering all essential workflows.

Hire an Accountant

Working with an accountant is still advisable for optimal accuracy. Yearly services average around $800 but the investment offers multiple advantages. Bookkeeping assistance properly categorizes every business transaction and identifies deductible expenses. Accountants also file quarterly sales tax returns and finalize annual income tax paperwork.

Open a Business Bank Account

Keeping business and personal finances completely separate is crucial as well from both bank account and credit card perspectives. Business-only accounts and cards help accurately track company earnings/costs for reporting. It also provides transparency if external funding is ever needed.

Apply for a Business Credit Card

Applying for a small business credit card only requires basic details like EINs, company financials, and the owner’s credit scores. The process is quite similar to personal applications. However, approved credit limits correlate directly to demonstrated business revenues and assets.

7. Obtain Licenses and Permits

Starting a graphic design business involves more than just creative and operational prep. Find federal license information through the U.S. Small Business Administration . The SBA also offers a local search tool for state and city requirements.

Also called tax registration certificates, business licenses verify compliance across all reporting like income taxes, payroll taxes, and sales tax collection needs to be tied to the particular state. Fees are under $100 in most cases.

For designers selling physical products like logos on merchandise or prints, securing sales tax permits allows legally collecting and remitting dues on such transactions States levy anywhere from 2% to 7% on goods sold.

For sole proprietorships or partnerships not operating under legal owner names, filing a DBA allows the registration of a professional business name. The registration cost is under $50 across most states.

For ventures opting for physical retail spaces, construction compliance ensures the site meets state codes for legal occupancy. From parking needs to restroom access and more, various aspects get evaluated before permit approval.

In addition, most cities also have zoning regulations around allowable property usage for commercial space rentals and purchases. Checking these proactively prevents wasted investments into sites that get denied later. Pittsburgh city planners for instance do not allow creative office spaces in core downtown zones.

8. Get Business Insurance

Business insurance serves as a financial safety net to keep graphic design agencies protected from unexpected legal and property liabilities. Lacking adequate coverage could potentially bankrupt companies in many scenarios:

A client slips during a meeting at your commercial office space and sustains injuries needing urgent medical treatment and extended care. Without liability insurance, the legal claim and compensation costs fall directly on your business.

A hard disk failure erases months of client design files and work-in-progress deliverables before backups occur. The lack of contingency plans leads to breached contracts and lawsuits from affected customers.

An electrical fire sparked by faulty office equipment destroys computers containing vital accounting data and intellectual property like branding guidebooks. Lacking protection from such disasters directly impacts business continuity.

To ensure full protection as per unique risks, graphic design entrepreneurs can connect with specialized brokers to guide them through tailored plans. The typical process includes:

• Discussing Business Model, Assets, and Locations: This overview helps gauge exposure areas.
• Evaluating Potential Threats: Fraud, property damage, data loss, legal issues.
• Exploring Insurance Options: General liability, errors & omissions, commercial property, data and equipment coverage, etc.
• Comparing Premium Quotes: Rates vary based on assets insured and claim history.
• Finalizing a Custom Plan: Ensures optimal protection based on the agency size, services, and clients.

Legal compliance also mandates Worker’s Compensation insurance once staff gets hired. Staying vigilant and responsively addressing ever-evolving risks keeps companies shielded from long-term success.

9. Create an Office Space

Dedicating work areas for creative tasks and client meetings is pivotal for optimal graphic design business operations. Options balancing convenience, professional perception, and cost include:

Home Offices

Converting basements or spare rooms into design studios allows easy access to assets needed for digital work like computers and software subscriptions. It promotes flexible schedules without rental overheads too. However, home offices lack client meeting spaces and keep work-life boundaries blurred. Cost is limited to desk and storage expenses from $300 upwards.

Coworking Spaces

Shared work environments like WeWork offer both open desk spots and private offices for individuals or small teams on flexible plans starting at around $300 a month. The community facilitates collaboration while amenities like meeting rooms, cafes, and event spaces provide full business functionality. However, spaces fill up fast in core city locations.

Commercial Office Spaces

Getting dedicated premises in business complexes allows the branding of custom units fully as per a company’s creative vision with waiting lounges to impress clients. Pricing averages $20 per sq. ft. but multi-year leases ensure stability. The main drawbacks are substantial security deposits and fitting out costs scaling to thousands based on specifications.

10. Source Your Equipment

Launching a graphic design business requires key equipment investments in high-spec computers and creative software. Aspiring entrepreneurs have options across buying, leasing, and even financing routes.

New iMacs or PC workstations meeting processing capacities for design tools like Adobe Creative Cloud run $1000 upwards from retailers like Apple, HP, and Dell. Multi-monitor setups improve workflows too. Software bundles and cloud storage upgrades cost extra based on the intended usage scale.

Opting for used devices lets entrepreneurs repurpose functioning Mac systems or PCs cast off by companies upgrading staff equipment within limited budgets. Marketplaces like Craigslist , Facebook Marketplace , and eBay offer reliable finds at 40-60% discounts.

Renting workstations monthly allows for utilizing cutting-edge gear without major capital costs. Rental rates often include unlimited technical support and maintenance too. The flexible terms work well for new ventures still stabilizing financially.

Leasing via issuers like AlignCredit works akin to car financing where affordable monthly payments secure equipment ownership eventually. Credit history impacts approval odds and interest rates. The main benefit is acquiring advanced creative gear from the start minus large lump-sum payments.

11. Establish Your Brand Assets

Establishing a strong brand presence is vital for graphic design agencies to stand out in an increasingly competitive industry. Tactically leveraging visual assets and marketing collateral helps reinforce expertise and quality to prospects.

Get a Business Phone Number

Acquiring a unique business phone number via providers like RingCentral enables listing key details across online and offline directories for easy discoverability. Call routing functionality also redirects calls seamlessly across devices.

Design a Logo

A sleek, memorable logo designed through online services like Looka forms the cornerstone of all brand imaging. Bold, vibrant designs aligned to the specialty like responsive web templates convey niche focus. Complimentary letterheads, social media, and website assets ensure cohesion.

Print Business Cards

Business cards from Vistaprint enable conveniently introducing the agency during client meetings, conferences, and networking events. Collecting contact details from potential customers to follow up on project opportunities leads to deals. Outdoor signage at office entrances also assists walk-in visitors.

Buy a Domain Name

Securing aligned domain names via registrars like Namecheap provides an anchor web presence to highlight services, work samples, and achievements. Exact match domains with area codes in names like ChicagoGraphicDesign.com optimize SEO as well.

Design a Website

Leveraging DIY website builders like Wix offers easy drag-and-drop solutions to publish online portfolios for as low as $10 a month. For advanced custom designs, specialized freelancers on Fiverr provide affordable packages too.

12. Join Associations and Groups

Beyond online platforms, graphic designers can exponentially expand professional networks and opportunities by engaging local industry communities.

Local Associations

Seeking out regional creative alliances like the Ohio Design Association provides visibility at open networking events, conferences, and mentoring programs. Learning best practices from seasoned visual experts in person often leads to referrals.

Local Meetups

Regularly attending marketing meetups via Eventbrite and Meetup surfaces potential clients too. Tradeshows enable showcasing portfolios to various vendors and businesses seeking branding services. The connections made seed longer-term partnerships.

