According to Forbes, digital agencies grew 32.1% between 2024 and 2025, with 89,912 agencies in business by the end of last year. Better yet – revenues support that growth. This means the numbers add up. And you, as somebody who’s interested in starting a new business, can see that the agency model could be key to your success.

That brings the question: How can I start an agency?

What is an Agency Business?

The agency business in simple terms is bringing together a team of specialized experts within a specific niche to deliver a set of services. Take design as an example. In a design agency, you’ll have a host of experts like Product designers, web designers and developers, animators and 3D designers, search engine optimization (SEO) specialists. Each provides a specific service for which you can charge money.

The trick lies in finding a service that people actually want and then building an agency business around that service.

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 costs less to start than a multi-service agency.

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

How to start an agency – The 5 solid steps

Now you know the pros and cons, here're 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.

Baseline is, don't allow the vastness of current agencies, be flexible with your strategy, grind, temper your expectations and keep a positive attitude throughout.