Business plan billboards. How to make money on outdoor advertising - city format

First things first:

• What success have I achieved by starting an advertising business from scratch?
• Under what conditions did I start the advertising business and why the advertising business?

You can read about the successes I have achieved by starting from scratch and creating an advertising agency

But I will tell you in more detail in this article why I started my business by creating an advertising agency, without a penny to my name, and after a few years turned my undertaking into a business empire.

It all started from scratch. By chance (global downsizing and bankruptcy of the large enterprise where I worked at that moment), I was left without a job and practically without a means of subsistence for my entire family, which at that time consisted of three people.

I did not have time to make any financial reserves, since literally six months before these events I purchased a new apartment, into which I not only invested all my money, but also borrowed a significant amount from relatives.

How to open an advertising agency from scratch?

So, at the time of creating my first business, I had the following:

• Complete lack of work and complete lack of opportunity to get a job in your specialty;
• A complete lack of free financial resources to start any of your own business, literally - not a penny to your name;
• Large debts to relatives, which I undertook to pay off within the next two years. And I’ll tell you this - it wasn’t the sheep who coughed;
• A complete lack of any business experience and a complete lack of understanding of what it is - the advertising business, what the main types of outdoor advertising are, the cost of placing outdoor advertising, etc. and so on.

What could I do in this situation and in the presence of such “attractive” assets?

There was only one thing left: to do something and somehow mouse

I began to think and analyze my capabilities and talents. It was quickly revealed that I didn’t have any special talents at all. The most ordinary person.

The only thing I could remember, and what warmed my soul at least a little, was that at school I was the editor of a wall newspaper. For some reason, someone decided that I could and did draw.

Looking ahead, I must admit that this opinion was and remains complete stupidity and nonsense. I didn’t know how to draw, I still don’t know how. But it was these memories that played a key role in my choice and in my future fate.

For some reason I thought that since I once knew how to make a wall newspaper, I could draw some kind of poster.

Where can the poster I drew be used?

At the same time, I had absolutely no understanding of materials for the production of outdoor advertising, and what equipment currently exists and is used on the market for the production of outdoor advertising.

By the way, my opinion that the ability to draw will give me a lot of advantages was complete stupidity and in order to create and run an advertising business it is not at all necessary to be able to draw.

But then I didn’t know this and, having decided that it was necessary to start with the advertising business, I began to study this issue.

I began to draw up a step-by-step algorithm of my possible actions in the form of sketches and graphs.

Outdoor advertising production is the key to business development without money!

As I reasoned:

• I find a business in my city that needs to create a new advertising sign. (As it turned out, in a big city there are always a lot of such enterprises at all times);
• Then I must come to the head of this enterprise and convince him to enter into an agreement with me to create a new advertising sign (impudent and spotlight). This is not an easy task, but for some reason I decided that this could be solved and did not focus much of my attention on this point;
• This is the most important thing: since I didn’t have any money of my own that I could invest at the first stage to purchase the necessary materials and attract specialists, I decided (absolutely correctly, by the way, I decided) that to start I needed to receive an advance payment from the company and use this advance payment to create the sign itself;
• After I purchase materials with an advance payment, hire specialists, do all the necessary work, I will hand over the work and receive the remaining remuneration, which will serve as an investment contribution to my next work. And so on ad infinitum.

Of course, at that time I was completely unaware of such concepts as: the outdoor advertising market, investment contribution, acceptance certificate, approval of the placement of outdoor advertising, what an individual entrepreneur is, etc. but as practice and subsequent events showed, my calculation turned out to be absolutely correct.

And so, having nothing of the word - in general, except for the desire to get out of the situation in which I and my family found myself in any way, I began to “spud up” nearby enterprises in the area of ​​​​my residence with my proposal.

I don’t remember how many enterprises I visited then, but I still found a company that agreed to enter into an agreement with me to carry out work on the production of an advertising sign for a store.

At this stage, I completely unexpectedly learned that in order to conclude an agreement with an enterprise, I, as one of the parties to the agreement, must have official status.

The minimum is an individual entrepreneur (I don’t remember what this status was called back then), but I quite confidently said at the first meeting: “This is natural”!

A contract for the production of outdoor advertising is a prerequisite for doing business.