Facebook Groups

Facebook also hosts various relevant groups like The Interior Designer’s Business Launchpad spanning over 10,000 global members. Seeking feedback on portfolio pieces receives constructive critiquing for improvement from thousands quickly. Job openings get posted here widely as well.

13. How to Market a Graphic Design Business

Implementing marketing campaigns helps graphic design businesses continually acquire new clients. Balancing digital and traditional promotion based on target customer preferences maximizes returns on investment.

Personal Networking

Leveraging existing client networks to source referrals remains invaluable initially. Offering referral bonuses or discounts on future services for customers who recommend the agency helps incentivize endorsements organically.

Digital Marketing

Digital channels then enable scalable outreach to local prospects online. Tactics like:

• Google/Facebook Ads target buyers seeking related services in the area.
• YouTube Tutorials showcase expertise to both clients and talent prospects.
• Guest blog posts for regional publications highlight specific competencies.
• Cold emailing/calling campaigns tap relevant small business databases.
• Optimized LinkedIn profiles position services to corporates seeking vendors.

Traditional Marketing

Traditional options like:

• Print ads in local lifestyle magazines and trade journals increase visibility.
• Direct mail campaigns with service brochures target neighborhoods with many SMBs.
• Networking at Chamber events offers opportunities to impress prospects in person.
• Billboards strategically build brand awareness during commutes when attention is higher.
• Sponsoring art gallery showcases provides access to engaged prospects.

The optimal marketing mix includes digital and traditional channels prioritizing leads most likely to convert based on past clientele. Local events also enable making memorable impressions leading to referrals.

14. Focus on the Customer

Delivering exceptional customer service is pivotal for graphic design agencies to drive referrals and repeat business in a highly competitive sector. going beyond the creative execution of projects also earns trust and loyalty. Some ways to focus on customers in your own business include:

• For instance, being available promptly for scope changes and providing design iterations patiently ensures clients feel heard and prioritized.
• Meeting tight deadlines for last-minute projects accommodates urgent needs too.
• Checking in with clients proactively as deliverables get executed provides reassurance on progress and quality.
• Offering continued post-launch support for assets like logo files or brand guidelines retains accounts long-term as well.
• Surprising and delighting customers with value-adds also get noticed.
• Sending personalized cards during the holidays or even small gifts like printed mugs and t-shirts with their brand logos conveys the agency truly cares.

With exceptional service experiences, the odds of securing testimonials, reviews, and referrals to new leads increase substantially. This organic growth can accelerate profitability more than any marketing channel over time.

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GRAPHIC DESIGN BUSINESS PLAN: 2023 Template & Easy Detailed Guide

• by Kenechukwu Muoghalu
• August 13, 2023
• No comments
• 8 minute read

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What is a business plan in graphic design, what is the importance of a graphic design business plan, how do you write a business plan example, #1. executive summary, #2. company overview, #3. market analysis, #4. competitive analysis, #5. sales and marketing strategy, #6. operational plan, #7. management team, #8. financial plan, #9. appendix, how do i start a graphic design business, how much do i need to start a graphic design business, what type of business is graphic design, what equipment do you need to start a graphic design business, a graphic design business plan template for your company , how do graphic designers find clients, is graphic design profitable, how much should a graphic designer charge, what are the 7 types of graphic design, do you wish to finish your graphic design business plan in 1 day, where is a good place to start when starting a graphic design business, what are some legal aspects to keep in mind when starting your own design business, what skills should i have as a graphic designer.

Graphic design covers a wide range of functions, which include branding, making posters, print advertisements, publications, handbills, or billboards. This description alone will highlight the workload to expect as a graphic designer. Now, to curb these many responsibilities in your company, you will need a graphic design business plan. This article has provided all the necessary information you need to know about a graphic design business plan and how you can create one for your company using our unique template. 

We also have a pre-made graphic design business plan. In any case, you wish to get a business plan today. 

A graphic design business plan is a document that provides a snapshot of your company as it stands and also lays out your future growth plan. This same business plan can help you achieve those mapped-out goals over a given period. As a graphic designer, a business plan will serve as an organizer and companion to help you keep track of every business activity and also stay updated. 

The work of a business plan is to carefully analyze your business goals and strategies while showing you how you can attain them. Even as a startup business, you might need some means of financial assistance to help the growth of your company, and for you to achieve that aim, you will also need a business plan. 

Most times, entrepreneurs fail to embrace the importance of a business plan, but it is almost impossible for you to overlook the essence of a graphic design business plan in any company. Now that you understand the basics and importance of a graphic design business plan for your company, you will learn how to write one using this brief template below. 

To write your graphic design business plan, you can follow the easy-step template that we have provided below. With that template, you can come up with a compelling business plan that your readers will love. If you have trouble composing one, you can choose our pre-made business plan to get your company running.

How to Write a Business Plan for a Graphic Design Company

Writing a business plan does not just come from inspiration. To write a business plan, you will need to follow some processes in order to achieve a professional business plan. These steps include

Your executive summary , being the first section your readers will see, should provide an introduction to your business. The main goal of this section is to engage your reader by explaining the kind of services you offer and how you offer them. You should also include a brief summary of all the sections that will appear in your business plan. Talk about your competitors, marketing, management team, and target market. 

This is where you will give an in-depth explanation of the business. Tell your readers about your company’s history and how you started your graphic design business. You should also specify the type of graphic design business you offer. Is it a publishing graphic design, a website graphic design, a product graphic design, or all? 

Before writing the market analysis of your graphic design business plan, you should research thoroughly on your market. Any information that you provide here should be clear and accurate. It should show your readers how well you understand your market and how you can take advantage of that to make your business grow. You can also include a little information about your customer here and how you intend to serve them well.

Your competitive analysis is also another piece of research that needs to be carried out in your industry. Every business has a competitor, and to get ahead of them, you need to research them to know what they do best. You should also know their strengths and weaknesses. Also, discover how well they serve customers and then include the full details here. Lastly, tell your readers what makes your business unique and special compared to theirs.

A proper marketing plan should cover your product, price, place, and promotion. The essence of formulating a marketing plan is to increase sales with your potential clients and also create awareness for your company. In this section, you will need to tell your readers how you intend to attract customers and what your marketing plan entails. 

Every business has a goal and objective that they need to achieve over a given period of time. This section of your graphic design business plan should cover how you intend to achieve those goals and the basic operations you would follow to make it happen, either as a short-term goal or a long-term goal. 

To show your readers your graphic design business’s ability to succeed, you will need a strong management team. In this section, you will highlight your key players’ backgrounds and also mention their skills and experience in their mode of work. You can indirectly tell your readers how your team has the ability to grow a company. 

This is also a crucial part of any business plan, especially when seeking financial support from lenders or investors. It is essential that you include an income statement, balance sheet, and cash flow statement in this section of your plan. This information should clearly analyze your financial projections and how you intend to make profits over a given period. 

Lastly, this section should contain supporting documents that will make your plan more valid and compelling to me to add any license, certification, or qualifications to this section of your business plan. 

You need to put in your all-in commitment to your work to start your graphic design business in 2023. There is also a need to have a clear understanding of the market and any potential competitors you might encounter in your industry. You will also need to pay special attention to your target market. If you maintain a strong online presence and promote your website through digital marketing, then you will scale up your business in no time. The road to success is clear; you only need to follow the right route. 

