Benefitsof starting a social media management company

A social media management company runs the social media marketing efforts for another business. They’re often in charge of writing, promoting and publishing content on all social media channels. Having a strong social media presence helps the company build its brand awareness, attract a wider audience and see higher conversion rates. Many businesses outsource their social media management to other companies that specialize in these services to ensure their social media pages are targeting the right people and bringing in more leads.

Common benefits of starting a social media management company include:

• Little equipment or money needed to start:Most social media management companies don’t require massive budgets to get started. The main tools you need to run your social media management company are a computer and social media management software. This means you’re able to operate from your computer in your home and save money for larger expenses like more employees or office space.
• Ability to work from home or any other remote location:Since you need little equipment and complete most of your tasks on a computer, you can start out working from home or wherever you please. Working from home gives you more time to make a profit and save for other expenses to help grow your business.
• Increase in demand for social media managers:The demand for social media managers is expected to grow 9% over the next 10 years, according to CNN. This gives your company a greater chance of staying in business and finding a significant amount of work over the next few years.

Estimate of how much money is needed

The budget you need to start your company depends on how many employees you hire, the equipment you require and your business’ location. If you’re planning to operate out of your house and eventually move to an office space, most home-based companies cost around $2,000 to $5,000 starting out. Here’s a list of the expenses you must cover when starting your social media company:

• Employees:As you grow your business, you’ll need to cover employee costs, like wages, health insurance and other benefits.
• Website costs:You’ll need a website to promote your business and present your products to customers. Many servers charge for services like building a website, securing a domain name and creating business email addresses.
• Office rental space and furniture:When you eventually operate in an office, you must pay for rental space costs and you must fill the office with furniture, like desks, chairs, tables and couches for your lobby area.
• Permits, licenses and insurance:You must pay a fee to operate as an official legal business. The fees for permits often vary between companies.
• Advertising and promotional costs:Since you’ll still be building awareness of your brand and products, you’ll typically be spending much of your budget on marketing and promotional costs to better market to your target audience.
• Social media management software:You’ll need certain software tools to successfully track, manage and post on your clients’ social media outlets, which usually cost a monthly fee, depending on the software tool you use.

Types of social media management services you can offer

Some social media management companies specialize in one specific service or outlet, while others offer a more generalized and wide range of services to clients. Your business might start out offering one or two services with the potential to grow and provide additional services as you hire more employees. Common types of social media management services most social media management businesses offer include:

• General social media and marketing services:This covers general social media marketing knowledge for all platforms, handling content creation, ad management and performance tracking for each outlet.
• Data and statistics analysis:This involves handling more of the analytics and data behind each post to determine which posts a client’s audience enjoys and which didn’t receive a positive response. The company takes this data, puts it into a report and presents it to the client to help them better understand which campaigns are performing well or need improvements.
• Paid advertising:This service entails building social media advertisements and targeting them to reach the client’s audience and a wider set of consumers. 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’re acting as the face of the client’s brand. This involves establishing their brand voice and regularly engaging with consumers to generate more lead conversions and educate the audience on the client’s product or service.
• Graphic design:Some companies provide graphic design services to build visually appealing images and post them on social media outlets to entertain and engage followers.

Related:Advantages and Disadvantages of Social Media at Work

How to register your small business

Before you can operate as a legitimate business, you must register as a small business by applying for your license, getting insurance and building a comprehensive marketing plan. Follow these steps below to successfully register your small business:

1. Determine your services and niche

Establish the services you’ll offer clients and the niche or industry you work in. Determine the skills and experience you currently have that will benefit your clients. If there are certain services you want to provide that you don’t have enough experience in, take an online course or seminar to help strengthen these talents.

Pick an industry to work in based on your experience and the industry’s needs. For instance, if you have experience writing marketing material for dental offices, conduct research to see if many dental offices need social media management services. Your business can either manage social media for companies in certain industries or within a wide variety of niches.

2. Create a business plan

Build a business plan to use as a roadmap for your company’s goals and your plan for achieving them. Make it a basic outline of your business’ goals for the next one or two years, the services you’ll provide, any assets you currently own, liabilities you have and how your business stands out from the competition. Research other business plans online if you’re unsure how to start.

3. Pick your business name

Your business name is what will represent your brand and the services you provide. It must also appeal to your target audience. Once you select a name, check the United States Patent and Trademark Office’s website to ensure another business doesn’t already have it. If they do, you may need to consider finding a different name or purchasing the rights to that name. After officially choosing your name, start researching ways to trademark it.

