{"product_id":"media-buying-startup-costs","title":"US Media Buying Agency Startup Costs: $445K CAPEX Plus $406K Cash","description":"\u003cbr\u003e\u003cdiv class=\"card_smpl\"\u003e\n\u003cp\u003ePlan on \u003cstrong\u003e$44,500\u003c\/strong\u003e in startup CAPEX plus enough cash runway to absorb a \u003cstrong\u003e$324,000\u003c\/strong\u003e Year 1 EBITDA loss and a modeled \u003cstrong\u003e$406,000\u003c\/strong\u003e minimum cash need by Month 26 These are researched planning assumptions, not vendor quotes or guaranteed budgets The opening plan also carries \u003cstrong\u003e$6,150\u003c\/strong\u003e in monthly fixed costs, about \u003cstrong\u003e$28,125\u003c\/strong\u003e in Month 1 payroll, and \u003cstrong\u003e$15,000\u003c\/strong\u003e in Year 1 agency marketing Client ad spend is usually a pass-through or client-funded budget, not owner startup capital, unless the agency prepays media on behalf of clients\u003c\/p\u003e\n\n\n\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\n\n\u003ch2\u003e\u003cspan style=\"color: #126CFF;\"\u003eEstimate Startup Costs with Calculator\u003c\/span\u003e\u003c\/h2\u003e\n\u003csection class=\"fml-capex-calculator\" aria-label=\"Media Buying Agency Startup CAPEX Calculator\" data-locale=\"en-US\" data-currency=\"USD\" data-default-scenario=\"base\" data-export-filename=\"Startup CAPEX calculator.xlsx\" data-source-site-name=\"Financial Models Lab\" data-source-site-url=\"https:\/\/financialmodelslab.com\" data-source-page-title=\"Media Buying Agency Startup CAPEX Calculator\" data-note-title=\"Excluded costs\" data-note-text=\"Excludes monthly SaaS, payroll, contractors, rent, client ad spend, deposits, debt service, inventory, working capital, and the 406000 cash reserve.\"\u003e\u003cdiv class=\"fml-capex-card\"\u003e\n\u003cheader class=\"fml-capex-header\"\u003e\u003cdiv class=\"fml-capex-heading\"\u003e\n\u003cp class=\"fml-capex-eyebrow\"\u003eStartup CAPEX Calculator\u003c\/p\u003e\n\u003cp class=\"fml-capex-intro\"\u003eEstimates capitalized startup assets only, so it covers setup items and leaves out working capital and operating cash needs.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-capex-scenarios\" aria-label=\"Scenario presets\"\u003e\n\u003cbutton class=\"fml-capex-scenario\" type=\"button\" data-scenario=\"lean\"\u003eLean\u003c\/button\u003e\u003cbutton class=\"fml-capex-scenario is-active\" type=\"button\" data-scenario=\"base\"\u003eBase\u003c\/button\u003e\u003cbutton class=\"fml-capex-scenario\" type=\"button\" data-scenario=\"full\"\u003eFull\u003c\/button\u003e\n\u003c\/div\u003e\u003c\/header\u003e\u003cdiv class=\"fml-capex-layout\"\u003e\n\u003cform class=\"fml-capex-inputs\"\u003e\n\u003cdiv class=\"fml-capex-row\"\u003e\n\u003clabel class=\"fml-capex-label\"\u003e\u003cspan\u003eOffice Furniture \u0026amp; Setup\u003c\/span\u003e\u003csmall\u003eDesks, chairs, and office buildout.\u003c\/small\u003e\u003c\/label\u003e\u003cdiv class=\"fml-capex-money\"\u003e\n\u003cspan\u003e$\u003c\/span\u003e\u003cinput data-capex-field=\"office_furniture_setup\" data-capex-kind=\"money\" data-capex-label=\"Office Furniture \u0026amp; Setup\" data-capex-note=\"Desks, chairs, and office buildout.\" data-lean=\"12000\" data-base=\"15000\" data-full=\"18000\" name=\"office_furniture_setup\" type=\"text\" inputmode=\"numeric\" value=\"15,000\"\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-capex-row\"\u003e\n\u003clabel class=\"fml-capex-label\"\u003e\u003cspan\u003eInitial Computer Hardware\u003c\/span\u003e\u003csmall\u003eLaptops, monitors, and core devices.\u003c\/small\u003e\u003c\/label\u003e\u003cdiv class=\"fml-capex-money\"\u003e\n\u003cspan\u003e$\u003c\/span\u003e\u003cinput data-capex-field=\"initial_computer_hardware\" data-capex-kind=\"money\" data-capex-label=\"Initial Computer Hardware\" data-capex-note=\"Laptops, monitors, and core devices.\" data-lean=\"8000\" data-base=\"10000\" data-full=\"12000\" name=\"initial_computer_hardware\" type=\"text\" inputmode=\"numeric\" value=\"10,000\"\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-capex-row\"\u003e\n\u003clabel class=\"fml-capex-label\"\u003e\u003cspan\u003eWebsite Development \u0026amp; Branding\u003c\/span\u003e\u003csmall\u003eSite build, design, and brand setup.\u003c\/small\u003e\u003c\/label\u003e\u003cdiv class=\"fml-capex-money\"\u003e\n\u003cspan\u003e$\u003c\/span\u003e\u003cinput data-capex-field=\"website_development_branding\" data-capex-kind=\"money\" data-capex-label=\"Website Development \u0026amp; Branding\" data-capex-note=\"Site build, design, and brand setup.\" data-lean=\"6000\" data-base=\"8000\" data-full=\"10000\" name=\"website_development_branding\" type=\"text\" inputmode=\"numeric\" value=\"8,000\"\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-capex-row\"\u003e\n\u003clabel class=\"fml-capex-label\"\u003e\u003cspan\u003eCore Software Licenses\u003c\/span\u003e\u003csmall\u003ePerpetual tools used to run delivery.\u003c\/small\u003e\u003c\/label\u003e\u003cdiv class=\"fml-capex-money\"\u003e\n\u003cspan\u003e$\u003c\/span\u003e\u003cinput data-capex-field=\"core_software_licenses\" data-capex-kind=\"money\" data-capex-label=\"Core Software Licenses\" data-capex-note=\"Perpetual tools used to run delivery.\" data-lean=\"4000\" data-base=\"5000\" data-full=\"6000\" name=\"core_software_licenses\" type=\"text\" inputmode=\"numeric\" value=\"5,000\"\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-capex-row\"\u003e\n\u003clabel class=\"fml-capex-label\"\u003e\u003cspan\u003eNetwork Infrastructure Setup\u003c\/span\u003e\u003csmall\u003eRouter, cabling, and office network setup.\u003c\/small\u003e\u003c\/label\u003e\u003cdiv class=\"fml-capex-money\"\u003e\n\u003cspan\u003e$\u003c\/span\u003e\u003cinput data-capex-field=\"network_infrastructure_setup\" data-capex-kind=\"money\" data-capex-label=\"Network Infrastructure Setup\" data-capex-note=\"Router, cabling, and office network setup.\" data-lean=\"2500\" data-base=\"3000\" data-full=\"4000\" name=\"network_infrastructure_setup\" type=\"text\" inputmode=\"numeric\" value=\"3,000\"\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-capex-row\"\u003e\n\u003clabel class=\"fml-capex-label\"\u003e\u003cspan\u003eContingency Reserve\u003c\/span\u003e\u003csmall\u003eCovers setup overruns and small launch changes.