It can cost approximately £18,000 to £23,000 to start a graphic design business in the UK. However, this cost can also differ depending on how advanced you want your business to be. If it is a more detailed start-up then it would cost you more. 

Graphic design can be classified on a freelance basis and can create materials for corporate clients, advertising agencies, public relations firms, and publishers, inclusive. They can also work as full-timers that provide visual solutions to a particular problem a company might be facing. 

When starting up as a designer, there are some important tools you need to show off your abilities efficiently. You will need a laptop, a high-resolution monitor, a portable hard drive, a graphics tablet, and some color swatches for extra creativity and practicality. As you expand more in your business, you might also discover more handling equipment you might need. 

Aside from following the above steps to create a compelling graphic design business plan for your company, you also need to make use of a template checklist. The essence of a checklist is to help you keep track of all the necessary processes you need to achieve while starting your new business. 

• Understand your skill
• Develop your skills.
• Identify your potential clients.
• Carry out a competitive analysis
• Set your price.
• Get your legal certification.
• Get a workspace 
• Design your marketing plan.

Before you think about finding a client, you must do some basic research to identify who your target audience really is. They can be large and medium corporate companies or even small local businesses. Once you have this information, then you will need to develop a marketing strategy that will enable you to find and attract your potential clients. 

Aside from the work and difficulty that are involved with being a graphic designer, it has also proven to be a highly reputable job in the UK that can earn you good cash. An average UK graphic designer earns a total of £31,000 a year and £12.37 per hour. 

If you are not a new designer, it is advisable to charge your services based on your portfolio or previous clients. However, if you are starting new in the industry and have had no clients in the past, it is best to charge according to other graphic designers in the industry. You can engage in market research to discover how much to charge, and from this, you will get an idea of how you want to charge your clients.  

The seven types of graphic design can be said to be product design, animation design, branding design, website design, print design, publishing design, and environmental design. With these options, a graphic designer will then choose a specific niche to work on.

Creating a business plan from scratch is a daunting task, especially when it is your first time, so you are not alone. It is understandable if you got hooked on a particular section of your plan, all you need is a little help, and I’ve got just the right idea. 

Have you tried using a professional pre-made graphic design business plan made by us? At Businessyield Consult, we specialize in helping entrepreneurs like you compose a professional business plan that works! We have helped multiple businesses and are looking forward to helping more. Grab a copy here and get your business on the go .

Once you have gotten hold of your graphic design business plan, it does not just end with having a plan. If you want your graphic design business to grow, you will need to constantly make adjustments to every little update and information about your business. When you make those changes, you can then measure if you are making progress or not. 

A graphic design business does not need a large space and location to start. As a graphic designer, all you need is a desk, table, and a laptop set-up or study space and you are good to go. If you are working with a large group of people, then you should consider getting an affordable co-working space for a start. 

A graphic design business does not need many requirements to start up. You only need to register your business with the government and get insurance for your company. You will also need copyrighting, trademarking, licensing, tax requirements, and some legal policies just to keep your business valid. 

As a graphic designer, there are some skills that can help you scale more. brand strategy, logo designing, social media branding, animation, typography, web designing, creating brochures, infographics, and some poster design skills. You can register for some courses that can help you acquire these skills if you lack any. 

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Kenechukwu Muoghalu

Kenny, an accomplished business writer with a decade of experience, excels in translating intricate industry insights into engaging articles. Her passion revolves around distilling the latest trends, offering actionable advice, and nurturing a comprehensive understanding of the business landscape. With a proven track record of delivering insightful content, Kenny is dedicated to empowering her readers with the knowledge needed to thrive in the dynamic and ever-evolving world of business.

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Deciding to start a business is a big step for any entrepreneur. However, what follows are many more steps to successfully launch and grow your business.

For those with an eye for design and the technical skills, you may be wondering how to start a graphic design business. In this guide, we’ll break down all of the steps you need to know to take your graphic design business from idea to reality. Let’s get started.

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Step 1: Choose a name and business entity

The first step in starting a graphic design business is to choose a name and business entity.

When choosing a business name , you want to make sure you pick something that represents your personality while also making it clear to potential customers what type of business you operate. Once you have some ideas in mind, you’ll need to make sure they’re available for use. Searching your secretary of state’s business portal, Google, and the U.S. Patent and Trademark Office are all good places to start. You’ll also want to make sure any domains or social media handles are available for your business name, as well.

Once you’ve chosen your business name, it’s time to choose the business entity you’d like for your business. This is a crucial step, as the business entity you choose will dictate how you pay taxes, your degree of personal liability, and how to structure your business. We recommend consulting with a business attorney at this stage if you’re unsure how to choose. Some common options are:

Sole proprietorship: A sole proprietorship is the simplest business structure you can have. While they’re easy to set up, though, you will not have any personal protections in the event that your business runs into legal or financial troubles—you and your business are seen as the same entity. You will also file business taxes on your personal return.

LLC : An LLC is a popular option because they’re fairly simple to set up and they provide the business owners with a degree of personal protection. You can choose to be taxed either as a corporation or pass-through entity.

Corporation : You may also choose to structure your business as a corporation. The most common types are S-corps and C-corps, and how you’re taxed and the structure of your business will depend on which type you choose.

Once you have decided on your name and business entity, you can register your business with your state. This will likely be done with your secretary of state’s office. Keep in mind, you typically don’t have to register a sole proprietorship; however, if you want to operate under a business name different from your own, legal name, you will have to file a DBA, or “doing business as.”

Step 2: Choose your niche

As a graphic designer, there are a number of specialties you can have. While it may be tempting to do it all—and you may need to be open to accepting a variety of projects as you grow your customer base—placing yourself in a niche market can be a smart decision.

Some niche graphic design ideas include:

Logo design

Brochure design

Poster design

Brand strategy

Infographics

You likely already have specific expertise in a certain area, or you may just enjoy one facet of graphic design the most. Either way, once you’ve established that there is demand for this type of work, keep this niche in mind while making your other business decisions.

Step 3: Write a business plan

No matter what kind of business you’re starting, you should always write a business plan . Even if no one else ever sees it, your business plan will provide a roadmap to help keep you on track through the launch and all-important early years of your business. However, should you seek outside funding or an investor down the road, you will also need to provide your business plan to prove that your business is worth investing in.

Your business plan will cover a lot of information—from a market analysis and competitor research to an overview of what services you’ll provide, financial projections, and more. You should outline how much startup money you’ll need to launch your business, and where this will come from (i.e. your own savings, friends and family, or business loans).

This is also a good time to set your prices and make sure they’re in line with what similar graphic designers charge. You’ll also want to decide if you want to charge an hourly or per-project rate. Researching your market will help you settle on an appropriate rate, but this Bonsai rate explorer can also help.

Step 4: Organize your marketing materials

In order to grow your business and find more clients, you’ll want to start formalizing your business through marketing materials. Marketing materials can help spread the word about your business, showcase your portfolio, and give prospective clients a way to contact you and learn more about your experience. Here are some marketing materials to consider.

One of the most important marketing materials you can have as a small business owner is a website.

