starting a business plan agency

How to start an agency (step-by-step guide)

Want to learn how to start an agency?

Whether it’s for content development, logo design, or other areas of digital marketing, starting a new agency is never easy. However, with the right steps and tools, you can get off the ground a lot faster!

To help you out, we’ll cover everything you need to know about starting your own agency in this article. We’ll also share a few helpful tips to find your first few clients!

The article contains:

(click on the links to jump to a specific section)

• What is an Agency?
• Determine Your Niche
• Decide If You Are Going Remote Or Not
• Decide A Suitable Business Model
• Hire A Small Team At First
• Find Your First Clients
• Four Tips to Remember When Running Your Own Agency

What is an agency?

An agency is a company that provides specific services to other businesses. Most agencies either offer a single service or a variety of services, like:

• Web development
• Content writing and SEO
• Social media marketing
• Logo design
• Influencer marketing
• Other areas of Digital marketing like Google Adwords and Facebook ads management, public relations and more.

How to start an agency in five steps

Here’s a step-by-step guide on how to start an agency:

1. Determine your niche

The first step in starting your agency is to determine your niche.

Identifying a niche helps you understand:

• The industry you work in.
• The activities your agency performs.
• The type of clients you should have.

It’s best to choose a niche that you are familiar with. For example, if you’re well-versed with social media, you could start a social media marketing agency .

The benefits?

• You will have a shorter learning curve which helps you focus on other aspects of growing your business.
• Potential clients will trust you more if they know you have experience and expertise in the field.

2. Decide if you’re going remote or not

This is one of the most important business decisions you will make. It will determine your cost structure, your talent acquisition strategy and much more.

While some agencies find it easier on the pocket to have a completely remote team , others need to have a physical office.

Some advantages of going remote are:

• It involves fewer costs as you don’t have to pay rent and other office overheads.
• It’s great for productivity since employees can work flexibly.
• You can recruit employees from a global talent pool as you’re not location-limited.

Remote teams are a great alternative for small businesses and agencies. However, once they start to expand, most business owners feel the need for a physical office.

The decision ultimately depends on:

A. How the team functions best

To know what works best for your agency, you could start with a full-time in-office team and let your employees work from home a few days a week. This way, you can find an arrangement that suits your needs.

B. The type of services

Creative agencies like marketing agencies and digital agencies can have remote teams before they mostly cover online marketing. As everything is web-based, you don’t need to physically be present.

However, other agencies could struggle by going remote.

For example, real estate agencies can’t have agents working from home as they’ll have to visit properties to prospect them.

3. Decide a suitable business model

The next step to setting up a new business is to decide how you want to handle your billables. Here are some ways to do this:

A. Flat-rate

This means offering your services at a monthly or yearly rate. This way, your client doesn’t have to pay you for hours worked or the number of projects you work on. All they have to do is pay a flat sum to avail your services.

The easiest way to determine a flat-rate for your services is to analyze client needs and the amount of work you’ll have to put in to get the job done.

However, this business plan might not work when clients decide to scale up. While you’ll be doing more work, you’ll still be paid the same! To avoid this, always revise contracts before you renew them. You can easily find an agency contract template online to get started.

B. Commissions

Here, you only get paid after your clients make money off of a sale.

For example, if your SEO agency optimizes a client’s webpage, you can get a portion of the revenue they generate from that page.

However, this model comes with a few issues:

• It’s not applicable to all services. For example, there’s no way to get a commission for designing a website banner for a client.
• It’s hard to bill your clients without closely keeping track of their sales. For example, if you are a marketing agency, you need to know exactly how much revenue your strategies generated to get an accurate commission.

C. Hourly rates

This business model is perfect for new businesses.

Here, you bill clients for the time you spent working on their projects at a fixed hourly rate.

While manually keeping track of the hours you spend on work can be taxing, you can use time trackers to help you out. As they automatically track the hours worked by your staff on each project, billing clients on an hourly basis becomes simple!

4. Hire a small team at first

Employees are a crucial part of running any agency.

As you’re only starting out, it’s best to hire a small team of employees. This helps you complete client work without having to manage a large team.

Start by filling out the core jobs that every creative agency needs, like:

• Web designers who are familiar with modern concepts like responsive web designs. Remember, most clients and customers will likely engage with you through your website, fine-tuning this is essential.
• Marketers who can analyze data and create campaigns to engage potential clients or customers.
• Individuals who have the required skill set to perform the services you are offering. For example, you need content writers if you are a content marketing agency.

Once you have enough clients, you could hire more employees to grow your agency.

5. Find your first clients

The next step is to find clients for your business.

But how do you find them?

Here’s how:

1. Networking

When you’re looking for clients, you’ll have to network extensively to find as many potential clients as possible. People need to know about you and your agency before they consider hiring you, right?

So how do you go about this?

A. Online networking

Start by creating a LinkedIn profile for your business. Describe the service you provide and mention any previous experience that you or your employees have in the field. Also ensure that your company has a website that clearly explains what you offer..

Be sure to add your company’s profile and website to all your online profiles and social media accounts and ask your employees to do the same.

Then, reach out to your current contacts – letting them know about your services. Since these people know you or may have worked with you before, they’ll be more willing to work with you.

B. Offline networking

Another great way to find clients is by physically going out and meeting people. A great way to do this is to get on Eventbrite or Meetup.com and attend relevant events happening around you.

These are forums where various startups and founders network and share business ideas, experiences and propositions. It’s a good way to build connections with people who can either:

• Become a client
• Refer you to someone in your network who could become a client

2. Marketplaces

Freelance marketplaces like Upwork and Freelancer are another simple way to find people in need of your services. Simply respond to job postings on these sites to find an opportunity for your agency and get to work!

While these marketplaces are great to find tons of work opportunities, they only work if you already have some prior work experience.

Remember, these are people who have never worked with you before – they’ll want some proof of work you’ve done in the past!

3. Referrals

Once you have an existing client base, ask them to refer you to their networks.

This is one of the easiest ways to quickly find new clients as you’re not doing all the hard work of finding them yourself!

Also, as these are businesses that your clients already know, they’re probably more trustworthy and you won’t have any issues working with them.

4. Local Ads

Placing local ads on Google AdWords and Facebook can be a quick way to get leads who are looking to work with someone nearby. For example, you could target keywords like “ web designer in South London” in AdWords or target business owners in the south London area.

Start by budgeting a small amount of money and trying out different variations. If you start getting leads, you can increase your budget.

Four tips to remember when running your own agency

While starting an agency can be hard, with the right tools and processes, things get much simpler.

Here are four tips to help you run an agency easily:

1. Use the right tools

Whether you run your agency remotely or from an office space, using the right workplace software can streamline your business operations to boost your profit margins.

Here are some tools that can help you out:

A. Communication tools

Effective communication is a crucial element in meeting client demands, analyzing work progress and collaborating on projects.

Luckily, messaging tools like Fleep and Slack let you instantly communicate with your employees. You can also share project updates and files to keep everyone on the same page.

Additionally, video calling tools like Zoom and Skype are perfect for detailed discussions for specific projects and weekly meetings. They also help with team-building activities to make any remote staff feel part of your agency.

B. File management tools

As you could be working on multiple projects simultaneously, you need tools to help your employees collaborate on files and store them online.

File management tools like Google Drive and Dropbox let you store and share files and collaborate over them seamlessly. As these are cloud-based software, you can keep track of all your project files remotely.

C. Performance tracking

One of the biggest problems faced by companies is maintaining employee productivity.

Without monitoring your employees, you won’t know:

• Who’s working on what task and for how long.
• If someone is passing off idle hours as hours worked.
• What websites and apps they access during work hours.

Luckily, performance tracking tools like Time Doctor make employees monitoring a breeze.

What’s Time Doctor?

Time Doctor is a powerful productivity software used by large companies and SMBs to monitor employee performance .

Here’s how it can help you manage your agency staff:

• Project reports — Know who worked on what project and for how long.
• Timesheet reports – Track the time an employee worked during a given period.
• Web & app usage report – Identify what websites and apps were accessed by each employee during work hours.
• Distraction management – Helps your agency staff avoid distractions with pop-up alerts.
• Inactivity timer – Ensure that your employees don’t pass idle time as hours worked.
• Payroll management – Easily bill your clients or customers for tasks completed within Time Doctor.

2. Keep your best clients happy

While getting new clients is important to scale your business, keeping your current ones happy is just as essential.

Happy clients turn into loyal clients and loyal clients can increase your agency’s cash flow and bottom line through additional projects.

Additionally, they can give client testimonials and refer you to their network, bringing in new business for your agency.

3. Implement proper workflows

Once your business is up and running, you need to have efficient systems in place to manage processes.

For example, if you run an advertising agency (ad agency), your employees should know client preferences when it comes to their project deliverables. They should also know what the client doesn’t like, how to clarify doubts and how to present the final product.

• As your employees will know everything about a specific task or project, they can complete it quickly.
• As everything has been clarified, there’ll be fewer mistakes – saving you tons of time and money.

And when you’re not wasting time and money on correcting repetitive activities, you can focus more on growing your agency!

4. Keep your employees happy

Your best business asset is your employees, right?

If you keep them happy, they’ll be at their most productive and give your clients their best.

To keep your employees happy, you could:

• Give them the flexibility they need to maintain a good work-life balance.
• Provide incentives for good work.
• Encourage open communication and maintain a feedback culture to resolve any issues they might be facing.
• Have a collaborative work environment to make them feel part of a team.
• Promote diversity to have an inclusive work environment.

Remember, the more appreciated your employees feel, the more productive they’re likely to be!

Starting your own business can be a lot of hard work.

But it’s not impossible.

Use the steps and tips we covered here to get started immediately. With the right strategy and processes in place, it won’t be long before you start your own successful agency!

Book a free demo of Time Doctor

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How To Write a Marketing Agency Business Plan + Template

Creating a business plan is essential for any business, but it can be especially helpful for marketing agency businesses that want to improve their strategy and/or raise funding.

A well-crafted business plan not only outlines the vision for your company, but also documents a step-by-step roadmap of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.

This article provides an overview of the key elements that every marketing agency owner should include in their business plan.

Download the Digital Marketing Agency Business Plan Template

What is a Marketing Agency Business Plan?

A marketing agency business plan is a formal written document that describes your company’s business strategy and its feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write a Marketing Agency Business Plan?

A marketing agency business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Marketing Agency Business Plan

The following are the key components of a successful marketing agency business plan:

Executive Summary

The executive summary of a marketing agency business plan is a one to two page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your marketing agency
• Provide a short summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company started, and provide a timeline of milestones your company has achieved.

If you are just starting your marketing agency , you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your marketing agency, mention this.

You will also include information about your chosen marketing agency business model and how, if applicable, it is different from other companies in your industry.

Industry Analysis

The industry or market analysis is an important component of a marketing agency business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

• What part of the marketing agency industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now (and if applicable, how do these trends support the success of your company)?

You should also include sources for the information you provide, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, the customers of a marketing agency may include small businesses, non-profit organizations, or even individuals.

You can include information about how your customers make the decision to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or marketing agency services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors.

Below are sample competitive advantages your marketing agency may have:

• Proven track record of success
• Strong client base
• Robust marketing strategy and execution
• Highly qualified and experienced team
• State-of-the-art technology and tools

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be clearly laid out, including the following 4 Ps.

• Product/Service : Detail your product/service offerings here. Document their features and benefits.
• Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
• Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
• Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, launch a direct mail campaign. Or, you may promote your marketing agency via public relations or word-of-mouth.

Operations Plan

This part of your marketing agency business plan should include the following information:

• How will you deliver your product/service to customers? For example, will you do it in person or over the phone only?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for a marketing agency include reaching $X in sales. Other examples include adding X new clients or launching a new website.

Management Team

List your team members here including their names and titles, as well as their expertise and experience relevant to your specific marketing agency industry. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

• Revenue : how much revenue you generate.
• Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss.

Sample Income Statement for a Startup Marketing Agency

Balance sheet.

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : All of the things you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Marketing Agency

Cash flow statement.

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

• Cash Flow From Operations
• Cash Flow From Investments
• Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup marketing agency .

Sample Cash Flow Statement for a Startup Marketing Agency

You will also want to include an appendix section which will include:

• Your complete financial projections
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your marketing agency . It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it.

If you are seeking funding from investors or lenders, it is especially important to have a well-written business plan that demonstrates the expertise and experience of your management team, as well as your company’s potential for financial success. By taking the time to write a detailed and comprehensive business plan, you will give your marketing agency the best chance for success.  

Finish Your Marketing Agency Business Plan in 1 Day!

Wish there was a faster, easier way to finish your marketing agency business plan?

With our Ultimate Digital Marketing Agency Business Plan Template you can finish your plan in just 8 hours or less!

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How to write a business plan for a recruitment agency?

Writing a business plan for a recruitment 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 recruitment 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 recruitment agency?

What information is needed to create a business plan for a recruitment agency.

• What goes in the financial forecast for a recruitment agency?
• What goes in the written part of a recruitment agency business plan?
• What tool can I use to write my recruitment agency business plan?

Understanding the document's scope and goals will help you easily grasp its structure and content. Before diving into the specifics of the plan, let's take a moment to explore the key reasons why having a recruitment agency business plan is so crucial.

To have a clear roadmap to grow the business

Running a small business is tough! Economic cycles bring growth and recessions, while the business landscape is ever-changing with new technologies, regulations, competitors, and consumer behaviours emerging constantly.

In such a dynamic context, operating a business without a clear roadmap is akin to driving blindfolded: it's risky, to say the least. That's why crafting a business plan for your recruitment agency is vital to establish a successful and sustainable venture.

To create an effective business plan, you'll need to assess your current position (if you're already in business) and define where you want the business to be in the next three to five years.

Once you have a clear destination for your recruitment agency, you'll have to:

• Identify the necessary resources (human, equipment, and capital) needed to reach your goals,
• Determine the pace at which the business needs to progress to meet its objectives as scheduled,
• Recognize and address the potential risks you may encounter along the way.

Engaging in this process regularly proves advantageous for both startups and established companies. It empowers you to make informed decisions about resource allocation, ensuring the long-term success of your business.

To get visibility on future cash flows

If your small recruitment agency runs out of cash: it's game over. That's why we often say "cash is king", and it's crucial to have a clear view of your recruitment agency's future cash flows.

So, how can you achieve this? It's simple - you need to have an up-to-date financial forecast.

The good news is that your recruitment agency business plan already includes a financial forecast (which we'll discuss further in this guide). Your task is to ensure it stays current.

To accomplish this, it's essential to regularly compare your actual financial performance with what was planned in your financial forecast. Based on your business's current trajectory, you can make adjustments to the forecast.

By diligently monitoring your recruitment agency's financial health, you'll be able to spot potential financial issues, like unexpected cash shortfalls, early on and take corrective actions. Moreover, this practice will enable you to recognize and capitalize on growth opportunities, such as excess cash flow enabling you to expand to new locations.

To secure financing

A detailed business plan becomes a crucial tool when seeking financing from banks or investors for your recruitment agency.

Investing and lending to small businesses are very risky activities given how fragile they are. Therefore, financiers have to take extra precautions before putting their capital at risk.