\u003c\/small\u003e\u003c\/label\u003e\u003cdiv class=\"fml-capex-percent\"\u003e\n\u003cinput data-capex-field=\"contingency\" data-capex-kind=\"percent\" name=\"contingency\" type=\"range\" min=\"0\" max=\"25\" step=\"1\" data-lean=\"5\" data-base=\"10\" data-full=\"15\" value=\"10\"\u003e\u003coutput data-capex-output=\"contingencyValue\"\u003e10%\u003c\/output\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003c\/form\u003e\n\u003caside class=\"fml-capex-results\" aria-live=\"polite\"\u003e\u003cspan class=\"fml-capex-tag\"\u003eStartup CAPEX\u003c\/span\u003e\u003cdiv class=\"fml-capex-total\"\u003e\n\u003cspan\u003eTotal startup CAPEX\u003c\/span\u003e\u003cstrong data-capex-output=\"totalCapex\"\u003e$45,100\u003c\/strong\u003e\n\u003c\/div\u003e\n\u003cdl class=\"fml-capex-result-list\"\u003e\n\u003cdiv\u003e\n\u003cdt\u003eSubtotal before contingency\u003c\/dt\u003e\n\u003cdd data-capex-output=\"subtotal\"\u003e$41,000\u003c\/dd\u003e\n\u003c\/div\u003e\n\u003cdiv\u003e\n\u003cdt\u003eContingency amount\u003c\/dt\u003e\n\u003cdd data-capex-output=\"contingencyAmount\"\u003e$4,100\u003c\/dd\u003e\n\u003c\/div\u003e\n\u003cdiv\u003e\n\u003cdt\u003eLargest cost driver\u003c\/dt\u003e\n\u003cdd data-capex-output=\"largestDriver\"\u003eOffice Furniture \u0026amp; Setup\u003c\/dd\u003e\n\u003c\/div\u003e\n\u003c\/dl\u003e\n\u003cdiv class=\"fml-capex-chart\" aria-label=\"CAPEX cost category breakdown\"\u003e\n\u003cdiv class=\"fml-capex-bar-row\"\u003e\n\u003cspan\u003eOffice setup\u003c\/span\u003e\u003cdiv\u003e\u003ci data-capex-bar=\"office_furniture_setup\" style=\"--fml-capex-share: 37%;\"\u003e\u003c\/i\u003e\u003c\/div\u003e\n\u003cb data-capex-share=\"office_furniture_setup\"\u003e37%\u003c\/b\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-capex-bar-row\"\u003e\n\u003cspan\u003eHardware\u003c\/span\u003e\u003cdiv\u003e\u003ci data-capex-bar=\"initial_computer_hardware\" style=\"--fml-capex-share: 24%;\"\u003e\u003c\/i\u003e\u003c\/div\u003e\n\u003cb data-capex-share=\"initial_computer_hardware\"\u003e24%\u003c\/b\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-capex-bar-row\"\u003e\n\u003cspan\u003eWebsite\u003c\/span\u003e\u003cdiv\u003e\u003ci data-capex-bar=\"website_development_branding\" style=\"--fml-capex-share: 20%;\"\u003e\u003c\/i\u003e\u003c\/div\u003e\n\u003cb data-capex-share=\"website_development_branding\"\u003e20%\u003c\/b\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-capex-bar-row\"\u003e\n\u003cspan\u003eSoftware\u003c\/span\u003e\u003cdiv\u003e\u003ci data-capex-bar=\"core_software_licenses\" style=\"--fml-capex-share: 12%;\"\u003e\u003c\/i\u003e\u003c\/div\u003e\n\u003cb data-capex-share=\"core_software_licenses\"\u003e12%\u003c\/b\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-capex-bar-row\"\u003e\n\u003cspan\u003eNetwork\u003c\/span\u003e\u003cdiv\u003e\u003ci data-capex-bar=\"network_infrastructure_setup\" style=\"--fml-capex-share: 7%;\"\u003e\u003c\/i\u003e\u003c\/div\u003e\n\u003cb data-capex-share=\"network_infrastructure_setup\"\u003e7%\u003c\/b\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\u003cbutton class=\"fml-capex-export\" type=\"button\" data-capex-export\u003eEXPORT XLSX\u003c\/button\u003e\u003c\/aside\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-capex-note\"\u003e\n\u003cspan class=\"fml-capex-note-icon\" aria-hidden=\"true\"\u003e!\u003c\/span\u003e\u003cp\u003e\u003cstrong\u003eExcluded costs\u003c\/strong\u003e Excludes monthly SaaS, payroll, contractors, rent, client ad spend, deposits, debt service, inventory, working capital, and the 406000 cash reserve.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003c\/section\u003e\u003cbr\u003e\u003cdiv class=\"container_new_design_blog\"\u003e\n\n\u003cdiv class=\"text-section_blog text-2_new_design_blog\"\u003e\n\n\u003cdiv class=\"line_top_blog\"\u003e\u003cbr\u003e\u003c\/div\u003e\n\n\u003ch3\u003e\u003cspan style=\"color: #126CFF;\"\u003eWhat should this screenshot show?\u003c\/span\u003e\u003c\/h3\u003e\n\n\u003cp\u003eThis \u003ca href=\"\/products\/media-buying-financial-model\"\u003eMedia Buying Agency Financial Model Template\u003c\/a\u003e screenshot shows CAPEX with expense categories, launch timing, cost amounts, and depreciation\/amortization; open it and \u003cstrong\u003echeck assumptions\u003c\/strong\u003e.\u003c\/p\u003e\n\n\u003ch4\u003eKey model checks\u003c\/h4\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eCAPEX, Months 1–7\u003c\/li\u003e\n\u003cli\u003eSoftware subscriptions listed\u003c\/li\u003e\n\u003cli\u003eWorking capital tracked\u003c\/li\u003e\n\u003cli\u003e$6.15k fixed overhead\u003c\/li\u003e\n\u003cli\u003e$337.5k payroll, $15k marketing\u003c\/li\u003e\n\u003cli\u003e$406k minimum cash\u003c\/li\u003e\n\u003cli\u003eMonth 27 break-even\u003c\/li\u003e\n\u003cli\u003e40-month payback\u003c\/li\u003e\n\u003cli\u003eEBITDA: -$324k to $436k\u003c\/li\u003e\n\u003c\/ul\u003e\n\n\u003c\/div\u003e\n\n\u003cdiv class=\"image-section_blog image-2_new_design_blog\"\u003e\n\n\u003cdiv class=\"preview-card\" data-preview-src=\"\/cdn\/shop\/files\/media-buying-financial-model-capex-financialmodelslab_354b95e6-9533-43f0-8a8c-e8313a8d3c06.webp\"\u003e\n\u003cimg class=\"preview-img\" width=\"100%\" height=\"auto\" src=\"\/cdn\/shop\/files\/media-buying-financial-model-capex-financialmodelslab_354b95e6-9533-43f0-8a8c-e8313a8d3c06.webp?width=500\" alt=\"Media Buying Agency Financial Model capex inputs letting users customize capital expenditure items, timing and depreciation assumptions for equipment and software - fully customizable, scenario-ready.\"\u003e\n\u003cdiv class=\"preview-overlay\"\u003e\n\u003cbutton class=\"preview-btn\" type=\"button\" style=\"align-items: center; vertical-align: middle; display: inline-flex; justify-content: center; gap: 6px; line-height: 1;\"\u003e\nPREVIEW \u003csvg fill=\"#fff\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" aria-hidden=\"true\" focusable=\"false\" role=\"presentation\" viewbox=\"0 0 448 512\" width=\"14\"\u003e\u003cpath d=\"M416 176V86.63L246.6 256L416 425.4V336c0-8.844 7.156-16 16-16s16 7.156 16 16v128c0 8.844-7.156 16-16 16h-128c-8.844 0-16-7.156-16-16s7.156-16 16-16h89.38L224 278.6L54.63 448H144C152.8 448 160 455.2 160 464S152.8 480 144 480h-128C7.156 480 0 472.8 0 464v-128C0 327.2 7.156 320 16 320S32 327.2 32 336v89.38L201.4 256L32 86.63V176C32 184.8 24.84 192 16 192S0 184.8 0 176v-128C0 39.16 7.156 32 16 32h128C152.8 32 160 39.16 160 48S152.8 64 144 64H54.63L224 233.4L393.4 64H304C295.2 64 288 56.84 288 48S295.2 32 304 32h128C440.8 32 448 39.16 448 48v128C448 184.8 440.8 192 432 192S416 184.8 416 176z\"\u003e\u003c\/path\u003e\u003c\/svg\u003e\n\u003c\/button\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\n\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\n\n\u003ch2\u003e\u003cspan style=\"color: #126CFF;\"\u003eHow much money do I need to start a media buying agency?