As a graphic designer, your website is a great way to show what you’re capable of producing for your clients. Include a portfolio of your past work, whether for clients, an agency, or your own passion projects, as well as the types of projects you’re willing to work on, contact information, positive customer testimonials, and more.

Your graphic design background will make designing a website simple, but don’t get too hung up on the details. Creating a simple website that clearly shows off your work should be plenty to start attracting clients.

Social media

Beyond a business website, you’ll also want to set up social media profiles for your business. Because graphic design is so visual, you’ll want to choose the platforms that lend themselves to images over text, such as Instagram.

Additionally, you should consider creating a LinkedIn profile as well to connect with your network, showcase your work, and find prospective clients.

Step 5: Build your client base

With your business officially registered, your niche defined, and your business website created, you’re ready to start finding work.

Some ideas to help you find your first clients include:

Sign up for job boards

Join freelance graphic design groups on Facebook

Register for a freelancing site such as Upwork or Fiverr

Start networking with other creatives in your city

Attend industry events

All of these options can help you find your first few clients, and from there your business will likely grow organically. By delivering your projects on time and to your clients’ specifications, you’ll slowly but surely build a reputation that will speak for itself. And never underestimate the power of word-of-mouth marketing. Make sure anyone in your network—even people who aren’t in your industry—know that you’ve gone into business for yourself, so they can recommend you to their networks and further expand your reach.

Step 6: Separate your business and personal finances

As you start taking on clients, you’ll need somewhere to put your business income. While you may be tempted to use your personal bank account, this would be a mistake. Keeping your business and personal finances separate serves some very important purposes. First of all, it will make filing your taxes much easier if you don’t have to sort through every credit card charge or bank transaction to figure out which were for your business. Second, keeping this separation will help protect your personal assets in the event that your business gets into trouble.

Explore your business checking account options to find the right one for you, paying close attention to maintenance fees, transaction allowances, account minimums, and more. Next, find a business credit card that will reward you for spending (whether that’s in miles, cash back, or another rewards structure).

It’s also worth looking into accounting software to help manage your finances and invoice clients. These self-employed accounting software options are a good place to start.

Step 7: Consider your financing options

As you take on more clients and your business grows, you may need to expand in a meaningful way to keep up with demand. Maybe you need to hire some employees so you can take on more jobs or you need to invest in some pricey equipment to keep up with the latest technology, for example.

If this expansion costs more than you can manage on your own but would make a big difference in your bottom line, you may look into a business loan or other financing option.

When you’re just starting out, it will be difficult to qualify for traditional business loans; however, once you’ve been in business for a year or more and have positive financials to show for it, you’ll have more favorable options.

Here are some options you may want to explore:

Business line of credit: A business line of credit is a useful financing tool for any business owner. In fact, even if you don’t have financing needs right away, it’s good to have in your back pocket for any emergency cash flow issues or time-sensitive opportunities. A line of credit will provide you with a set amount of funds that you can draw against for any business-related purpose. You’ll only pay interest on the amount you use, and once you repay it, your balance will typically reset to its original value and you can continue to dip into it as needed.

Equipment financing: If your graphic design business needs new computers or other equipment to help you complete your work, equipment financing may be an ideal solution. You’ll take a quote for the equipment you want to buy to a lender, and if approved, you will receive the funds to make the purchase. The equipment will also serve as collateral, so if you fail to repay the loan, the lender can seize the equipment and liquidate it to recoup their losses.

Invoice financing: As a graphic designer, you may work on an invoice basis, where you send an invoice to your client once you’ve completed the work they requested. If this is the case, waiting for those invoices to be paid can put a strain on your cash flow. With invoice financing, a lender will front you a percentage (typically up to 85%) of your unpaid invoices so you get cash when you need it. Then once your customer pays, you repay the loan plus the lender fees.

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The bottom line

When you’re learning how to start a graphic design business, all the steps that you need to take to get started can seem overwhelming. However, taking the time to complete each step will help ensure you’re truly prepared—financially and otherwise—to start a business in the first place. By taking your time and doing your due diligence, you’re sure to start a graphic design business that can grow into a successful enterprise.

This article originally appeared on JustBusiness, a subsidiary of NerdWallet.

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A Business Plan for Freelance Graphic Designers

There were so many times in my business that I just stopped in my tracks. I was working on something for so long, like a client project, that when I was done I almost didn’t know what was next. I was missing a small business plan that really worked for me.

The ironic thing about freezing up and not knowing what to do is that we most likely have a long list already made. And that list has all of the good intentions to grow your business. However, the priorities are a little blurred when there is so much busyness all around.

I love using project management software for my business (Asana and Notion). I always had a section on there to brainstorm ideas. But oftentimes they would just stay there and never go anywhere. And when I would finally get around to looking at it, I’d close the window!

In those times, I’m running around like a headless chicken trying to figure out my next step. I learned from school and also from a few resources about how to make a formal business plan. It was very daunting, structured, and a little hard to follow.

I think the reason for that is small business plans are different for solo entrepreneurs and designers. We constantly have to be moving and thinking on our feet. The best thing to do is to create a more flexible business plan that actually makes sense for a  graphic designer.

Regularly ask yourself what you want for your graphic design business

My assumption is that most of us are not asking ourselves questions often enough. We evolve as business owners and as people.  We go through phases of life or struggles, and suddenly those things that were once important aren’t anymore. And we may have redefined values.

Because we are always changing, it should be a regular practice to ask yourself what you want. First of all, do you like what you’re doing? Are you in the right headspace? Is it good for your mental health? Is it helping with creativity? Is it healthy for your relationships?

It’s crucial to audit your business in terms of your lifestyle. The goal of having a design business should be to enhance your life based on your definitions of that. Check on yourself every quarter and make sure everything is in alignment.

Add short and long-term goals to the small business plan

I know some people like to ask you what your 5 and 10-year goals are. It really depends on how you like to imagine these things. For me, I have a vision of what I’d like my future self to be, but it’s really hard to see that far out.

If you’re able to do so, envisioning your life that far ahead is a great skill, and you can write all of that down. But if you can’t, don’t fret. Because sometimes the short-term goals are just as good and helpful for your business.

Annual business plan

Start with an annual plan and then work backward.  I tend to be on the more conservative and practical side and often don’t practice dreaming big. But don’t be like me!

You should absolutely be stretching your goals to something you can’t even imagine right now.  list out these items and you can add or remove them to your liking:

• Annual income
• Number of clients
• Type of clients
• Average price of services
• Types/streams of income
• Number of hours worked (broken up by week)
• Relationships

I kept it pretty broad because I want you to interpret this in a way that makes sense for you. Write down what excites you and figure out how you can make your design business support these things. Besides being a long-term plan, this is really a mindset exercise to get you to start thinking of your business working for you.

Your mission and vision

I love creating an annual plan first because it can manifest what I want in life. I can see from here what my true priorities are, and it is easier to figure out my vision.  You’ve written out what’s most important to you and your ambition to accomplish it.

You know what kind of service is you want to offer and who you want to help. That right there is your mission.

Put it at the top of your business plan so you can be reminded of it. It will help you not stray too far if you’re feeling that shiny object syndrome.

Weekly + monthly plan

You can now break up your annual plan to come up with your weekly and monthly plans. What do you need to do in order to reach your goals this month? How can you divide that by the weeks?

