Social Media Marketing Business Plan Template
If you want to start a successful Social Media Marketing business or expand your current Social Media Marketing business, you need a business plan.
Fortunately, you’re in the right place. Our team has helped develop over 100,000 business plans over the past 20 years, including thousands of social media marketing business plans.
The following social media marketing business plan template and example gives you the key elements you must include in your plan. In our experience speaking with lenders and investors, the template is organized in the precise format they want
Social Media Marketing Business Plan Example
I. Executive Summary
Business Overview
[Company Name] is a social media marketing agency located in [insert location here] that helps small businesses and organizations attain their social media marketing goals. From social media management to digital consulting, the company creates custom social media marketing solutions and strategies that perfectly fit its client’s businesses and industries. The Company’s goal is to become one of the leading social media marketing brands and compete with the leaders in the industry.
Products Served
The Company will provide the following services to its customers:
- Social media marketing consulting and advisory services
- Content marketing
- Brand awareness and engagement
Customer Focus
[Company Name] will primarily offer its services to small businesses and organizations within a 30-mile radius of business location. The demographics of the customers are as given below:
- Small businesses- 16,567
- Non-profit, government and other organizations: 29,081
Management Team
[Company Name] is led by [Founder’s name], who has been in the social media marketing industry for [x] years. [Founder] is a certified and licensed social media and digital marketing expert. He has extensive experience working for leading social media marketing agencies prior to starting his own social media marketing agency. His in-depth knowledge and expertise will help [Company name] provide professional and result-oriented social media marketing services.
Success Factors
[Company Name] is qualified to succeed due to the following reasons:
- There is currently a high demand for social media marketing services. In addition, the company surveyed the local population and received highly positive feedback pointing towards an explicit demand for the services, supporting the business after launch.
- There has been significant growth in social media marketing over the past few years. Those who cater to this market have been thriving.
- The management team has a track record of success in the social media marketing business.
- The social media marketing business is a proven, successful business in the United States.
Financial Highlights
[Company Name] is currently seeking $200,000 to launch a social media marketing agency. Specifically, these funds will be used as follows:
- Office build-out and startup cost: $110,000
- Working capital: $90,000 to pay for marketing, equipment and salaries.
Top line projections over the next five years are as follows:
| Financial Summary | FY 1 | FY 2 | FY 3 | FY 4 | FY 5 |
|---|---|---|---|---|---|
| Revenue | $560,401 | $782,152 | $1,069,331 | $1,379,434 | $1,699,644 |
| Total Expenses | $328,233 | $391,429 | $552,149 | $696,577 | $776,687 |
| EBITDA | $232,168 | $390,722 | $517,182 | $682,858 | $922,956 |
| Depreciation | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
| EBIT | $225,168 | $383,722 | $510,182 | $675,858 | $915,956 |
| Interest | $6,016 | $5,264 | $4,512 | $3,760 | $3,008 |
| Pre Tax Income | $219,152 | $378,458 | $505,670 | $672,098 | $912,948 |
| Income Tax Expense | $76,703 | $132,460 | $176,985 | $235,234 | $319,532 |
| Net Income | $142,449 | $245,998 | $328,686 | $436,864 | $593,416 |
| Net Profit Margin | 25% | 31% | 31% | 32% | 35% |
II. Company Overview
Who is [Company Name]?
[Company Name] is a full-service social media marketing agency that helps small businesses and organizations develop a multi-faceted social media and online marketing strategy. The [Company Name] focuses on branding, lead generation, customer acquisition, customer retention and social media profile enhancement. The [Company Name] will build and create social media content such as blog posts, videos, and events. The Company’s goal is to become one of the leading social media marketing agency brands and compete with the leaders in the industry.
[Company Name]’s History
[Founder’s Name] is an entrepreneur with a passion for social media marketing who seeks to provide a comprehensive and innovative social media marketing agency. [Company Name] will become a known social media marketing agency in [Location], offering social media marketing services.
Upon surveying the local customer base and finding the potential agency location, [Founder’s Name] incorporated [Company Name] as an S-Corporation on [date of incorporation].
[Founder’s Name] has selected an initial location and is currently undergoing due diligence on each property and the local market to assess the most desirable location for the social media marketing agency.
Since incorporation, the company has achieved the following milestones:
- Found office space and signed Letter of Intent to lease it
- Developed the company’s name, logo, and website
- Determined the list of services to be offered
- Determined equipment requirements
- Began recruiting key employees with experience in the social media marketing industry
[Company Name]’s Products/Services
The Company provides the following social media marketing services to its customers:
- Social media marketing consulting and advisory services
- Content marketing
- Brand awareness and engagement
III. Industry Analysis
[Company Name] competes against small, individually owned social media marketing agencies and major regional and national chains. The social media marketing industry reached $11 billion last year and is expected to grow 25.4% over the next five years. There are about 5,607 registered and licensed social media marketing companies in the US, and they are responsible for employing about 66,623 people. Last year, 90% of US marketers in companies with more than 100 employees used social media for marketing purposes.