At a minimum, financiers will want to ensure that you have a clear roadmap and a solid understanding of your future cash flows (like we just explained above). But they will also want to ensure that your business plan fits the risk/reward profile they seek.

This will off-course vary from bank to bank and investor to investor, but as a rule of thumb. Banks will want to see a conservative financial management style (low risk), and they will use the information in your business plan to assess your borrowing capacity — the level of debt they think your business can comfortably handle — and your ability to repay the loan. This evaluation will determine whether they'll provide credit to your recruitment agency and the terms of the agreement.

Whereas investors will carefully analyze your business plan to gauge the potential return on their investment. Their focus lies on evidence indicating your recruitment agency's potential for high growth, profitability, and consistent cash flow generation over time.

Now that you recognize the importance of creating a business plan for your recruitment agency, let's explore what information is required to create a compelling plan.

Need a convincing business plan?

The Business Plan Shop makes it easy to create a financial forecast to assess the potential profitability of your projects, and write a business plan that’ll wow investors.

Writing a recruitment agency business plan requires research so that you can project sales, investments and cost accurately in your financial forecast.

In this section, we cover three key pieces of information you should gather before drafting your business plan!

Carrying out market research for a recruitment agency

Before you begin writing your business plan for a recruitment 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 recruitment agency.

You might discover that job seekers in your area may be more interested in certain industries than others. Additionally, research may reveal that job seekers may be more likely to respond to certain types of recruitment tactics than others.

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 recruitment agency.

Developing the marketing plan for a recruitment agency

Before delving into your recruitment agency business plan, it's imperative to budget for sales and marketing expenses.

To achieve this, a comprehensive sales and marketing plan is essential. This plan should provide an accurate projection of the necessary actions to acquire and retain customers.

Additionally, it will outline the required workforce to carry out these initiatives and the corresponding budget for promotions, advertising, and other marketing endeavours.

By budgeting accordingly, you can ensure that the right resources are allocated to these vital activities, aligning them with the sales and growth objectives outlined in your business plan.

The staffing and equipment needs of a recruitment agency

As you embark on starting or expanding your recruitment agency, having a clear plan for recruitment and capital expenditures (investment in equipment and real estate) is essential for ensuring your business's success.

Both the recruitment and investment plans must align with the timing and level of growth projected in your forecast, and they require appropriate funding.

Staffing costs for a recruitment agency might include salaries for recruiters, administrative staff, and sales representatives. Equipment costs might include computers, software, telephone systems, and office furniture.

To create a realistic financial forecast, you also need to consider other operating expenses associated with the day-to-day running of your business, such as insurance and bookkeeping.

With all the necessary information at hand, you are ready to begin crafting your business plan and developing your financial forecast.

What goes into your recruitment agency's financial forecast?

The financial forecast of your recruitment 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 recruitment 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

The projected P&L statement for a recruitment agency shows how much revenue and profits your business is expected to generate in the future.

Ideally, your recruitment agency's P&L statement should show:

• Healthy growth - above inflation level
• Improving or stable profit margins
• Positive net profit

Expectations will vary based on the stage of your business. A startup will be expected to grow faster than an established recruitment agency. And similarly, an established company should showcase a higher level of profitability than a new venture.

The projected balance sheet of your recruitment agency

The balance sheet for a recruitment agency is a financial document that provides a snapshot of your business’s financial health at a given point in time.

It shows three main components: assets, liabilities and equity:

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

Examining the balance sheet is important for lenders, investors, or other stakeholders who are interested in assessing your recruitment agency's liquidity and solvency:

• Liquidity: assesses whether or not your business has sufficient cash and short-term assets to honour its liabilities due over the next 12 months. It is a short-term focus.
• Solvency: assesses whether or not your business has the capacity to repay its debt over the medium-term.

Looking at the balance sheet can also provide insights into your recruitment agency's investment and financing policies.

In particular, stakeholders can compare the value of equity to the value of the outstanding financial debt to assess how the business is funded and what level of financial risk has been taken by the owners (financial debt is riskier because it has to be repaid, while equity doesn't need to be repaid).

The projected cash flow statement

A cash flow forecast for a recruitment agency shows how much cash the business is projected to generate or consume.

The cash flow statement is divided into 3 main areas:

• The operating cash flow shows how much cash is generated or consumed by the operations (running the business)
• The investing cash flow shows how much cash is being invested in capital expenditure (equipment, real estate, etc.)
• The financing cash flow shows how much cash is raised or distributed to investors and lenders

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

It is also a best practice to include a monthly cash flow statement in the appendices of your recruitment agency business plan 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 recruitment 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 recruitment 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 recruitment agency business plan, let's have a look at the written part of the plan.

The written part of a recruitment agency business plan

The written part of a recruitment 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

In your recruitment agency's business plan, the first section is the executive summary — a captivating overview of your plan that aims to pique the reader's interest and leave them eager to learn more about your business.

When crafting the executive summary, start with an introduction to your business, including its name, concept, location, how long it has been running, and what sets it apart. Briefly mention the products and services you plan to offer and your target customer profile.

Following that, provide an overview of the addressable market for your recruitment agency, current trends, and potential growth opportunities.

Next, include a summary of key financial figures like projected revenues, profits, and cash flows.

Finally, in the "ask" section, detail any funding requirements you may have.

2. The presentation of the company

As you build your recruitment 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 recruitment agency, you could highlight the potential for growth, as the area may boast a highly educated population and a booming economy. You could emphasize the easy access to major transportation routes, which could make it easier for potential candidates to reach the agency. Additionally, you might point out the presence of other prominent businesses in the area, which could indicate a strong job market. Finally, you could showcase the area's potential for expansion, as it may offer plenty of land and a dynamic business environment.

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 business plan should include a detailed description of the offerings that your company provides to its customers. 

For example, your recruitment agency may offer job search consulting services to help customers create a successful job search plan that will maximize their chances of success. It might also offer resume and cover letter writing services to ensure customers' documents are both up-to-date and tailored to the relevant job. Finally, it may also provide interview coaching services, to help customers prepare for, and excel in, job interviews. These services are important to help customers succeed in their job search and secure the right job for them.

When drafting this section, you should be precise about the categories of products or services you sell, the types of customers you are targeting and how customers can buy them.

4. The market analysis

When you present your market analysis in your recruitment agency business plan, it's crucial to include detailed information about customers' demographics and segmentation, target market, competition, barriers to entry, and any relevant regulations.

The main objective of this section is to help the reader understand the size and attractiveness of the market while demonstrating your solid understanding of the industry.

Begin with the demographics and segmentation subsection, providing an overview of the addressable market for your recruitment agency, the key trends in the marketplace, and introducing different customer segments along with their preferences in terms of purchasing habits and budgets.

Next, focus on your target market, zooming in on the specific customer segments your recruitment agency aims to serve and explaining how your products and services fulfil their distinct needs.

For example, your target market might include recent college graduates who are seeking their first job after graduation. This segment is likely to be highly motivated and eager to begin their career. Additionally, this segment is likely to be very open to the services that a recruitment agency can provide, such as helping to craft resumes and providing job search assistance.

Then proceed to the competition subsection, where you introduce your main competitors and highlight what sets you apart from them.

Finally, conclude your market analysis with an overview of the key regulations applicable to your recruitment agency.

5. The strategy section

When crafting the strategy section of your business plan for your recruitment agency, it's important to cover several key aspects, including your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.

In the competitive edge subsection, clearly explain what sets your company apart from competitors. This is particularly critical if you're a startup, as you'll be trying to establish your presence in the marketplace among entrenched players.

The pricing strategy subsection should demonstrate how you aim to maintain profitability while offering competitive prices to your customers.

For the sales & marketing plan, outline how you plan to reach and acquire new customers, as well as retain existing ones through loyalty programs or special offers.

In the milestones subsection, detail what your company has achieved thus far and outline your primary objectives for the coming years by including specific dates for expected progress. This ensures everyone involved has clear expectations.

Lastly, in the risks and mitigants subsection, list the main risks that could potentially impact the execution of your plan. Explain the measures you've taken to minimize these risks. This is vital for investors or lenders to feel confident in supporting your venture - try to proactively address any objection they might have.

Your recruitment agency could face the risk of a data breach. An incident such as this could lead to the loss of confidential information held by the agency, which could damage the agency's reputation and lead to financial loss. Your recruitment agency might also face the risk of a legal dispute from a client or a candidate. This could lead to costly legal fees and could have a negative effect on the agency's reputation.

6. The operations section

The operations of your recruitment agency must be presented in detail in your business plan.

The first thing you should cover in this section is your staffing team, the main roles, and the overall recruitment plan to support the growth expected in your business plan. You should also outline the qualifications and experience necessary to fulfil each role, and how you intend to recruit (using job boards, referrals, or headhunters).

You should then state the operating hours of your recruitment agency - so that the reader can check the adequacy of your staffing levels - and any plans for varying opening times during peak season. Additionally, the plan should include details on how you will handle customer queries outside of normal operating hours.

The next part of this section should focus on the key assets and IP required to operate your business. If you depend on any licenses or trademarks, physical structures (equipment or property) or lease agreements, these should all go in there.

You may have key assets such as databases of potential candidates for specific job roles and an extensive network of contacts. These could be considered intellectual property. Additionally, the recruitment agency might have brand recognition and a reputation for placing high-calibre candidates, which could be intangible assets.

Finally, you should include a list of suppliers that you plan to work with and a breakdown of their services and main commercial terms (price, payment terms, contract duration, etc.). Investors are always keen to know if there is a particular reason why you have chosen to work with a specific supplier (higher-quality products or past relationships for example).

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 recruitment agency business plan, let's look at the solutions you can use to draft yours.

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

There are two main ways of creating your recruitment agency business plan:

• Using specialized business planning software,
• Hiring a business plan writer.

Using an online business plan software for your recruitment agency's business plan

The modern and most efficient way to write a recruitment 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 recruitment agency's business plan

Outsourcing your recruitment 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 recruitment agency business plan to a business plan writer and decide what best suits your business's unique needs.

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

Using Microsoft Excel and Word (or their Google, Apple, or open-source equivalents) to write a recruitment 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 recruitment 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 recruitment 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 recruitment 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 recruitment 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?
• What is the price of a business plan?
• How to present your sales and marketing strategy in your business plan?
• Internal 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 recruitment 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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Travel Agency

Back to All Business Ideas

How to Start a Travel Agency

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on December 13, 2021 Updated on May 6, 2024

Investment range

$2,150 - $10,600

Revenue potential

$78,000 - $300,000 p.a.

Time to build

0 – 3 months

Profit potential

$62,000 - $90,000 p.a.

Industry trend

Who doesn’t love to travel? But most of us do not love the endless research, planning, and booking required, which sometimes feels like it takes more time than the vacation itself. This is precisely why the $35 billion US travel agency industry has been booming of late, and why it offers a real opportunity for the travel-minded entrepreneur.

By starting your own online travel agency, you can shoulder travelers’ burden and ease their anxiety, allowing them to enjoy their holiday while you make a healthy profit. And thanks to the post-pandemic boost, now is a great time to get in on travel.

Of course, starting a travel agency will not be a vacation – it will take diligence, patience, and strong guidance. Thankfully, you’ve come to the right place, as this step-by-step provides all the information you need to develop and launch your new travel agency and give you a head-start on your entrepreneurial journey.

Step by Step Business values real-life experience above all. Through our  Entrepreneur Spotlight Series , we interview business leaders from diverse industries, providing readers with firsthand insights.

Uncover the secrets to building a thriving travel agency with our interview with Casey Halloran of Costa Rican Vacations .

Aspiring travel entrepreneurs will find valuable insights in our interview with Augustin Ndikuriyo on building a thriving African wildlife tour business .

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

Pros and cons.

Every business has its pros and cons, and a travel agency is no exception. You should weigh these carefully to decide if the business is right for you.

• Flexibility – Work from anywhere, even while traveling!
• Minimal Training – Get accredited for free online
• Travel Discounts – Travel agents get top deals and reduced prices
• Demanding Work – With clients around the world you’re on call 24/7
• Fierce competition – Top sites like Expedia, travel networks, advisors, and more

Travel agency industry trends

The US travel agency industry expanded an impressive 75% in the decade leading up to 2020, which saw a massive pandemic-driven downturn. 

In 2021, many travel agents saw a surge in business as travelers unsure of all the constantly changing Covid-19 rules and restrictions turn to them for help, rather than booking their own trips. Global travel advisor InteleTravel experienced a 35% increase in business, not from the disaster year of 2020, but from 2019, which had set records.(( https://www.nytimes.com/2021/04/14/travel/summer-vacation-travel-agents.html ))

Consumers are also turning more and more to online travel agencies, with a study by Expedia showing a 25% increase in the use of online agencies in 2020 alone. Brick-and-mortar agencies seem to be a dying breed, with British travel icon Thomas Cook closing in 2019.(( https://advertising.expedia.com ))

Industry size and growth

• Industry size and past growth – Market research firm IBISWorld values the industry at nearly $48 billion in 2022.(( https://www.ibisworld.com/industry-statistics/market-size/travel-agencies-united-states/ ))  
• Growth forecast – The industry is expected to grow further as the Bureau of Labor Statistics predicted a 5% annual growth through 2030 in the employment of travel agents.(( https://www.bls.gov/ooh/sales/travel-agents.htm )) 
• Number of businesses – More than 73,000 travel agencies are operating in the US.(( https://www.ibisworld.com/industry-statistics/number-of-businesses/travel-agencies-united-states/ ))
• Number of people employed – The industry employs more than 250,000 people.(( https://www.ibisworld.com/industry-statistics/employment/travel-agencies-united-states/ ))

Trends and challenges

Trends in travel agency industry include:

• Home-stay rentals like Airbnb(( https://stepbystepbusiness.com/business-ideas/start-an-airbnb-business/ )) outperformed hotels in 27 top markets during the pandemic
• Book-now-pay-later options, such as those offered by Expedia and Booking.com, are gaining popularity
• Travel agencies undergoing digital transformation in response to the growing demand for online services

Challenges in travel agency industry include:

• Rising gas prices are impacting travel behavior
• Compliance with global Covid-19 protocols
• Keeping up with digital marketing opportunities

What kind of people work in a travel agency?

• Gender – 76% of travel agency managers in the US are female, while 24% are male. (( https://www.zippia.com/travel-agency-manager-jobs/demographics/#gender-statistics ))
• Average level of education – 64% of travel agency managers hold a bachelor’s degree.(( https://www.zippia.com/travel-agency-manager-jobs/demographics/#degree-level-types ))
• Average age – The average age of a travel agency manager is 51 years old.(( https://www.zippia.com/travel-agency-manager-jobs/demographics/#age-statistics ))

How much does it cost to start a travel agency?

The startup costs for a travel agency range from about $2,000 to $10,000, with an average of around $6,000. The high-end includes the rental of office space and a larger marketing budget, but you could easily run your online travel agency from home to cut costs.

How much can you earn from a travel agency?

The commission paid to a travel agency by travel vendors such as airlines and hotels is generally about 10%. Some travel agents also charge a nominal consultation fee for each booking, typically between $30 and $50. Those will be your two revenue streams.

The average cost of a one-week domestic vacation is $1,500 per person. The profit margin for a home-based travel agency is usually about 80%. With an office and staff, your margin will likely drop to about 30%.

