Decide what problem you are paying to solve

Before you contact anyone, write one paragraph describing the problem. Not "we need marketing", but something like "enquiries have flattened, most come from referrals and our website does not explain what makes us different". That sentence tells you whether you need search visibility, paid advertising, a better website, clearer positioning or all of the above.

It also stops you being sold whatever the agency happens to do best. An agency that only runs paid social will see a paid social answer to every question. If you are unsure whether the work is better handled by a supplier or a hire, read our comparison of a marketing agency versus an in-house team first.

Agree a budget range early

Be honest about what you can spend. Agencies cannot scope sensibly without it, and a budget range saves everyone time. Remember that fees are only part of the total: media spend, software, photography and your own team's time all add up. If you have not worked this out, our guide to building a small business marketing budget walks through the maths.

Build a shortlist of three or four

More than four proposals becomes hard to compare fairly. Good places to start are referrals from business owners you trust, your local or sector networks, and organisations such as the Federation of Small Businesses. When you look at an agency's website, ask yourself whether it speaks clearly about the kind of company you are. Look at their published work and judge whether the thinking is visible or whether it is only screenshots.

Test the evidence, not the presentation

Polished pitch decks are easy to produce. Evidence is harder. Ask each agency to talk you through one project from start to finish: what the starting position was, what they recommended, what they changed and how they know it worked. Be wary of results shown as percentages with no baseline, and of any agency that promises specific rankings or guaranteed results. Search engines do not allow anyone to buy a guaranteed position, and Google's own spam policies explain the shortcuts that can put a site at risk.

Ask to speak to a client with a similar size or sector to yours. An agency confident in its work will make that easy.

Check reporting and ownership

Reporting is where many relationships quietly fail. Agree up front what you will see each month and make sure it connects to leads and revenue, not only impressions and clicks. Your own accounts should sit in your name: Google Analytics and Search Console should belong to you, with the agency added as a user. If an agency insists on owning the accounts, that is a warning sign. For help judging whether returns are real, see our guide to measuring marketing ROI without misleading yourself.

Understand the commercial terms

Read the small print on these points before you sign:

• What is included each month, and what counts as extra work

• The minimum term and the notice period

• Who owns creative files, accounts, data and content when the contract ends

• How ad spend is handled and whether a management fee applies to it

• Who will actually do the work, and how much senior time you get

A cheaper retainer can cost more overall if essentials are excluded, so compare proposals line by line rather than by headline price.

Run a short trial where you can

If you are unsure, start with a defined piece of work, such as an audit or a three-month project, before committing to a long retainer. It shows you how the team communicates, how they handle feedback and whether their recommendations are practical. Good agencies are comfortable with this approach because it builds trust on both sides.