Benefits of starting a social media management company

A social media management company runs the social media marketing efforts for another business. They’re often responsible for writing, promoting and publishing content on all social media channels.

A strong social media presence can help the company build brand awareness, attract a wider audience and see higher conversion rates. Many businesses outsource their social media management to other companies specializing in these services. This typically increases the effectiveness of their efforts and lets them focus on their specialty.

Common benefits of starting a social media management company include:

• Few resources needed to start: Most social media management companies are fairly inexpensive to start. You likely need a computer and social media management software. This means you can operate your company at home and save money on hiring employees or renting office space.

• Ability to work from anywhere: Most work can take place virtually with little equipment, so you can start out work from wherever you please. Working from home gives you more time to make a profit and save for other expenses.

• Increase in demand for social media managers: Because social media marketing is common for businesses of all sizes, the demand for the service is high.

Estimate of how much money is needed

The budget you need to start your company depends on the number of employees, the equipment used and your location. Operating out of your home initially may be the most affordable way to start your business.

Expenses may include:

• Website costs: Having a website lets you promote your business and present your products to customers. Those costs often include securing a domain name, paying for hosting and creating a business email. You might also hire someone to design your website.

• Permits and licenses: Depending on your state of operation, you may need permits or licenses to operate. Documents to form your business vary in price depending on your location.

• Insurance: Professional liability insurance covers various situations. If you have a physical location, you may need insurance coverage on the property. Once you hire employees, you may also need workers’ compensation and unemployment insurance.

• Advertising and promotional costs: You can use your social media skills to promote your business, but you might also budget for paid marketing and promotional expenses.

• Social media management software: You may invest in software tools to track, manage and post on your clients’ social media outlets. These tools typically charge a monthly fee.

• Office rental space and furniture: If you operate in an office, budget for rental space costs, furniture and computer equipment.

• Employees: Initially, you might manage the work to keep your costs low. As you grow your business, consider additional employee costs, such as wages, health insurance and other benefits.

Types of social media management services to offer

Determine the types of social media management services to offer. You might specialize in one service or offer generalized services. Also, consider expanding your areas of expertise and the profitability of different services as your business grows.

Common types of social media management services include:

• Complete social media management: With this service, you handle all aspects of a client’s social media presence, from content creation to ad management. Depending on your clients’ needs or your specialty, you might manage multiple social media platforms or just one.

• Social media strategy: Some businesses prefer a strategy they can implement themselves. For this service, you analyze the business and its competition and help develop a social media strategy.

• Data and statistics analysis: This involves handling more of the analytics and data behind each post to determine what content the audience enjoys. From this data, you create a report to help the client understand which campaigns perform well or need improvements.

• Paid advertising: This service entails building social media advertisements and targeting them to reach the client’s audience. The company usually establishes and manages a client’s budget to ensure it’s spent wisely.

• Community manager: When companies offer community management services, they act as the face of the client’s brand. This involves establishing their brand voice and regularly engaging with consumers to generate lead conversions and educate the audience on the client’s product or service.

• Content creation: You might develop a content calendar and create content for a client’s social media platforms.

• Graphic design: Some companies provide graphic design services to build visually appealing images and post them on social media outlets.

How to register your small business

You can follow these steps to register your social media management business.

1. Determine your services and niche

Establish your services and the niche or industry. Determine your skills and experience that could benefit your clients. If you want more experience in certain services, take an online course or seminar to help strengthen these talents.

Pick an industry based on your experience and demand. For example, if you have experience writing marketing material for dental offices, research whether many dental offices need social media management services. Your business can either manage social media for companies in certain industries or within various niches.

2. Create a business plan

Build a business plan as a roadmap for your company’s goals. Make it a basic outline for the first two years. Include information about your services, current assets and liabilities and how your business stands out from the competition.

3. Pick your business name

Your business name represents your brand and services. Once you select a name, check the United States Patent and Trademark Office’s website to ensure it doesn’t belong to another business. If it does, you may need to select a different name or purchase the rights to that name.