In your first year or two, you could work from home and sell five two-person vacations each week. At a 10% commission, this would mean $78,000 in annual revenue. You’d have about $62,000 in profit, assuming an 80% margin.

As your brand gains recognition, sales could climb to 1,000 two-person vacations a year. At this stage, you would rent an office and hire staff, reducing your profit margin to 30%. With expected annual revenue of $300,000, you would make about $90,000.

What barriers to entry are there?

There are a few barriers to entry for a travel agency. Your biggest challenges will be:

• Competition – Big and small online firms; self-booking travelers
• Client Acquisition – Time and marketing will be required to build a reputation

Related Business Ideas

How to Start an Airbnb Business

How to Start a Bed & Breakfast

How to Start a Glamping Business

Step 2: hone your idea.

Now that you know what’s involved in starting a travel agency, it’s a good idea to hone your concept in preparation to enter a competitive market.

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

As a travel agency, you need to find a way to differentiate yourself from the competition. Research online travel agents and booking platforms to see their offerings and prices, while keeping an eye out for something that might be missing.

Perhaps you could specialize in travel to an under-appreciated region, such as Southeast Asia, and build a network of relevant contacts and vendors. Or you could focus on finding travelers the most incredible home-stay rentals at the best prices.

You could specialize in family vacations, corporate retreats, or honeymoons. The potential niche options in the travel industry are nearly endless.

What? Determine your products or services

Travel can involve many facets, and you can handle some or all of them, in addition to flights, lodgings, and car rentals. These might include:

• Booking tours and excursions
• Dining recommendations/reservation
• Travel insurance
• Visa and emergency services

How much should you charge for travel agency services?

Travel vendors, such as hotels, airlines, and car rental firms, pay a commission to travel agents that’s generally about 10% of the booking. For instance, if you book a $1,200 flight on Turkish Airlines for your client, Turkish Airlines will give you, the travel agent, a $120 commission.

As a result, booking flights with a travel agent sometimes costs the traveler slightly more than booking directly with the airlines or through a travel site like Expedia or Orbitz. Thus, to attract customers and boost sales travel agents rely on discounted travel packages.

For instance, a return flight from Chicago to Cancun and a 6-day stay at a four-star all-inclusive resort, plus ground transport, might cost a traveler $1,000 or more to book directly. But travel agents get significant discounts from vendors because they place volume orders, so you’d be able to offer this trip as a $599 package deal.

Even after paying your commission, the traveler still saves a chunk of money by using your services, rather than booking themselves. And keep in mind, the discounts offered by vendors are likely to increase as you become a more established agent. You may be able to negotiate commissions from tour operators and excursion companies as well.

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market will depend on the concept you’ve chosen for your agency. If you’ve decided to specialize in family vacations, you’ll be targeting parents. You might find them on sites like Facebook or LinkedIn, rather than Instagram or TikTok.

Where? Choose your business premises

In the early stages, you may want to run your business from home to keep costs low. But as your travel agency grows, you’ll likely need to hire workers and may need to rent out an office. You can find commercial space to rent in your area on Craigslist , Crexi , and Commercial Cafe .

When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Travel Agency Name

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better
• The name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “travel” or “bookings”, boosts SEO
• Choose a name that allows for expansion: “Wanderlust Adventures” over “Beach Bum Vacations” or “Honeymoon Haven Agency”
• A location-based name can help establish a strong connection with your local community and help with the SEO but might hinder future expansion

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

Powered by GoDaddy.com

Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that set your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Travel Agency Business Plan

Here are the key components of a business plan:

• Executive Summary: Present an overview of your travel agency, highlighting its focus on providing personalized travel planning and booking services for various types of travelers.
• Business Overview: Describe the services of your travel agency, including custom travel itinerary planning, booking accommodations, flights, and special experiences.
• Product and Services: Detail the range of travel packages offered, such as luxury vacations, adventure tours, and corporate travel services.
• Market Analysis: Assess the current travel market, identifying target customer segments like families, honeymooners, or business travelers.
• Competitive Analysis: Compare your agency to others, focusing on your unique offerings like specialized destinations, personalized service, or exclusive deals.
• Sales and Marketing: Outline your strategy for attracting clients, using methods like online marketing, partnerships with travel providers, or attending travel expos.
• Management Team: Highlight the experience and expertise of your team in travel planning, customer service, and business management.
• Operations Plan: Describe the process of service delivery, from client consultation to trip execution and post-travel follow-up.
• Financial Plan: Provide an overview of financial aspects, including startup costs, pricing strategy, and anticipated income.
• Appendix: Include supplementary documents such as travel industry certifications, partnership agreements, or detailed client testimonials to support your business plan.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business!

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to travel agencies.

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state.

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your travel agency will shape your taxes, personal liability, and business registration requirements, so choose wisely.

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just needs to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have.

Form Your LLC

Choose Your State

We recommend ZenBusiness as the Best LLC Service for 2024

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN.

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans : This is the most common method, but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans : The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants : A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Venture capital : Offer potential investors an ownership stake in exchange for funds, keeping in mind that you would be sacrificing some control over your business.
• Friends and Family : Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding : Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal : Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best options, other than friends and family, for funding a travel agency. You might also try crowdfunding if you have an innovative concept.

Step 8: Apply for Travel Agency Licenses and Permits

Starting a travel agency requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money you’ll need a place to keep it, and that requires opening a bank account .

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your travel agency business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account.

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of any of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business.

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.

You may want to use industry-specific software to manage bookings and scheduling, such as TravelPerk , TravelCEO , and TravelOperations .

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero .
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using services like WordPress, Wix, or Squarespace . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

Your website should showcase your offerings, customer testimonials, and detailed information about destinations.

Your clients are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google.

Here are some powerful marketing strategies for your future business:

• Leverage Social Media : Use platforms like Instagram, Facebook, and Pinterest to share stunning travel imagery, customer stories, and travel tips. Engage with your audience through regular posts, stories, and responses to comments.
• Content Marketing : Start a blog or a YouTube channel providing valuable content like travel guides, tips, destination reviews, and travel trends. This not only helps in SEO but also establishes you as an expert in the field.
• Build Partnerships : Collaborate with local businesses in your chosen travel destinations, such as hotels, tour operators, and local attractions. This can lead to exclusive deals or packages that you can offer to your clients.
• Email Marketing : Collect emails through your website and social media channels and send out regular newsletters with travel tips, special offers, and new package announcements.
• Customer Reviews and Referrals : Encourage your clients to leave reviews on platforms like TripAdvisor or Google. Word-of-mouth referrals are powerful, so consider offering incentives for referrals.
• Attend Travel Expos and Events : Participate in travel expos, seminars, and networking events to build contacts and stay updated on the latest industry trends.
• Offer Personalized Services : Tailor your services to meet individual client needs. Personal touches can make a big difference in the travel industry.
• Utilize Paid Advertising : Invest in targeted ads on social media and Google to reach potential clients. This can be particularly effective when you have special offers or new packages to promote.
• Stay Informed and Flexible : The travel industry is dynamic, so it’s important to stay informed about global travel trends, destination updates, and customer preferences.
• Sustainable and Responsible Travel : With growing awareness about environmental and cultural impacts, promoting sustainable and responsible travel practices can set your agency apart.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that set it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your travel agency meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire.

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your travel agency could be:

• Travel to Asia’s best secret destinations
• The best local insights and insider adventures
• Vacations for the whole family, from grandma to the baby!

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a travel agency, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in travel agencies for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in travel. You’ll probably generate new customers or find companies with which you could establish a partnership. Online businesses might also consider affiliate marketing as a way to build relationships with potential partners and boost business.

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a travel agency would include:

• Travel Agents – sales and bookings
• General Manager – scheduling, accounting, staff management
• Marketing Lead – SEO strategies, social media, other marketing

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need.

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent.

Step 13: Run a Travel Agency – Start Making Money!

Owning a travel agency means sharing the joy of travel for a living. What could be more fun? It’s also a huge, high-growth industry that you could tap into and grow a profitable business. Startup costs are low, and all you need is a simple accreditation — there’s no real training required. You just need a good concept for your agency and a great marketing plan. Having a strong online presence in this digital age is also an absolute must.

You’ve started off on the right foot by reading this guide, and now you’re ready to begin your trip to entrepreneurial success!

• Travel Agency Business FAQs

If you run your online travel agency from home, you could have profit margins of up to 80%. Costs to run your travel agency are very low, and you’re paid around a 10% commission on everything that you book. As a home-based, one-person show, you could make $60,000 per year to start, and much more once you’re established.

Consumers are turning to online travel agencies more and more, which you could easily run from home. If your business grows fast and you need to add staff, you may want to have an office.

Some consumers prefer the personal service of a smaller online agency that can offer more local, personal insights about travel destinations. The key is to differentiate yourself in some way. You could specialize in certain locations, a specific type of lodgings, such as cabins, or in a type of vacation such as corporate retreats.

Travel agencies engage in activities such as providing travel advice, booking travel arrangements, managing logistics, and offering specialized services tailored to clients’ needs.

Effective marketing strategies for a travel agency include building a strong online presence, targeted advertising, content marketing, collaborations and partnerships, and leveraging customer referrals and reviews.

Running a travel agency can have challenges due to intense competition, evolving industry dynamics, regulatory considerations, seasonal fluctuations, and the need for customer satisfaction and crisis management. 

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• Decide if the Business Is Right for You
• Hone Your Idea
• Brainstorm a Travel Agency Name
• Create a Travel Agency Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Travel Agency Licenses and Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run a Travel Agency - Start Making Money!

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Staffing Agency Business Plan Template

Written by Dave Lavinsky

Business Plan Outline

• Staffing Agency Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan

Start Your Staffing Agency Plan Here

You’ve come to the right place to create your staffing agency business plan.

We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their staffing agencies.

Below are links to each section of your staffing agency business plan template:

Next Section: Executive Summary >

Staffing Agency Business Plan FAQs

What is a staffing agency business plan.

A staffing agency business plan is a plan to start and/or grow your staffing agency business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can  easily complete your staffing agency business plan using our Staffing Agency Business Plan Template here .

What Are the Main Types of Staffing Agency Companies?

There are many types of staffing agency companies. Some staffing agencies will focus on a particular industry, such as clerical jobs. Other staffing agencies focus on executive job placement, while others will offer a wide range of services across all industries. Some even offer human resource functions, such as payroll, benefits administration and risk management.

What Are the Main Sources of Revenue and Expenses for a Staffing Agency Business?

The primary source of revenue for staffing agencies are the fees it charges clients to place them in a job and the revenue it receives from businesses that hire them to find and recruit suitable staff for their business.

The key expenses for a staffing agency business are the costs to market the business, as well as payroll for the support staff. Other expenses will be the rent, utilities, and overhead costs for the physical office space.

How Do You Get Funding for Your Staffing Agency Business Plan?

Staffing agency businesses are most likely to receive funding from banks. Typically you will find a local bank and present your business plan to them. Angel investors and other types of capital-raising such as crowdfunding are other common funding sources. This is true for an employment agency business plan and specialities like a healthcare staffing agency business plan.

What are the Steps To Start a Staffing Agency Business?

Starting a staffing agency business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Staffing Agency Business Plan - The first step in starting a business is to create a detailed staffing agency business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your staffing agency business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your staffing agency business is in compliance with local laws.

3. Register Your Staffing Agency Business - Once you have chosen a legal structure, the next step is to register your staffing agency business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your staffing agency business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Staffing Agency Equipment & Supplies - In order to start your staffing agency business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your staffing agency business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful staffing agency business:

• How to Start a Staffing Agency Business
• How to Open a Staffing Agency Business

Where Can I Get a Staffing Agency Business Plan PDF?

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

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How to Start an Insurance Company

Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

1. Become a licensed insurance agent

2. write a business plan, 3. choose a business structure, 4. register and license your business, 5. get business insurance, 6. form relationships with insurance companies, 7. grow your client base.

Starting an insurance agency is a lot like starting any business . You’ll need to choose a business structure, register and license your business, get insurance and more.

But you’ll also need to become a licensed insurance agent and learn how to navigate a highly regulated field.

Here’s how to get started.

Looking for tools to help grow your business?

Tell us where you're at in your business journey, and we'll direct you to the experience that fits.

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You can get an insurance agent license in a matter of weeks or months, depending on the requirements in your state. Here are the steps to follow:

Learn about your state’s licensing process. The National Insurance Producer Registry or your state’s branch of the Independent Insurance Agents and Brokers of America can help you understand those specific requirements.

Decide what type of insurance to sell. You can be licensed to sell several different “lines of authority” or types of insurance. The most extensive lines of authority include:

Accident and health or sickness.

The names of these lines of authority may differ in your state. You can be licensed to sell multiple lines of authority. Life and health are often offered as one package, as are property and casualty.

In general, most types of business insurance are property or casualty policies. With a property and casualty license, you can sell personal and commercial insurance . Most agents choose to specialize in one or the other, though.

Take a pre-licensing class. Your coursework should focus on the type of insurance you choose to specialize in. Courses can be done in person or online in most states.

Schedule your licensing exam. These are usually administered at testing centers run by third-party testing companies, which may immediately inform you of the results.

Apply for your license. Submit your licensing application to your state’s governing body. You’ll need to provide personal information, such as your Social Security number, date of birth and residency information, and pay any applicable fees. If your application is approved, you’ll be able to sell insurance products.

If you’re new to selling insurance, you may want to get some experience working for an insurance company or another brokerage before venturing out on your own.

How much do you need?

with Fundera by NerdWallet

We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

Your business plan outlines what you want your business to look like and how you plan to get there. The process of writing it should force you to answer complex questions, like what unique value you’ll offer customers and how much money you’ll need to get started.

» MORE: NerdWallet's picks for the best business plan software

Your business structure determines how your business profits are taxed and how your personal and business assets are kept separate, among other things.

There’s also an insurance-specific question you’ll need to answer: Whether you want your insurance agency to work with one specific insurer or with many different providers.

Captive agents (agents who work with a particular insurance company) can benefit from brand recognition and don’t have to convince insurers to work with them. But, on the other hand, they can only sell a limited suite of insurance policies. For example, State Farm works with a network of independent contractor agents who run their agencies but only sell State Farm products.

Many other insurance agency owners are independent agents, selling products from multiple insurance companies. Independent agents might have to work harder to establish and market their brand to customers and insurers, but they can start relationships with many insurance providers.

Before running your business, you’ll need to register with your state, typically with the secretary of state’s office.

Most insurance businesses will probably need to apply for an employer identification number from the IRS. With an EIN, you can open a business checking account .

As part of this process, make sure to obtain a business license, a sales tax permit and any other documents your state or city requires.

Your business entity may also need a license from your state's insurance department. Check your state’s requirements to find out what you need.

» MORE: Everything you need to do to start a business

As an insurance agent, you already know how important it is for your customers to be fully insured. Get business insurance to protect your business assets.

Most insurance companies are likely to need professional liability insurance and general liability insurance . Depending on your agency’s size, location and day-to-day activities, you may also need commercial auto insurance, workers’ compensation insurance and other types of business insurance.

If you’re an independent agent, you’ll need to apply to work with any insurance companies whose products you want to sell. If they approve your application, they’ll grant you an appointment to sell their policies.

It can be challenging to start relationships with insurance companies directly without having several years of experience and a client base.

