Do you want to start social media marketing management business?

Executive Summary

Company Summary

Products

Marketing Analysis of Social Media Marketing Management Business

Strategy

Personnel plan

Financial Plan

Do you want to start social media marketing management business?

Are you planning to start a social media management business? It’s one of the businesses which require very little investment but still yield attractive returns. To make your venture a success, you must carefully plan each and every aspect of your business. Writing a social media business plan can help you a lot in this regard.

A business plan will guide you throughout every phase of your startup, making things as easier as possible for you. To help make one for yourself, we are providing a sample business plan of a social media management business startup, named Rexes Consultants.

Executive Summary

Before you think about how to start a social media management business, you must create a detailed social media management business plan. It will not only guide you in the initial phases of your startup but will also help you later on. You can also consult this social media management company business plan so as to get an idea.

2.1 The Business

Rexes Consultants is a social media management company based in Austin, Texas. The company will provide wide-ranging services for all major platforms including but not limited to Facebook, Instagram, Twitter, Pinterest, and YouTube.

2.2 Management

Rexes Consultants is owned by Natalie Gordon, a digital marketing guru. Natalie will hire an experienced social media team comprising of graphic designers, SEO specialists, and content writers. She will also work with freelance service providers located around the world.

2.3 Customers

Rexes Consultants will provide social media management services to businesses located around the world, ranging from small startups to multinational corporates.

2.4 Business Target

Our target is to become one of the top social media management group with the next 2-3 years. We also aim to achieve the net profit margin of $10k per month by the end of the first year, $15k per month by the end of the second year, and so on every year.

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Company Summary

3.1 Company Owner

Rexes Consultants is owned by Natalie Gordon, a digital marketing guru. After completing her Bachelors in Digital Advertising, Natalie worked with several marketing giants for more than 10 years. She served in a variety of positions ranging from technical to managerial.

3.2 Why the Business is being started

Natalie is a well-known figure in the world of marketing and is famous for designing innovative social media marketing strategies. Her passion for digital marketing is what led her to start her own business. Being highly experienced in this field, she knows how to start a social media management company and make it a success.

3.3 How the Business will be started

Rexes Consultants will be located in Austin, Texas. A working space which was previously in use by a Web Hosting firm will be acquired on lease. It will serve as our company headquarter, though our team will also be working remotely. Natalie will hire an experienced social media team, and will also work with freelance service providers around the world.

In order to start a social media management business, the company will be procuring the best ISP in the city along with computers, servers, peripherals, and other necessary devices. The startup summary, as highlighted by our social media consulting business plan is as follows:

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The detailed startup requirements are given below:

Start-up Expenses
Legal $55 300
Consultants $0
Insurance $32 750
Rent $32 500
Research and Development $32 750
Expensed Equipment $32 750
Signs $1 250
TOTAL START-UP EXPENSES $187 300
Start-up Assets $220 875
Cash Required $332 500
Start-up Inventory $32 625
Other Current Assets $232 500
Long-term Assets $235 000
TOTAL ASSETS $121 875
Total Requirements $245 000
START-UP FUNDING
START-UP FUNDING $273 125
Start-up Expenses to Fund $151 875
Start-up Assets to Fund $123 000
TOTAL FUNDING REQUIRED $0
Assets $23 125
Non-cash Assets from Start-up $18 750
Cash Requirements from Start-up $0
Additional Cash Raised $18 750
Cash Balance on Starting Date $21 875
TOTAL ASSETS $373 125
Liabilities and Capital $0
Liabilities $0
Current Borrowing $0
Long-term Liabilities $0
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $0
TOTAL LIABILITIES $0
Capital $620 125
Planned Investment $620 125
Investor 1 $0
Investor 2 $0
Other $0
Additional Investment Requirement $0
TOTAL PLANNED INVESTMENT $620 125
Loss at Start-up (Start-up Expenses) $313 125
TOTAL CAPITAL $251 875
TOTAL CAPITAL AND LIABILITIES $251 875
Total Funding $255 000

Products

Rexes Consultants will provide wide-ranging social media management services for all major platforms including but not limited to Facebook, Instagram, Twitter, Pinterest, and YouTube. Our primary services, as highlighted by our social media consultant business plan, are as follows:

  • Advertising and branding services
  • Marketing consultation and advisory services
  • Blogging and specialty services
  • Social media profile management services

Marketing Analysis of Social Media Marketing Management Business

Marketing analysis of your startup is an important part of your business plan as it indicates who your future customers will be and how you can attract them toward you. Owing to its nature, marketing analysis should be done well before you think about how to start a SMM business.

