Detailed Project Report
Digital Marketing Agency
—
Prepared on: 27 October 2026 · Prepared with Building Business DPR (buildingbusiness.in)
01 Project at a glance
- Total project cost
- ₹2.71 L
- Term loan from bank
- ₹2.44 L
- Promoter’s contribution
- ₹0.27 L
- Sales · Year 3
- ₹0.00 L
- Profit after tax · Year 3
- ₹-3.43 L
- Average DSCR
- -6.08
- Break-even (% of capacity used)
- —
02 Promoter and unit
| Promoter name | — |
|---|---|
| Business / firm name | — |
| Legal form | Proprietorship |
| Address of the unit | — |
| Applicant category | General · Rural |
03 The project
Bring online customers to local shops, doctors and coaching centres — a monthly retainer.
| Main product or service | Digital Marketing Agency |
|---|---|
| Installed capacity per year (at 100%) | 10,000 units |
04 Market
- Real estate developers and brokers
- Ed-tech companies and coaching institutes
- Local shops
- Clinics and healthcare practices
- E-commerce sellers
- Hotels and tourism businesses
- A free audit or free first month for a case study
- LinkedIn outreach to business owners
- Local business WhatsApp groups and trade associations
- Indian freelance platforms
05 Plant and machinery
| Item | Qty | ₹ | Total ₹ |
|---|---|---|---|
| Laptop / desktop with printer (× 2) | 1 | 1,40,000 | 1,40,000 |
| Digital marketing and content creation software (× 5) | 1 | 50,000 | 50,000 |
| Office furniture | 1 | 40,000 | 40,000 |
| Server / storage | 1 | 15,000 | 15,000 |
| Video conferencing and communication tools | 1 | 5,000 | 5,000 |
| Domain and hosting | 1 | 3,000 | 3,000 |
| SEO and analytics tools | 1 | 5,000 | 5,000 |
| Project management software | 1 | 0 | 0 |
| Total | 2,58,000 |
Pre-filled from: IIFL Finance – How to start a digital marketing agency in India; Devbhoomi Udyamita Yojana (Govt of Uttarakhand, Higher Education Dept) – Project Profile: Digital Marketing Agency. Prices in older reports will have gone up — enter today’s quotations.
06 Raw materials
- No physical raw material — the main inputs are software subscriptions (e.g. SEO, social media scheduling, design tools) and skilled staff
07 Cost of project
| ₹ in lakh | |
|---|---|
| Plant and machinery | 2.58 |
| Contingency | 0.13 |
| Total fixed capital | 2.71 |
| Working capital margin | 0.00 |
| Total project cost | 2.71 |
08 Means of finance
| ₹ in lakh | % | |
|---|---|---|
| Promoter’s contribution | 0.27 | 10.0 |
| Term loan from bank | 2.44 | 90.0 |
| Total | 2.71 | 100.0 |
| Working capital loan (outside project cost) | 0.00 |
09 Key assumptions
| Selling price | ₹0 per units |
|---|---|
| Raw material & packing cost | ₹0 per units |
| Capacity used each year | 60% · 70% · 80% · 80% · 80% · 80% · 80% |
| Term loan interest rate (% a year) | 11% · 84 months (Moratorium 6) |
| Working capital method | Turnover method (RBI) · Working capital interest (% a year) 11% |
| Income tax rate | 25% |
| Yearly price and cost rise | 0% |
10 Production and sales
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capacity used | 60% | 70% | 80% | 80% | 80% | 80% | 80% |
| Production (units) | 6,000 | 7,000 | 8,000 | 8,000 | 8,000 | 8,000 | 8,000 |
| Sales | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
11 Projected profitability
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Sales | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Raw material and packing | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Power and fuel | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Salaries and wages | 2.88 | 2.88 | 2.88 | 2.88 | 2.88 | 2.88 | 2.88 |
| Rent | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Administration | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Selling and distribution | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Repairs and maintenance | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 | 0.05 |
| Insurance | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 |
| Total cost of operations | 2.95 | 2.95 | 2.95 | 2.95 | 2.95 | 2.95 | 2.95 |
| Operating profit (EBITDA) | -2.95 | -2.95 | -2.95 | -2.95 | -2.95 | -2.95 | -2.95 |