Joining a professional association, like the Independent Insurance Agents and Brokers of America, or an agent network like Smart Choice, can help you access insurance providers to sell their policies. These groups may also provide marketing materials, discounts on your business insurance policies, and other resources.

If you choose to start an independent agency, you may have to hustle for your first few clients. Start by joining your local Chamber of Commerce, attending networking events and advertising in your local market.

Having an online presence is essential, too. Make sure your website clearly outlines what kinds of insurance you sell and the customers you serve. Information about how to contact you should be easy to find.

If you start an agency affiliated with a particular insurance company, you might get referrals as customers seek out agents near them. However, you’ll probably need to do local marketing too.

On a similar note...

How to Start a Profitable Travel Agency Business [11 Steps]

By Nick Cotter Updated Feb 02, 2024

Business Steps:

1. perform market analysis., 2. draft a travel agency business plan., 3. develop a travel agency brand., 4. formalize your business registration., 5. acquire necessary licenses and permits for travel agency., 6. open a business bank account and secure funding as needed., 7. set pricing for travel agency services., 8. acquire travel agency equipment and supplies., 9. obtain business insurance for travel agency, if required., 10. begin marketing your travel agency services., 11. expand your travel agency business..

When starting a travel agency business, it's crucial to understand the market landscape to tailor your services effectively and identify your niche. A thorough market analysis will provide insights into customer preferences, competition, and emerging trends. Here are the key steps to guide you through the process:

• Analyze the current travel industry trends to determine popular destinations, types of travel, and customer behavior.
• Identify your target market by considering factors such as demographics, psychographics, and purchasing power.
• Examine your competitors by looking at their service offerings, pricing strategies, marketing approaches, and customer reviews.
• Assess the demand for specific travel services within your intended market to find potential gaps you can fill.
• Investigate the economic factors that could affect the travel industry, including currency fluctuations, political stability, and seasonal changes.
• Gather data on supplier options for flights, accommodations, tours, and other travel services to negotiate the best arrangements for your clients.

Are travel agency businesses profitable?

Yes, travel agency businesses can be profitable. Depending on the size and scope of the business, profits can vary significantly. Profits are usually reliant on being able to attract clients and provide competitive prices for airline tickets, hotels and other services.

Creating a comprehensive business plan is crucial for the success of your travel agency. It will serve as a roadmap for your business, outlining your goals, strategies, and how you plan to achieve them. Below are the key components to include in your travel agency business plan.

• Executive Summary: Provide an overview of your business, including your mission statement, offerings, and unique selling propositions.
• Company Description: Detail the nature of your travel agency, the services you offer, and the markets you serve.
• Market Analysis: Research the travel industry, identify your target market, and analyze your competition.
• Organization and Management: Describe the structure of your business, your team, and the roles each member plays.
• Services: List the travel services you plan to offer and any special packages or niche markets you intend to target.
• Marketing Plan: Outline how you intend to attract and retain customers, including your sales strategy and promotional activities.
• Financial Projections: Provide an estimate of starting costs, projected income, and long-term financial forecasts.
• Funding Request: If you're seeking financing, specify the amount needed and how it will be used.

How does a travel agency business make money?

Travel agencies make money by charging a fee or commission for the services they provide when they arrange flights, hotels and car rentals for their clients. They also generate revenue through commission on package deals combining several travel services as well as income from advertisements by tourism boards or tour operators. A target audience for a 11 Steps To Starting a Successful Spice Business are aspiring entrepreneurs who are looking to sell spice products online, in stores or at farmers markets. These individuals must possess knowledge of the spice industry and should be familiar with the necessary regulations before starting the business.

Creating a distinctive brand for your travel agency is crucial as it sets the tone for your services and establishes a memorable identity. Your brand should resonate with your target audience and reflect the unique experiences you offer. Below are key steps to help you develop a compelling travel agency brand:

• Identify Your Niche: Determine the specific market or type of travel services you want to specialize in, such as luxury travel, eco-tourism, adventure travel, or cultural experiences.
• Define Your Brand Personality: Choose a brand voice and personality that reflects your agency's values and appeals to your target demographic. Whether it's professional, friendly, adventurous, or sophisticated, ensure consistency across all communications.
• Create a Memorable Name and Logo: Your agency's name and logo are often the first impressions potential clients will have. Make sure they are unique, easy to remember, and visually appealing.
• Develop a Color Scheme and Visuals: Select colors and visuals that convey the emotions and experiences you want your brand to evoke. Consistent use of these elements will increase brand recognition.
• Craft Your Unique Value Proposition: Clearly articulate what sets your agency apart from competitors. Highlight your expertise, exclusive deals, personalized services, or unique travel packages.
• Integrate Your Brand Across All Platforms: Ensure your branding is consistent on your website, social media, marketing materials, and customer service to create a cohesive brand experience.

How to come up with a name for your travel agency business?

Coming up with a name for your travel agency business can be tricky. Brainstorming ideas, researching industry trends, and understanding the local culture can be helpful in giving you some inspiration. Consider what your business stands for and come up with a name that captures the core message. Ask friends, family, or even employees or customers their opinion on potential names to get fresh perspectives. Ultimately, pick the name that feels right and reflects the unique style of your business, as it should be something you can live with for years to come.

Formalizing your business registration is a crucial step in establishing your travel agency as a legal entity. This process involves completing the necessary paperwork and meeting the regulatory requirements of your jurisdiction. Follow the steps below to ensure your business is properly registered and ready for operation.

• Choose a business structure: Decide whether you'll operate as a sole proprietorship, partnership, LLC, or corporation. Each has its own legal and tax implications.
• Register your business name: Check if your desired business name is available and register it with the appropriate state agency. You may also want to trademark your name.
• Obtain an EIN: Apply for an Employer Identification Number (EIN) from the IRS for tax purposes, especially if you have employees or operate as a corporation or partnership.
• Register for state and local taxes: Depending on your location, register for state sales tax, use tax, and any other required local taxes.
• Get necessary licenses and permits: Acquire all relevant travel industry licenses, such as the Seller of Travel license, and any local business permits.
• File formation documents: If you're forming an LLC or corporation, submit your Articles of Organization or Incorporation with the state.
• Open a business bank account: Use your EIN to open a dedicated bank account for your travel agency to keep finances separate from personal accounts.

Resources to help get you started:

Explore crucial resources designed for travel agency entrepreneurs offering insights on market trends, operational best practices, and strategies for business expansion:

• Travel Weekly: A leading publication covering news, trends, and research for the travel industry. http://www.travelweekly.com/
• Skift: Provides news, research, and marketing services for the travel industry, with insights on consumer trends and behaviors. https://skift.com/
• Phocuswright: Offers travel market research with comprehensive reports on consumer technology trends and industry data. https://www.phocuswright.com/
• The Travel Institute: A go-to resource for travel agent training, certification, and professional development. https://www.thetravelinstitute.com/
• Tnooz: Publishes news and analysis on technology, digital marketing, and strategy for the travel and hospitality industry. http://www.tnooz.com/

Starting a travel agency requires meticulous attention to legal requirements to ensure compliance with local, state, and federal regulations. Acquiring the necessary licenses and permits is a critical step that legitimizes your business and allows you to operate within the law. Follow these guidelines to ensure you have all the necessary documentation in place:

• Research Local Regulations: Check with your city or county government to determine if you need a local business license to operate a travel agency.
• State Requirements: Some states require travel agents to register with a state travel seller or travel agency program. Make sure to obtain any state-specific licenses.
• Seller of Travel License: If your state requires it, apply for a Seller of Travel license, which permits you to legally sell travel services.
• Federal Requirements: For certain types of travel services, such as selling airline tickets, you might need to comply with federal regulations and obtain an Airline Reporting Corporation (ARC) accreditation.
• Professional Certifications: While not mandatory, obtaining professional certifications like those from the American Society of Travel Agents (ASTA) can enhance credibility.
• Additional Permits: Depending on your business model, you may need additional permits, such as an EIN for tax purposes or special permits for selling travel insurance.

What licenses and permits are needed to run a travel agency business?

Travel agencies need to acquire several licenses and permits in order to legally operate their business. This will vary depending on location, so it's important to contact the relevant state and local authorities to find out what is required. Generally speaking, travel agency businesses typically need a certificate of authority from the state, a business license from the city/county, an Employer Identification Number (EIN) from the Internal Revenue Service (IRS), any necessary zoning permits for the office space being used, and any necessary travel agent accreditation or registration with external organizations.

Securing your financial foundation is a critical step in launching your travel agency business. A dedicated business bank account will help you manage your finances effectively, while securing funding will ensure that you have the necessary capital to cover startup costs and maintain operations. Follow these pointers to get started:

• Choose the right bank: Research banks to find one that offers favorable terms for small businesses. Consider fees, minimum balance requirements, and additional services such as online banking and credit card processing.
• Prepare documentation: When opening a business bank account, you'll need your business registration documents, EIN (Employer Identification Number), and personal identification.
• Explore funding options: Evaluate different funding sources such as small business loans, lines of credit, venture capital, angel investors, or crowdfunding. Each has its own advantages and requirements.
• Create a solid business plan: A well-thought-out business plan is essential when applying for funding. It should outline your business model, market analysis, financial projections, and growth strategy.
• Understand the terms: Before accepting any funding, make sure you fully understand the terms and conditions, including interest rates, repayment schedules, and any potential equity you might be giving up.

When setting up your travel agency, one of the most crucial steps is to determine the pricing strategy for your services. This involves balancing competitiveness with profitability while ensuring value to your customers. Here's a concise guide to assist you in setting your pricing:

• Research Competitors: Look at what others are charging for similar services to ensure your prices are competitive within the market.
• Understand Your Costs: Calculate all your costs to ensure that your pricing covers expenses and leaves room for profit.
• Value-Based Pricing: Consider the value and unique experiences you offer, and price accordingly rather than solely on cost-plus basis.
• Dynamic Pricing: Be flexible with your pricing, adjusting for seasons, demand, and special promotions.
• Commission Structure: If working with commission-based products, ensure that your markups are reasonable for both clients and your agency.
• Transparent Pricing: Clearly communicate what is included in your prices to build trust with your clients.
• Multiple Price Points: Offer different pricing tiers for various budgets, enhancing accessibility to a wider range of clients.
• Monitor and Adjust: Regularly review and adjust your pricing strategy based on feedback, sales data, and market changes.

What does it cost to start a travel agency business?

Initiating a travel agency business can involve substantial financial commitment, the scale of which is significantly influenced by factors such as geographical location, market dynamics, and operational expenses, among others. Nonetheless, our extensive research and hands-on experience have revealed an estimated starting cost of approximately $15000 for launching such an business. Please note, not all of these costs may be necessary to start up your travel agency business.

Starting a travel agency requires careful planning and acquisition of essential equipment and supplies. This step is crucial as it ensures that your business operations run smoothly and professionally. Here is a list of items you should consider obtaining to set up your travel agency effectively.

• Computer Systems: Invest in reliable computers with high-speed internet connections to manage bookings, communications, and other tasks efficiently.
• Travel Agency Software: Get specialized software for travel agents that can help with itinerary planning, reservations, billing, and customer relationship management.
• Telephone System: A multi-line telephone system is necessary for handling customer inquiries and bookings, as well as for communicating with vendors.
• Office Furniture: Comfortable and functional furniture, including desks, chairs, and filing cabinets, is important for a professional working environment.
• Printers and Scanners: High-quality printers and scanners are needed for printing travel documents, itineraries, and marketing materials.
• Office Supplies: Stock up on essential office supplies such as paper, pens, envelopes, and stationery.
• Marketing Materials: Prepare promotional materials like brochures, business cards, and flyers to attract and inform potential clients.
• Payment Processing System: Set up a secure payment system for processing credit card transactions and managing finances.

List of software, tools and supplies needed to start a travel agency business:

• Computer hardware and software - $500+
• Business grade internet connection - $50+ per month
• Printer/scanner - $150+
• Travel booking software - $50+ monthly
• Travel research software - $120+ monthly
• Accounting software - $200+ annually
• Office furniture - $500+
• Promotional materials (posters, flyers, banners) - starting at $200+
• Bookkeeping services - $50+ hourly
• Insurance coverage – starting at $500+ annually

Acquiring the appropriate business insurance is a crucial step in safeguarding your travel agency. It protects against potential liabilities and unforeseen events that could impact your operations. Here's a guide to help you understand what insurance you may need:

• General Liability Insurance: Covers bodily injury, property damage, and advertising injury claims that could arise during your business activities.
• Professional Liability Insurance (Errors & Omissions): Protects against claims of negligence or mistakes in the professional services provided.
• Commercial Property Insurance: Ensures your physical assets, such as office equipment and furniture, are covered in case of damage or loss.
• Workers' Compensation Insurance: Required if you have employees, it covers medical expenses and lost wages for work-related injuries or illnesses.
• Data Breach Insurance: Protects against the costs associated with a data breach, which is crucial if you store sensitive customer information.
• Business Owner's Policy (BOP): Often bundles general liability and property insurance at a more cost-effective rate.

Consult with an insurance broker who specializes in travel agencies to find the best coverage for your specific needs.

With your travel agency set up and ready to go, it's time to attract customers and make your mark in the travel industry. Effective marketing is crucial for getting your agency noticed and building a client base. Here are some strategies to kickstart your marketing efforts:

• Develop a strong brand identity: Create a memorable logo, slogan, and brand colors that reflect your agency's values and appeal to your target audience.
• Build a professional website: Your website should be user-friendly, offer valuable content, and showcase your travel packages and services. Ensure it's optimized for search engines to improve visibility.
• Utilize social media: Create profiles on platforms like Facebook, Instagram, and Twitter to share travel tips, special offers, and engage with potential customers.
• Network locally: Attend local events, join chambers of commerce, and partner with local businesses to gain referrals and increase your agency's presence in the community.
• Offer referral incentives: Encourage existing customers to refer friends and family by providing discounts or special offers for successful referrals.
• Invest in online advertising: Use pay-per-click advertising and social media ads to target potential travelers who are searching for the services you offer.

Expanding your travel agency business requires strategic planning and a keen understanding of your market. As you capitalize on your agency's success, consider these steps to take your business to the next level and ensure continued growth.

• Diversify Your Offerings: Add new destinations, packages, and services such as travel insurance, airport transfers, or guided tours to cater to a broader audience.
• Invest in Marketing: Boost your online presence through social media, content marketing, and SEO. Consider partnerships with influencers or travel bloggers to reach new customers.
• Improve Technology: Upgrade your booking systems for efficiency, and adopt customer relationship management (CRM) tools to enhance client interactions and retention.
• Train Your Staff: Ensure your team is knowledgeable and up-to-date with the latest travel trends, destinations, and customer service practices to provide exceptional experiences.
• Network with Industry Partners: Forge strong relationships with suppliers, local tour operators, and other travel agencies for mutual referrals and co-marketing opportunities.
• Focus on Customer Loyalty: Create a rewards program or special offers for repeat customers to encourage loyalty and word-of-mouth referrals.
• Analyze and Adapt: Regularly review your business performance, gather customer feedback, and be willing to adapt to changing travel trends and market demands.

