How does a new advertising company survive without credentials?

Question

As a new company without credentials in marketing/advertising how are we to establish credibility without having an active portfolio?

Answer 1

You or your designers must have clients from previous jobs you can use as references.  That's a start.  Develop a 'stock' portfolio for clients you would like to have-pick local companies or companies that are similar to those you would like to have.  Or develop concept ads for prospective clients, free of charge, as examples of your work.  

Give some work away for free to gain clients quickly, who will in turn agree to give you a testimonial. Perhaps friends and family of employees and associates might be a good way to start.

If you're creative, you can build a portfolio pretty quickly this way.

I would also make sure you join all of your local and regional trade groups, business associations and networking groups.  This will give you some credibility beyond your basic competency.