The second “blow” for me was the news that you can’t just hang a sign on any business (shop, bank, retail store) without permission from the local authorities.

What was left to do? Climb and flounder with a smart look. Sorry, but hunger, as they say, is no big deal!

Fortunately, at that time, registering a private entrepreneur in Russia was inexpensive, and the whole process did not take me more than two or three days. To be honest, I don’t even remember how much exactly. I remember it was fast.

Then I went to get permission to place outdoor advertising from the local, district administration. I found out that such a permit is issued by the district architect, came to see him and quite honestly admitted that I did not know how to obtain such a permit.

I was lucky, the architect turned out to be a person with humor and understanding, he quickly told me what needed to be done and what documents to provide him with.

In general, five or six days after the first meeting with the director of the customer enterprise, all the necessary documents were ready, and I signed a contract for the work.

And then events began, which I simply call - a song!

Making illuminated outdoor advertising increases your chances of success!

The sign is large and illuminated. Yes, yes - light and seven meters long. Made of metal, plastic and three-dimensional letters. What did you think? The company doesn’t knit brooms.
Well, how to do it and most importantly – WHERE?

Where to create and mount this “monster”? No, of course, it was possible to rent a “nook” in the workshop of some production company, but, firstly, I did not yet have such experience and knowledge, and secondly, I simply would not have had enough money from the advance payment that I received for carrying out work.

I didn't fit into the budget in this case. No way.

I found the following solution: my sister’s friend had an empty dacha not far from the city, and I agreed with her that I would “work” at the dacha for a small favor, to help her with firewood. I undertook to buy firewood with the money that would be paid to me when I finished the sign.

Perhaps you ask me why I describe such banal things in such detail?
With one single purpose. So that many who read these lines and dream of creating their own business understand: “It’s not the Gods who burn the pots” and it’s really possible to start a business from complete scratch.

Two and a half months later (strictly within the terms of the contract), the sign was made by me and hung on the facade of the building of the enterprise with which I signed the contract.

I received the rest of the reward and invested this money in my next job. Before I describe how I found my next job and how I began to develop my advertising business, I will now give some small calculations with the help of which I started my own business.

Note: The calculations are completely approximate, I just don’t remember the real breakdown of prices and costs, but you can safely rely on them (multiplying by today’s coefficient) if someone decides to repeat my “exploits”:

• The contract was concluded for a total amount = 10,000 rubles. (in prices of the year to which the described events relate);
• Due to a limited budget, to develop the original layout of the future sign (to obtain permission from the administration and sign an agreement with the customer), I attracted a 1st year student from a local institute and paid him about 200 rubles;
• All the materials from which the sign was subsequently made were purchased by me for an amount of approximately 25% of the contract amount or = 2,500 rubles;
• Another 1000 rubles. I paid specialists from the local Pioneer Art House to make 8 volumetric letters for a sign out of epoxy resin;
• At 500 rubles. It cost me a metal frame for the sign, which I ordered from the locksmith workshops of the local technical school;
• At 200 rubles. It cost me transportation costs (delivery of the finished sign from the summer cottage to the store on the facade of which it should be mounted);
• My last “big spending” was 100 rubles. which I will pay the local whips for helping me with all their free hordes to carry, load and mount the finished sign in place.

Total I spent from the money received as an advance = 50% of the contract amount:

200 + 2.500 + 1.000 +500 + 200 +100 = 4.500 rub.

Advance amount (50%) from 5000 rub. – 4,500 rub. (costs) = 500 rub.

500 rub. - this is the balance from the money I received as an advance, and on which I and my family “lived” while I performed work under the contract.

As a result, in two and a half months I earned more than 5,500 rubles, which was a much larger amount than I would have earned by continuing to work as a hired specialist at that enterprise, which, fortunately for me, went bankrupt.

This money was more than enough to continue my work and provide a tolerable life for my family until I finally “got up.”

High-quality materials for the production of outdoor advertising and design is an important understanding that I came to after completing my first job!

I was simply lucky and the 1st year student whom I hired to create the original layout of the first sign turned out to be a talented fellow, created a very attractive design and thanks to this fact I immediately received a second order.

Things went like this: when the first sign was completed, installed and the money was received, I immediately began looking for a second customer. Literally a couple of days later I found the owner of a large store, who, upon seeing a photograph of my first work (now I already had a “portfolio of completed work,” ha ha ha) immediately agreed to sign an agreement with me.