Starting a Travel Business: How to Become a Travel Agent

Briana Morgaine

17 min. read

Updated March 18, 2024

Free Download:  Sample Travel Agency Business Plan Templates

If you’re someone who loves travel, meticulous planning, and helping others have great experiences, consider starting a travel business and becoming a travel agent.

After a sharp drop in international and domestic travel during the COVID-19 pandemic, air travel demand has returned to pre-pandemic levels.

Pent-up demand from families who put off trips is driving tourism activity even as fewer travelers cite the pandemic as a major concern. Those tourists are forecast to drive solid long-term growth in the worldwide travel and tourism industry – and plenty of business opportunities for those who can make vacation planning less stressful.

Becoming a travel agent can be fairly inexpensive, as business ventures go, and you can often get away with limited staff and little upfront cost.

That being said, success largely depends on finding the right niche in a fiercely competitive market, given the rise in online direct-to-consumer travel booking sites. So, if you want to be successful, you’ll want to focus a lot of your effort on your market research , branding, and marketing. You’ll need to know who needs your services—your target market—and what they’ll be willing to pay. 

If this sounds right up your alley, keep reading. I’ve interviewed several founders of successful travel agencies for their advice on everything you need to get started, and I’ve also included plenty of links and resources to help you work through the process of starting your own travel business.

• 1. Create a plan for your travel business

Make no mistake: No matter what industry you’re in, a business plan is essential. You may not need a formal business plan if you’re not seeking a loan or investment funding for your business, but don’t skip it. Write a one-page business plan instead.

You can do it in less than an hour. Writing a business plan is scientifically proven to help you grow faster , so don’t skip this step. 

What kind of travel agent are you interested in becoming? If you’re planning to be a home-based travel agent, you’ll want to look into finding a host travel agency where you’ll essentially be an independent contractor. If this is the type of travel business you’d like to start, the business planning process should be fairly straightforward.

However, if you’re looking into starting your own travel business from the ground up, you’ll be looking at a much more lengthy planning process—but you’ll also have more flexibility to build a business that’s all your own.

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A case for starting early

“In starting ADDISON Yacht Charters , we began market analysis and business planning efforts a full year before we launched the company in November 2013,” says owner Scott Bessette.

“During that period, we attended industry events such as regional yacht shows in the Virgin Islands, Antigua, Florida, and Monaco to acquire as full an understanding as possible with regards to what products and services were being delivered to the market, who was delivering those products and services, and who was purchasing those products and services,” he explains.

Starting the planning process early helped Scott hone in on his vision for his business. “In this manner, we determined what our market niche could be, and established whether or not we could compete in the existing market, and what it would take to succeed,” he says.

Scott was able to get a clear sense of where he wanted to take it, and how to tailor his business to best suit the market needs.

What kind of travel agent business plan will you need?

The kind of travel agency business plan you’ll need will vary depending on what kind of funding you’re looking for.

Are you hoping to eventually run a large travel agency, and interested in seeking a loan, or maybe investment from angel investors? You’ll want a formal business plan for a travel agency that contains all the necessary information on your business. Are you more interested in becoming a travel agent using your own savings, without seeking outside investment or loans? A more lightweight one-page plan might be a perfect fit for your business.

Even if you do intend to pitch your business idea to lenders and investors, you can start with a Lean Plan, and flesh out the rest of the info later on.

Whatever your specific reason for writing a business plan for your travel business, the most important thing is that you write one, period. The travel industry is fragmented , and having a clearly defined niche and a plan will help you stand out. Writing a business plan for your travel agency will help you narrow in on what your goals are, and establish a clear, focused vision going forward.

We’ve covered nearly every aspect of writing a business plan here on Bplans, so be sure to check out the links below when you’re ready to get started. We also have several travel industry business sample plans, which will give you an idea of what your business plan should look like.

Resources to help you create a business plan for a travel agency:

• How to Write a Business Plan
• Travel Agency Sample Business Plan
• 2. Conduct market research and find your niche

What kind of travel agency do you plan on starting? Moreover, what kind of travel business does the industry or your local community actually need?

“When you launch a travel business, the most important thing to do is to provide a valuable service,” says Jacquie Whitt, owner of Adios Adventure Travel .

This means doing some market research to find out what kind of travel agent or travel business the market really needs. Is there a niche you can fill? Maybe there’s an opening in the travel market to provide destination adventure honeymoons for young couples who would rather go backpacking than relax on the beach. Think about the people in your local community too—do they need something specific?

“In a saturated luxury travel market, Urbane Nomads had to distinguish itself from more seasoned players from the get-go,” says founder Hajar Ali. “The dual elements of adventure and luxury was an unexplored niche which we filled very well.”

Hajar says of Urbane Nomads: “It was conceived as the kind of travel company that would remain relevant in the age where most travel-related bookings are made online. We specialize in the sort of experiences that can’t be booked online—adventurous trips to non-mainstream destinations, lodges that can’t be booked online—or indeed, by non-travel professionals—and special experiences and access to personalities that would have been impossible without the personal connections.”

What niche are you filling? Start by researching the travel market in general. Find out who the major players are that you’ll be competing against, determine who your ideal customer is, and define what they want.

Resources to help you do market research and determine your niche:

• Practical Market Research Resources for Entrepreneurs
• How to Do Market Research
• How to Create a Unique Value Proposition
• How a Buyer (or User) Persona Can Improve Your Business
• What Is Target Marketing?
• 3. Develop a brand as a travel agent

Once you’ve determined what the market looks like and what specific niche you’ll be filling, it’s important to get down to the nitty-gritty of creating a strong brand image .

As the travel industry is so competitive, having a well-developed brand will help your business stand out. How do you want your customers to feel when they visit your website, view your advertising, or use your services?

Lorne Blyth, Founder and Director of Flavours Holidays, had a very specific vision for her brand. “[At Flavours Holidays], we have been specializing in cooking, Pilates, painting, photography, and language holidays in Italy since 1998,” she says. Lorne’s vision was to create a brand that “gave guests a true taste of Italy.”

“I use that as part of my branding, as we would like to perceive ourselves as being experts on all things Italy,” says Lorne. “That is why our tagline is ‘Passionate, Inspiring, Authentic.’”

Why should customers use your services, rather than just book a trip themselves? What experience can you provide that others can’t?

Do you offer unique services, such as partnerships with the locals of your travel destinations, that customers wouldn’t have access to otherwise? Is your selling point the ease of having someone else plan your trip for you, down to the last detail? Are you all about personal touches and a great customer service experience?

This is the first step to determining your travel business’s brand strategy— determining who you are. We’ve gone in-depth on how to build a memorable brand for your business, so check out the articles below for more information on branding.

Resources to help you brand your travel business:

• The Definitive Guide to Building a Brand
• Your Brand’s Tone of Voice: Why It Matters and How to Craft It
• 4. Deal with the legal side

A travel business is, for the most part, a fairly simple one to set up. Unlike starting a brewery or starting a dispensary , there isn’t a lot of legal red tape when it comes to becoming a travel agent and starting a travel business. 

Determining if you’ll require licensing

In most locations, you won’t need any specific licenses or certifications, but licensing requirements will vary by state and country.

For the U.S. in general, there is no specific license needed to start a travel business; however, state laws vary . In California, Washington, Hawaii, Iowa, and Florida, you’ll need a Seller of Travel license. Canada also has licensing requirements that vary by location, and in the U.K., you’ll need an Air Travel Organiser’s License .

Choosing the structure of your travel business

Beyond specific licenses, there are general licenses that you’ll need before you start any type of business.

First off, choose your business structure . Scott Bessette, owner of ADDISON Yacht Charters, started his travel agency as an LLC , which he says suited his business needs. “Before we considered starting our agency, we determined that a Limited Liability Company was the appropriate structure for what we were trying to achieve.”

Why was an LLC the best choice? “We had no intention of going public, or having to secure formal investment,” he says. “Further, we had a very simple organization structure, so ease of governance and compliance drove our choice of corporate structure.”

However, the business structure you choose will depend largely on your plans for your business, and how you intend to fund it. If for example, you plan to seek outside investment, you may want to look into starting your business as a corporation .

Naming your business and applying for a Federal Tax ID number

You’ll also want to formally name your business (even if it’s just you, becoming a travel agent!), which involves filing a DBA , or a “doing business as.” You’ll also need to apply for a Federal Tax ID number , otherwise known as a Federal Employer Identification Number (EIN or FEIN). We’ve covered these topics in plenty of detail, so be sure to check out the links.

Scott also adds that setting up the legal end of things was fairly simple.

“Establishing the legal and licensing requirements was one of the easiest aspects of starting the business,” he explains. “All said, conception and gestation of ADDISON Yacht Charters was long-term, but she was born after only two days of hard labor.”

Resources to help you determine the legal structure and name for your business, as well as other legal considerations:

• The Complete Guide to Choosing Your Business Structure
• The Complete Guide to Registering Your Business Name
• Resources and Tools to Help You Name Your Business
• How to Apply for a Federal Tax ID Number
• How and Where to Obtain Business Licenses and Permits
• Keep Your Startup Safe from Legal Trouble
• 5. Determine your funding strategy

How do you plan to fund your new travel business?

Luckily, your starting costs should be fairly low: You won’t have expensive equipment to buy, and you probably won’t need extensive space in the beginning. If you’re hoping to become a travel agent working out of your own home, you may not even need office space at all. 

However, be sure to have a plan in place for how you will obtain funding. You’ll need funds for marketing materials at the very least; both online, such as your business website , and offline, such as flyers, posters, business cards, and more . Your initial funding budget will also likely go toward any branding or advertising, and you may eventually also decide to rent office space and hire employees, which is a fairly large expense.

Unlike many businesses, there isn’t one tried-and-true path for funding a travel business. From personal funds to venture capital funding, it’s all a possibility.

Many travel agencies are self-funded since they have low initial overhead and can be started fairly easily (though face stiff competition to stand out). “I didn’t get any funding at all, apart from $2,000 borrowed from my dad for the website,” says Brady Hedlund, founder of Life Before Work.

Looking into loans and a line of credit is also a good first move. “We developed banking and relationships with firm lines of credit and support, to ensure that as we started to deliver, funds were available to spend before the client paid the bill,” says Scott of ADDISON Yacht Charters. “ Cash flow is critical to the appearance of a business’s success.”

However, when it comes to financing your travel business, angel investment, and even venture capital funding isn’t completely out of the question. “We formed an LLC to start Project Expedition and closed a $300k seed round in January 2015 to help drive the development of our MVP (minimum viable product),” explains founder Jeremy Clement.

Don Halbert, owner of Costa Rica Vacations , also funded his travel agency through venture capital. “Funding for this venture came from a venture capital company which would later become one of our primary partners,” he explains.

Resources to help you with the funding process:

• How to Get Your Business Funded
• 35 Great Ways to Fund A Small Business
• What Do Venture Capital Firms Want?
• 10 Tips for Finding Venture Funding
• 6. Choose a location and hire employees

Next, you’ll want to make a plan for the logistics of opening your travel business to the public. If you’re starting a travel agency and require office space, this section will likely be more relevant than if you plan to work as a travel agent out of your home. 

How many employees will you need to hire? You may not need any to start, until you decide to expand your operations.

You might also want to look into remote employees , suggests Mike Liverton, CEO and founder of Leavetown Vacations . “While many company employees live and work as home-based ‘Destination Experts,’ our main headquarters are downtown Vancouver,” he says.

Additionally, you’ll want to determine your business location . While foot traffic will likely not be a primary motivator in choosing a business location, you’ll want to pick somewhere that accommodates your space needs as well as reflects your desired brand image.

However, as with employees, you’ll find that a physical location isn’t always an absolute necessity. “We have never booked a client from our hometown,” says Scott.

“We’re a 24/7 business, that cannot be limited to when I am in the office, or more importantly, marginalized when I am not,” he explains. “The ADDISON staff has families, conflicts, and important events in their lives. We constructed and positioned our business to be virtual in nature; to be operational anywhere, anytime. I’ve conducted business from Europe, the Caribbean, from multiple states, and during my children’s sporting events.”

“We didn’t choose our business location, we chose a virtual location,” he adds. Whether or not you choose to go this route will depend on your specific niche and brand; however, it’s certainly an option to consider.

Resources to help you set up your travel business and hire employees:

• How to Choose a Business Location
• 13 Out of the Ordinary Ways to Find the Perfect Business Location
• How to Hire Your First Employee
• A Comprehensive Guide to Creating a Business Website
• 7. Market and launch your travel business

Marketing will likely be where the majority of your initial funding budget goes, as it’s an important area to focus on when becoming a travel agent and starting a travel business. In fact, it’s a good idea to come up with a marketing plan as soon as possible.

For Don, the idea that you must spend money to make money drove the marketing strategy behind Costa Rica Vacations.

“Our ‘lesson learned’ in starting up our agency was primarily the realization that your Google Adwords budget can single-handedly determine your success when starting out in this normally competitive market,” he says.

Don’t make the mistake of thinking that all your advertising efforts should revolve around paid advertising, however. Plenty of your focus should go into social media marketing and guerrilla marketing tactics.

“I started out eight years ago running backpacking trips to Thailand, advertising using only lean, guerrilla marketing tactics,” says Brady Hedlund of Life Before Work. “I created an itinerary and website and hit the streets of western Canada to promote my new company.” Since his target demographic was 18-30-year-olds looking for an ‘adventure party tour,’ he went to university campuses and handed out flyers and posted signs advertising his travel agency.

“I didn’t get a single call for over a year,” he explains. “I honestly had no idea what I was doing at the time, but eventually, the business picked up and began to grow at an exponential rate. Flash forward eight years, and we now have a team of 35 full-time staff operating in 18 countries.”

Your marketing strategy will, as with all aspects of starting a travel business, be largely dependent on your specific niche, the demographic you are after, your budget, and your bandwidth as a business. That being said, combining both paid advertising with other guerrilla tactics (both online and offline) will likely serve you well.

Resources to help you market and launch your travel business:

• How to Write an Effective Marketing Plan
• 20 Marketing Tools Every Small Business Owner Should Try
• A Beginner’s Guide to Google AdWords for Small Business
• How to Have the Best Opening Day Ever
• Words of advice: Final tips from entrepreneurs who have started successful travel businesses
• “We searched for quite some time to find an underwriter that would provide us with general liability insurance, due to the amount of risks involved in adventure travel…This is a tricky product when it comes to insurance, but it’s obviously a very important piece of the pie.” – Brady Hedlund, Life Before Work
• “From the beginning, I have built up relationships with various individuals in Italy to help recruit staff for the villas used during our vacations. This varies from local cooks to tour guides to drivers. The little touches along the way, from booking flights for guests to getting the transport back to the airport, all adds up as every little bit helps to create the perfect experience for my guests.” – Lorne Blyth, Flavours Holidays
• “It’s important that your business partners share your values. I work with people in South America who are now my friends. We’re not in it for the money; we enjoy our jobs and if we can ‘eke’ out a living, all the better.” – Jacquie Whitt, Adios Adventure Travel

Business plan template and travel agency resources 

By now it should be clear that starting a travel agency requires a strategic approach and lots of planning. But don’t worry if it feels overwhelming. At Bplans, we have a full library of business planning resources to help you get started. You can browse through our free collection of over 500 real business plan examples , or download our free business plan template to help your travel business take flight. 