Create an Asana board (or any other project management tool. Google Sheets or Airtable work really well too), and break up your workweek.

Categorize and prioritize your small business plan by timeline

It’s time to categorize these into more digestible tasks. If you want two large clients a month, you have to figure out who these clients could potentially be and where you can find them.

So maybe in this case your ideal clients are on Instagram. Now you have to come up with an Instagram strategy where you put out content that attracts them.  You can also message certain businesses and connect with them.

Next, add time for social media marketing and content creation in a way that helps you do it every week.

Keep your design business plan flexible

Even though you have everything written down, it doesn’t have to be rigid. Always remind yourself of your vision, and for this year that should pretty much stay the same. Your approaches to your clients and marketing will be the flexible part.

There are so many new things coming out that will help you during this time whether those are resources, software, or other tools.  On the other hand, platforms are constantly changing which may make things more difficult. Adapting to the changes is what will keep your business strong as long as you keep your overall messaging consistent.

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Graphic Design Business Plan Template

Jan.30, 2018

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Table of Content

Do you want to start graphic design business?

Are you planning to start your own company of graphics designing ? Well, if you are creative and also have the ability to bring your creativity to the table then this is definitely the right business for you.

Graphic designing is probably one of the skills which are needed in nearly every other business. If you are not convinced, just look around you and you will see graphics everywhere. Graphic designing is needed in branding, posters, print advertisement, product packaging, publications (newspapers, books, magazines etc.), handbills, billboards, websites, in short nearly all areas. This business has undoubtedly a lot of market potential and a need for continuously emerging new and innovative minds.

The biggest benefit of starting this business is that it requires the least capital investment as compared to many other businesses. You can start this business in a small office with a small team and a little inventory comprising of laptops, and a few office and stationery products. The second benefit is that this business starts yielding a profit as soon as it is launched and has the least amount of risk associated with it, provided that you are creative and plan your business effectively.

So, before you move on to starting this venture, you will have to prepare a comprehensive graphics design business plans which will establish the basis of your company’s future operations and decisions. If you are wondering how to write one then here we are providing you the business plan for a graphic designing business startup named ‘PixelCo’.

Executive Summary

2.1 the business.

PixelCo will be a bonded, insured and licensed graphic design business striving to cultivate relevant and meaningful connections between brands and people by our unparalleled visuals and graphic designing services. PixelCo will be located in the Manhattan borough of the New York City and will be owned by Angela Gori, a world-renowned Graphic Designer. Gori has been associated with some of the world’s biggest graphics designing companies and was Chief Creative Officer for the American Marketing Association, D.C. Chapter for last 6 years. She has worked with about 14 out of top Fortune 100 companies as well as various influential associations, consumer brands, educational institutions and government agencies.

A 200 square feet office has already been acquired on lease in the center of the main commercial district of the downtown Manhattan. The place was formerly used as an office for a small IT firm. Some changes and interior designing woodwork are also required and a contractor has been hired for this purpose.

2.2 Management

The success of a startup heavily depends on its staff and management so make sure to plan it before thinking about how to start your own graphic design business . Gori has always been extremely passionate to start a graphic design company of her own even from her college days, that’s she had planned everything beforehand.

The main management body of the company will comprise of sales executives, graphic artists, cartoon and animation specialists, website developers and customer representatives. The team will be led and managed by Gori herself, who is well experienced in fulfilling all business plans for graphic design needs. The staff will be hired one month before the launch of startup and will be trained by Gori.

2.3 Customers

Our target market is the corporate sector, institutions, and organizations located in Manhattan and other parts of the world because anybody from anywhere can acquire our services through our official website and can pay us via PayPal, Payoneer, or online bank transfer. We will provide all sort of graphic designing business mainly website design, logo design, advertising material design, animations design, etc. We have priced all our services in the similar ranges as of our competitors except for brand logos whose price have been set 20% less so as to encourage sales. For an express delivery of 24 hours, an additional 10% amount will be charged on all of our services.

2.4 Business Target

We aim to become the best graphic designer in the New York City within next five years of our startup. Our main business targets to be achieved as milestones over the course of next three years are as follows:

• To achieve the net profit margin of $10k per month by the end of the first year, $15k per month by the end of the second year, and $25k per month by the end of the third year
• To balance the initial cost of the startup with earned profits by the end of the first year
• To open up a second company office by the end of three years in San Francisco, and a third office by the end of five years in Los Angeles

2.5 Keys to Success

We can achieve our business targets by following these keys to success:

• Successful marketing of our services through various platforms so as to attract as maximum customers as possible
• Ultimate client satisfaction by providing high-quality work and unlimited revisions until the client is fully satisfied
• Unparalleled customer service so as to build long-term working relationships with the clients

Company Summary

3.1 company owner.

PixelCo will be owned by Angela Gori, a world-renowned Graphic Designer. After completing her Masters of Art in Graphic Designing from University of Illinois, Chicago, Gori remained associated with some of the world’s biggest graphics designing companies and was Chief Creative Officer for the American Marketing Association, D.C. Chapter for last 6 years. She has also been recognized with the prestigious FOLIO: Top Women in Media award for her achievements as a leader. So far, she has worked with almost 14 out of top Fortune 100 companies as well as various influential associations, consumer brands, educational institutions and government agencies.

3.2 Why the Business is being started

Gori pursued her passion by serving in some of the biggest graphic designing companies of the United States but soon she realized that she can establish her name in this industry only by her own setup. That’s when she decided to start graphic design business completely by herself. Now, she will have all the freedom needed to realize even the craziest of her innovative ideas.

3.3 How the Business will be started

Starting a graphic design business is very easy since it doesn’t require as much inventory as needed in other businesses. Gori has planned everything about her business including the required personnel and inventory. The company will procure following things for the startup.

• Office furniture including three filing cabinets, four work desks, couch and chairs for customer waiting area, a round table with chairs for meeting area
• Four computers with color printers, scanners, and graphic tablets
• Graphic designing and other related software including Illustrator, Freehand, Photoshop, Quark, Traffic Office Manager, Font Management Utilities, and Microsoft Project
• A small library of requisite journals and magazines
• Assorted office stationary and brochures
• A strong internet connection and office telecom systems

The financial experts have forecasted following costs for expenses, assets, investment, and bank loans for the business plan .

The detailed start-up requirements, start-up funding, start-up expenses, total assets, total funding required, total liabilities, total planned investment, total capital and liabilities as forecasted by experts, is given below:

Services for customers

PixelCo will mainly provide visual communication and graphic designing services to small startups as well as established companies. We want to compete with all leading graphic design businesses in the United States, which is why we have formed a quality assurance team that will ensure that all of our services meet our customers’ expectations. Our products and services are listed below:

• Website design and graphics
• Print media design including newspapers, magazines, and books
• Advertising and corporate branding including brochures, infographics, posters and product packaging
• Logo design and visual identity services
• Illustrations and presentations
• Animations and cartoons production

Our services can either be acquired by visiting our office in downtown Manhattan or by our official website.

Customers can contact us online where they will be assigned to one of our representatives who will record the customer order in detail. Customers can also pay us via PayPal, Payoneer, or online bank transfer.