\u003c\/span\u003e\u003c\/h2\u003e\u003cbr\u003e\n\u003cp\u003eYou need about \u003cstrong\u003e$406,000\u003c\/strong\u003e in minimum cash runway to start a \u003cstrong\u003eMedia Buying Agency\u003c\/strong\u003e and survive to modeled breakeven in \u003cstrong\u003eMonth 27\u003c\/strong\u003e; that includes \u003cstrong\u003e$44,500\u003c\/strong\u003e in CAPEX, meaning startup assets and setup costs. Tie that cash plan to \u003ca href=\"\/blogs\/kpi-metrics\/media-buying\"\u003eWhat Is The Main Goal Of Your Media Buying Agency?\u003c\/a\u003e, because client ad spend should stay separate unless clients prepay it.\u003c\/p\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eStartup cash need\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003e\n\u003cstrong\u003e$44,500\u003c\/strong\u003e setup CAPEX\u003c\/li\u003e\n\u003cli\u003e\n\u003cstrong\u003e$406,000\u003c\/strong\u003e minimum cash by Month 26\u003c\/li\u003e\n\u003cli\u003e\n\u003cstrong\u003e$6,150\u003c\/strong\u003e Month 1 fixed overhead\u003c\/li\u003e\n\u003cli\u003e\n\u003cstrong\u003e$28,125\u003c\/strong\u003e Month 1 payroll\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eRunway math\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003e\n\u003cstrong\u003e$34,275\u003c\/strong\u003e Month 1 overhead plus payroll\u003c\/li\u003e\n\u003cli\u003e\n\u003cstrong\u003e$15,000\u003c\/strong\u003e Year 1 marketing budget\u003c\/li\u003e\n\u003cli\u003e\n\u003cstrong\u003e$1,500\u003c\/strong\u003e modeled CAC\u003c\/li\u003e\n\u003cli\u003e\n\u003cstrong\u003e-$324,000\u003c\/strong\u003e Year 1 EBITDA\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003ch2\u003e\u003cspan style=\"color: #126CFF;\"\u003eDo media buying agencies have to front ad spend?\u003c\/span\u003e\u003c\/h2\u003e\u003cbr\u003e\n\u003cp\u003eIf you’re sizing a \u003cstrong\u003eMedia Buying Agency\u003c\/strong\u003e, client ad spend is usually \u003cstrong\u003enot\u003c\/strong\u003e a startup cost because it’s client-funded or pass-through; for owner-pay context, see \u003ca href=\"\/blogs\/how-much-makes\/media-buying\"\u003eHow Much Does The Owner Of A Media Buying Agency Typically Make?\u003c\/a\u003e. The real risk is cash flow: billing delays, refunds, card limits, platform payment timing, and late collections can force you to float prepaid media, and the model points to a \u003cstrong\u003e$406,000\u003c\/strong\u003e minimum cash need by \u003cstrong\u003eMonth 26\u003c\/strong\u003e, plus \u003cstrong\u003e15%\u003c\/strong\u003e Year 1 payment processing fees and \u003cstrong\u003e27 months\u003c\/strong\u003e to breakeven. Start with \u003cstrong\u003eretainers\u003c\/strong\u003e and clear \u003cstrong\u003einsertion order\u003c\/strong\u003e payment terms before launch.\u003c\/p\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eWhat to fund\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eFund agency setup, not client media.\u003c\/li\u003e\n\u003cli\u003eKeep prepaid media separate.\u003c\/li\u003e\n\u003cli\u003eTrack card and platform limits.\u003c\/li\u003e\n\u003cli\u003eBudget for processing fees.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eHow to cut risk\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eCollect retainers upfront.\u003c\/li\u003e\n\u003cli\u003eUse written insertion orders.\u003c\/li\u003e\n\u003cli\u003eSet short billing terms.\u003c\/li\u003e\n\u003cli\u003eWatch refunds and late pays.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003ch2\u003e\u003cspan style=\"color: #126CFF;\"\u003eWhat software do you need for a media buying agency?\u003c\/span\u003e\u003c\/h2\u003e\u003cbr\u003e\n\u003cp\u003e\u003cstrong\u003eAd platform access is usually free\u003c\/strong\u003e, but a \u003cstrong\u003eMedia Buying Agency\u003c\/strong\u003e still needs paid tools to run the work: CRM, project management, accounting, proposals, file storage, call tracking, creative review, communication, and security. A practical budget uses about \u003cstrong\u003e$300 per month\u003c\/strong\u003e for CRM and project management, \u003cstrong\u003e$200 per month\u003c\/strong\u003e for remote work infrastructure and IT support, and \u003cstrong\u003e$5,000\u003c\/strong\u003e for perpetual core software licenses; keep recurring subscriptions out of CAPEX unless there’s a one-time setup fee.\u003c\/p\u003e\n\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003ePaid operating tools\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003e\n\u003cstrong\u003e$300\/month\u003c\/strong\u003e CRM and project management\u003c\/li\u003e\n\u003cli\u003e\n\u003cstrong\u003e$200\/month\u003c\/strong\u003e remote work and IT support\u003c\/li\u003e\n\u003cli\u003eAccounting, proposals, file storage\u003c\/li\u003e\n\u003cli\u003eCall tracking, creative review, communication, security\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch3\u003eBudget rules\u003c\/h3\u003e\n\u003c\/div\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003e\n\u003cstrong\u003e50%\u003c\/strong\u003e of Year 1 revenue for ad tech licenses\u003c\/li\u003e\n\u003cli\u003e\n\u003cstrong\u003e30%\u003c\/strong\u003e of premium data and research tools\u003c\/li\u003e\n\u003cli\u003e\n\u003cstrong\u003e$5,000\u003c\/strong\u003e for perpetual core software licenses\u003c\/li\u003e\n\u003cli\u003ePut recurring subscriptions in operating expense\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\u003ch2\u003e\u003cspan style=\"color: #126CFF;\"\u003eCalculate Fuding Needs\u003c\/span\u003e\u003c\/h2\u003e\n\u003csection class=\"fml-summary-static\" aria-label=\"Media Buying Agency Startup Cost Summary\" data-locale=\"en-US\" data-currency=\"USD\" data-default-scenario=\"base\" data-export-filename=\"Media Buying Agency Startup Cost Summary.xlsx\" data-site-name=\"Financial Models Lab\" data-site-url=\"https:\/\/financialmodelslab.com\" data-source-title=\"Media Buying Agency Startup Cost Summary\" data-source-url=\"\"\u003e\u003cdiv class=\"fml-summary-static-card\"\u003e\n\u003cheader class=\"fml-summary-static-header\"\u003e\u003cdiv\u003e\n\u003cp class=\"fml-summary-static-eyebrow\"\u003eStartup cost summary\u003c\/p\u003e\n\u003cp class=\"fml-summary-static-description\"\u003eShows startup CAPEX and excluded cash needs for a media buying agency.