Clarify your ideas and understand how to start your business with LivePlan

Bri Morgaine is a seasoned content marketing leader with a decade of experience in copy editing, social media operations, and content strategy— having honed her skills at industry giants like Palo Alto Software and Andreessen Horowitz.

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10 Steps to Starting a Travel Agency from Home

If you're thinking of starting a travel agency from home, you're in luck. The cost to become a travel agent is relatively low and there are plenty of opportunities for someone with the passion to sell travel. Not only that, but starting a travel agency from home is becoming the most popular route to become a travel agent .

"Home-based independent advisors continue to dominate the travel agency landscape, accounting for 72% of travel advisors." -Phocuswright

According to Phocuswright's US Travel Agency Landscape 2023 , "Home-based independent advisors continue to dominate the travel agency landscape, accounting for 72% of travel advisors."

Want to throw your hat into the ring and start your own travel agency?

Starting any business is no walk in a park, but it certainly helps if you have someone to advise you and lay out a path. We're here to help support you and answer your questions as you start out on your new entrepreneurial journey!

PS: If you can't answer the question ' what do travel agents do ', let's have you read up on that first before you go all in on starting your own travel agency. 🤗

10 Steps to Starting Your Travel Agency From Home

Here's a summary of the steps to start your travel agency from home. If you've already completed some of the steps, you can click on the link to shortcut which step is best for you!

• Find your travel agency niche: Finding a travel agency niche is a great way to hone in on what about travel you're most passionate about. If you develop a niche, you'll be building your travel agency business on a strong foundation of your strengths, interests, and personal networks. Not only that, it will help you give direction as you start (and grow) your agency!
• Choose your travel agency name: This is often a step advisors struggle with, but don't skip it! Travel vendors need a travel agency name for their records. Make sure you have one ready so you can start selling travel.
• Choose a Travel Agency Business Structure: Most new-to-industry advisors will be choosing between a sole proprietorship or a Limited Liability Corporation (LLC). It's a matter of balancing host requirements (if you go with one), business protections, your agency model, and your budget.
• Create a Travel Agency Business Plan: A travel agency business plan is a document that will help you cat herd all your amazing ideas for your business. It helps you define your mission and goals, helping you think through the process on how to get there. Best yet? We have a free 15-page travel agency business plan template you can use!
• Register Your Travel Agency with the State + Feds : This is a critical step so to legitimize your travel agency. You can register your LLC through the Small Business Administration (SBA) resource to find the steps to get registered with your specific state. This will enable you to do other fun steps like starting a business bank account.
• Get an FEIN : This is optional but recommended, here's why: It's free to get an FEIN, takes just a few minutes and if you move to a business structure that requires an FEIN in the future it will save you a few steps!
• Set Up Your Travel Agency Financials : Separating your business bank account from your personal account is required if you set up an LLC. But frankly, we recommend setting up business financials regardless of your agency model.
• Choose Between a Host Agency, Travel Franchise, or Your Own Accreditation: There are a lot of choices in which direction to go with your travel agency. Do you have your own vendor relationships and want to get your own travel accreditation? Do you want to partner with a host agency under your own brand so you take advantage of their aggregate sales volume? Do you want a turnkey agency option with a franchise? This will help you choose.
• Check Out Host Agency Reviews' Resources Page : Our resources page gives you tips on how to optimize our site to help start your travel agency from home.
• Sign Up for 7 Day Setup Accelerator Course: Within each of these steps, there are many many many other steps to starting a travel agency from home. (Yes, just like nesting dolls.) Our course gives you the tools and knowledge you need to go from the seed of an idea to hanging the shingle out for your travel agency!
• Bonus: Read up on what you can expect in terms of income potential as well as time and financial investment.

I know. It can be totally overwhelming. But if you're starting a travel agency from home, these steps will help prepare you to feel 10,000% (no those extra zeros are NOT typos!) more confident. What are the preliminary steps you need to take when starting a travel agency? Funny you should ask . . .

Here are the steps to take to start your travel agency from home:

1. Find a Travel Agency Niche

A niche is your friend. When you start your home-based travel agency, a niche will help you establish your brand, create your travel agency name, and allow you to focus your energies. Starting a travel agency without a niche is like traveling without a compass (or, let's be honest, a smartphone). Are you going to be focusing on a destination? Maybe you'll be like Andres Zuleta, who specializes in Japan tours:

Or maybe you'll focus on a type of travel, like Deb Fogarty, who specializes in cruising:

Or maybe you're like Will Medina and have a love for destination weddings and honeymoons:

Or maybe you're more attracted to the corporate world and aim to book travel for corporations like Karen Hurlbut:

Whatever your niche, it's the first problem to solve when you're starting your travel agency! We have a free brainstorming exercise to help you find niches that you're passionate about.

2. Choose Your Travel Agency's Name

Vendors will need a travel agency name for their records so have one ready before you start selling travel.

Whether you go with a host agency or choose to go independent, you're going to need a name for our agency. The vendors (hotels, cruise lines, airlines, etc) will need a travel agency name for their records so have one ready before you can start selling travel. Having a niche already picked out can help you as you decide on your travel agency's name .

Starting your travel agency (from home or otherwise) is a lot of work. The last thing you want as your travel agency opens its doors is a letter saying you've infringed on someone else's trademark! We help you through the things you need to consider when choosing a name for your agency. Are their any competitor's with similar names that will make it harder for you to pull up at the top of the search engines? Are the URLs available? Are their any copyrights? Is it too long to neatly fit on marketing materials? We go through this and a whole lot more, so dig in!

3. Choose a Travel Agency Business Structure

You can change your business structure as your needs evolve.

A base step in starting your travel agency from home is deciding on a business structure. There's a lot that goes into what is the best fit for you. Do you have personal assets like a house or car that you want to make sure are protected? How much money do you want to spend?

We help you understand the different business structure options for your new travel agency : Sole proprietor, partnership, LLC, S Corp.

As you're starting your travel agency, you may feel like the low cost of a sole proprietor makes the most sense for you. It's important to know that you can change your business structure as your needs evolve.

As your business grows and you're making more bookings (which exposes you to more liability), you can always move to a structure that gives you more personal liability protection, like the LLC. While it's more expensive, and may not be feasible for everyone as they're starting their travel agency, the protection it offers to your personal assets is incredibly important as your business grows.

And what the heck is an S Corp anyhow? Don't worry, we'll give you the scoop and let you know when that should be a consideration for you.

4. Create Your Travel Agency Business Plan

Next step in starting your travel agency? A business plan!

While a travel agency business plan isn't technically required to start an agency, it is something I highly recommend. I didn't write a business plan when I started this site but I also knew online marketing, SEO, and the travel industry front and back. I also had the industry connections to make it work. Most people starting a travel agency from home either don't have experience in starting a company or they don't have experience in travel. This is where a business plan can help.

What a business plan does for you is it forces you to think through each different area of your business and come up with a plan. Will you stick to that plan 100%? Definitely not. But it gives you something to refer back to and helps you organize your thoughts. Plan to take a chunk of time to work on it as it's not something you want to do willy-nilly.

Not only that, but we made it really easy with our free 15-page travel agency business plan ! All you need to do is download our template and adapt it to your agency.

While I didn't write a business plan for Host Agency Reviews, I did write a VERY detailed travel agency business plan for you. :) It's completely filled out with a fictitious travel agency. That's helpful because you can use some of the data and ideas in there on your travel agency's business plan.

Here's a peek of the business plan. Just to note, this version is not editable! To get the editable version, download the travel agency business plan template (an editable version of the one below).

That was good stuff, right? So let's move on to some more logistics, getting your government paperwork in place.

5. Register Your Travel Agency with the State ... and Feds!

You're doing great!

Starting a travel agency from home isn't as tough as you thought, is it? When you have a road map, it's easier to navigate the start-up process.

Registering with the State

Ok, now that you've:

• nailed down your niche,
• come up with your name,
• and settled on a business structure.

The next step is letting the state government know you've got a company. The Small Business Administration (SBA) website shows   how to register your company's name by state . If you are an LLC, the SBA also has a state-by-state guide on how to register your LLC .

A word of warning: When doing a DBA, your business, even though they have different names, are still legally considered the same entity.

Registering your company with the state is an important step because you will need this proof to open a business bank account and other random things (running FB business ads, getting a loan) as your business grows. Do yourself a favor and when those certificates come in, keep them handy in a file for your company's legal documents.

When you start your travel agency, you may have registered it as Margarita Travel. But over time, that might change.

Let's say you fell into becoming the local destination wedding expert that everyone turned to. Margarita Travel works, but you want to have a more romantic name for those clients and different branding. So you create a new brand, Beach Romance , that specializes in destination weddings.

Do you need to let the state know about this new company, even though it's really your same company? Yuppers.

You'll need to file a DBA with the state. DBA is an acronym for "Doing Business As." It's also sometimes referred to as a fictitious name, trade name, or assumed name.

Your DBA is essentially saying, 'My formal company is Margarita Travel, but I also go by Beach Romance.'

To help you get a feel for the pros/cons of a dual-brand, listen to Andrey Zakahrenko's story of how his agency evolved into two brands: (This was our first ever podcast so please forgive the horrible sound quality!)

The one thing to know about DBAs is that they don't create a separate entity. DBAs just allows you to legally operate under different names.

A word of warning: When doing a DBA, your businesses, even though they have different names, are still legally considered the same entity. That means if someone sues Beach Romance for a honeymoon gone wrong, Margarita Travel is also being sued since it's the same company.

Registering with the Financial Crimes enforcement network

And can we talk about the Feds for a moment? They're doing their part to cut down on money laundering. (Score!) And... since money laundering happens through businesses, you're going to have to do a little paperwork with them. (Boo!)

You'll fill out the Beneficial Ownership Information (BOI) form to make sure you're on the up and up. :)

Don't worry, it's not too painful despite the fact the they name of the government org in charge—Financial Crimes Enforcement Network—sounds like they're going to send a SWAT team into your home at any moment.

6. Get an FEIN (Optional, but Recommended)

A Federal Employer Identification Number (FEIN) is like a social security number for your company. It's a number to identify your business and is sometimes referred to as an EIN.

Technically, you do not need an FEIN if you're a sole proprietor or a single-member LLC with no employees since you can use your social security number to file taxes.

However, I personally prefer not to give out my social security number if I don't have to. :) I also like to get my pencils lined up from the get-go.

It's free to get an FEIN and takes just a few minutes. A huge plus in getting one right off the bat when starting a travel agency is that if you move to a business structure that requires an FEIN, you won't have to worry about changing out your SS# for an FEIN on legal documents, bank accounts, etc.

Also, make sure to check in with your tax professional when it's tax filing time—for certain business structures, you may still file under your SS# even though you have an FEIN.

Confusing, I know. That's why you go to the professionals! 😊

7. Set Up Your Travel Agency Financials  

Like the FEIN, when you're starting a travel agency, you don't need a separate business bank account or credit card if you're a sole proprietor, but you'll have wished you'd had set one up come tax time!

Separating your personal bank account from the business account from the start makes accounting easier and will help you keep track of business expense write-offs.

Wondering what travel expenses you can write off as a travel advisor ? We've got a resource for that too. :)

Important to note: If you choose a business structure that offers personal liability protection, like an LLC, you need to keep your business and personal money separate. If you are mixing finances and paying personal bills out of your business account, or vice versa, that opens you up to personal liability.

The argument is that, yes, when you started your travel agency you chose an LLC structure, which protects your personal assets. BUT, clearly, the business and the owner are not separate entities because the owner is making business payments out of their personal bank account (or vice versa). And if you're one and the same, then your personal assets are also the business's assets.

There's a lot to consider when it comes to travel agency financials and getting the foundations laid.

Don't worry, we walk you through all things having to do with your travel agency's financials :

• what to consider when choosing your bank,
• the documents you need to have ready for the bank,
• what business credit cards are best,
• the most common software travel agencies use for their bookkeeping, and
• how to find a bookkeeper for your agency

8. Decide if a Host Agency Is Right for You

We mentioned host agencies at the very beginning of the article. And maybe you noticed the name of our site. We're big fans of host agencies for people starting a travel agency . . .but it's not for every agency out there.

That said, our travel advisor research reports continually show that new advisors almost always choose the host agency route.

Your next step is going to take a lot of research. You need to decide if you want to go with a host agency, franchise, or go independent.

Questions you might have:

• How do you know if you should go with a host agency, travel agency franchise , or if you should be independent and get your own accreditation ?
• How do you decide which travel consortium to join if you are independent?
• How do you choose a host agency when there are 200+ listed on the site ?

Don't you worry, little bird, it's easy to feel overwhelmed, but we have answers to all these questions. :)

To start, check out our article, " The Top 10 Benefits of Using a Host Agency . " If you read that and decide a host agency is a good fit for you, you'll move on to our article on choosing a host agency and take a look at our best host agencies of 2024 .

Oh, and we've got a great tool for you to help narrow down your list of host agencies and/or travel franchises in our choosing a host agency article. It's a nifty spreadsheet to help you narrow down your top host agency picks ! 😊

9. Read our Home-Based Travel Agent Resources Page  

We put together a page with loads of links so you don't have to scour the web. Here she be, the Home-Based Travel Agent Resources page. 😊

Not only that, connecting with host agencies, travel franchises and consortia couldn't be easier! You can go directly to a host's profile to write them via Host Agency Reviews' Q&A feature. The beauty of this is that tons of agents will also get to learn from your question too!

10. Sign up for HAR's 7 Day Setup Accelerator Course

Phew. That was list was a little overwhelming, wasn't it?

The fact is that there's a lot of groundwork that needs to take place in order to start a travel agency.  Wouldn't it be nice if someone with tons of experience who's helped over 10,000 agency get started could walk you through the setup?

We've got an option for that too! It's called our 7 Day Setup Accelerator course .

But don't take our word for it. Hear from some of our students on the value of bite-sized instructional videos, a supportive community, and access to the HAR team:

The course is written and taught by HAR Founder, Steph Lee, and professional Educator, Bridget Lee. It includes nine chapters with 70+ instructional videos, course quizzes, peer accountability, and monthly meet-ups with HAR members and industry experts. Check out HAR's 7DS Accelerator course below!!

As you can see, there are lots of things to do as you start a travel agency from home. But we're here to offer you a TON of resources and support.

So take a deep breath and we'll do it step-by-step together!

Once you start your travel agency from home, you'll have lots of other things that will demand your attention so laying the proper groundwork as soon as you can is smart business. 

Starting a Travel Agency from Home: What to Expect Time-Wise

In general, it will take a few years to get your agency off the ground.  This is the case with nearly all entrepreneurial endeavors.

Our travel advisor research reports continually show that it typically takes about 3 years to really start generating a sustainable income.

Here's why it can take time to see the cash flow when you starting a travel agency:

• It takes a while to build a client base and develop your brand
• Even when you do make your first bookings, you're not paid commission until after your client completes their travel (or after final payment for some vendors). So, if you make 7 bookings in January but the clients aren't traveling until November, you can see how your first-year money might be tight.
• Travel is something most people only do 1-2 times a year. Even with referrals and repeat clients, it can take a lot longer to build a steady business compared to a new restaurant or other service industries. 

