Talent agencies are essential in the television, film, music, and sports industries. When you start a talent agency, you’re responsible for representing and growing the careers of musicians, athletes, artists, actors, performers, and entertainers. Statistics show that between 2018 and 2028, the talent agent career is expected to grow by 10% and produce about 48,300 job opportunities in the U.S. Therefore, if you are an experienced talent agent, you can use your skills to start a successful agency. Here are some tips to get you started.
Create a Business Plan
A plan is essential for your business’ success. With a business plan, you can map out your startup’s costs, your target market, pricing strategy, and other business aspects. Business owners with a business plan have a 30% greater chance of achieving success. You’ll need to determine the annual costs for running the talent agency, including rental charges, publicity expenses, promotional material, and licensing costs. Once you know all these costs, you can come up with a fee to charge your customers.
Register the Business
Before starting the talent agency, you need to decide whether it will be a partnership, sole proprietorship, limited liability company, or corporation. This protects your company legally in case of legal issues. In addition, you should register the talent agency for federal and state taxes. You’ll need to pay taxes depending on the business structure. Your business will operate much better when it’s legally protected.
Get Business Financing
Your talent agency needs working capital to stay in business. Besides paying monthly expenses like rent, you’ll need to pay salaries if you have employees and talent agents working for you. In addition, you may have to pay for communication software as running a talent agency involves a lot of communication. You need to factor in all these expenses.
Since you are a new business owner, you might not have enough capital to cater for all the expenses. And if your credit is not good, you might not qualify for a traditional bank loan. Luckily for you, there are alternative sources of financing. Loan Center, a top online lender, advises aspiring talent agency owners to apply for auto title loan to get a short-term loan for their business. You simply use your car as collateral and can pay off the loan quickly.
Obtain Permits and Licenses
Your talent agency needs permits and licenses to operate. Learn more about the permits required by checking with the town or city council offices. Failure to have these licenses could cost you heavy fines and even cause your business to close down. In addition, you can also consult with the local business associations to get more details about the permits your talent agency needs.
Market Your Business
In the U.S., the most popular talent agencies, such as the Creative Artists Agency, have the strongest relationships between talent and talent buyers. To compete with such heavyweights, you need to market your business well. Create a website and social media pages to get the word out about your talent agency. You’ll build a successful company as more people become aware of what your business does.
Starting a talent agency requires commitment. You need to build a business that can maintain solid relationships with top talent. Use these tips to establish a successful talent agency.