According to Forbes, digital agencies grew 32.1% between 2024 and 2025, with 89,912 agencies in business by the end of last year. Even better, revenue trends support that growth. The numbers add up, and if you're looking to launch a new business, the agency model could be a strong path to success.

That raises the question: How do I start an agency?

What Is an Agency Business?

An agency business, in simple terms, brings together a team of specialized experts within a specific niche to deliver a defined set of services. Take design as an example. In a design agency, you'll find experts like product designers, web designers and developers, animators, 3D designers, and search engine optimization (SEO) specialists. Each one provides a specific service that you can monetize.

The key is identifying a service people actually need, then building an agency around it.

How much does It cost to start an agency?

Well!!! This is a tricky question to answer.

Your agency costs may vary depending on the type and size of agency you create. If your agency offers one service and has a couple of employees, it costs less to start than a multi-service agency.

Let's say the average cost of starting a digital agency falls within a broad range: $730 to $29,100.

How to start an agency – The 5 solid steps

Now that you know the pros and cons, here are 5 solid steps you can take to start an agency:

1. Choose a Niche

2. Know your audience

3. Choose the best agency software

4. Plan, Plan, Plan

5. Choose a strategy.

Bottom line: don't let the scale of the agency market overwhelm you. Stay flexible with your strategy, keep pushing, set realistic expectations, and maintain a positive attitude throughout.