Starting a Travel Agency from Home: What to Expect Money-Wise

And money. You probably want to know what you can expect when it comes to money and starting that travel agency from home, huh?! 😊

I hate to admit it but there is no one set answer. It depends on soooo many factors. The good news is that we were so curious to answer this question that we asked a few hundred new travel agents about their income in the first years of starting a travel agency.

Here's some hard data on travel agent income and travel agency start up costs in the first 5 years of business!

Even more travel agent income data

Want to dig into travel agent income data even more? Here's a great reading list that will give you an idea of what you might expect to earn when starting a travel agency: 

There's a lot of things to look forward to when it comes to a travel agent career . Check out our (free) annual event, Host Week , to get a flavor of what you can expect once you decide to start a travel agency.

The travel industry opens possibilities of traveling to beautiful places to help you do your job better. You'll get to attend things like FAM trips , ship inspections and go on site inspections. When you sell enough, you'll have access to travel agent rates .

All that said, it's important to understand that you still have to (*ahem*) work if you're a travel advisor- --you just get to have a lot more fun doing it than most people (yay)! :)

Questions? Ask Away.

I grew up in the travel industry and have I've worked with thousands of agents looking to start a travel agency. It's totally my jam. And it's not just my jam.

The entire HAR team is here to help you start (and grow) a successful travel agency. Ask us questions in the comments, drop us a line via email, or reach out to us on social. We love helping bring new people into our amazing industry! 🤗

Editor's Note: This article was originally published in July 2021. We updated this resource and republished it on publish date above.

About the Author

Steph grew up in the travel industry, helping on and off with her mom's homebased travel agency. She has worked with thousands of agents in her role as a former host agency director before leaving in 2012 to start HAR. She's insatiably curious, loves her pups Fennec and Orion, and -- in case you haven't noticed -- is pretty quirky and free-spirited.

If you’re looking for Steph, she leaves a trace where ever she goes! You can find her on Facebook, Instagram, LinkedIn (her fav) and Pinterest as 'iamstephly'. 🙂 You can also catch her on her Substack, Bumblin' Around, where she writes on things outside the world of HAR.

• Resource Downloads
• Travel Agent Basics

500+ business plans and financial models

Real Estate Agency Business Plan PDF Example

• May 7, 2024
• Business Plan

Creating a comprehensive business plan is crucial for launching and running a successful real estate agency. This plan serves as your roadmap, detailing your vision, operational strategies, and financial plan. It helps establish your real estate agency’s identity, navigate the competitive market, and secure funding for growth.

This article not only breaks down the critical components of a real estate agency business plan, but also provides an example of a business plan to help you craft your own.

Whether you’re an experienced entrepreneur or new to the real estate industry, this guide, complete with a business plan example, lays the groundwork for turning your real estate agency concept into reality. Let’s dive in!

Our real estate agency business plan covers all essential aspects necessary for a comprehensive strategy. It details operations, marketing strategy , market environment, competitors, management team, and financial forecasts.

• Executive Summary : Provides an overview of the real estate agency’s business concept, market analysis , management, and financial strategy.
• Real Estate Brokerage Services & Fees: Describes the brokerage services including property sales and acquisitions, along with a fee structure.
• Property Management Services & Fees: Outlines property management services offered and their respective fees.
• Key Stats : Offers data on industry size , growth trends, and market positioning.
• Key Trends: Highlights significant trends impacting the industry, such as digital transformation and changing buyer preferences.
• Key Competitors : Analyzes primary competitors and differentiates the agency from these competitors.
• SWOT : Analyzes strengths, weaknesses, opportunities, and threats.
• Marketing Plan : Outlines tactics for attracting new clients and maintaining relationships.
• Timeline : Sets out key milestones from inception through the first year of operations.
• Management: Information on the management team and their roles within the agency.
• Financial Plan: Projects the agency’s financial performance over the next five years, detailing revenue, profits, and anticipated expenses.

Real Estate Agency Business Plan

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Trusted by 12,000+ entrepreneurs, consultants and investors

Download an expert-built 30+ slides Powerpoint business plan template

Executive Summary

The Executive Summary introduces your real estate agency’s business plan, offering a concise overview of your agency and its services. This section outlines your market positioning, the variety of real estate services offered—including property sales, rentals, and property management—its location, size, and a description of day-to-day operations.

This section should also discuss how your real estate agency will integrate into the local market, including the number of direct competitors within the area, identifying who they are, along with your agency’s unique selling points that differentiate it from these competitors.

Additionally, you should include information about the management and co-founding team, detailing their roles and contributions to the agency’s success. Furthermore, a summary of your financial projections, including revenue and profits over the next five years, should be presented here to provide a clear picture of your agency’s financial plan.

Make sure to cover here _ Business Overview _ Market Overview _ Management Team _ Financial Plan

Dive deeper into Executive Summary

Business Overview

For a Real Estate Agency, the Business Overview section can be concisely divided into 2 main slides:

Real Estate Brokerage Services & Fees

Briefly describe the agency’s professional and welcoming office environment and its conveniently located premises near major residential and commercial areas, which enhances accessibility and client traffic. Detail the range of real estate brokerage services including buying, selling, and leasing properties, and discuss the agency’s fee structure, which is typically based on a percentage of the property sale or lease price, reflecting the high quality of service and market alignment.

Property Management Services & Fees

Describe the comprehensive property management services offered that cover tenant screening, rent collection, maintenance, and financial reporting. The pricing for these services is usually based on a percentage of monthly rental income or a flat monthly fee, with potential additional charges for special services like emergency maintenance or tenant placement, ensuring landlords a hassle-free ownership experience.

Make sure to cover here _ Real Estate Brokerage Services & Fees _ Property Management Services & Fees

Market Overview

Industry size & growth.

In the Market Overview of your real estate agency business plan, start by examining the size of the real estate industry and its growth potential. This analysis is crucial for understanding the market’s scope and identifying expansion opportunities.

Key Market Trends

Proceed to discuss recent market trends , such as the increasing consumer interest in sustainable and eco-friendly properties, the growing demand for smart homes equipped with the latest technology, and the rising popularity of urban living spaces among millennials and young professionals. For example, highlight the demand for properties that cater to specific lifestyle needs, alongside the rising preference for locations with comprehensive amenities and green spaces.

Key Competitors

Then, consider the competitive landscape, which includes a range of agencies from large national firms to local boutiques, as well as online real estate platforms. For example, emphasize what makes your agency distinctive, whether it’s through exceptional customer service, a unique range of property management services, or specialization in certain types of properties such as luxury homes or commercial real estate. This section will help articulate the demand for real estate services, the competitive environment, and how your agency is positioned to thrive within this dynamic market.

Make sure to cover here _ Industry size & growth _ Key competitors _ Key market trends

Dive deeper into Key competitors

First, conduct a SWOT analysis for the real estate agency , highlighting Strengths (such as experienced realtors and a diverse property portfolio), Weaknesses (including high agent turnover or reliance on local market conditions), Opportunities (for example, the growing demand for rental properties or the potential for tapping into luxury real estate markets), and Threats (such as fluctuations in real estate prices or new housing regulations that may impact operations).

Marketing Plan

Next, develop a marketing strategy that outlines how to attract and retain clients through targeted advertising, promotional events like open houses, an engaging online presence, and community involvement. This strategy should also incorporate using social media platforms to showcase properties and share customer testimonials, enhancing the agency’s visibility and client engagement.

Finally, create a detailed timeline that outlines critical milestones for the real estate agency’s launch, marketing initiatives, client acquisition, and expansion goals. This timeline should ensure that the business moves forward with clear direction and purpose, setting specific objectives for brand establishment, market penetration, and long-term growth.

Make sure to cover here _ SWOT _ Marketing Plan _ Timeline

Dive deeper into SWOT

Dive deeper into Marketing Plan

The Management section focuses on the real estate agency’s management and their direct roles in daily operations and strategic direction. This part is crucial for understanding who is responsible for making key decisions and driving the real estate agency toward its financial and operational goals.

For your real estate agency business plan, list the core team members, their specific responsibilities, and how their expertise supports the business.

Financial Plan

The Financial Plan section is a comprehensive analysis of your financial projections for revenue, expenses, and profitability. It lays out your real estate agency’s approach to securing funding, managing cash flow, and achieving breakeven.

This section typically includes detailed forecasts for the first 5 years of operation, highlighting expected revenue, operating costs and capital expenditures.

For your real estate agency business plan, provide a snapshot of your financial statement (profit and loss, balance sheet, cash flow statement), as well as your key assumptions (e.g. number of customers and prices, expenses, etc.).

Make sure to cover here _ Profit and Loss _ Cash Flow Statement _ Balance Sheet _ Use of Funds

Privacy Overview

Russia may not start an all-out war with NATO, but already has plans to destroy it from within

• Some politicians say Russia poses the gravest threat to European security since World War II.
• But Russia has been weakened by the Ukraine war and is in no position to attack NATO, experts say.
• Instead, they say Putin wants to weaken and undermine NATO from within.

The era of relative peace and prosperity the West has enjoyed since the end of World War II may be coming to an end.

In March, Donald Tusk, Poland's prime minister, said Europe was in a "prewar" era and that if Russia defeated Ukraine, it could spell trouble for the security of the continent.

"I don't want to scare anyone, but war is no longer a concept from the past," Tusk said in an interview with several European media outlets . "It is real. In fact, it already started more than two years ago," referring to Russia's invasion of Ukraine.

It's one of a series of increasingly stark warnings that the war in Ukraine could be a prelude to a much bigger conflict.

German military-planning documents that leaked in January laid out a scenario where Russia launched a massive 2024 offensive to take advantage of waning Western support in Ukraine.

The documents, obtained by Bild , said Russia could then turn its sights on NATO members in Eastern Europe as it seeks to destabilize its enemies through cyberattacks and internal chaos.

Late last year, Poland's national-security agency said Russia could launch attacks on NATO countries within three years.

Article 5 of NATO's charter treaty stipulates that NATO nations must protect each other from attack, which means a Russian attack on one member could spark a war involving several nuclear-armed states.

But whether Putin really intends to attack a NATO country — and what an attack might look like — remains unclear.

In March, Putin said he doesn't intend to attack any NATO members , describing such claims as "complete nonsense."

However, Western military chiefs are not convinced. A month earlier, Putin threatened NATO with the prospect of a nuclear attack over its support for Ukraine.

He alluded to a suggestion by France's president Emmanuel Macron that NATO could send troops to Ukraine to support its fight against Russia.

Geopolitical analysts told Business Insider that Russia has been weakened by the war in Ukraine and is in no position to attack a NATO state.

But Putin is playing a long game, and the outcome of the Ukraine war and Russia's long-standing bid to corrode NATO will be key factors in determining whether Russia wants to attack.

Putin plots to corrode NATO

Philip Ingram, a former UK military intelligence officer, told BI that Putin has one key advantage over many of his enemies.

Democratically elected Western leaders often make plans that are mindful of elections that take place around every four years; Putin is an authoritarian with no serious challengers to his power — that means he can look decades ahead

"He does not want, at this moment, a direct confrontation with NATO," Ingram said. "But he thinks in a different way and plans in a different way to we do in the West, and therefore the way NATO countries do."

"So, his ambition in growing is not going to be that he will attack NATO and NATO countries next year, but he will set the conditions to be able to," he added.

Analysts like Ingram think Putin realizes that attacking a NATO member now would exact a punishing cost on Russia. Instead, Putin could seek to weaken NATO from within to create soft spots he can strike in the future.

Related stories

To do this, Putin will likely intensify Russia's so-called "hybrid warfare" against NATO countries.

Hybrid warfare "often plays out in gray zones below the threshold of a conventional war," an article on NATO's website said.

"The instruments or tools employed and fused together to unleash hybrid warfare are often difficult to discern, attribute, and corroborate," it added.

These tools can include spreading conspiracy theories and disinformation, boosting extremist parties in certain countries, stoking terror threats, and launching cyberattacks to undermine the foundations of NATO countries.

"The threat posed by Russia to NATO is unlikely to be an invasion, it's more likely to come from a range of other military and nonmilitary threats — what are often called hybrid threats," Ruth Deyermond, an expert on the Russian military at King's College London, told BI.

A core Russian aim is to prise away the US from its commitment to defend its European allies, either by hoping it gets embroiled in another costly military campaign elsewhere or it gets tired of NATO.

"For this reason, I expect we'll see Russia using all of the tricks and capabilities in its cupboard to undermine Western unity over the years to come," Bryden Spurling, an analyst with the RAND Corporation, told BI.

A covert war is already underway

Some analysts say that Russia is already engaged in war with NATO — albeit covertly.

Last Friday, a group of men in the UK were charged with conducting an arson attack on a Ukraine-linked business on behalf of Russian intelligence.

And in recent months, Russia has also been accused of scrambling GPS airplane-navigation systems in northern Europe and the Baltic states. Both of these are examples of hybrid warfare.

Robert Dover, a professor of international security at the University of Hull, said the question of whether Russia will attack a NATO country is already redundant. "Russia is already engaged in a meaningful conflict with NATO countries and their allies," he said.

The Ukraine war exposed serious limits to NATO's military power, as the alliance has struggled to produce enough artillery shells and ammunition for Ukraine.

While Congress stalled on providing more military aid, European NATO countries were unable to make up the shortfall, and Ukraine's forces were significantly outgunned on parts of the frontline, which were close to collapse.

The US recently sent more aid, but Spurling said the situation exposed deep problems with NATO that Russia could exploit.

"This conflict has exposed how underprepared Western militaries are for war that's not on their terms," he added. "While we maintain that fragility, there is a greater risk that Russia thinks it could chance its arm."

Russia has been weakened by the war with Ukraine

But Russia also faces problems of its own. Its military has been depleted by the Ukraine invasion. According to some US estimates, 300,000 soldiers have been killed or wounded, its stock of armored vehicles has been decimated, and its commanders have made consistently bad decisions.

"It's hard to imagine a near- or medium-term scenario in which the Russian government has the resources to engage in another war on anything like the scale of Ukraine," Deyermond told BI.

An attack on a NATO country would come at such a devastating cost that it could imperil Putin's grip on power.

"War with NATO would destroy Russia — as Putin will know very well — and even if he thinks there's a possibility that the US might not step up to defend a fellow NATO member from a Russian invasion, he shows no sign of wanting to find out by playing nuclear Russian roulette," she added.

Ingram said Putin is determined to achieve some form of victory in Ukraine — however long it takes — so that he can use it as a platform to plan Russia's next campaign.

After Ukraine, Putin will survey the field and could be keen to exploit further opportunities to expand Russian power.

"He wants the Soviet Union back in the hands of a Russian leader — and that's his ultimate goal," he added.

Correction: May 2, 2024 — An earlier version of this story misstated information about arson charges against a group of men in the UK. There was only one arson attack, not multiple attacks.

Watch: What's next for the war in Ukraine?

• Main content

How to Start a Modeling Agency

Starting a modeling agency 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 modeling agency.

Importantly, a critical step in starting a modeling agency 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 Modeling Agency :

• Choose the Name for Your Modeling Agency
• Develop Your Modeling Agency Business Plan
• Choose the Legal Structure for Your Modeling Agency
• Secure Startup Funding for Your Modeling Agency (If Needed)
• Secure a Location for Your Business
• Register Your Modeling Agency 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 Modeling Agency
• Buy or Lease the Right Modeling Agency Equipment
• Develop Your Modeling Agency Marketing Materials
• Purchase and Setup the Software Needed to Run Your Modeling Agency
• Open for Business

1. Choose the Name for Your Modeling Agency

The first step to starting a modeling agency 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 modeling agency:

• 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 modeling agency.