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-summary-static-actions\"\u003e\n\u003cdiv class=\"fml-summary-static-scenarios\" aria-label=\"Highlight scenario\"\u003e\n\u003cbutton class=\"fml-summary-static-scenario\" type=\"button\" data-scenario=\"low\"\u003eLow\u003c\/button\u003e\u003cbutton class=\"fml-summary-static-scenario is-active\" type=\"button\" data-scenario=\"base\"\u003eBase\u003c\/button\u003e\u003cbutton class=\"fml-summary-static-scenario\" type=\"button\" data-scenario=\"high\"\u003eHigh\u003c\/button\u003e\n\u003c\/div\u003e\n\u003cbutton class=\"fml-summary-static-export\" type=\"button\" data-summary-export\u003eEXPORT XLSX\u003c\/button\u003e\n\u003c\/div\u003e\u003c\/header\u003e\u003csection class=\"fml-summary-static-metrics\" aria-live=\"polite\"\u003e\u003cdiv class=\"fml-summary-static-metric is-primary\"\u003e\n\u003cspan\u003eHighlighted CAPEX\u003c\/span\u003e\u003cstrong data-summary-metric=\"capex\"\u003e$44,500\u003c\/strong\u003e\u003csmall data-summary-metric=\"scenario\"\u003eBase planning example\u003c\/small\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-summary-static-metric is-warning\"\u003e\n\u003cspan\u003eExcluded cash needs\u003c\/span\u003e\u003cstrong data-summary-metric=\"working\"\u003e$406,000\u003c\/strong\u003e\u003csmall\u003eOutside CAPEX total\u003c\/small\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-summary-static-metric\"\u003e\n\u003cspan\u003eFunding need\u003c\/span\u003e\u003cstrong data-summary-metric=\"funding\"\u003e$450,500\u003c\/strong\u003e\u003csmall\u003eCAPEX + excluded cash needs\u003c\/small\u003e\n\u003c\/div\u003e\u003c\/section\u003e\u003cdiv class=\"fml-summary-static-table-wrap\"\u003e\u003ctable class=\"fml-summary-static-table\"\u003e\n\u003cthead\u003e\u003ctr\u003e\n\u003cth scope=\"col\"\u003eCost Category\u003c\/th\u003e\n\u003cth scope=\"col\" class=\"fml-summary-static-estimate-header\" data-summary-estimate-header\u003eBase Estimate\u003c\/th\u003e\n\u003cth scope=\"col\"\u003eMain Cost Driver\u003c\/th\u003e\n\u003cth scope=\"col\"\u003eCAPEX Calculator\u003c\/th\u003e\n\u003c\/tr\u003e\u003c\/thead\u003e\n\u003ctbody\u003e\n\u003ctr data-summary-row data-low=\"12000\" data-base=\"15000\" data-high=\"18000\" data-capex=\"true\"\u003e\n\u003ctd\u003eOffice Furniture \u0026amp; Setup\u003c\/td\u003e\n\u003ctd class=\"fml-summary-static-estimate\" data-summary-value\u003e$15,000\u003c\/td\u003e\n\u003ctd class=\"fml-summary-static-driver\"\u003eDesks, chairs, storage, and office setup scope\u003c\/td\u003e\n\u003ctd\u003e\u003cspan class=\"fml-summary-static-pill\"\u003eYes\u003c\/span\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr data-summary-row data-low=\"13000\" data-base=\"15000\" data-high=\"18000\" data-capex=\"true\"\u003e\n\u003ctd\u003eTech Stack, Hardware \u0026amp; Network Setup\u003c\/td\u003e\n\u003ctd class=\"fml-summary-static-estimate\" data-summary-value\u003e$15,000\u003c\/td\u003e\n\u003ctd class=\"fml-summary-static-driver\"\u003eComputers, network gear, and security setup\u003c\/td\u003e\n\u003ctd\u003e\u003cspan class=\"fml-summary-static-pill\"\u003eYes\u003c\/span\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr data-summary-row data-low=\"6000\" data-base=\"8000\" data-high=\"10000\" data-capex=\"true\"\u003e\n\u003ctd\u003eWebsite Development \u0026amp; Branding\u003c\/td\u003e\n\u003ctd class=\"fml-summary-static-estimate\" data-summary-value\u003e$8,000\u003c\/td\u003e\n\u003ctd class=\"fml-summary-static-driver\"\u003eSite build, brand assets, and launch presence\u003c\/td\u003e\n\u003ctd\u003e\u003cspan class=\"fml-summary-static-pill\"\u003eYes\u003c\/span\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr data-summary-row data-low=\"4000\" data-base=\"5000\" data-high=\"6500\" data-capex=\"true\"\u003e\n\u003ctd\u003eCore Software Licenses (Perpetual)\u003c\/td\u003e\n\u003ctd class=\"fml-summary-static-estimate\" data-summary-value\u003e$5,000\u003c\/td\u003e\n\u003ctd class=\"fml-summary-static-driver\"\u003eOne-time licenses for core operating tools\u003c\/td\u003e\n\u003ctd\u003e\u003cspan class=\"fml-summary-static-pill\"\u003eYes\u003c\/span\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr data-summary-row data-low=\"1000\" data-base=\"1500\" data-high=\"2500\" data-capex=\"true\"\u003e\n\u003ctd\u003eInitial Marketing Collateral Design\u003c\/td\u003e\n\u003ctd class=\"fml-summary-static-estimate\" data-summary-value\u003e$1,500\u003c\/td\u003e\n\u003ctd class=\"fml-summary-static-driver\"\u003ePitch decks, sales sheets, and launch assets\u003c\/td\u003e\n\u003ctd\u003e\u003cspan class=\"fml-summary-static-pill\"\u003eYes\u003c\/span\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr class=\"is-excluded\" data-summary-row data-low=\"337500\" data-base=\"406000\" data-high=\"426300\" data-capex=\"false\"\u003e\n\u003ctd\u003eMinimum Cash Reserve\u003c\/td\u003e\n\u003ctd class=\"fml-summary-static-estimate\" data-summary-value\u003e$406,000\u003c\/td\u003e\n\u003ctd class=\"fml-summary-static-driver\"\u003eYear 1 payroll, fixed overhead, launch marketing, and month-26 breakeven gap\u003c\/td\u003e\n\u003ctd\u003e\u003cspan class=\"fml-summary-static-pill is-no\"\u003eNo\u003c\/span\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003c\/tbody\u003e\n\u003c\/table\u003e\u003c\/div\u003e\n\u003cfooter class=\"fml-summary-static-note\"\u003e\u003cspan class=\"fml-summary-static-note-icon\" aria-hidden=\"true\"\u003e!\u003c\/span\u003e\u003cp\u003e\u003cstrong\u003ePlanning note:\u003c\/strong\u003e Ranges are planning assumptions; client ad spend stays excluded unless prepaid.\u003c\/p\u003e\u003c\/footer\u003e\n\u003c\/div\u003e\u003c\/section\u003e\u003cbr\u003e\n\n\u003ch2\u003e\u003cspan style=\"color: #126CFF;\"\u003eMedia Buying Agency Core Five Startup Costs\u003c\/span\u003e\u003c\/h2\u003e\u003cbr\u003e\u003cbr\u003e\n\u003ch3\u003e\u003cspan style=\"color: #126CFF;\"\u003eLegal, Formation, Contracts, and Insurance Startup Expense\u003c\/span\u003e\u003c\/h3\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch4\u003eLegal setup\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cp\u003eFor a media buying agency, core legal and insurance spend starts at \u003cstrong\u003e$800\/month\u003c\/strong\u003e for accounting and legal services plus \u003cstrong\u003e$250\/month\u003c\/strong\u003e for general business insurance. Add one-time fields for state filing, attorney setup, \u003cstrong\u003eerrors and omissions\u003c\/strong\u003e coverage, and \u003cstrong\u003ecyber\u003c\/strong\u003e coverage, since those costs are not included in the recurring figures.