If you need help with marketing analysis of your own startup, you can take help from various SMM business plan template samples available online or you can consult this business plan for a social media management company. In case you need more help, you can always seek marketing experts for the purpose.

5.1 Market Trends

According to IBISWorld, the US advertising industry generates revenue of more than $54.5 billion annually. A major part of this astronomical amount is contributed by the social media advertising industry. That’s why any business in this niche can prove extremely beneficial for you, provided that you plan and execute it effectively.

5.2 Marketing Segmentation

Rexes Consultants will provide social media management services to businesses located around the world. We will be serving companies ranging from small startups to multinational corporates. Our potential customers are divided into the following target groups.

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The detailed marketing segmentation of our target audience is as follows:

5.2.1 Businesses

The primary category of our customers will be the owners of both small and large businesses located across the globe. We will manage their social media profiles across all platforms such as their Facebook, Instagram, Twitter, Pinterest, and YouTube accounts. Our aim will be to provide excellent user interaction intended to boost sales and help these businesses grow.

5.2.2 Institutions & Organizations

Our second target group will comprise of various institutions and organizations located around the world. We will provide social media management services to both public and private sector organizations such as schools, colleges and universities, political parties, sports organizations, and non-profit organizations.

5.2.3 Media & Celebrities

Our third target group will be media groups such as magazines, newspapers, and digital media outlets. We will also manage the social media accounts of all kinds of celebrities including but not limited to actors, sportspersons, and politicians.

Our detailed marketing segmentation is as follows:

Market Analysis
Potential Customers Growth Year 1 Year 2 Year 3 Year 4 Year 5 CAGR
Businesses 48% 22 334 32 344 43 665 52 544 66 432 10,00%
Institutions & Organizations 32% 12 867 14 433 15 999 17 565 19 131 15,32%
Media & Celebrities 20% 11 433 13 344 16 553 18 745 20 545 13,43%
Total 100% 46 634 60 121 76 217 88 854 106 108 9,54%

5.3 Business Target

We aim to become one of the top social media management group with the next 2-3 years. Our other business targets are as follows:

  • To balance the initial cost of the startup with earned profits by the end of the first year
  • To achieve the net profit margin of $10k per month by the end of the first year, $15k per month by the end of the second year, and so on increasing it every year

5.4 Product Pricing

After considering the market demands, we will be charging almost the same prices as charged by our leading competitors. But we will be offering several discounts to introduce our services.

Strategy

After you have identified your target audience, the next step is to attract them towards you and convert them into your loyal customers. It can only be achieved using a brilliant sales strategy.

If you are looking to start your own venture, you can take help from this business plan for social media management company or you can also consult any other social media management business plan pdf available online.

6.1 Competitive Analysis

Social media is undoubtedly the face of any business. No matter how good a business is, costumers judge it from its social media content as well as the number of its social media followers. Moreover, it is also very important for all business, irrespective of their size and nature, to properly respond to the queries and complaints of their customers on social media in a timely manner. It won’t be wrong to say that the success of any business now greatly depends on how it manages its social media profiles.

Considering the importance of social media management, businesses are now paying more and more attention to it. That’s why numerous social media management companies exist today, creating a severe competition for us. However, we will soon outpace them by providing exceptional services at affordable prices. Besides quality services, our seamless communication will also be another competitive advantage. We will be available 24/7 to facilitate our clients from different time zones.

6.2 Sales Strategy

Here is how we will be converting our target audience into our customers.

  • We will advertise our services through all platforms, especially by social media
  • We will offer a 20% discount on our services for the first three months of our launch
  • We will ensure our website traffic converts into our customers by making it appealing to them
  • We will introduce ourselves by sending brochures and introductory letters to businesses and organizations

6.3 Sales Monthly

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6.4 Sales Yearly

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6.5 Sales Forecast

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Sales Forecast
Unit Sales Year 1 Year 2 Year 3
Advertising and branding services 1 887 030 2 680 320 2 588 240
Marketing consultation and advisory services 802 370 815 430 823 540
Blogging and specialty services 539 320 770230 1 002 310
Social media profile management services 265 450 322 390 393 320
TOTAL UNIT SALES 3 494 170 4 588 370 4 807 410
Unit Prices Year 1 Year 2 Year 3
Advertising and branding services $140,00 $150,00 $160,00
Marketing consultation and advisory services $600,00 $800,00 $1 000,00
Blogging and specialty services $700,00 $800,00 $900,00
Social media profile management services $650,00 $750,00 $850,00
Sales
Advertising and branding services $2 149 800 $2 784 000 $3 383 200
Marketing consultation and advisory services $120 050 $194 500 $268 500
Blogging and specialty services $50 110 $71 600 $93 000
Social media profile management services $139 350 $194 600 $249 850
TOTAL SALES
Direct Unit Costs Year 1 Year 2 Year 3
Advertising and branding services $0,70 $0,80 $0,90
Marketing consultation and advisory services $0,40 $0,45 $0,50
Blogging and specialty services $0,30 $0,35 $0,40
Social media profile management services $3,00 $3,50 $4,00
Direct Cost of Sales
Advertising and branding services $989 300 $1 839 000 $2 679 700
Marketing consultation and advisory services $66 600 $119 900 $173 200
Blogging and specialty services $17 900 $35 000 $52 100
Social media profile management services $19 400 $67 600 $115 800
Subtotal Direct Cost of Sales $1 294 100 $1 699 400 $2 104 700