Such a quick decision and the unexpected reaction of the new customer led me to a healthy thought: the design and quality of the work performed plays a very important role in outdoor advertising.

And for his store I decided (at the expense of time) to create something truly masterpiece. An advertising sign that never existed in the city. I turned to the student again and told him that I needed a sign design for a store in the form of a world masterpiece of outdoor advertising.

- Easily! - the freshman answered me and came up with a sign design that became the calling card of my advertising agency for many years.

To bring such a design to life, we needed higher-level specialists like me, and a production facility with access roads. I again hired specialists from the house of pioneers (the leaders of the shipbuilding and aviation modeling circles are very handy people and are able to make real candy out of nothing).

They did it!

After the second sign was installed, orders poured in like a cornucopia.

Equipment for advertising business is the key to complete success!

Despite the fact that I had already completed the second order and received decent money, my production was at a primitive level, and I did not yet have the opportunity to purchase my own freight transport and, most importantly, I could not purchase special equipment for the production of outdoor advertising.

And without transport and special equipment, my work progressed slowly, I lost time and many customers, since my capabilities were limited. The first thing that urgently needed to be done was to purchase a Gazelle truck and a plotter for cutting vinyl film.

How and why I purchased a Gazelle truck and a Roland plotter

After I began to expand: I rented production space in the outbuilding of a local school and hired two full-time specialists to work for the campaign, I was sorely lacking a plotter for cutting vinyl film.

But I couldn’t buy it because I simply didn’t have enough money for everything, and I was still afraid to use a bank loan. Suddenly the decision came by itself.

For the company that ordered the second sign for the store from me, it was necessary to carry out work on the production of an advertising board located at a large traffic intersection.

The shield was huge, with an area of ​​approximately 100-150 sq.m.

In this case, all images had to be applied using vinyl film (a mandatory requirement of the customer).

Moreover, he took an active part in creating a sketch of the future billboard and the information was overloaded with text inserts.

No matter how I protested, the principle worked here: “He who pays calls the tune.”

It’s paradoxical, but it was an advertising board in production, which 90% required a plotter, that helped me buy this plotter, and the plotter helped me buy Gazelle. At the same time, I did not have money for either a plotter or a truck, and I purchased them with the profit received from the work performed.

Organization of advertising agency activities

Roland cutting plotter or how I got by without it

We did all the work on cutting the vinyl film during the production of the billboard by hand. We cut out all the images and texts using a regular stationery knife and regular sewing scissors.

They did this: after typing all the texts and images in full size on the computer, they printed the reverse images without filling, only in the form of outlines, if the letters and images were large, glued the A-4 sheets together and glued the reverse image of the letters onto a paper backing vinyl film.

Then we cut straight lines with a knife under a metal ruler, and curved lines with scissors. As a result, we received individual letters. By trimming the backing in the extreme corner, a letter or image was glued onto the background.

This is how we completed all the work (all the employees of my agency and even my household worked). Having completed the work, we received a reward and used this reward to purchase an excellent Roland plotter, which not only helped me purchase a truck, but also served my business faithfully for several years.

How did I buy a Gazelle truck without having enough money to buy it?

As soon as I purchased a plotter for cutting vinyl film, the range of services offered by my agency expanded and literally a couple of months later, a competition was announced in the city for work on preparing the City Day celebration.

As part of this celebration, the local administration decided to decorate the city with images of the city's coat of arms. Moreover, commercial structures were obliged to engage in such decoration. These were mainly shops.

Where can I get identical images of the coat of arms for outdoor use?

That's right: from those who can make and sell them. Who can make it? An advertising agency that has a plotter for carrying out such work. (Now everyone has the opportunity to purchase a plotter without problems, but then it was very rare).

In general, we spent a whole month, literally in two shifts, making and selling an image of the city’s coat of arms. With the profit received from the sale of coats of arms, I purchased my first Gazelle truck.

And a truck for an advertising agency engaged in outdoor advertising is of very serious importance. The fact is that 80% of the services of such an agency are the production of signs that need to be transported and installed, as a rule, at the second floor level.

Here, too, we showed ingenuity (we are rich in inventions): when installation of outdoor advertising was required, we loaded an ordinary wooden “goat” into the back of the Gazelle and mounted signs from it just at the level of the second floor.

