54 & Cloudy is a new digital marketing agency run by two industry veterans, Tom and Stephen. With over two decades of experience in e-commerce and digital marketing, they aim to help small to medium-sized businesses achieve their digital growth goals.

Although 54 & Cloudy has been operating as a small consultancy for two years, they now seek funding to become a full-service agency. They plan to purchase technology assets and hire more employees to meet client demands and manage new clients.

Initially, 54 & Cloudy will operate fully remotely, with resources specializing in SEO, CRO, paid advertising (including social media and search), and contractors for content writing and design services.

With its existing reputation and plans to develop a proprietary technology solution, 54 & Cloudy is well-positioned to become a trusted agency. As they establish themselves further in the market, they will expand their services and increase hiring to meet client demands.

After completing their fundraising, 54 & Cloudy will focus on four main revenue streams: SEO marketing, paid advertising, eCommerce CRO, and industry-focused content writing and design.

To finance their startup technology costs and cover initial cash flow needs, 54 & Cloudy aims to secure an SBA loan of $300,000. They project strong growth over the next five years, with revenue reaching $12.6 million by 2026.

54 & Cloudy’s target market consists of businesses generating over $1 million in e-commerce sales annually. They plan to focus on West Coast businesses initially and work with clients whose average order values exceed $35.

In a competitive industry, 54 & Cloudy differentiates itself through proprietary technology, sector expertise, and reputation for excellence. They have advantages such as targeted user segments for market research, relationships with BI data firms, and custom reporting and A/B split testing dashboards.

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Keys to success for 54 & Cloudy include staying up-to-date with technology, professional proposal development, building a solid brand, and scaling proprietary tools and technology.

Marketing efforts will focus on digital and print marketing, advertising campaigns, conventions/trade shows, and strategic partnerships to drive growth and maintain their industry-leading reputation.

54 & Cloudy will launch a digital marketing campaign through paid search and digital publications/blogs for their core demographics. With unique skills and offers, they will gain momentum through paid search, gathering business demographic and contact information for re-targeting and promotional messaging. Working with online and print publications specific to their target markets, 54 & Cloudy will develop a strong industry presence crucial for recurring customer growth. To attract customers, they will offer free site audits, industry-specific templates, and other services to capture emails and upsell.

They will form relationships with organizations selling to the same customers, including design agencies, print media groups, advertising agencies, bankers, lawyers, and small business associations. This will help generate a reliable customer base leading to repeat customers and larger contracts.

To drive retention and referrals, 54 & Cloudy will use engagement tactics with existing customers. By building a loyal customer base, they can identify growth opportunities for new product lines and end markets.

As a leading digital marketing agency, 54 & Cloudy will publish onsite blogs, landing pages, and other relevant content to drive organic rankings and acquire new customers. They will focus on long-tail niche content and competitive keywords to generate strong SEO growth and organic traffic.

Attending trade shows and conventions will help generate brand awareness and increase sales conversion. They will have the opportunity to connect with potential customers and demonstrate their services and product functionality.

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54 & Cloudy will be based in the Bay Area and operate as a fully remote organization. They will utilize industry-leading automation, data tracking, and analytics software for client work. Internal tools such as CRM, Slack, and email marketing platforms will aid in business growth and operations.

To track profitability, 54 & Cloudy will monitor revenue by service line, EBITDA, contribution margin by service line, cost per acquisition (CPA), churn rate by service line, revenue per employee, and MRR and ARR.

54 & Cloudy is co-owned by two founders with extensive experience in e-commerce digital marketing and technical/UX engineering. They are looking to secure funding for additional hires and enterprise-level clients. The two founders complement each other’s skillsets and aim to transform 54 & Cloudy into a full-service digital marketing agency.

A hiring strategy will be implemented to meet client demand as the business grows. Roles to handle client services include E-Commerce Product Engineer, Full-stack Marketer, Ad Manager, Client Relationship Manager, In-house Sales Lead, Copywriter, Designers, and CRO Analyst. 54 & Cloudy plans to grow from 13 resources in Year 1 to over 45 by Year 5.

The financial plan assumes revenue from four main service categories: SEO, PPC, eCommerce CRO, and Content Writing/Design. The revenue projections consider monthly recurring charges, churn rates, and hourly rates for design and writing services. An SBA loan of $300,000 at 8% over 10 years is expected to cover growth and hiring projections. Proprietary reporting and marketing forecast dashboards will be introduced to accelerate customer acquisition and maintain low churn rates.

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Digital Marketing Agency Business Plan Example

Net Profit by Year


Sources of Funds

Given the management team’s proven success, 54 & Cloudy will secure an SBA loan of $300,000 to finance initial startup costs and cover cash flow needs during customer acquisition and Year 1 operations.

Use of Funds

54 & Cloudy will use the $300,000 SBA loan for initial technology asset purchases of $65,000, startup costs including licensing, legal, and marketing expenses of $50,000, and cash flow needs during Year 1 as they transition from negative operating income to positive by year-end.

Digital Marketing Agency Business Plan Example

Business Plan Outline

  • Executive Summary
  • Opportunity
  • Execution
  • Company
  • Financial Plan

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