Personnel plan

You will need to hire a highly trained staff for starting a social media management business due to the intensity of competition in this niche. It must be done before you think other aspects of how to set up a social media management business so that you can train them adequately.

7.1 Company Staff

Natalie will manage the business herself and will be hiring following people on a contract basis.

  • 1 Accountant to handle finances
  • 1 Receptionist to attend to customers in Austin’s main office
  • 4 Graphic Artists to handle all designing work
  • 2 SEO Specialists for search engine optimization
  • 2 Content writers to create engaging social media content
  • 2 Assistants to respond to users

The company will also acquire freelance services if need be.

7.2 Average Salary of Employees

 Personnel Plan
Year 1 Year 2 Year 3
Accountant $85 000 $95 000 $105 000
Receptionist $50 000 $55 000 $60 000
Graphic Artists $187 000 $194 000 $201 000
SEO Specialists $150 000 $155 000 $165 000
Content Writers $145 000 $152 000 $159 000
Assistants $85 000 $95 000 $105 000
Total Salaries $295 000 $307 000 $324 000

Financial Plan

The success of a business heavily depends on its financial plan because it helps you take all major decisions about your startup. A good financial plan must include all expenses of your startup as well as the forecasted profits so that you can know the growth rate of your business.

If you want to make a financial plan of your social media marketing management business, it is better for you to seek help from financial experts. They can make an accurate plan which will go a long way in guiding you through your major decisions.

8.1 Important Assumptions

 General Assumptions
Year 1 Year 2 Year 3
Plan Month 1 2 3
Current Interest Rate 10,00% 11,00% 12,00%
Long-term Interest Rate 10,00% 10,00% 10,00%
Tax Rate 26,42% 27,76% 28,12%
Other 0 0 0

8.2 Brake-even Analysis

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 Brake-Even Analysis
Monthly Units Break-even 5530
Monthly Revenue Break-even $159 740
Assumptions:
Average Per-Unit Revenue $260,87
Average Per-Unit Variable Cost $0,89
Estimated Monthly Fixed Cost $196 410

8.3 Projected Profit and Loss

 Pro Forma Profit And Loss
Year 1 Year 2 Year 3
Sales $309 069 $385 934 $462 799
Direct Cost of Sales $15 100 $19 153 $23 206
Other $0 $0 $0
TOTAL COST OF SALES $15 100 $19 153 $23 206
Gross Margin $293 969 $366 781 $439 593
Gross Margin % 94,98% 94,72% 94,46%
Expenses
Payroll $138 036 $162 898 $187 760
Sales and Marketing and Other Expenses $1 850 $2 000 $2 150
Depreciation $2 070 $2 070 $2 070
Leased Equipment $0 $0 $0
Utilities $4 000 $4 250 $4 500
Insurance $1 800 $1 800 $1 800
Rent $6 500 $7 000 $7 500
Payroll Taxes $34 510 $40 726 $46 942
Other $0 $0 $0
Total Operating Expenses $188 766 $220 744 $252 722
Profit Before Interest and Taxes $105 205 $146 040 $186 875
EBITDA $107 275 $148 110 $188 945
Interest Expense $0 $0 $0
Taxes Incurred $26 838 $37 315 $47 792
Net Profit $78 367 $108 725 $139 083
Net Profit/Sales 30,00% 39,32% 48,64%