From Startup to Success: Opening an advertising business!

Do you need a business plan for an advertising agency when starting out?

My example shows that it is not particularly necessary. Moreover, when I started, I didn’t even know what it really was. No, of course, I heard about the need to create your own business plan at the start, but when I started, I honestly had no time for it. I really wanted to eat.

Now, after many years, I believe that a business plan for starting a business is simply necessary. Business conditions have changed, including competitive ones, and a good business plan will not hurt.

But here, in my personal opinion, what kind of “evil joke” can happen. If you have no money at all, but want to create your own business, how can such a plan help you?

Well, do you think that to start you need to have two or three million rubles and what will change? Will you get this money? Hardly. Even from the bank you will not receive money to start a new business. Why waste extra money and time?

But if you have money and you want to know how not to lose it by creating an advertising agency, for example, for the production of outdoor advertising, then a business plan is simply necessary.

Conclusion

Once again I want to explain why this article was written. To illustrate that if you approach creating your own business with ingenuity, then it is quite possible to start a business without serious investments. As my personal experience in the advertising business shows, this is quite possible.

It is impossible to imagine the modern world without advertising. Now it is found in almost all types of human activity. Representatives of large and small businesses are interested in developing their brand and attracting as many clients as possible, and therefore are ready to invest significant financial resources in this area.

There are many methods of distributing advertising, including advertisements on television and radio, distributing leaflets, etc. Be that as it may, one of the most effective of them is considered to be large billboards that can be installed almost anywhere.

In this regard, the production of advertising structures and their rental is considered a very profitable type of business activity. It should be noted that, despite its promise, this business requires great responsibility and scrupulousness.

The concept of advertising design

In general, an advertising structure is considered to be any outdoor type advertising that is produced by welding, installation or assembly. In the vast majority of cases, it is based on a previously developed project. At the same time, many enterprises specializing in such activities often develop their own options and then bring them to the market.

Typically, the carriers are made in the form of a structure with two or three sides, each of which is equipped with backlighting. To ensure better visibility and interest potential customers, advertising billboards are installed on the roofs of buildings or high, strong supports made of metal.

It should be noted that such designs also include neon logos, light boxes, visors, friezes, volumetric letters, pylons and many other elements. Their production requires precision, accuracy and, of course, special equipment.

This category allows you to draw the consumer’s attention to the location of various shopping and entertainment centers, manufacturing companies, car dealerships and other commercial organizations. Among other things, advertising structures include non-standard lighting and dynamic installations.

Important nuances

In this field of activity, the most serious snag is the approval of each individual location where the billboard will be installed. To install it on the territory of any settlement, it is necessary to conclude an appropriate agreement with the administration or tenant of the land plot.

If a board needs to be placed on a residential building, a written agreement by the residents is required. Before installing the structure, you must pay a state fee and obtain permission to place advertising.

Among other things, do not forget about compliance with all relevant legislation. Otherwise, the shield will be dismantled, and the entrepreneur will have to pay a fine, the amount of which varies and starts at fifty thousand rubles.

Stages of creating a business

In order to start any type of entrepreneurial activity, you need a business plan. Billboards, their production and rental are no exception. First of all, the document must calculate the necessary costs for equipment and materials.

The next important step will be to determine the installation locations of the boards, register the enterprise, and select personnel. Once all the nuances associated with the installation of billboards have been agreed upon with the city administration, you can begin searching for clients and advertising your business.

Company registration and personnel selection

In order to work legally, you first need to register your business activity. As practice shows, the ideal option in this case would be to register the status of a legal entity or private entrepreneur. The cost of all permits in this case will be at least 2,500 rubles.

Due to the fact that the production of advertising structures is a complex and labor-intensive process, it is recommended to hire qualified workers to perform this work. The same applies to obtaining the appropriate permits from city administrations. The fact is that it is better to entrust this work to specialized advertising agencies. In general, staff should be well versed in the specifics of this field of activity, be friendly and polite.

Finding places for shields

The main requirement for places where billboards are placed is high traffic. In addition, it is very important to take into account such a feature as the absence of obstructions to the view - not only existing ones, but also potential ones. In this case, we are talking about the possible construction of any structures nearby, as well as growing trees.

