Is there still a good market for small, senior-led design studios?

I’m a Brand and Product Director with experience across branding, product design, websites, and marketing/creative work , and I’m considering starting my own studio. I’m trying to figure out whether this is still a sensible business to build in 2026. A few things I’d love to understand: Are recurring/ongoing design relationships realistic, or do most clients still prefer project-based work? What are the biggest problems with running a design agency that someone considering starting one who is starting might not see?