8.3.1 Profit Monthly

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8.3.2 Profit Yearly

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8.3.3 Gross Margin Monthly

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8.3.4 Gross Margin Yearly

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8.4 Projected Cash Flow

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 Pro Forma Cash Flow
Cash Received Year 1 Year 2 Year 3
Cash from Operations
Cash Sales $40 124 $45 046 $50 068
Cash from Receivables $7 023 $8 610 $9 297
SUBTOTAL CASH FROM OPERATIONS $47 143 $53 651 $59 359
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
SUBTOTAL CASH RECEIVED $47 143 $53 651 $55 359
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $21 647 $24 204 $26 951
Bill Payments $13 539 $15 385 $170 631
SUBTOTAL SPENT ON OPERATIONS $35 296 $39 549 $43 582
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
SUBTOTAL CASH SPENT $35 296 $35 489 $43 882
Net Cash Flow $11 551 $13 167 $15 683
Cash Balance $21 823 $22 381 $28 239

8.5 Projected Balance Sheet

 Pro Forma Balance Sheet
Assets Year 1 Year 2 Year 3
Current Assets
Cash $184 666 $218 525 $252 384
Accounts Receivable $12 613 $14 493 $16 373
Inventory $2 980 $3 450 $3 920
Other Current Assets $1 000 $1 000 $1 000
TOTAL CURRENT ASSETS $201 259 $237 468 $273 677
Long-term Assets
Long-term Assets $10 000 $10 000 $10 000
Accumulated Depreciation $12 420 $14 490 $16 560
TOTAL LONG-TERM ASSETS $980 $610 $240
TOTAL ASSETS $198 839 $232 978 $267 117
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $9 482 $10 792 $12 102
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
SUBTOTAL CURRENT LIABILITIES $9 482 $10 792 $12 102
Long-term Liabilities $0 $0 $0
TOTAL LIABILITIES $9 482 $10 792 $12 102
Paid-in Capital $30 000 $30 000 $30 000
Retained Earnings $48 651 $72 636 $96 621
Earnings $100 709 $119 555 $138 401
TOTAL CAPITAL $189 360 $222 190 $255 020
TOTAL LIABILITIES AND CAPITAL $198 839 $232 978 $267 117
Net Worth $182 060 $226 240 $270 420

8.6 Business Ratios

 Ratio Analysis
Year 1 Year 2 Year 3 INDUSTRY PROFILE
Sales Growth 4,35% 30,82% 63,29% 4,00%
Percent of Total Assets
Accounts Receivable 5,61% 4,71% 3,81% 9,70%
Inventory 1,85% 1,82% 1,79% 9,80%
Other Current Assets 1,75% 2,02% 2,29% 27,40%
Total Current Assets 138,53% 150,99% 163,45% 54,60%
Long-term Assets -9,47% -21,01% -32,55% 58,40%
TOTAL ASSETS 100,00% 100,00% 100,00% 100,00%
Current Liabilities 4,68% 3,04% 2,76% 27,30%
Long-term Liabilities 0,00% 0,00% 0,00% 25,80%
Total Liabilities 4,68% 3,04% 2,76% 54,10%
NET WORTH 99,32% 101,04% 102,76% 44,90%
Percent of Sales
Sales 100,00% 100,00% 100,00% 100,00%
Gross Margin 94,18% 93,85% 93,52% 0,00%
Selling, General & Administrative Expenses 74,29% 71,83% 69,37% 65,20%
Advertising Expenses 2,06% 1,11% 0,28% 1,40%
Profit Before Interest and Taxes 26,47% 29,30% 32,13% 2,86%
Main Ratios
Current 25,86 29,39 32,92 1,63
Quick 25,4 28,88 32,36 0,84
Total Debt to Total Assets 2,68% 1,04% 0,76% 67,10%
Pre-tax Return on Net Worth 66,83% 71,26% 75,69% 4,40%
Pre-tax Return on Assets 64,88% 69,75% 74,62% 9,00%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin 19,20% 21,16% 23,12% N.A.
Return on Equity 47,79% 50,53% 53,27% N.A.
Activity Ratios
Accounts Receivable Turnover 4,56 4,56 4,56 N.A.
Collection Days 92 99 106 N.A.
Inventory Turnover 19,7 22,55 25,4 N.A.
Accounts Payable Turnover 14,17 14,67 15,17 N.A.
Payment Days 27 27 27 N.A.
Total Asset Turnover 1,84 1,55 1,26 N.A.
Debt Ratios
Debt to Net Worth 0 -0,02 -0,04 N.A.
Current Liab. to Liab. 1 1 1 N.A.
Liquidity Ratios
Net Working Capital $120 943 $140 664 $160 385 N.A.
Interest Coverage 0 0 0 N.A.
Additional Ratios
Assets to Sales 0,45 0,48 0,51 N.A.
Current Debt/Total Assets 4% 3% 2% N.A.
Acid Test 23,66 27,01 30,36 N.A.
Sales/Net Worth 1,68 1,29 0,9 N.A.
Dividend Payout 0 0 0 N.A.