City squares are an ideal option, but agreeing on the location of billboards here is often very difficult. It should be noted that the cost of advertising in different places differs, so the potential profit depends on them.

Specifics of placement of advertising structures

Before installing a billboard, it is recommended to pay attention to some simple nuances. In this case, we are talking about the audience that prevails in a particular place. For example, where there are kindergartens or secondary schools nearby, it is easier to find an advertiser among the owners of stores selling children's toys or clothing.

If billboards are installed on highways, then it must be taken into account that the likelihood that people will read the advertisement in areas with high traffic speeds is much lower compared to places where traffic jams constantly occur.

In addition, the location of structures also directly affects their type. If they are installed on metal supports, then the advertising area and the number of clients can be increased by installing a two-sided or three-sided option. It is clear that it is realistic to install only a one-sided shield on the facade of a building.

Advertising boards (billboards) - tall structures with bright images and enticing slogans, have long become an invariable attribute of the streets of all cities. They are used to promote products, services, retail outlets, brands, social events and more. However, is this popular advertising element really effective and universal? In this article we will try to answer this question by analyzing in detail all the advantages and disadvantages of billboards, their relevance for a particular type of business and other features of this outdoor promotion tool.

What is a billboard

An advertising board (most often a billboard) is an outdoor structure whose main function is to promote any services or goods. As a rule, such billboards are installed in close proximity to busy highways and roads, since such placement allows them to attract the attention of drivers and passengers of the vehicle, as well as passers-by who can easily see the billboard.

When it comes to motorists, they typically have 10 to 15 seconds in which to notice and read the information on a billboard. That is why posters should be as concise, bright and enticing as possible. In other words, in this short period of time, information must be noticed, recognized and stored in memory. The latter is possible only if the advertising poster aroused the interest of the person who saw it. Otherwise (if the billboard doesn’t “click”), the advertiser’s funds will be wasted.

Pros and cons of advertising on billboards

The main advantages of billboards include the following:

• Due to their size and use of strong visual imagery, billboards attract more attention than many other outdoor advertising tools;
• Such designs can be used to target influence on a specific local group - residents of a particular area;
• Billboards cannot be classified as advertising that the consumer sees only once. Walking down the street several times a day, week or month, a person will notice such advertising a corresponding number of times. The same effect (multiple appearances) is achieved by placing billboards in different parts of the city.
• Despite the fact that the cost of renting a billboard can vary from 10 to 60 thousand rubles per month, this method of promotion remains relatively inexpensive, especially when compared with advertising on radio or television.
• Billboards are installed on the busiest highways, which means they are seen by a huge number of people every day.
• With a sufficient number of billboards placed throughout the city, you can reach almost all consumers and achieve a high frequency of contact with potential clients.

• “Creativity” of urban vandals, after which it takes a long time to restore the billboard;
• Exposure to adverse natural conditions - snow, rain, strong wind, etc.;
• The presence of more than serious visual competition, which includes other advertising installations, structures, transport and even people;
• Lack of good places to place a billboard;
• Duration of billboard production and installation.

The effectiveness of billboards taking into account the profile of the enterprise

• Large shopping centers, leisure centers, retail stores, various salons, including beauty salons;
• Cinemas, youth night clubs;
• Car dealerships and car manufacturers;
• Dental centers, private hospitals and medical centers;
• Notary and law firms;
• Private educational institutions - kindergartens, centers, various courses;
• Fitness clubs and other sports centers;
• Car services, car washes, service stations;
• Catering outlets - restaurants, cafes, fast food chains.

However, billboards will not be effective for the following types of businesses:

• manufacturing enterprises;
• enterprises whose profile is the production of products for import;
• any small firms, retail outlets, institutions with a small advertising budget.

Types of billboards and their differences

To size:

• Billboards - 3x6 m;
• Superboards - 4×14 m;
• Supersites - 5×15 m;
• Cityboards (scrollers) - 2.7×3.7 m;
• Pillars - 2.7×3.7 m;
• City formats - 1.2×1.8 m.

By form:

• Regular, square or rectangular shields;
• Figured shields;
• Shields with 3D elements that extend beyond the standard square or rectangle.

