How to Start a Social Media Marketing Agency

While the need for social media managers is growing, the field is relatively new and as with any business, you need to determine if you're capable of performing the job. The requirements expected from this role include copywriting skills, relevant experience, and solid knowledge of SEO practices.

Do you have an understanding of social media as a marketing tool? Social media differs from other forms of marketing in the sense that it is about having an informative and entertaining conversation with your clients' following. Each platform is unique, and how you promote a client on LinkedIn differs vastly from how you do it on Facebook.

One of the main benefits of starting a social media marketing agency is low startup costs. In this role, you won't need to immediately hire staff, you can work from anywhere, and most social media platforms are inexpensive.

On the other hand, some notable cons include the fact that many traditional business owners don't see the significance of social media marketing and you will need to manage multiple social media accounts at a time.

The early stages of your business will require hard work and most of that will be the responsibility of one or two employees, depending on how small your team is. During this time, it's best to start small and only offer basic services that are manageable on a daily basis. This way you can start building your skills to eventually start managing multiple clients.

As a small business, it may be wise to focus on a niche market. For instance lawyers, doctors, or dentists offices. This could also help your business grow within that specific industry.

It is important to know all the major platforms, but it is good to focus on those that drive results in the industry you are focusing on.

Popular social media platforms for businesses:

• Facebook.
• LinkedIn.
• Twitter.
• YouTube.
• Instagram.

Will enough people with enough spending power use your services? Who is your prospective client? Doing market research for your social media marketing business shows who your clients are, reveals if there are enough of them, and establishes how best to make them happy.

Evaluate if you will be able to meet your prospective clients' social media marketing needs. If not, consider reworking your concept to ensure it is in line with your potential clients' requirements.

The best way to learn is by studying the competition and other social media professionals. Don't underestimate what you can learn from your competition.

You could hire a professional market research firm or you can teach yourself to do market research, and use data analytics tools. There are free options available if you don’t want to spend money on these tools.

To get a clear idea of what it is going to cost you to get your social media marketing agency up and running, you need to make a detailed list of what you will need. A key benefit of starting a social media marketing agency is its minimal start-up requirements.

What you need to start a social media marketing business:

• Online course. Invest in an online course to learn more about social media and digital marketing, which could benefit you as a refresher even if you are knowledgeable in this area.
• Reliable computer, phone, and internet access.
• A social media following and influence. You need a large number of followers that engage with your posts by commenting, and liking or sharing them.

According to our research, it costs between $1,410.00 and $2,575.00 to start a social marketing manager agency.

Startup costs to consider:

• Social media marketing agency course: $30.00 to $700.00
• Smartphone: $800.00
• Laptop or computer: $500.00
• Business formation costs: $30.00 to $500.00.
• Internet services: $50.00 to $75.00 per month.

Once you have a clear picture of the social media marketing agency you want to start, you can create a business plan. During this process, you will be asked to present your business plan to potential investors, banks, and partners. Therefore, it's important that your business plan is well-researched and compelling.

Essentials for a Social Media Marketing Agency Business Plan:

• Executive summary.
• Company description.
• Products and services.
• Marketing plan.
• Operational plan.
• Management.
• Ownership's personal financial statements.
• Financial plan.
• Appendices.

Your social media marketing company's name will become your brand, and it needs to be relevant to your service and your market.

When you have a couple of business names in mind, write a list of potential business names and conduct a trademark search with the U.S. Patent and Trademark Office to ensure your name is available for use.

Once you've confirmed that your business is available with the U.S. Patent and Trademark Office, you have to check with your local state department to verify if the name has already been registered. If not, you can trademark your business name and register it will the state department.

You have the choice of registering your business as a corporation, sole proprietorship, partnership, or Limited Liability Company (LLC). Because your business will likely not require a corporate office or shareholders, we recommend starting out with a sole proprietorship, which may not require official registration.

This option is a must if you plan on hiring additional employees. You can register for an EIN on the IRS website.

To ensure your personal and business finances remain separate, consider opening a business bank account. This is a great way to establish credibility, obtain accurate statements, and benefit from business perks.

To legally operate your business, you may require additional legal permits or licenses. However, this could largely depend on your location and its local requirements.

In most states and counties you won't require a special license to start a social media marketing business. You would need a general business license when you officially start your business, though. Go to the Small Business Administration (SBA) site to check for state licenses and permits you may need.

One of the more common options is asking family and friends to invest in your business. Prepare a well-informed presentation and include your business plan.

Managed by the SBA, these loans help businesses with limited financial alternatives to access funding at low-interest rates through federally-backed lending.

Small business lending includes microloans, bank loans, credit cards, venture capital, and SBA-backed loans. Your social media marketing agency can use a small business loan to purchase equipment and more.

If your business is less than two-years-old and you have a good credit record, your chances of qualifying for a business credit card are good. A business credit card is great for small expenses that need to be handled immediately.

Find out what potential clients are doing in terms of marketing and find out if you can help them with their online marketing. Explain to them how their online presence can grow brand loyalty, which ensures ongoing sales.

A great way to attract clients is by offering them a free digital audit to show them an overview of their current online efforts and how you can help them improve. Include relevant data and analytics that details their current online presence and their potential brand development if they use your services.

List all relevant information customers may be interested in, such as prices, services, and contact information. If possible, include testimonials from previous clients.

When starting out, it's not recommended to hire a team of employees. It's best to first establish a solid client base and grow your business. However, as your social media marketing agency grows you may need a personal or virtual assistant, an accountant, and multiple account managers.