\u003c\/p\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-tips-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch4\u003eWhat it covers\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cp\u003eUse this budget for entity formation, CPA setup, attorney review, \u003cstrong\u003eMSA\u003c\/strong\u003e terms, \u003cstrong\u003eIO\u003c\/strong\u003e terms, privacy clauses, and reporting disclaimers. The estimate needs a one-time state filing fee, attorney setup fee, months of support, and insurance quotes. Keep \u003cstrong\u003eprofessional liability\u003c\/strong\u003e, \u003cstrong\u003ecyber liability\u003c\/strong\u003e, and general liability in the model.\u003c\/p\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eState filing: one-time input\u003c\/li\u003e\n\u003cli\u003eAttorney setup: one-time input\u003c\/li\u003e\n\u003cli\u003eCoverage: E\u0026amp;O and cyber quotes\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch4\u003eKeep it lean\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cp\u003eKeep spend tight by using one CPA and one attorney, then updating standard templates instead of redrafting every deal. Don’t cut review on budget, data, or performance clauses. The monthly base stays at \u003cstrong\u003e$1,050\u003c\/strong\u003e, but the real risk is a bad contract that creates disputes after client spend has already started.\u003c\/p\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eStandardize MSA and IO templates\u003c\/li\u003e\n\u003cli\u003eReview privacy and disclaimers once\u003c\/li\u003e\n\u003cli\u003eShop insurance before renewal\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"card_smpl\"\u003e\u003cdiv class=\"double_border\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-pin-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch4\u003e\u003cspan style=\"color: #ffffff;\"\u003eWhy it matters\u003c\/span\u003e\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cp\u003eThis isn’t just admin. The agency handles client budgets, campaign data, reporting claims, and performance expectations, so contract quality is a control point. If the \u003cstrong\u003eMSA\u003c\/strong\u003e, \u003cstrong\u003eIO\u003c\/strong\u003e, or reporting disclaimer is weak, even a small fee can turn into a dispute. Budget legal review before the first client signs.\u003c\/p\u003e\n\u003c\/div\u003e\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\u003ch3\u003e\u003cspan style=\"color: #126CFF;\"\u003ePaid Media Agency Tech Stack Startup Expense\u003c\/span\u003e\u003c\/h3\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch4\u003eTech Stack Spend\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cp\u003eA media buying agency needs reporting, analytics, CRM, project tracking, proposals, file storage, call tracking, client chat, and IT support. Here’s the key split: \u003cstrong\u003erecurring subscriptions\u003c\/strong\u003e hit operating expense, while \u003cstrong\u003eone-time setup\u003c\/strong\u003e or perpetual licenses can be \u003cstrong\u003eCAPEX\u003c\/strong\u003e. Budget drivers are seats, client count, and coverage months.\u003c\/p\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-tips-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch4\u003eCost Build\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cp\u003eUse \u003cstrong\u003e$300 per month\u003c\/strong\u003e for CRM and project management, \u003cstrong\u003e$200 per month\u003c\/strong\u003e for remote work infrastructure and IT support, and \u003cstrong\u003e$5,000\u003c\/strong\u003e for core software licenses. Add \u003cstrong\u003e50% of Year 1 revenue\u003c\/strong\u003e for ad tech platform licenses per client and \u003cstrong\u003e30%\u003c\/strong\u003e of premium data and research tools. Estimate it from seats, months of use, and client revenue.\u003c\/p\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eCount each paid seat\u003c\/li\u003e\n\u003cli\u003ePrice by month used\u003c\/li\u003e\n\u003cli\u003eSeparate setup from subscriptions\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl_2\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch4\u003eKeep It Lean\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cp\u003eCut waste by delaying premium tools until client billing starts, then buy only the connectors that support live reporting. The trap is stacking duplicate apps for chat, files, and tasking. One clean stack lowers admin time and keeps recurring spend in \u003cstrong\u003eopex\u003c\/strong\u003e instead of bloating upfront setup.\u003c\/p\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eStart with core tools only\u003c\/li\u003e\n\u003cli\u003eUse one reporting source\u003c\/li\u003e\n\u003cli\u003eReview seats every month\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"card_smpl\"\u003e\u003cdiv class=\"double_border\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-pin-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch4\u003e\u003cspan style=\"color: #ffffff;\"\u003eBudget Rule\u003c\/span\u003e\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cp\u003eFor this startup, recurring software is the working cost you carry every month, so build it into your runway. Treat implementation fees and any perpetual licenses as startup investment, then track them separately from monthly burn. That keeps margin math clean when client count and platform licenses start rising.\u003c\/p\u003e\n\u003c\/div\u003e\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\u003ch3\u003e\u003cspan style=\"color: #126CFF;\"\u003eWebsite, Brand, Sales Assets, and Launch Marketing Startup Expense\u003c\/span\u003e\u003c\/h3\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch4\u003eLaunch Stack\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cp\u003eKeep agency self-promotion separate from client campaigns. This budget covers the domain, website, landing pages, pitch deck, proposal assets, case study design, positioning, outbound tools, founder networking, and first lead gen. Use \u003cstrong\u003e$8,000\u003c\/strong\u003e for website and branding and \u003cstrong\u003e$1,500\u003c\/strong\u003e for collateral design. Trust comes first; performance claims come later.