Dhyna PhilsHead of MarketingApr 12, 2026 · 8 min readWhat is an Agency Business?
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.
The agency business in simple terms is bringing together a team of specialized experts within a specific niche to deliver a set of services.
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?
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 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
- Choose a niche
- Know your audience
- Choose the best agency software
- Plan, plan, plan
- Choose a strategy