By audience:

• Aimed at car enthusiasts. As mentioned earlier, most often advertising boards, in particular billboards, are aimed at drivers and passengers of cars.
• Targeted at pedestrians. Such billboards can also be placed on sidewalks (these can be smaller structures than billboards, namely cityboards, pillars, city formats).

By number of sides;

• One-sided;
• Double sided;
• Tripartite.

* It should also be emphasized that not all sides of multilateral shields are equal. The one that is located perpendicular to the highway or pedestrian flow is the main one, since it is visible better than others.

Prices for advertising media placement

It is extremely difficult to determine the average price for advertising on a billboard, since it varies depending on many factors and, above all, on the city where the marketing campaign is being conducted. So, in general, outdoor advertising on the most common type of billboards - billboards - varies from 10 to 150 thousand rubles. Of course, such a gap is frightening and perplexing. However, below are the most current prices for such advertising in different localities, which can clarify the situation with the price list for the service.

Cost of placement on billboards (thousands of rubles per month);

• Moscow - about 60;
• St. Petersburg - about 40;
• Novgorod, Novosibirsk, Yekaterinburg - 20-25;
• Regions - from 10 to 30.

Price for accommodation in city formats:

• Moscow - 20;
• St. Petersburg - 10-15;
• Ekaterinburg - about 8.

Please note that the list of prices includes the most popular billboard formats. The cost of a supersite in Moscow or St. Petersburg can be several times higher.

It should also be emphasized that the following factors influence the price of advertising on a billboard or other billboard:

• Type of design (one-, two- or three-sided);
• Size and type of advertising board (billboards, supersites, etc.)
• Lease term;
• Placement period (if you want to start advertising a product or service on billboards urgently, the price will be higher);
• Liveliness and advantageous location of the carrier.

How to attract attention to advertising on a billboard?

1. Use a targeted message. Neither the driver nor the pedestrian will look at your sign for long. You need your message to hook the person immediately, to promise to satisfy exactly the need that he has. And remember, he might not even be aware of this need, dream or desire, of course, until he saw your shield.
2. Design. Remember, a picture means more than words. Try to make the message and the picture play on the same team.
3. Brevity is the soul of wit. As mentioned earlier, you only have 10-15 seconds to be remembered. Avoid long sentences and lengthy descriptions. Ideally, you need to invest in 5-7 words.
4. Brightness. Black letters on a white background and a neutral image are unlikely to attract attention. Try to make the picture as juicy and attractive as possible.
5. Humor and/or shocking. Good humor and even jokes “on the verge of a foul” can serve well. If the ad is simply funny and witty, it will be remembered. If advertising shocks the public, the same thing will happen.

Billboard: rent or install yourself

This question cannot be answered unambiguously. Everything will depend on how your advertising campaign is planned. If you are going to advertise your product or service through billboards only during promotions and discounts, as well as during the growth of seasonal sales, installing a billboard will not justify itself. But if you advertise like this constantly, you should still install it yourself, because it will pay for itself approximately six months after installation.

The process of installing your own shield

There are many benefits to installing your own billboard. Firstly, you will not have to pay rent. Secondly, you can advertise on both sides without having to coordinate this issue with a third-party advertising organization. Thirdly, you will be able to change the banner when you need it.

In order to install your own shield you need:

• Coordinate the installation issue with the owner of the object or site. This measure is necessary if you want to place a billboard on an area that is not on your property. If the shield is located near the road, the issue must be agreed upon with the FSO and the traffic police.
• You can make a shield yourself, or place an order from a specialized organization. Such companies, as a rule, charge about 250-300 thousand rubles for this.
• Banner printing. You can order an advertising poster from an advertising company or a printing house. The cost of printing will be about 200-300 rubles per 1 sq.m.

In this article we will look at several options for placing billboards and banners that provide both maximum savings and minimal personal involvement of the advertiser.

The simplest but at the same time the most expensive option outdoor placement is an order from any advertising company.

Order a turnkey switchboard installation

You can order the installation of an advertising billboard in the city from a company specializing in such structures on a turnkey basis. A package service may include the development of a layout, production of a banner and placement on one or more billboards on one or both sides.

The cost of ordering a turnkey panel: from 350 thousand rubles with permanent placement, or from 40 thousand rubles per year in case of rent.

