NEWS

How to Start an Agency in the UK: A Step-by-Step Guide

by | May 9, 2025 | Expert Insights

So, you’ve been thinking about starting your own agency. Maybe you’ve freelanced for a while, or you’re working in-house and constantly thinking, “I could do this better on my own.” You’re not alone. Right now in the UK, there’s a real wave of entrepreneurial energy. More people than ever are going out on their own, and for good reason.

Since the pandemic, the way we work has completely shifted. Companies are leaning into flexibility, outsourcing, and specialist expertise, and they’re often choosing smaller, more agile agencies over big, bloated ones. According to the Office for National Statistics (ONS), more than 800,000 new businesses were registered in the UK in 2023. And women are leading more of those startups than ever before.

That said, starting your own agency can feel overwhelming. You’ve probably got a million questions: How do I get clients? What do I charge? Do I really need a business plan?

This guide walks you through everything, from picking your niche to finding your first clients to growing with confidence. If you’re wondering how to start an agency in the UK and want honest, practical steps, you’re in the right place.

Step 1: Get Clear on What You’re Offering and Who You’re Helping

Before you create a logo or register a business name, you need clarity. What type of agency are you building? Are you focusing on digital marketing, branding, PR, social media, influencer campaigns, or something else entirely?

It’s easy to feel like you have to do everything to attract clients. But the truth is, niching down makes you more visible. You’re not limiting yourself — you’re making it easier for the right people to find you.

Start by asking yourself:

  • What do I love doing?

  • What do I do better than most?

  • Who do I enjoy working with?

  • What are people already asking me for?

Maybe you’re amazing at running Meta ad campaigns for eco-brands, or perhaps you’re a former journalist with a talent for storytelling who can help ethical startups get media attention.

According to a 2024 Advertising Association report, 65% of UK SMEs say they’d rather work with boutique agencies because they feel more personal and flexible. That’s your edge.

Once you’ve figured out your niche, build out a service list with 2–3 clear offers and think about how you’ll deliver them. Packages work really well at this stage — they make it easier for clients to understand what they’re buying and for you to scale your delivery.

💡 Strategic edge: Build a “signature framework” for your services. It positions you as an expert and helps you stand out — think of it as your repeatable method or client journey.

Step 2: Set Things Up Properly (But Keep It Simple)

Now that you’ve nailed your niche, it’s time to make your business official. This part doesn’t have to be scary.

You’ve got two main options in the UK:

  1. Register as a sole trader

  2. Set up a limited company

If you’re just testing the waters, becoming a sole trader is the fastest route. It’s easy to register with HMRC and there’s less admin. But if you’re going all in — especially if you want to work with bigger clients — a limited company offers more credibility and protects your personal assets.

You’ll also want to:

  • Open a business bank account (Starling and Tide are both great options)

  • Set up basic bookkeeping (FreeAgent and Xero are popular with agency owners)

  • Understand VAT registration thresholds

  • Get insured (professional indemnity and public liability are good starting points)

Even if you’re just starting out, it’s worth speaking to an accountant. A one-off consultation can save you a ton of stress later on.

💡 Smart setup tip: Create a “business hub” in Google Drive or Notion. Store everything from invoices to client templates there — you’ll thank yourself later when you start hiring or scaling.

Step 3: Build a Brand That Feels Like You — and Sells

Let’s be real: branding isn’t just your colour palette and fonts. It’s how you make people feel. It’s your tone of voice, your positioning, and how confidently you talk about your work.

You don’t need a £10k visual identity to launch your agency. But you do need to be clear on your message and what makes you different.

Your website should:

  • Explain what you do and who you help — fast

  • Include social proof like testimonials or results

  • Make it easy to get in touch

  • Reflect your personality and values

According to a 2023 study by Smart Insights, 81% of UK B2B buyers check out a company online before making contact. That means your digital presence is your storefront.

Social media is where many agencies build early traction. LinkedIn is great for B2B. Instagram works well for creative-led businesses. Show up consistently, share your work, talk about your process, and don’t be afraid to let people see the human behind the business.

💡 High-impact move: Set up a “start here” page or pinned video on your socials and site that introduces you, your services, and who they’re for. It builds connection instantly.

Step 4: Set Up Operations That Actually Support You

This part isn’t glamorous, but it’s what will save your sanity.

Your agency should run like a business — not like a series of chaotic freelance gigs. That means you need systems.

A few must-haves:

  • A client onboarding process (send a welcome email, outline what happens next, share timelines)

  • A contract template (look into Bonsai, PandaDoc or ask a lawyer for a solid base)

  • A tool to manage your workflow (Trello, Notion, Asana — pick one and stick with it)

  • Clear folders for every client (keep assets, briefs and comms in one place)

The more you document as you go, the easier it will be to delegate later. And if you’re juggling client work and admin, consider hiring a virtual assistant even a few hours a week — it can free up your time to focus on growth.

Lots of UK agency founders build hybrid teams of part-time contractors and freelancers. Tap into networks like The Dots, LinkedIn or WIA’s member directory to find collaborators.

💡 Process power move: Record quick Loom videos of every repeatable task (e.g., sending proposals). It makes outsourcing effortless later.