Marketing Analysis of graphic design business

The most important component of an effective graphic design business plans is its accurate marketing analysis that’s why Gori acquired the services of marketing experts to help her through this phase. It is only after this stage that a good graphic design business plans could have been developed. After identifying the trends of graphic design market in the New York City, the marketing experts and analysts also helped her to select the best site for establishing the main office of the company.

The success or failure of a business totally depends upon its marketing strategy which can only be developed on the basis of accurate marketing analysis. There are four main steps to carry out an accurate graphic design marketing analysis which are to identify the current market trends, identify your target audience and potential customers, set out the business targets to achieve, and finally set the prices of your products and services. Marketing analysis is extremely important because the planning of many subsequent components depends on it and it also forms the basis of the business strategy of marketing for graphic designers or graphic designing companies. Therefore, it must be considered before developing the planned business model graphic .

5.1 Market Trends

Graphic design is non-verbal or visual communication. Anything that cannot be done verbally but needs to be communicated must be put into some form of design so as to send the message across. If you look around you will find yourself surrounded by graphics, the picture on your coffee mug, the magazine cover, the pack of gum on your desk, and even the typeface in a TV ad are all examples of graphic design business plans.

That’s why graphic design industry is one of the biggest and the fastest growing industries in the world. As of 2017, there were more than 335,000 graphic design companies in the world including small and large companies as well as individual graphic design freelancers. The annual revenue earned by these businesses was over $62 Billion. Moreover, this industry is one of the few industries which have seen a constant increase in revenue along with the increase in business locations with time. Similarly, graphic designing is one of the popular businesses in the United States. According to the US Bureau of Labor, the graphic design industry employed more than 280,000 people in the US as of 2008 including web designers and other print designers as well.

This growth is attributed to the increase in other businesses in the United States since all businesses require graphic design services to appear professionally to the public. Graphic designing services are required by every business for its advertisement, promotion, and marketing and as other business increases, the market for graphic design business plans also increases. After identifying these market trends, it is clearly evident that the graphic design business is always blooming and can be immensely profitable provided that you plan your business successfully.

5.2 Marketing Segmentation

Our target market is the corporate sector located in the Central Business District of the Manhattan which provides many opportunities to us. Manhattan houses more than 300,000 businesses as of 2014, including local, national and multinational businesses. On average, these businesses make millions of dollars every year and can easily spend extravagantly on their graphic designing needs for the sake of promoting their brands.

In order to develop a good marketing strategy, it is crucial to analyze the market segmentation. A successful and efficient marketing strategy can only be developed after we completely know our potential customers. Our experts have identified the following type of target audience which can become our future consumers:

The detailed marketing segmentation of our target audience is as follows:

5.2.1 Corporate Sector:

The biggest consumer of our services will be the corporate sector located in the Downtown Manhattan and in various parts of the world. There are hundreds of local, national and multinational businesses and companies located within 15 km radius of our office including product manufacturers and distributors, real estate owners, developers, and contractors, research and development companies, banks and insurance companies, hotels, restaurants and food companies, IT and software development firms, branding and advertising agencies.

These companies and businesses require the services of graphic designers for fulfilling their visual communicative needs such as to create/update their brand logos and create/update the graphics on their websites or social media pages. These companies need graphic designers for developing an instant connection between their target audience and their products/services, and also for producing visual aids and informative images (e.g. menu for a restaurant, infographics) that help the customers in communication and various other purposes. Utilizing an appropriate graphic design can improve every aspect of a business and can positively impact clients, vendors, and employees.

Considering the need of graphic designing for these businesses and their annual average income, our experts have forecasted this target group to contribute the biggest portion of our revenue. Hence our marketing strategy will be specifically tailored to attract this customer group.

5.2.2 Institutions & Organizations:

Our second target group comprises of various institutions and organizations located in Manhattan including government and public-sector organizations, schools, colleges and universities, political parties, religious and sports organizations, and non-profit organizations. These organizations also need graphic design services for promoting their messages and other purposes.

5.2.3 Print & Digital Media:

Our third target group consists of print and digital media companies located in Manhattan. These companies include but are not limited to television studios, video production companies, publication companies (for graphics designing of newspapers, magazines, and books). This group, due to its specific nature, requires a lot of graphic designing work and will thus become the second biggest consumer of our services. The detailed market analysis of our potential customers is given in the following table:

5.3 Business Target

Our target is to balance the initial cost of startup within the first year of our launch and to become the best graphic designer of the New York City within next five years of our startup.

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5.4 Product Pricing

Product and service pricing is one of the most important factors in deciding the strategy for an event planning business. After considering the market demands, we have priced all our services in the similar ranges as of our competitors except for brand logos whose price have been set 20% less so as to encourage sales. The reason behind our pricing policy is to achieve the minimum attractive rate of return which would not be possible in case of offering our services at low prices. Various packages are priced according to the delivery time and number of revisions. For an express delivery of 24 hours, an additional 10% amount will be charged on all of our services.

After identifying the graphic designer demographics , market trends, market demand, and the potential customers of the startup, the next step is to define an effective strategy to target graphic design customers. A successful strategy can only be developed after setting specific marketing goals, defining milestones to achieve those goals, carrying out a competitive analysis to know what is missing in your current competitors, and finally develop the strategy for attracting your potential customers.

6.1 Marketing Goals

• Website Traffic & Conversions: Our goal would be to achieve a 20% increase in website traffic each month and to get at least an 80% conversion rate, i.e. to turn 80% of our website visitors into our customers.
• Engagement Rate & Social Media Following: Engagement rates indicate the frequency at which people interact with your posts. Our goal would be to increase engagement rates and our social media following so as to decrease the response time to customers.
• Brand Awareness & Recognition: A business’s reputation builds over time. Our goal will be to get featured in the local news or on a certain website by a popular blogger within first 3 months of our launch.
• Google Search Ranking: Google search rankings is one of the most important factors in deciding the success of a business, especially a startup that’s why we will play special emphasis on it. Our goal would be to rank on the first page of Google within 3 months of our launch.

6.2 Milestones

The important milestones to achieve our marketing as well as business goals are given in the following Gantt Chart.

6.3 Competitive Analysis

The graphic design business plans is undoubtedly one of the most competitive industries of the United States. With the increasing number of graphic design startups and freelancers, the competition is getting stiffer by the day. One has to be highly creative and come up with innovative designs and concepts so as to survive and grow in this industry. Our competitive advantage lies in the power and dedication of our team. We have a team of creative and highly proficient graphic designers, a team with excellent qualifications and experience various niche areas in the graphic design industry. Our second biggest competitive advantage will be the leadership of Gori since she is a world-renowned graphic designer and has worked with 14 out of top Fortune 100 companies.

6.4 Sales Strategy

After carrying out a detailed analysis, our experts came up with the following brilliant ideas to advertise and sell ourselves.

• We will advertise our business in relevant business magazines, newspapers, TV stations, and social media.
• We will introduce our company to corporate organizations and key stakeholders by sending introductory letters alongside our brochures.
• We will offer a 25% discount on our services for the first three months of our launch.
• We will offer a 40% discount on all of our services on Client’s referral.

6.5 Sales Forecast

Considering the quality of our services and our exceptional marketing strategy, our sales pattern is expected to increase with years. By analyzing our market segmentation strategy, our experts have forecasted the following sales on a yearly basis which are summarized in the column charts.