| Depreciation | 0.41 | 0.35 | 0.29 | 0.25 | 0.21 | 0.18 | 0.15 |
| Preliminary expenses written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Interest on term loan | 0.26 | 0.23 | 0.19 | 0.15 | 0.10 | 0.06 | 0.02 |
| Interest on working capital | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit before tax | -3.62 | -3.52 | -3.43 | -3.34 | -3.26 | -3.19 | -3.12 |
| Income tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Profit after tax | -3.62 | -3.52 | -3.43 | -3.34 | -3.26 | -3.19 | -3.12 |
12 Cash flow
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Profit after tax | -3.62 | -3.52 | -3.43 | -3.34 | -3.26 | -3.19 | -3.12 |
| Depreciation | 0.41 | 0.35 | 0.29 | 0.25 | 0.21 | 0.18 | 0.15 |
| Cash accruals (PAT + depreciation) | -3.21 | -3.18 | -3.14 | -3.09 | -3.05 | -3.01 | -2.97 |
| Term loan repaid | 0.19 | 0.38 | 0.38 | 0.38 | 0.38 | 0.38 | 0.38 |
| Owner’s drawings | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Surplus after repayment | -3.40 | -3.55 | -3.51 | -3.47 | -3.43 | -3.39 | -3.35 |
| Cash and bank | -3.40 | -6.95 | -10.46 | -13.93 | -17.36 | -20.74 | -24.09 |
13 Projected balance sheet
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Capital (own + subsidy) | 0.27 | 0.27 | 0.27 | 0.27 | 0.27 | 0.27 | 0.27 |
| Reserves and surplus | -3.62 | -7.14 | -10.57 | -13.91 | -17.18 | -20.37 | -23.49 |
| Term loan outstanding | 2.25 | 1.88 | 1.50 | 1.13 | 0.75 | 0.38 | 0.00 |
| Working capital loan | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Total liabilities | -1.10 | -4.99 | -8.80 | -12.52 | -16.16 | -19.72 | -23.22 |
| Net fixed assets | 2.30 | 1.96 | 1.66 | 1.41 | 1.20 | 1.02 | 0.87 |
| Preliminary expenses not written off | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Current assets (stock and debtors) | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Cash and bank | -3.40 | -6.95 | -10.46 | -13.93 | -17.36 | -20.74 | -24.09 |
| Total assets | -1.10 | -4.99 | -8.80 | -12.52 | -16.16 | -19.72 | -23.22 |
14 Ratios and break-even
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Debt service coverage ratio (DSCR) | -6.53 | -4.88 | -5.24 | -5.66 | -6.14 | -6.72 | -7.42 |
| Break-even (% of capacity used) | — | — | — | — | — | — | — |
| Cash break-even | — | — | — | — | — | — | — |
| Average DSCR | -6.08 |
|---|---|
| Lowest DSCR | -7.42 |
| Payback period | — |
15 Depreciation
| Year → (₹ in lakh) | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| Depreciation | 0.41 | 0.35 | 0.29 | 0.25 | 0.21 | 0.18 | 0.15 |
Written-down value method at Income-tax Rules block rates (building 10%, plant & machinery 15%, furniture 10%, computers 40%). Change them if your CA uses other rates.
16 Term loan repayment
| Year | Opening | Interest | Term loan repaid | Closing |
|---|---|---|---|---|
| 1 | 2.44 | 0.26 | 0.19 | 2.25 |
| 2 | 2.25 | 0.23 | 0.38 | 1.88 |
| 3 | 1.88 | 0.19 | 0.38 | 1.50 |
| 4 | 1.50 | 0.15 | 0.38 | 1.13 |
| 5 | 1.13 | 0.10 | 0.38 | 0.75 |
| 6 | 0.75 | 0.06 | 0.38 | 0.38 |
| 7 | 0.38 | 0.02 | 0.38 | 0.00 |
17 Licences and registrations
- GST (above ₹20 L service turnover)
- Udyam
- Shop & Establishment (if you have an office)
18 Government schemes that may apply
- Pradhan Mantri MUDRA Yojana (PMMY) – Shishu, Kishor, Tarun, Tarun Plus
- Mukhyamantri Yuva Udyami Vikas Abhiyan (CM-YUVA)
19 Sources
- IIFL Finance – Digital marketing agency (2026) — https://www.iifl.com/blogs/gold-loan/how-to-start-digital-marketing-agency-business-in-india
- Devbhoomi Udyamita Yojana (Govt of Uttarakhand, Higher Education Dept) – Project Profile: Digital Marketing Agency — https://duy-heduk.org/downloads/project-profiles/digital-marketing-agency.pdf
- DGFT Public Notice 26/2015-20 (1 Aug 2018) – service sectors under SEPC (text as reproduced by World Trade Scanner) — https://worldtradescanner.com/26-PN-01.08.2018.htm
This report is a projection from the figures entered by the promoter. It is not a bank appraisal or a guarantee of a loan or subsidy. Check every figure with current quotations and your chartered accountant before submitting it.