Do you want to start a billboard advertising company of your own? Find here a complete billboard business plan sample guide for your ready reference.
Basically, billboard advertising comes under the outdoor advertising segment. It is a highly competitive industry. Hence, initiating a billboard advertising company needs market research and strategic planning.
Also, you must calculate the financials very carefully. The amount of initial investment will depend on the scale of operation.
Basically, billboards are the most preferred way of advertising for small, medium, and large companies. Comparing with newspapers and magazines, billboards are more effective. And these are cheaper than electronic media advertising like television. Broadly, billboards are used to provide directions or information about a product or service.
Generally, billboard advertising companies create and design advertising materials for public display, including printed, painted, or electronic displays. Operators may place displays on billboards or panels as well as on or within transit vehicles, shopping malls, retail stores, and other display structures or sites.
Initiating a billboard company is highly profitable. However, the business is not easy to start and run. Principally, it is a B2B business. So, opening a company successfully demands prior experience and knowledge about the advertising industry.
Is Billboard Business Profitable?
Overall, the billboard industry is highly flourishing. There are several reasons that affect the overall demand in the market. Some of the most potent factors are disposable income, retail sales, corporate profit, and other factors.
Currently, the billboard industry is witnessing growth for several other reasons also. These are increasing outdoor time spent on consumers, growing numbers of malls, increasing the number of airport terminals, and the metro rail network.
Globally, the USA is the largest market for billboard advertising. Also, Asia Pacific represents the fastest-growing market worldwide. So, initiating a billboard business is a highly lucrative opportunity for new entrepreneurs.
Here are the 7 Steps to Follow in Starting a Billboard Business
1. Learn the Trade
Before you launch your own billboard business, learn the trade as much as possible. You must have sound communication skills. This is the most primary criterion for initiating this business. Moreover, you must have the ability to negotiate with both the advertisers and landowners. If you have some graphic designing skill, then it is always a plus in this business
There are different types of billboards you will find popular among advertisers. We list down here some popular ones below:
Classic billboards are also popular as a bulletin. You can find a lot of bulletin boards on the highways, and expressways, or on heavy traffic streets. They come in very large sizes. Most popular are 14′ high x 48′ wide, 10.5′ high x 36′ wide, or comparable sizes. Actually, the classic billboards attract both pedestrian and motorized traffic.
Vinyl billboards are bright. Also, these boards stay long with perfect colors and look.
Usually, posters are half of the width of bulletin boards. Generally, local advertisers use this type of advertisement for hitting the local market.
Painted billboards are very rare these days. However, some advertisers still use this type of billboard if there is a single requirement.
Mobile billboards are a new concept. Actually, with a single mobile billboard, you can move the bulletin to different locations where the target audience happens to be.
2. Market Research
Initiating a billboard company demands intensive market research. First of all, you must identify the companies that are already billboard advertisers. Check the pricing and designing aspects carefully. Also, identify the small and medium companies that can be your prospects.
You can contact the local business associations to get the data of small business owners of your location. Moreover, you must analyze whether there is a market for this type of service or not.
3. Name Your Billboard Advertising Business
It is extremely critical to choose a relatable and catchy name for your billboard business. The name must appropriately manifest the services that your business is going to offer. You can check this guide to know more about how to name a business.
4. Create a Billboard Business Plan
Crafting a billboard business plan is essential for starting and running the business properly. Also, your business plan must contain a financial analysis, marketing strategy, and expansion planning. Include your business objective, mission, and vision. Mention how much you can charge for your services. Who are your potential competitors and how you will compete with them?
Generally, a financial analysis includes the startup budget and the working cost of running the business. Also, it includes a breakeven calculation, ROI, and payback analysis. These all will help you in arranging the finance also.
5. Legal Considerations
This is another crucial issue that you must consider carefully. According to the management pattern, you must select the right form of business. And then register it. Business permission is a must in any state. However, the micro issues depend on the Federal law of that particular state where you are opening the business.
For example, if you are from the United States, many startups prefer forming an LLC as this type of business structure not only protects your personal assets but also helps in the easy filing of annual taxes.
Check the tax issues carefully. Also, check how much you can charge from your clients and how you will need to submit the compliances yearly. It is better to buy proper business insurance for protecting your business and clients.
6. Set Pricing
Before opening your door, you must fix how much you can charge your clients. Generally, the billboard charges vary on several issues. These are the location, size, and quality of the billboards.
Undoubtedly, you can charge higher for a high-traffic location. And also electronic billboards are costlier than regular billboards. And finally, the large size of the billboards comes with more cost than small billboards.
In fixing the price, you will need to consider the expenses also. Some of the most common costs are rental cost, liability insurance, electricity cost, maintenance, transportation cost, and labor charges. So, you must have a properly customized tariff for your clients.
7. Promote & Expand your Billboard Business
Literally, there are several ways you can explore in promoting your billboard business. As it is a B2B business, you can take a consulting mode when talking to your customers. It is better to show them the benefits rather than telling them the features. Always be creative in offering the deal. Think about the advantages of your clients when they buy billboards. It will definitely give you some loyal customers who will call you automatically at the time of advertising requirements.
An online presence is a must in the billboard business. On your website, mention the locations and sizes currently available for advertisement. Also mention your contact info properly.
About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their business. Our aim is to educate the entrepreneur on the various stages of entrepreneurship.