The detailed information about sales forecast, total unit sales, total sales is given in the following table:

6.5.1 Sales Monthly

6.5.2 sales yearly.

With the advent of the internet, it has become very easy for a graphic design company to work for those clients who are located in any other part of the world. That’s why most of the graphic design companies located in the United States have their biggest clients in other countries of the world. This trend is somewhat unique to the graphic design industry and is probably one of the reasons for its rapid growth and expansion. Even any of you can start your own graphic design business either through a freelancing website or by creating your own website.

7.1 Website Marketing Strategy:

The international graphic design business is only possible through a well-developed website. A website is just like a digital platform where the clients and service providers can interact, make contracts and even send/receive payments. In addition to that, it is an established fact that a well-ranked website on Google directly or indirectly leads to increased sales. That’s why it is very important to develop an attractive website for a graphic designing business plans.

7.2 Website Development:

Gori has a team of website developers, led by Anna Rick, who would be responsible for developing and maintaining the official website of PixelCo. Anna would also ensure that our website remains on the first page of Google because you don’t exist if you are not ranked on the first page of Google. Since this task will be done by our team so no additional cost will be incurred in the startup.

Personnel plan

Personnel plan, like all other plans, is an important component of effective d esign business plans so it must be planned before you even think about how to market your graphic design business . Its importance is due to the fact that success of any business significantly depends upon its employees. It is never easy to estimate the number and type of staff needed for a company before it is even launched therefore it is advisable to seek the help of HR experts to get through this phase. Gori acquired the services of experts to help her develop the following personnel plan for her company.

8.1 Company Staff

Gori will act as the General Manager of the company and will initially hire following people before she moves to start a graphic design business :

• 1 Accountant to maintain financial and other records
• 4 Sales Executives responsible for marketing and discovering new ventures
• 10 Graphic Artists for designing logos, infographics, brochures, and other graphics
• 2 Cartoon and Animation Specialists for designing animation for various purposes
• 4 Website Developers led by Anna for graphical work pertaining to websites
• 4 Customer Representatives to interact with customers and record their orders
• 1 Front Desk Officer to act as a receptionist
• 1 Security Officer

We will ensure that only qualified, creative, hardworking, customer-centric are hired and they are always ready to work in order to help us build a prosperous business benefitting all stakeholders (owner, workforce as well as customers). To ensure the best quality service, all employees will be selected through vigorous testing and will be trained for a month before starting their jobs.

8.2 Average Salary of Employees

The following table shows the data about employees and their salaries for next three years. The salaries of the employees for the second and third year are estimated by our experts on the basis of our forecasted expansion. The salaries will show a deviation if the company expands more or less than the forecasted growth rate.

Financial Plan

After deciding the strategy and personnel plan of the company, the next step is to develop a detailed map about the financial projections covering all aspects of the company. Just like the planning of other aspects, you must prepare a financial plan before you start thinking about how to start graphic design business . The financial plan should craft a detailed map about the cost of startup, inventory, payroll, equipment, rent, utilities and how these costs will be covered by the earned profits. So, before starting a graphic design business , make sure to carry out a detailed profit and loss analysis. The company financial plan outlines the development of the company over the next three years and is specifically developed to achieve both the company’s short-term and long-term objectives.

9.1 Important Assumptions

The company’s financial projections are forecasted on the basis of following assumptions. These assumptions are quite conservative and are also expected to show deviation but to a limited level such that the company’s major financial strategy will not be affected.

9.2 Brake-even Analysis

The following graph shows the company’s Brake-even Analysis.

The following table shows the company’s Brake-even Analysis.

9.3 Projected Profit and Loss

The following charts show the company’s expected Profit and Loss situation on the monthly and yearly basis.

9.3.1 Profit Monthly

The following graph shows the monthly profit, as forecasted by the company’s financial experts.

9.3.2 Profit Yearly

The following graph shows the yearly profit, as forecasted by the company’s financial experts.

9.3.3 Gross Margin Monthly

The following graph shows the monthly gross margin, as forecasted by the company’s financial experts.

9.3.4 Gross Margin Yearly

The following graph shows the yearly gross margin, as forecasted by the company’s financial experts.

The following table shows detailed information about profit and loss, and total cost of sales.

9.4 Projected Cash Flow

The following column diagram shows the projected cash flow.

9.5 Projected Balance Sheet

The following table shows detailed data about pro forma cash flow, subtotal cash from operations, subtotal cash received, sub-total spent on operations, subtotal cash spent. The following projected balance sheet shows data about total current assets, total long-term assets, total assets, subtotal current liabilities, total liabilities, total capital, total liabilities and capital.

9.6 Business Ratios

The following table shows data about business ratios, ratio analysis, total assets, net worth.

Download Graphic Design Business Plan Sample in pdf

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OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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A Guide to Starting a Graphic Design Business

By Netanya Cimone • Mar 9, 2023

If you’ve been dreaming about starting your own graphic design business for a while, it might be time to take the next step. Whether you’re currently working as a graphic designer and want to go freelance, or you’re ready to turn your side hustle into your main hustle, launching a graphic design business is no small task. Still, if you’re passionate about it—it’s worth the effort. But where to start? Before jumping in and taking on your first client project, take some time to figure out the basics.

How to start a graphic design business (step-by-step)

• Name your graphic design business and create a logo
• Register your business name
• Get your tax ID number
• Develop a business plan
• Open a bank account for your business
• Create a professional online portfolio
• Set your pricing
• Find your first clients
• Create a proposal template
• Sign a contract
• Communicate with your clients
• Deliver high-quality work 
• Invoice and collect payment
• Gather testimonials
• Ask for referrals
• Keep searching for new clients 
• Develop a growth mindset

1. Name your graphic design business and create a logo

A task like naming your graphic design business might stress you out. You might be thinking, how the heck do I come up with a brand name everyone will remember? I’m a designer, not a writer! And that’s ok. In the beginning, choose a business name that’s easy to remember and spell. 

Of course, you can always use your first and last name so that people who know you will find you easily. The most important thing about choices is that you make one and stick with it. Then check to see if a domain name is available that contains your business name . As long as you love the name you’ve come up with, go for it!

2. Register your business name

Once you’ve decided on a business name, you’ll want to register your business as a Sole Proprietorship or a Limited Liability Corporation (LLC) . A Sole Proprietorship is the easiest way to go when freelancing with no employees. In contrast, an LLC for graphic design will provide an extra layer of financial protection. If you conduct business as yourself using your legal name, you don’t need to register your business. 

Ultimately it’s up to you and what you feel best suits your business. You can always change your business registration later down the road. 

3. Get your tax ID number

It’s free to apply for an EIN (Employer Identification Number), and you’ll need it to pay for your federal taxes, hire employees in the future, open a bank account and apply for business licenses and permits. It might seem overwhelming but it’s an important step.