Advantages of installing a shield yourself

Installation of a billboard in the city - approval

If the site or facility on which the billboard will be installed is not owned by the advertiser, the advertiser must obtain permission to install the structure from the owner.

This can be either a lease agreement or another agreement with the owner, regardless of the status of the owner. Approval for the installation of the structure from local authorities is also required.

Installation of a billboard near the road

You can view the complete list of necessary approvals and documents at the city administration.

Installation of a billboard in the city - production and installation of a billboard

You can make a billboard either on your own or by ordering it from a specialized company. Such companies, unlike advertising companies, are exclusively engaged in the production and installation of billboards in cities and other settlements.

Making your own shield

You don’t need any special skills to make it yourself, and all the necessary materials can be purchased on the construction market.

However, it is worth considering that delivery of the shield requires a truck, and installation requires several people and special equipment. Thus, savings in the case of self-manufacturing of the shield will not exceed 30-50 thousand rubles.

Advertising printing

Printing will cost approximately 250 rubles per 1 square meter, that is, the cost of printing for a standard city billboard size 3 by 6 meters will be about 4.5 thousand rubles. You can order printing from both advertising companies and printing houses.

Alternative to shield

So. Today I will try to provide you with information on this topic.

Firstly, you need to first agree on the location and assume an approximate appearance of the billboards themselves in order to correctly estimate the costs.

To begin with, I will present a rough picture of how I imagine this business. I will actually build on this idea.

Billboard installation business

Such pleasure at the moment will cost from 3000-5000 rubles, taking into account the costs of land registration.

Construction and preparation of necessary papers

1. Budget. Suppose at the start we have a budget of 2,500,000 rubles.
2. Registration of land lease. Let's take 20 plots of 3 by 3 meters. The price for paperwork will vary little throughout the country. At least the price for land near a busy highway will definitely not be high. Plot near the road of 9 sq. meters can be purchased for 10,000-20,000 rubles. We take the cheapest option. As a result, provided that the land costs 10,000 rubles, 20 plots of land will be taken from us: 20 * 10,000 = 200,000 rubles.
   Provided that the land costs 20,000, we get: 20*20,000= 400,000 rubles. In both options, the price is not that high. Let's move on.
3. Construction. To erect large billboards on a concrete base, we will actually need to spend on a team of workers with equipment for the necessary materials. In total, 1 billboard will cost up to 100,000 rubles.
   We agreed that we would take on the construction of 20 billboards. As a result, in the calculation we get: 20*100,000=2,000,000 rubles. As you can see, construction costs will be major.
4. Summary of costs for erecting billboards. In conclusion, we sum up all the costs and get the maximum figure of up to 2,400,000 rubles. I advise you to spend the remaining 100,000 rubles on advertising or leave it as insurance for unforeseen expenses.

Earning money from billboards

1. Advertising cost. The actual price characteristics are different in different places. But on billboards like ours, you can easily charge up to 15,000 rubles a month from one billboard. Let's say we do as I said and estimate monthly advertising at 15,000 rubles. We get the following picture for a year from one billboard: 15,000*12 = 180,000 rubles. Earnings from all billboards will be: 180,000*20 = 3,600,000 rubles. The difference between the initial costs and the expected result is obvious. However, it is worth considering the fact that not all shields will be equally popular. Therefore, net earnings will be about 3,500,000 rubles.
2. Expenses that were not counted. We forgot to calculate the necessary expenses: the annual cost of servicing your breadwinners for 20 billboards will cost approximately 300,000 rubles; provided that your organization will employ up to three people with a salary of 20,000 rubles, we get the following picture = for the year one employee will receive: 20,000 * 12 = 240,000 rubles, and for the year for the entire staff of three people 240,000 * 3 =720,000 rubles.

Summarizing business calculations on bidboards

Ultimately, we get the following result for the year:

• Construction costs and paperwork (only the first year is taken into account) = 2,400,000 rubles.
• Income in the first 12 months = 3,500,000 rubles.
• Initial costs = 1,020,000 rubles.
• In total, in the first year you will have to spend 3,420,000 rubles.
• Net profit in this case: 3,500,000 - 3,420,000 = 80,000 rubles.

As you can see, it is unrealistic to make huge money in the first year. But after 12 months, your earnings will become stable and, minus initial costs, will be: 3,500,000 - 1,020,000 = 2,480,000 rubles.

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