Step 5: Get Clients Without Feeling Awkward

Getting clients when you start an agency is all about visibility, credibility, and relationships.

First, tell everyone you know what you’re doing. Former colleagues, your network on LinkedIn, your personal contacts — people can’t refer you if they don’t know what you offer.

Then, build a simple lead generation plan:

  • Attend networking events like Marketing Meetup, Creative Mornings, or WIA events

  • Offer free discovery calls or mini audits

  • Post regularly on LinkedIn with tips, client wins, and insights

  • Ask for referrals

Cold pitching can work if it’s warm — make it personal and lead with value.

Don’t forget your pricing. Undercharging is common, especially for women founders. Do your research. UK consultant day rates range from £250–£1,000+ depending on niche and experience.

💡 Sales mindset shift: Don’t sell a service — sell an outcome. Frame your offer around results, transformation, and value.

networking for agency owners

Step 6: Surround Yourself with Founders Who Understand the Journey

Running an agency can feel lonely — especially when it’s just you. That’s why it’s so important to connect with others who are walking a similar path and can offer insight, perspective, and support.

Joining a network like Women in Agencies can be a game-changer. It gives you access to people who understand your challenges, plus ongoing masterclasses, founder chats, accountability, and collaboration opportunities.

According to the Rose Review by NatWest, 42% of women say that peer networks and mentoring directly impacted their confidence and business growth.

This isn’t just about community for community’s sake — it’s about strategy, shared learning, and support that accelerates your progress.

💡 Game-changer tip: Block out time weekly to check in with your community or mastermind group. Founders who prioritise connection grow faster — and feel less stressed doing it.

Step 7: Make a Plan for Growth (That Works for You)

You don’t need to scale to 100 employees to have a successful agency. Growth looks different for everyone.

Think about what “enough” looks like. Is it £5k/month working 4 days a week? Is it a micro team with retained clients and time to build a product?

Start tracking:

  • Income and profit

  • Capacity

  • Hours worked per client

  • What’s taking up mental bandwidth

Use tools like Clockify or Float to track time and profitability.

Growth is about decisions — when to raise prices, when to hire, when to refine your offer. It gets easier when you’ve got the numbers to back you up.

💡 CEO mindset tip: Create a “monthly CEO day” to review finances, capacity, and goals. Book a nice cafe or co-working space — make it feel like the strategy day your future self will thank you for.

Startup Agency Starter Pack

Want to know how to start an agency, here’s your core checklist to help you launch with clarity and confidence:

  • Accountant: Look for small business specialists like Crunch or ask in founder groups.

  • Website: Use Squarespace or Webflow. Start with one service page and one about page — keep it clear and direct.

  • Marketing Plan: LinkedIn content 3x a week, a monthly newsletter, and one in-person event per month.

  • Community: Join Women in Agencies, Freelance Heroes, or Found & Flourish.

  • Branding: Use Canva for DIY or brief a junior designer via The Dots.

  • Client Workflow: Set up Notion or Trello for project tracking. Add Loom videos for repeatable tasks.

  • Proposal & Invoicing Tools: Bonsai, PandaDoc, or even Google Docs and Stripe to start.

5 Books To Read For Aspiring Creative Agency Founders

Win Without Pitching Manifesto by Blair Enns

This classic is essential for creative professionals who want to take control of the sales process and stop giving away their expertise for free. Blair’s principles are especially powerful if you’re tired of underpricing or over-explaining your value.

Follow Blair: LinkedIn | winwithoutpitching.com

2. Company of One by Paul Jarvis

A refreshing alternative to hustle culture, this book is all about staying small, agile and profitable. Perfect for solo or boutique agency owners who value freedom and simplicity over rapid scaling.

Follow Paul: pjrvs.com | LinkedIn

3. Built to Sell by John Warrillow

Told as a story, this book shows how to build a service business with repeatable processes and real value. Even if selling your agency isn’t the goal, the insights will help you work smarter from the start.

Follow John: builttosell.com | LinkedIn

4. Atomic Habits by James Clear

A practical guide to building better habits and systems that stick. Great for staying consistent and focused as a founder, especially when juggling multiple hats.

Follow James: jamesclear.com | LinkedIn

5. Dare to Lead by Brené Brown

Focused on vulnerability, courage, and trust, this is a brilliant read for anyone stepping into leadership. It’s a powerful toolkit for building team culture and leading with heart — even in high-stakes situations.

Follow Brené: brenebrown.com | LinkedIn

Starting your own business can feel like a leap — and that’s because it is. But it’s also one of the most empowering, creative, and fulfilling things you can do. If you’ve been wondering how to start an agency, the most important thing to remember is this: you don’t need to have it all figured out to begin. You just need to start.

There will be questions. There will be pivots. But there will also be wins, clarity, and confidence that grows every single time you take a step forward.

Surround yourself with people who support your growth. Build systems that protect your time and energy. Lead with your values, not just your services. And don’t forget to celebrate how far you’ve come — even on the messy days.

You’ve got this. And you’re not doing it alone.

If you’re ready to take the next step, join Women in Agencies — a network built for founders like you.

Further Reading

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