4. Decide on your business structure

Knowing your business structure helps determine how much you pay for taxes and which paperwork to file. Before registering your business with the state, you must decide and report your business structure. Research the rules and regulations for building a business structure in your respective state. You can also switch to a different business structure later on.

Common business structures include sole proprietorship, partnership and limited liability company (LLC).

5. Get your business license, permit and insurance

You may need a state or local business license, depending on your area’s requirements. Most licensing departments offer online registration where you fill out an application and pay a fee. After applying for your license, the zoning or city planning department may ensure your workspace is up to code.

The necessary permits depend on where your location and business operations. Some permits you may need include:

• Fire department permit

• Permit to hang certain signs

• Air and water pollution control permit

• County permit

• State license

• Federal license

• Health department permit

• Sales tax license

How to hire employees for your social media management company

When you’re ready to grow your business, you may decide to start recruiting and hiring a team to work with you. Follow these steps to hire great employees:

1. Choose a type of employee

Determining the kind of employee to hire usually depends on your budget and the position’s tasks. Common employment options include:

• Freelancer: This person is often self-employed and completes short-term tasks for your company. For example, you might hire a freelance writer to create content for accounts. If you find a freelancer you like, you can contact them when you have a new project and pay them once the job is complete.

• Contractor: Independent contractors temporarily work for your company until their assigned project is complete.

• Full-time: These are permanent employees who typically work for your company 40 hours a week and receive certain perks or benefits, including health insurance and paid time off.

2. Build your job descriptions and post on job listing sites

After you decide which type of employee to hire, list the required skills and qualifications. Craft these into a job description that details the wants and needs of your business. Think of the benefits your business offers employees and use these to create your employee value proposition within your job description.

Post this on social media and popular job listing websites. Reach out to candidates whose skills best align with your preferences.

3. Interview your candidates

When you find a list of quality candidates, contact them for interviews. Start with phone interviews to screen candidates and determine if their skills and qualifications suit the position.

When you’ve narrowed down your candidate selection, you might meet with these employees in person. Ask relevant questions that focus on their skills, experience, passion for the role and ability to add to the office culture.

Best ways to market your social media management company

It’s essential to market your company effectively to build a strong client base and earn a profit. Some of the best ways to market your social media management company include:

Reaching out to local businesses

An effective way to find clients within your community is to contact other local businesses. You might call, email or visit them in person to ask how you can meet their social media needs. Offering a special local business discount could help you develop relationships with those businesses.

Networking with other business professionals

Attend conferences and other networking events to meet business professionals. Craft an elevator pitch that explains how your company helps other businesses promote their brand. Networking can be an effective way to find or be recommended to new clients.

Hosting a webinar or presenting at a seminar

You might build brand awareness by educating others through webinars or seminars. This helps people in your niche learn more about the services you offer. Providing knowledge that benefits consumers helps them build trust with your company and can establish you as a thought leader in your industry.

Frequently asked questions about starting a social media management company

What does media management mean?

Media management involves directing, managing and posting content for businesses’ media outlets. This usually refers to social media outlets, such as Facebook, X (Twitter), Instagram, TikTok or YouTube. These channels can help businesses reach specific goals, such as increasing sales or developing personal relationships with customers.

Why is social media management important?

Social media management helps engage a company’s audience. Tracking performance on different media outlets helps you write posts that get positive reactions from followers, which may result in higher conversion rates and stronger customer relationships.

What roles should I hire to help manage my social media management business?

The roles to hire for your company depend on your current budget and offered services. Positions to hire for your social media management company may include:

• Social media marketing specialist: This role involves handling daily social media marketing operations and collaborating with the client to schedule posts, engage with consumers and track each post’s performance.

• Graphic designer: Graphic designers help you create logos and social media graphics for clients. They might also help build your website and marketing materials to promote your company.

• Lead generator: This person typically serves in a sales role, finding and contacting potential clients to use your company’s services.

• Content marketer: This employee may write captivating, valuable social media posts and advertising content for your client.

Starting a social media management company takes time, preparation and evaluation of your skills and the services you offer. Focus your efforts on building a comprehensive business plan to run a successful company.