      BONUS: Get the Expert Blueprint for How to Start a Modeling Business Here

2. develop your modeling agency business plan.

One of the most important steps in starting a modeling agency is to develop your startup business plan template . 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 modeling agency.
• Company Overview – this section tells the reader about the history of your modeling agency and what type of modeling agency you operate. For example, are you a casting agency, commercial, fashion, runway, plus-size, or a petite modeling agency?
• Industry Analysis – here you will document key information about the fashion and modeling 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 modeling agency? 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 modeling agency 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 modeling agency.

Next you need to choose a legal structure for your new modeling agency 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 owner of the modeling agency 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 businesses. It is an agreement between two or more people who want to start a modeling agency 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 modeling agency 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 modeling agency 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 modeling agency, 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.

Incorporate Your Business at the Guaranteed Lowest Price

We are proud to have partnered with Business Rocket to help you incorporate your business at the lowest price, guaranteed.

Not only does BusinessRocket have a 4.9 out of 5 rating on TrustPilot (with over 1,000 reviews) because of their amazing quality…but they also guarantee the most affordable incorporation packages and the fastest processing time in the industry.

4. Secure Startup Funding for Your Modeling Agency (If Needed)

In developing your modeling agency 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 modeling agency 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 modeling agency that they believe has high potential for growth.

5. Secure a Location for Your Business

When looking for a location for your modeling business, there are a few things to consider. The first thing to think about is the cost of the location. You’ll also want to make sure that the area is accessible to your target market. Another thing you’ll want to consider is the size of the location. You’ll want to make sure it is large enough to accommodate all your needs. Lastly, you’ll want to consider the area’s amenities. You’ll want to ensure the location has everything you need to run your business smoothly.

6. Register Your Modeling Agency 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 modeling agency’s 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 modeling agency 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

To start a modeling agency, you will need a business license and a permit from the local zoning board. You will also need to register with the state as a modeling agency. Check out the licensing and permitting requirements in your state to make sure you are compliant. 

10. Get Business Insurance for Your Modeling Agency

You need a few different types of insurance to start a modeling agency. The insurance you need may vary by state. 

Some business insurance policies you should consider for your modeling agency include:

• General liability insurance : This covers accidents and injuries that occur on your property. It also covers damages caused by your employees or products.
• Auto insurance : If a vehicle is used in your business, this type of insurance will cover if a vehicle is damaged or stolen.
• 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 Modeling Agency Equipment

Some general equipment you will need to run your modeling agency includes a computer and internet access, telephone, and printer. You should also have a filing system for both your paper and electronic files. To market your agency, you will need to create a website, as well as print marketing materials.

12. Develop Your Modeling Agency Marketing Materials

Marketing materials will be required to attract and retain customers to your modeling agency.

The key marketing materials you will need are as follows:

• Logo : Spend some time developing a good logo for your modeling agency. 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 modeling agency website provides potential customers 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 networks will help customers and others find and interact with your modeling agency.

13. Purchase and Setup the Software Needed to Run Your Modeling Agency

The software you need to run a modeling agency is a customer relationship management (CRM) system to manage customer data, an accounting system to manage your finances, and a photo editing program to edit models’ photos.

14. Open for Business

You are now ready to open your modeling agency. 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.

How to Start a Modeling Agency FAQs

Is it hard to start a modeling agency.

It can be hard to start a modeling agency because the fashion industry is highly competitive. However, if you develop a strong business plan and take the time to network with other industry professionals, it is possible to start your own successful modeling agency.

How can I start a modeling agency with no experience?

The best way to start a modeling agency with no experience is to do some research and learn all you can about the industry. There are plenty of online resources and books on starting your own business that can help you get started. You'll also want to find out what the legal requirements are for setting up a modeling agency in your area. Once you have all the information you need, put together a business plan and start marketing your new agency.

What type of modeling agency is most profitable?

There is no definitive answer to this question as it depends on a variety of factors, such as the size and location of the agency, the services it offers, and the talent it represents. However, a commercial modeling agency is typically a profitable type of agency, as it focuses on placing models in advertising and marketing campaigns. Fashion and lifestyle agencies are also quite profitable, as they work with high-end clients and brands.

How much does it cost to start a modeling agency?

The cost of starting a modeling agency will vary depending on the size and scope of the business. However, as a general rule, you can expect to spend at least $10,000-$15,000 to get started. This covers things like advertising and marketing expenses, office space and supplies, and employee salaries.

What are the ongoing expenses for a modeling agency?

The expenses for a modeling agency can vary depending on the size of the agency, the services offered, and the location. However, some common expenses include advertising and marketing, staff salaries, and rent and utilities.

How does a modeling agency make money?

A modeling agency typically makes money through three main sources:.

• Fees from models for representing them.
• Fees from photographers, designers, and other clients who hire the agency's models.
• Sales of photographs and other marketing materials featuring the agency's models.

Some agencies also make money by running workshops or classes for aspiring models. 

Is owning a modeling agency profitable?

The modeling industry is a multi-billion dollar industry and there is a high demand for new faces in fashion magazines and advertising agencies . Owning a modeling agency can be profitable because you will have access to the latest trends and be able to book your clients with high-paying jobs. You will also be able to negotiate higher rates for your models and charge commission on their work. Additionally, you can expand your business by offering modeling classes or workshops.

Why do modeling agencies fail?

The most common reasons for modeling agencies and fashion houses to fail are financial instability, poor management, and a lack of talent. Financial instability can be caused by a number of factors, such as mismanagement of funds, bad investments, or not enough clients. Poor management can lead to a lot of problems for an agency, including high staff turnover, low morale, and poor customer service. Lastly, a lack of talent can be a death knell for an agency, as it will have trouble attracting and keeping clients if it doesn’t have enough models to support their needs.

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Max Fried's Dodgers free agency tryout went exactly according to plan

Atlanta Braves President of Baseball Operations Alex Anthopoulos has done an unbelievable job acquiring and extending elite talent on extremely team-friendly terms. Virtually the entire Braves core is locked in for a long time, which is frightening for the rest of the National League.

One player that Anthopoulos never got to sign one of his patented extensions is Max Fried . The Braves southpaw is set to hit free agency at season's end, and as time continues to pass, it looks as if an extension is not coming Fried's way.

If Fried were to depart Atlanta this offseason, the Los Angeles Dodgers make a whole lot of sense as a destination for a variety of reasons. Fried faced the Dodgers on Sunday looking to deliver a big series win for the Braves. Let's just say his start went exactly how the Dodgers would've hoped.

Dodgers have to be thrilled with Max Fried's free agency tryout

This was probably best case scenario for the Dodgers. Fried showed his value by completing seven innings and limiting the powerhouse Dodgers to just four runs. He struck out seven as well. He looked solid despite the tough challenge, and the Dodgers got the win. They took the crucial three-game set, sweeping Atlanta.

If Fried is not staying in Atlanta, the Dodgers are a team he absolutely will be looking at. Fried, a California native, has established himself as one of the best pitchers in the National League when healthy. He got off to a rough start to this season, but he posted a 1.37 ERA in his last four starts entering his outing on Sunday.

The most important factor here is the money. The Braves are notoriously stingy in free agency. They let Freddie Freeman and Dansby Swanson, two key pieces to their World Series team in 2021, walk in consecutive years.

Anthopoulos found replacements in Matt Olson and Orlando Arcia. If Fried wants as much money as possible, he'll walk and Anthopoulos will almost certainly find a replacement whether it's internal or external.

This article was originally published on fansided.com as Max Fried's Dodgers free agency tryout went exactly according to plan .

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Report: NFL and Bears Schedule Set for May 15 Release

Gene chamberlain | 18 hours ago.

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The dead week between Bears rookie camp and the start of organized team activities is dead no longer.

The NFL will announce its schedule next week and not this week, as had been the practice the last few years.  So the Bears will know who they play, where and when prior to the start of OTAs at Halas Hall on May 20.

Ben Fischer of Sports Business Journal reported the schedule comes out on Wednesday, May 15 at 7 p.m., which means little pieces of it can be expected to come out earlier in the day if not the day before.

Fischer cited a memo per NFL executive vice-president and chief operating officer/NFL media Hans Schroeder.

The fans and media weren't the only ones expecting the schedule to come out this Thursday, but the teams were, as well.

The Bears are facing what is tied for the third-easiest slate of opponents based on opposing record from 2023. Bears opponents have a .467 winning percentage. Only the Saints (.453) and Falcons (.453) have easier slates of opponents.

The schedule will have a game in London for the Bears as a home team, taking away one of their nine home games at Soldier Field.

There is also the possibility they might be required to play on Christmas Day, which is a Wednesday. There will be two games on that day.

The Bears  already know their first game. It’s Aug. 1 in preseason at the Hall of Fame Game against the Houston Texans in Canton, Ohio.

Twitter: BearDigest@BearsOnMaven

GENE CHAMBERLAIN

BearDigest.com publisher Gene Chamberlain has covered the Chicago Bears full time as a beat writer since 1994 and prior to this on a part-time basis for 10 years. He covered the Bears as a beat writer for Suburban Chicago Newspapers, the Daily Southtown, Copley News Service and has been a contributor for the Daily Herald, the Associated Press, Bear Report, CBS Sports.com and The Sporting News. He also has worked a prep sports writer for Tribune Newspapers and Sun-Times newspapers.

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US poised to ease restrictions on marijuana in historic shift, but it’ll remain controlled substance

The U.S. Drug Enforcement Administration will move to reclassify marijuana as a less dangerous drug, a historic shift to generations of American drug policy that could have wide ripple effects across the country.

FILE - In this Friday, March 22, 2019, file photo, a marijuana plant is visible at Compassionate Care Foundation’s medical marijuana dispensary in Egg Harbor Township, N.J. The U.S. Drug Enforcement Administration will move to reclassify marijuana as a less dangerous drug, a historic shift to generations of American drug policy that could have wide ripple-effects across the country. The DEA’s proposal still must be reviewed by the White House Office of Management and Budget. (AP Photo/Julio Cortez, File)

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WASHINGTON (AP) — The U.S. Drug Enforcement Administration will move to reclassify marijuana as a less dangerous drug, The Associated Press has learned, a historic shift to generations of American drug policy that could have wide ripple effects across the country.

The proposal, which still must be reviewed by the White House Office of Management and Budget, would recognize the medical uses of cannabis and acknowledge it has less potential for abuse than some of the nation’s most dangerous drugs. However, it would not legalize marijuana outright for recreational use.

The agency’s move, confirmed to the AP on Tuesday by five people familiar with the matter who spoke on the condition of anonymity to discuss the sensitive regulatory review, clears the last significant regulatory hurdle before the agency’s biggest policy change in more than 50 years can take effect.

Once OMB signs off, the DEA will take public comment on the plan to move marijuana from its current classification as a Schedule I drug, alongside heroin and LSD. It moves pot to Schedule III, alongside ketamine and some anabolic steroids, following a recommendation from the federal Health and Human Services Department. After the public comment period and a review by an administrative judge, the agency would eventually publish the final rule.

“Today, the Attorney General circulated a proposal to reclassify marijuana from Schedule I to Schedule III,” Justice Department director of public affairs Xochitl Hinojosa said in a statement. The DEA is a component of the Department of Justice. “Once published by the Federal Register, it will initiate a formal rulemaking process as prescribed by Congress in the Controlled Substances Act.”

Attorney General Merrick Garland’s signature throws the full weight of the Justice Department behind the move and appears to signal its importance to the Biden administration.

It comes after President Joe Biden called for a review of federal marijuana law in October 2022 and moved to pardon thousands of Americans convicted federally of simple possession of the drug. He has also called on governors and local leaders to take similar steps to erase marijuana convictions.

“Criminal records for marijuana use and possession have imposed needless barriers to employment, housing, and educational opportunities,” Biden said in December. “Too many lives have been upended because of our failed approach to marijuana. It’s time that we right these wrongs.”

The election year announcement could help Biden, a Democrat, boost flagging support, particularly among younger voters .

Biden and a growing number of lawmakers from both major political parties have been pushing for the DEA decision as marijuana has become increasingly decriminalized and accepted, particularly by younger people. A Gallup poll last fall found 70% of adults support legalization, the highest level yet recorded by the polling firm and more than double the roughly 30% who backed it in 2000.

The DEA didn’t respond to repeated requests for comment.

Schedule III drugs are still controlled substances and subject to rules and regulations, and people who traffic in them without permission could still face federal criminal prosecution.

Some critics argue the DEA shouldn’t change course on marijuana, saying rescheduling isn’t necessary and could lead to harmful side effects.

Jack Riley, a former deputy administrator of the DEA, said he had concerns about the proposed change because he thinks marijuana remains a possible “gateway drug,” one that may lead to the use of other drugs.

“But in terms of us getting clear to use our resources to combat other major drugs, that’s a positive,” Riley said, noting that fentanyl alone accounts for more than 100,000 deaths in the U.S. a year.

On the other end of the spectrum, others argue marijuana should be treated the way alcohol is.

“While this rescheduling announcement is a historic step forward, I remain strongly committed to continuing to work on legislation like the SAFER Banking Act as well as the Cannabis Administration and Opportunity Act, which federally deschedules cannabis by removing it from the Controlled Substances Act,” Senate Majority Leader Sen. Chuck Schumer of New York said in a statement. “Congress must do everything we can to end the federal prohibition on cannabis and address longstanding harms caused by the War on Drugs.”

Federal drug policy has lagged behind many states in recent years, with 38 having already legalized medical marijuana and 24 legalizing its recreational use .

That’s helped fuel fast growth in the marijuana industry, with an estimated worth of nearly $30 billion. Easing federal regulations could reduce the tax burden that can be 70% or more for businesses, according to industry groups. It could also make it easier to research marijuana, since it’s very difficult to conduct authorized clinical studies on Schedule I substances.

The immediate effect of rescheduling on the nation’s criminal justice system would likely be more muted, since federal prosecutions for simple possession have been fairly rare in recent years.

But loosening restrictions could carry a host of unintended consequences in the drug war and beyond.

Critics point out that as a Schedule III drug, marijuana would remain regulated by the DEA. That means the roughly 15,000 cannabis dispensaries in the U.S. would have to register with the DEA like regular pharmacies and fulfill strict reporting requirements, something that they are loath to do and that the DEA is ill equipped to handle.

Then there’s the United States’ international treaty obligations, chief among them the 1961 Single Convention on Narcotic Drugs, which requires the criminalization of cannabis. In 2016, during the Obama administration, the DEA cited the U.S.’ international obligations and the findings of a federal court of appeals in Washington in denying a similar request to reschedule marijuana.

Goodman reported from Miami, Mustian from New Orleans. AP writer Colleen Long contributed.

US lawmaker probes FTC work with Europe to block Amazon iRobot merger

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Stocks ease, dollar gains as market awaits CPI data

Global equity markets mostly faltered on Wednesday as investors await fresh inflation data to better assess the likelihood of Federal Reserve interest rate cuts, while the dollar edged higher on expectations of U.S. economic out-performance.