\u003c\/p\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl_2\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-tips-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch4\u003eYear 1 Spend\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cp\u003eThe launch marketing line is \u003cstrong\u003e$15,000\u003c\/strong\u003e for Year 1 marketing. Here’s the quick math: \u003cstrong\u003e$15,000\u003c\/strong\u003e divided by \u003cstrong\u003e$1,500 CAC\u003c\/strong\u003e implies \u003cstrong\u003e10\u003c\/strong\u003e planned customer acquisitions if the assumption holds. Keep this spend for outreach and demand creation, not client media buys, so the budget stays clean.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch4\u003eTrust First\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cp\u003eSales assets should prove fit before they promise results. Use the pitch deck, proposal, and case study design to show process, scope, and pricing in plain language. If a tactic does not support one of the \u003cstrong\u003e10\u003c\/strong\u003e expected wins, cut it. That keeps the startup budget tied to conversion, not vanity design.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"card_smpl\"\u003e\u003cdiv class=\"double_border\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-pin-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch4\u003e\u003cspan style=\"color: #ffffff;\"\u003eTrack Separately\u003c\/span\u003e\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cp\u003eTrack agency brand spend and client delivery spend on different lines. That means your \u003cstrong\u003e$8,000\u003c\/strong\u003e website build, \u003cstrong\u003e$1,500\u003c\/strong\u003e collateral design, and \u003cstrong\u003e$15,000\u003c\/strong\u003e Year 1 marketing stay outside client campaign budgets, so CAC, proposal flow, and founder networking can be measured without mixing in media spend.\u003c\/p\u003e\n\u003c\/div\u003e\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\u003ch3\u003e\u003cspan style=\"color: #126CFF;\"\u003eStaffing Readiness and Pre-Revenue Labor Startup Expense\u003c\/span\u003e\u003c\/h3\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch4\u003ePayroll Base\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cp\u003ePlan for pre-opening hiring, onboarding, deposits, training, certifications, and initial contractor retainers before revenue starts. With \u003cstrong\u003e$150,000\u003c\/strong\u003e for a CEO or Lead Strategist, \u003cstrong\u003e$90,000\u003c\/strong\u003e for a Senior Media Buyer, \u003cstrong\u003e$75,000\u003c\/strong\u003e for an Account Manager, and \u003cstrong\u003e$22,500\u003c\/strong\u003e for a 0.5 FTE Admin Assistant, Year 1 payroll is \u003cstrong\u003e$337,500\u003c\/strong\u003e.\u003c\/p\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-tips-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch4\u003eWhat It Covers\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cp\u003eThis cost is the labor base for strategy, media buying, client service, and admin support. Here’s the quick math: \u003cstrong\u003e$337,500\u003c\/strong\u003e divided by 12 equals about \u003cstrong\u003e$28,125\u003c\/strong\u003e per month before taxes or benefits. Use role start dates and contractor quotes to build the model. One delayed hire changes cash burn fast.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl_2\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch4\u003eManage Timing\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cp\u003eKeep fixed payroll lean until retainer revenue lands. Stage hires, use contractors for short gaps, and delay non-critical certifications until client work is signed. The main mistake is hiring all roles at once, then waiting on sales. A 1 to 2 month cash buffer matters more than a small salary save.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"card_smpl\"\u003e\u003cdiv class=\"double_border\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-pin-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch4\u003e\u003cspan style=\"color: #ffffff;\"\u003eCash Gap Risk\u003c\/span\u003e\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cp\u003eOnboarding risk is real because labor and software costs can start before retainers. If Month 1 payroll is about \u003cstrong\u003e$28,125\u003c\/strong\u003e, a slow close cycle can strain working capital fast. Build in pay dates, setup time, and pre-launch retainers so the agency does not fund client ramp from the bank account alone.\u003c\/p\u003e\n\u003c\/div\u003e\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\u003ch3\u003e\u003cspan style=\"color: #126CFF;\"\u003eEquipment, Workspace, and Remote Office Startup Expense\u003c\/span\u003e\u003c\/h3\u003e\u003cbr\u003e\n\u003cdiv class=\"card_smpl blue_card\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-colons-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch4\u003eStartup setup cost\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cp\u003e\u003cstrong\u003eEquipment\u003c\/strong\u003e and office setup are \u003cstrong\u003eCAPEX\u003c\/strong\u003e, not monthly spend. Use \u003cstrong\u003e$15,000\u003c\/strong\u003e for furniture and setup, \u003cstrong\u003e$10,000\u003c\/strong\u003e for computer hardware, \u003cstrong\u003e$3,000\u003c\/strong\u003e for network gear, and \u003cstrong\u003e$2,000\u003c\/strong\u003e for security systems. For a media buying agency, that covers workstations, monitors, webcams, headsets, storage, and secure access.\u003c\/p\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"container_2_clmn_row\"\u003e\n\u003cdiv class=\"card_smpl_2\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-tips-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch4\u003ePrice the office\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cp\u003e\u003cstrong\u003eRent and utilities\u003c\/strong\u003e are operating costs. Budget \u003cstrong\u003e$3,500\u003c\/strong\u003e for office rent, \u003cstrong\u003e$500\u003c\/strong\u003e for utilities and internet, and \u003cstrong\u003e$200\u003c\/strong\u003e for supplies and maintenance, or about \u003cstrong\u003e$4,200\u003c\/strong\u003e a month. Here’s the quick math: if the team sits in a physical office, that burn starts on day one, before client billings ramp.