4. Develop a business plan

N ext, develop a business plan in order to map out how your business will operate. You can start by answering these questions: 

• Put together a list of graphic design business ideas and services you’re comfortable offering like logo design, packing & label design, signage design, and website design. You can get more service ideas by browsing graphic design marketplaces like Fiverr or Creative Market .
• Once you know the services you offer, choosing one or two niches will help you find your focus. Think of your niche as your industry of interest, for example, fashion, software, health, sports, gaming, blockchain, etc. Basically, ask yourself, “which industries excite me the most, and where do I have connections and experience?” Knowing your niche will help you determine your target audience.
• Your target audience is your ideal customer. Do you want to work directly with entrepreneurs, small business owners, large tech companies, or agencies? Finding your target audience will help you focus on the clients you want to work with rather than accepting any job that comes your way.
• When deciding how much to charge for your graphic design business,  consider how much revenue you want to make a month and how many clients you need to meet your goal. If you charge by the hour, you might need to work full-time hours to reach your benchmark, whereas charging a project fee will reward you for working faster.
• Make a list of ways you’ll find graphic design clients like which marketplaces you’ll join and what marketing efforts you’ll make along the way. Having this list handy will help give you direction when you’re ready to promote your business.
• You’ll also want to think about the long-term: how to turn a new client into a repeating client so that you bring in revenue every month. Think about the monthly services you can offer on retainer to keep the work flowing.

5. Open a bank account for your business

It’s a good idea to open a bank account for your business , to make sure you keep your business and personal finances separate.

6. Create a professional online portfolio

It’s easy to let your portfolio fall by the wayside, but it’s essential to schedule time on your calendar to create a professional gallery of your work online. This will help attract new clients and give prospective clients a better idea of your style and capabilities. 

You can create an online portfolio on your own website/online portfolio platform or join a marketplace. Here are a few places worth checking out if you haven’t already:

Marketplaces:

• Behance – Billed as the world’s largest creative network for showcasing and discovering creative work, and powered by Adobe.
• Dribbble – Like Behance, Dribbble is a social networking and self-promotion platform for digital designers and creatives. It’s great for creating your portfolio and finding jobs.

Website builders/online portfolio platforms:

• Webflow – A no-code website builder used by many professional designers.
• Editor X – A free no-code website builder made for designers and powered by Wix.
• Squarespace – A professional website builder with really nice templates, so you don’t have to start from scratch.
• Adobe Portfolio – If you’re already using Adobe Creative Cloud, you can create a portfolio for free.

7. Set your pricing

As I mentioned above, when setting your pricing, you’ll want to consider your ideal monthly revenue and whether to charge by the hour or project. Researching what other designers in your industry are charging is also important, so you’ll know where you stand. Whether you choose an hourly rate or project fee, make sure to include any client communication in your calculations and cap the number of edits to two or three. You don’t want to be on the fifth version of a design for a particular client and not be compensated for the extra effort. Put your project rates in a spreadsheet so you can re-evaluate your pricing as you go.

8. Find your first clients

Now for the fun part! How to get graphic design clients:

• Tell everyone you know (seriously). If you’re leaving your company to strike out on your own, include all of your details in your final goodbye email so your colleagues can reach out to you as clients or refer others to you. Post on your social media accounts so your friends and family can spread the word, too. Now’s the time to start using your network to find your first few clients.
• Take the time to update your headline, current position, and experience. Send recommendation requests to coworkers you’ve worked with and offer to write one for them, to further motivate them.
• Create a profile on Fiverr, Upwork, or TopTal and share it with your social network so people will know where to find you.
• While you’re looking for graphic design clients, you can use your skills to diversify your income by selling printables on Etsy . There are loads of different types of digital goods, and you can advertise pretty affordably within the Etsy marketplace. The plus of selling printables is you don’t have to worry about shipping. And, this is a great way to be discovered by new clients for your graphic design business, who may decide to hire you for a custom project.

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9. Create a proposal template

Together with a quote, creating a proposal is a professional way of showing who you are, what services you offer, and how much you charge. It enables you to show off the value you’re offering and further justify your rate. As a graphic designer, you’ll knock this task out of the park, so create a template that reflects your skills! Here are a few platforms to create your proposal template:

• Google Slides 

10. Sign a contract

Before you start every project, make sure to sign a contract. You can create your own using a freelancing contract template or have a lawyer prepare one for you. To streamline the signing process you can use an eSignature program like DocuSign or send over a PDF. There’s a good chance your client may provide a contract themselves.

11. Communicate with your clients

Working independently and on your schedule is a big reason for going freelance, so it makes sense if talking to clients feels like, “ugh, why.” But maintaining healthy and consistent communication will keep you top of mind, so your projects move forward in a timely manner and you get hired for future gigs. So, sending a status update to your clients doesn’t hurt.

12. Deliver high-quality work

Once you’ve landed a client and signed a contract, make sure to deliver high-quality work on time. That’s the best way to keep your client happy and continue the working relationship.

13. Invoice and collect payment

You’ll need to create and send an invoice at the end of each project. You can use online invoicing tools to send your clients invoices directly via email, as well as set up automatic payment reminders so you don’t have to send reminders yourself.

14. Gather testimonials

After completing work for new clients, ask them to leave a review on your website, online marketplace profile, LinkedIn page, etc. That way, your reputation develops right alongside your portfolio. 

15. Ask for referrals

To make sure you have a steady stream of clients knocking on your door, ask your current clients to recommend you to other entrepreneurs or business owners they may know. If you’re feeling uncomfortable about doing so, follow this guide on how to ask for referrals (and also know that it’s totally normal).

16. Keep searching for new clients

You always want to aim to bring in new clients to your graphic design business, and you can go about this in any number of ways. For one, you can start a blog that talks about best practices and industry trends, and send it out as a monthly newsletter to your mailing list. You can cast a wide net by posting on Facebook, Linkedin, and Instagram. You can connect with an engaged audience by attending networking events for local businesses and join Facebook groups to further get your name out there. Bottom line: there are plenty of ways to grow your client list!

17. Develop a growth mindset

No matter how busy or slow business gets, make time to learn. Building your practice and learning new skills will keep your work fresh and your mind engaged. It’s important to remember that there’s always something new to learn—that’s what keeps your journey as a freelance graphic designer exciting! 

Make sure to push your boundaries, so you can grow professionally. Even when a project feels outside of your comfort zone, be bold and go for it. It will challenge you to expand your skill set and acquire new skills. Pushing yourself in this way will help you diversify your design portfolio and set you up for new, varied projects and clients.

Keep betting on yourself

As time goes on, you might have doubts about your graphic design business, and even feel tempted to become an employee again. That feeling is completely normal, and comes with the territory of starting your own business. Don’t despair, just remind yourself of why you went out on your own, and keep yourself motivated by constantly looking for new projects and clients when things slow down. Or, if you’re overworked and feeling burnt out, embrace the lighter load! As a business owner, you’re in control, so you get to decide the best course of action for you.

Above all, know that you can do this! Remember that one of the biggest advantages of being a freelancer is that you’re in charge of your time and schedule; you control what you work on. So, make sure to work on projects you enjoy, work with the clients you enjoy working with (if you can afford to be selective, of course!), and bring your passion to everything you do—that’s how you create a work-life you love.

Netanya Cimone is a freelance copywriter bringing SaaS brands to life. When she’s not writing, she’s running a secret garden poets cafe.

By Betsy Jacobs • Feb 26, 2023

By Netanya Cimone • Aug 22, 2023

By Hannah Donor • Dec 12, 2023

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