4. Decide what your business structure is

Knowing your business structure helps determine how much you’ll pay for taxes and which paperwork you must file. Before registering your business with the state, you must decide and report your business structure. Be sure to research the rules and regulations for building a business structure in your respective state. Fortunately, you’re able to switch to a different business structure later on, if desired. Common business structures your business may fall under include:

• Sole proprietorship:Your personal assets and business assets aren’t separate from each other with this business structure. This means if your business experiences debt, you could be held personally liable. This proprietorship is the best option for owners of low-risk businesses who are just starting out as a sole member of the company before it accumulates more customers, employees and partners.
• Partnership:This is a great structure for two or more people who co-own a business. If you choose a limited partnership, then you’ll have one partner with unlimited liability and others with limited liability. Those who have limited liability have little control over the company’s decisions. Partners receive profits through personal tax returns and the partner without limited liability usually pays self-employment taxes. Another option is limited liability partnership, which provides liability to all your owners.
• Limited liability company:This structure separates your personal and business assets, so if your business undergoes a financial decline, your house, car or other personal investments won’t be in trouble. When you own a limited liability company, you must pay self-employment taxes, but you’ll pay a lower tax rate than you would if you owned a corporation.

5. Get your business license, permit and insurance

You’re able to get your business license from your county or city government by registering online or calling them. Once you pay the fee to receive your license, you earn the right to operate your business in that area. After applying for your license, the zoning or city planning department will ensure the space you’re operating a business in is up to code. The main type of insurance your small business must get is general liability insurance, which protects you from legal repercussions if someone is injured on your property.

Depending on where you’re located and the operations of your business, there are certain permits you must get, including:

• 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 at your company

When you’re ready to open and grow your business, it’s time to start recruiting and hiring quality candidates to work with you. Follow these steps to hire great employees:

1. Decide which type of employee you’d like to hire based on your budget

Determining the kind of employee to hire usually depends on your budget and the amount of tasks you have available for them. Common employment options include:

• Freelancer:This employee is often self-employed and completes short-term tasks for your company. If you find a freelancer you like, you can reach out to them any time you have a new project to complete and will pay them once the job is successfully finished.
• Contract:These are temporary employees who sign on to work for your company for a few months to a year or until the project is complete.
• Full-time:These are permanent employees work for your company 40 hours a week and receive certain perks or benefits your business offers, which includes health insurance and paid time off.

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

Once you decide the type of employee to hire, list out the skills and qualifications you prefer they have. Craft these into a job description that clearly details the wants and needs of your business. Think of the benefits your business has to offer employees and use these to create your employee value proposition within your job description. Post this on social media and popular job listing websites and reach out to candidates who have skills that 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 match what you’re looking for. When you’ve narrowed down your candidate selection, meet with these employees in person. Ask relevant questions that focus on their skills, experience, passion for the role and their ability to fit in with the office culture. Reach out to the candidate that best fits your ideal employee for the role.

Best ways to market your social media management company

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

Reach out to local businesses

An effective way to find clients within your community is to reach out to other businesses around town. Visit them in person to ask how you can meet their social media needs. Offer them a special local business discount. They’ll enjoy receiving a special perk and they’ll like the convenience of the close proximity from your business to theirs.

Network with other business professionals

Attend conferences and other networking events to meet business professionals and tell others about your company. Craft an elevator pitch that explains what your company is and how it helps other businesses promote their brand. This helps you either earn new businesses at the event. Those who aren’t currently looking for social media assistance may still take your business card and pass it on to their own connections.

Host a webinar or present at a seminar

A great way to build brand awareness is to educate others by presenting at webinars or seminars. Host your own webinar or seminar or present at other business’ event. This helps people in your niche learn more about the services you office. Providing knowledge that benefits consumers helps them build trust with your company and it establishes 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, controlling and posting on media outlets for certain businesses. This usually refers to social media outlets, like Facebook, Twitter, Instagram or YouTube.

Related:Social Media in the Workplace: Keeping Your Team on Task

Why is media management important?

Media management allows you to craft posts that engage and capture the attention of a business’ audience. Tracking performances on different media outlets helps you write posts that get positive reactions from followers, which results 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 the services you decide to offer clients. Common positions to hire for your social media management company 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 posts’ performance.
• Graphic designer:This position helps you design logos and social media graphics for clients. They’re also able to help build your own website and marketing materials to promote your company to clients.
• Lead generator:This person serves in a sales role, finding and contacting potential clients to use your company’s services.
• Content marketer:This employee is in charge solely of writing captivating, valuable and engaging 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 and business structure and follow them carefully to run a successful company.