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Advertising Agency SWOT Analysis


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Here, we will discuss the development of an Advertising Agency SWOT analysis specifically for a business that is seeking a SBA loan or equity investor. Advertising Agencies generally operate with a very strong degree of economic staying power as the demand for these services remains strong even during times of economic recession. Advertising Agencies generate extremely high gross margins that ensures that they are able to remain profitable and cash flow positive at all times. As with any SWOT analysis, you're going to want to develop a strengths section, weaknesses section, opportunities section, and a section that deals with potential threats to your Advertising Agency,

Most importantly and first, you are going to want to focus heavily on the strengths that are associated with your Advertising Agency. Foremost, you should again reiterate the high gross margins generated from your Advertising Agency services while also showcasing the generally low costs associated with operating this type of business. Another important mention should be the relatively low cost overhead associated with operating this type of business.

Common within this section of the advertising agency SWOT analysis, is to have a discussion that showcases your experience is entrepreneur, your experience working as an advertising executive, and how you intend to expand the business during its initial years of operation. Drafting a business plan alongside your advertising agency SWOT analysis is very important for you to effectively have a number of pieces of information that reiterate the fact that these are very good businesses as it relates to being a candidate for a SBA loan.

In the next section of the Advertising Agency SWOT analysis, you are going to want to focus heavily on the weaknesses that are associated with operating your Advertising Agency. Although this may seem like a negative aspect to your SWOT analysis and business plan - your SBA loan banker, angel investor, or other financing source will find it very compelling that you have thought about the negative issues associated with your business.

Next, you are going to want to focus significantly on the opportunities that your business will have to expand during its first five years of operation. This may include developing new locations, hiring additional personnel, and engaging in a broad based marketing campaign that will ensure that your Advertising Agency business is able to rapidly expand and repay its debts on a timely basis.

Finally, you are going to want to effectively showcase to your SBA loan banker or investor the threats that will be faced by your Advertising Agency. We strongly recommend that you emphasize a number of these issues as it will be to the benefit of your investor or banker to see how you intend to mitigate these risks as time progresses.

As always, we strong recommend that you work closely with a number of professionals including CPAs, attorneys, SBA loan consultants, conventional loan consultants, and other professionals that will ensure that you have produced a SWOT analysis and business plan that is appropriate for both a bank and a potential investor. It is imperative that you have a clear understanding of the complex nature of raising capital for your venture and by having a number of professionals in place - you will be in an outstanding position to receive the capital you need in order to start your Advertising Agency.
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