\u003c\/p\u003e\n\u003cul class=\"lst_crct_blog\"\u003e\n\u003cli\u003eUse months of coverage.\u003c\/li\u003e\n\u003cli\u003eGet rent quotes early.\u003c\/li\u003e\n\u003cli\u003eTrack internet upgrade needs.\u003c\/li\u003e\n\u003c\/ul\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"card_smpl\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-intro-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch4\u003eGo lean remotely\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cp\u003eA \u003cstrong\u003eremote launch\u003c\/strong\u003e can cut office-heavy costs, but it does not remove \u003cstrong\u003ehardware, security, or IT\u003c\/strong\u003e needs. Keep the same controls for devices, secure storage, and network access. The mistake is assuming home offices need no setup; in practice, the risk shifts from rent to data protection and uptime.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003cbr\u003e\u003cdiv class=\"card_smpl\"\u003e\u003cdiv class=\"double_border\"\u003e\n\u003cdiv class=\"card_smpl_header\"\u003e\n\u003cimg src=\"\/cdn\/shop\/files\/fml_20_fml-Orange-blog-pin-icon.svg\" alt=\"Icon\" class=\"icon_how_to_use\"\u003e\u003ch4\u003e\u003cspan style=\"color: #ffffff;\"\u003eBudget split\u003c\/span\u003e\u003c\/h4\u003e\n\u003c\/div\u003e\n\u003cp\u003eFor launch planning, separate one-time buildout from monthly burn. In this model, \u003cstrong\u003e$30,000\u003c\/strong\u003e of CAPEX buys the base setup, while recurring office costs run \u003cstrong\u003e$4,200\u003c\/strong\u003e a month if you lease space. That split matters because cash gets tied up upfront, then keeps leaving the business each month.\u003c\/p\u003e\n\u003c\/div\u003e\u003c\/div\u003e\u003cbr\u003e\u003cbr\u003e\u003ch2\u003e\u003cspan style=\"color: #126CFF;\"\u003eCompare 3 Startup Cost Scenarios\u003c\/span\u003e\u003c\/h2\u003e\n\u003csection class=\"fml-scenario-table\" aria-label=\"Media Buying Agency Startup Cost Scenarios\" data-site-name=\"Financial Models Lab\" data-site-url=\"https:\/\/financialmodelslab.com\" data-source-title=\"Media Buying Agency Startup Cost Scenarios\" data-note-label=\"Planning note\" data-note-text=\"These s\ncenario ranges are researched planning assumptions, not exact quotes or guaranteed outcomes.\"\u003e\u003cdiv class=\"fml-scenario-table-card\"\u003e\n\u003cheader class=\"fml-scenario-table-header\"\u003e\u003cdiv\u003e\n\u003cp class=\"fml-scenario-table-eyebrow\"\u003eStartup cost scenarios\u003c\/p\u003e\n\u003cp class=\"fml-scenario-table-description\"\u003eMedia buying can start lean with remote tools, scale to a staffed base plan, or expand into an office-led team. Each step raises cash needs through payroll, setup, and launch spend.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003cdiv class=\"fml-scenario-table-actions\"\u003e\u003cbutton class=\"fml-scenario-table-export\" type=\"button\" data-scenario-export\u003eEXPORT XLSX\u003c\/button\u003e\u003c\/div\u003e\u003c\/header\u003e\u003cdiv class=\"fml-scenario-table-wrap\"\u003e\u003ctable class=\"fml-scenario-table-grid\"\u003e\n\u003ccaption\u003eLean, Base, and Full launch options for a media buying agency.\u003c\/caption\u003e\n\u003cthead\u003e\u003ctr\u003e\n\u003cth class=\"fml-scenario-table-stub\" scope=\"col\" data-export-value=\"Scenario\"\u003eScenario\u003c\/th\u003e\n\u003cth class=\"fml-scenario-table-column\" scope=\"col\" data-export-value=\"Lean Launch\"\u003e\n\u003cspan class=\"fml-scenario-column-title\"\u003eLean Launch\u003c\/span\u003e\u003cspan class=\"fml-scenario-badge is-soft\"\u003eSolo consultant\u003c\/span\u003e\n\u003c\/th\u003e\n\u003cth class=\"fml-scenario-table-column\" scope=\"col\" data-export-value=\"Base Launch\"\u003e\n\u003cspan class=\"fml-scenario-column-title\"\u003eBase Launch\u003c\/span\u003e\u003cspan class=\"fml-scenario-badge is-soft\"\u003eBoutique agency\u003c\/span\u003e\n\u003c\/th\u003e\n\u003cth class=\"fml-scenario-table-column\" scope=\"col\" data-export-value=\"Full Launch\"\u003e\n\u003cspan class=\"fml-scenario-column-title\"\u003eFull Launch\u003c\/span\u003e\u003cspan class=\"fml-scenario-badge is-warning\"\u003eOffice-led team\u003c\/span\u003e\n\u003c\/th\u003e\n\u003c\/tr\u003e\u003c\/thead\u003e\n\u003ctbody\u003e\n\u003ctr data-scenario-row\u003e\n\u003cth class=\"fml-scenario-row-heading\" scope=\"row\" data-export-value=\"Launch model\"\u003e\u003cspan class=\"fml-scenario-row-heading-inner\"\u003e\u003cspan class=\"fml-scenario-row-icon is-launch\" aria-hidden=\"true\"\u003e\u003cimg class=\"fml-scenario-row-icon-img\" src=\"\/cdn\/shop\/files\/scenario-launch-model.svg\" alt=\"\" loading=\"lazy\"\u003e\u003c\/span\u003e\u003cspan\u003e\u003cspan class=\"fml-scenario-row-title\"\u003eLaunch model\u003c\/span\u003e\u003c\/span\u003e\u003c\/span\u003e\u003c\/th\u003e\n\u003ctd data-export-value=\"Run remote-first with a small core tool stack and only the assets needed to start serving clients.\"\u003eRun remote-first with a small core tool stack and only the assets needed to start serving clients.\u003c\/td\u003e\n\u003ctd data-export-value=\"Follow the researched operating plan with a staffed launch, steady overhead, and a clear growth path.\"\u003eFollow the researched operating plan with a staffed launch, steady overhead, and a clear growth path.\u003c\/td\u003e\n\u003ctd data-export-value=\"Keep the base plan and layer in deeper staffing, a fuller office build-out, higher launch marketing, and prepaid client media exposure.\"\u003eKeep the base plan and layer in deeper staffing, a fuller office build-out, higher launch marketing, and prepaid client media exposure.\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr data-scenario-row\u003e\n\u003cth class=\"fml-scenario-row-heading\" scope=\"row\" data-export-value=\"Typical setup\"\u003e\u003cspan class=\"fml-scenario-row-heading-inner\"\u003e\u003cspan class=\"fml-scenario-row-icon is-setup\" aria-hidden=\"true\"\u003e\u003cimg class=\"fml-scenario-row-icon-img\" src=\"\/cdn\/shop\/files\/scenario-typical-setup.svg\" alt=\"\" loading=\"lazy\"\u003e\u003c\/span\u003e\u003cspan\u003e\u003cspan class=\"fml-scenario-row-title\"\u003eTypical setup\u003c\/span\u003e\u003c\/span\u003e\u003c\/span\u003e\u003c\/th\u003e\n\u003ctd data-export-value=\"Use the $10,000 hardware, $8,000 website and branding, $5,000 core software, and $1,500 collateral; treat office furniture and security as optional.\"\u003eUse the $10,000 hardware, $8,000 website and branding, $5,000 core software, and $1,500 collateral; treat office furniture and security as optional.\u003c\/td\u003e\n\u003ctd data-export-value=\"Use the $44,500 CAPEX plan, $6,150 monthly fixed overhead, $15,000 Year 1 marketing, and $337,500 Year 1 payroll.\"\u003eUse the $44,500 CAPEX plan, $6,150 monthly fixed overhead, $15,000 Year 1 marketing, and $337,500 Year 1 payroll.\u003c\/td\u003e\n\u003ctd data-export-value=\"Start with the base plan, then add user-entered staffing, office fit-out, larger launch spend, and upfront media budget for client campaigns.\"\u003eStart with the base plan, then add user-entered staffing, office fit-out, larger launch spend, and upfront media budget for client campaigns.\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr data-scenario-row\u003e\n\u003cth class=\"fml-scenario-row-heading\" scope=\"row\" data-export-value=\"Cost drivers\"\u003e\u003cspan class=\"fml-scenario-row-heading-inner\"\u003e\u003cspan class=\"fml-scenario-row-icon is-drivers\" aria-hidden=\"true\"\u003e\u003cimg class=\"fml-scenario-row-icon-img\" src=\"\/cdn\/shop\/files\/scenario-cost-drivers.svg\" alt=\"\" loading=\"lazy\"\u003e\u003c\/span\u003e\u003cspan\u003e\u003cspan class=\"fml-scenario-row-title\"\u003eCost drivers\u003c\/span\u003e\u003c\/span\u003e\u003c\/span\u003e\u003c\/th\u003e\n\u003ctd data-export-value=\"Hardware; website and branding; core software; collateral; optional office items\"\u003e\u003cul class=\"fml-scenario-list\"\u003e\n\u003cli\u003eHardware\u003c\/li\u003e\n\u003cli\u003ewebsite and branding\u003c\/li\u003e\n\u003cli\u003ecore software\u003c\/li\u003e\n\u003cli\u003ecollateral\u003c\/li\u003e\n\u003cli\u003eoptional office items\u003c\/li\u003e\n\u003c\/ul\u003e\u003c\/td\u003e\n\u003ctd data-export-value=\"CAPEX; payroll; fixed overhead; launch marketing; core software and tools\"\u003e\u003cul class=\"fml-scenario-list\"\u003e\n\u003cli\u003eCAPEX\u003c\/li\u003e\n\u003cli\u003epayroll\u003c\/li\u003e\n\u003cli\u003efixed overhead\u003c\/li\u003e\n\u003cli\u003elaunch marketing\u003c\/li\u003e\n\u003cli\u003ecore software and tools\u003c\/li\u003e\n\u003c\/ul\u003e\u003c\/td\u003e\n\u003ctd data-export-value=\"Deeper staffing; office build-out; higher launch marketing; prepaid client media; expanded tools\"\u003e\u003cul class=\"fml-scenario-list\"\u003e\n\u003cli\u003eDeeper staffing\u003c\/li\u003e\n\u003cli\u003eoffice build-out\u003c\/li\u003e\n\u003cli\u003ehigher launch marketing\u003c\/li\u003e\n\u003cli\u003eprepaid client media\u003c\/li\u003e\n\u003cli\u003eexpanded tools\u003c\/li\u003e\n\u003c\/ul\u003e\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr data-scenario-row\u003e\n\u003cth class=\"fml-scenario-row-heading\" scope=\"row\" data-export-value=\"Planning range\"\u003e\u003cspan class=\"fml-scenario-row-heading-inner\"\u003e\u003cspan class=\"fml-scenario-row-icon is-range\" aria-hidden=\"true\"\u003e\u003cimg class=\"fml-scenario-row-icon-img\" src=\"\/cdn\/shop\/files\/scenario-planning-range.svg\" alt=\"\" loading=\"lazy\"\u003e\u003c\/span\u003e\u003cspan\u003e\u003cspan class=\"fml-scenario-row-title\"\u003ePlanning range\u003c\/span\u003e\u003cspan class=\"fml-scenario-row-subtitle\"\u003eCAPEX only\u003c\/span\u003e\u003c\/span\u003e\u003c\/span\u003e\u003c\/th\u003e\n\u003ctd data-export-value=\"$24,500 - $41,500\"\u003e\n\u003cstrong class=\"fml-scenario-range\"\u003e$24,500 - $41,500\u003c\/strong\u003e\u003cspan class=\"fml-scenario-badge is-soft\"\u003eLowest cash\u003c\/span\u003e\n\u003c\/td\u003e\n\u003ctd data-export-value=\"$44,500\"\u003e\n\u003cstrong class=\"fml-scenario-range\"\u003e$44,500\u003c\/strong\u003e\u003cspan class=\"fml-scenario-badge is-soft\"\u003eMid-range cash\u003c\/span\u003e\n\u003c\/td\u003e\n\u003ctd data-export-value=\"$44,500+\"\u003e\n\u003cstrong class=\"fml-scenario-range\"\u003e$44,500+\u003c\/strong\u003e\u003cspan class=\"fml-scenario-badge is-warning\"\u003eHighest cash\u003c\/span\u003e\n\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003ctr data-scenario-row\u003e\n\u003cth class=\"fml-scenario-row-heading\" scope=\"row\" data-export-value=\"Best fit\"\u003e\u003cspan class=\"fml-scenario-row-heading-inner\"\u003e\u003cspan class=\"fml-scenario-row-icon is-fit\" aria-hidden=\"true\"\u003e\u003cimg class=\"fml-scenario-row-icon-img\" src=\"\/cdn\/shop\/files\/scenario-best-fit.svg\" alt=\"\" loading=\"lazy\"\u003e\u003c\/span\u003e\u003cspan\u003e\u003cspan class=\"fml-scenario-row-title\"\u003eBest fit\u003c\/span\u003e\u003c\/span\u003e\u003c\/span\u003e\u003c\/th\u003e\n\u003ctd data-export-value=\"Best for a solo operator who wants to test demand before taking on a full office commitment.\"\u003eBest for a solo operator who wants to test demand before taking on a full office commitment.\u003c\/td\u003e\n\u003ctd data-export-value=\"Best for founders building a small agency with enough staff to manage clients and delivery at the same time.\"\u003eBest for founders building a small agency with enough staff to manage clients and delivery at the same time.\u003c\/td\u003e\n\u003ctd data-export-value=\"Best for teams that want a more visible launch and have funding for heavier upfront operating and client delivery needs.\"\u003eBest for teams that want a more visible launch and have funding for heavier upfront operating and client delivery needs.\u003c\/td\u003e\n\u003c\/tr\u003e\n\u003c\/tbody\u003e\n\u003c\/table\u003e\u003c\/div\u003e\n\u003cdiv class=\"fml-scenario-table-note\"\u003e\n\u003cspan class=\"fml-scenario-table-note-icon\" aria-hidden=\"true\"\u003e!\u003c\/span\u003e\u003cp\u003e\u003cstrong\u003ePlanning note:\u003c\/strong\u003e These scenario ranges are researched planning assumptions, not exact quotes or guaranteed outcomes.\u003c\/p\u003e\n\u003c\/div\u003e\n\u003c\/div\u003e\u003c\/section\u003e","brand":"FinancialModelsLab","offers":[{"title":"Default Title","offer_id":49304169873651,"sku":"media-buying-startup-costs","price":0.0,"currency_code":"USD","in_stock":true}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/0522\/6191\/2762\/files\/media-buying-startup-costs.webp?v=1782686631","url":"https:\/\/financialmodelslab.com\/products\/media-buying-startup-costs","provider":"Financial Models Lab","version":"1.0","type":"link"}