The growing number of social media users day by day, coupled with the surge in advertising campaigns on social media platforms, are propelling the demand for the social media management market.
The growing trend which makes it easier for people to spend more time on the internet, especially on social networking sites, is a major boost in the revenue generated by social networking marketing companies.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will serve small businesses and organizations in the U.S.
The precise breakdown of businesses by sector is as follows:
| Total Businesses | 38,124 |
|---|---|
| Forestry, Fishing, Hunting, and Agriculture Support | 0.29% |
| Mining | 0.35% |
| Utilities | 0.23% |
| Construction | 9.64% |
| Manufacturing | 4.16% |
| Wholesale Trade | 5.62% |
| Retail Trade | 14.54% |
| Transportation and Warehousing | 2.83% |
| Information | 1.81% |
| Finance and Insurance | 6.56% |
| Real Estate and Rental and Leasing | 4.75% |
| Professional, Scientific and Technical Services | 11.36% |
| Management of Companies and Enterprises | 0.69% |
| Admin, Support, Waste Mgt, Remediation Services | 5.15% |
| Educational Services | 1.20% |
| Health Care and Social Assistance | 10.80% |
| Arts, Entertainment and Recreation | 1.66% |
| Accommodation and Food Services | 8.59% |
| Other Services (Except Public Administration) | 9.78% |
Customer Segmentation
The Company will primarily target the following customer segments:
- Organizations: The Company will provide result-oriented social media marketing strategies to increase brand awareness and generate new business leads for nonprofit organizations, government agencies and other types of organizations.
- Small Businesses: Small businesses that need to increase their reach in the local, regional and national markets, engage with current customers, and build their brand awareness will make an important market segment for the company.
V. Competitive Analysis
Direct & Indirect Competitors
Social Branding Inc
Social Branding Inc is one of the social media marketing agencies in town and has been in business for xx years. Besides offering social media marketing services, Social Branding Inc also specializes in advertising, lead generation, launch campaigns, and other effective social media marketing strategies to grow business.
Social Elite
Social Elite is a full social media management company. It offers social media, search engine, and website design services. The company also creates and manages top-performing social media campaigns for clients on Twitter, Facebook, Pinterest, LinkedIn, and Instagram. Since [year], Social Elite’s social media marketing services have helped clients’ businesses grow brand awareness (followers), relationships (engagement), and website exposure (traffic).
Social Giants
Social Giants helps brands with different aspects of their social media marketing strategy by deploying result-driven services around content production, community management, paid social advertising, influencer marketing, and more. Social Giants is an in-house content builder that films, captures, makes, paints, records, bakes, builds, hatches, composes, invents, writes, draws all of its client’s social media content in-house.
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. These advantages include:
- Management: The Company’s management team has xx years of social media marketing experience that allows them to market and serve customers in an improved and sophisticated manner than the competitors.
- Relationships: Having lived in the community for xx years, [Founder’s Name] knows all of the local leaders, media, and other influencers. Furthermore, he will be able to draw from his existing personal and professional relationships to develop an initial client base.
- Location: [Company Name]’s location is near the center of town, giving the company access to corporate organizations, entrepreneurs, individuals and small businesses.
VI. Marketing Plan
The [Company Name] Brand
[Company name] seeks to position itself as a respectable, upper-middle-market competitor in the social media marketing industry. Customers can expect a good-quality social media marketing experience for their products/services.
The [Company Name] brand will focus on the company’s unique value proposition:
- Offering a wide variety of high-quality social media marketing services to corporate organizations, entrepreneurs, individuals and small businesses.
- Convenient location.
- Providing excellent customer service and customer experience with result-oriented social media marketing services.
Promotions Strategy
[Company Name] expects its target market to be small businesses and organizations. The Company’s promotions strategy to reach the audience includes:
Pre-Opening Events
Before opening, [Company Name] will organize pre-opening events designed for prospective customers, and press contacts. These events will create buzz, and awareness for [Company Name] in the area.
Website
The Company will create a professional website for business prospects, which will provide easy access to essential information about the company offerings, contact details, and other information. The website will be updated and optimized to enhance the company’s online presence.
Advertisement
Advertisements in print publications like newspapers, magazines, etc., are an excellent way for businesses to connect with their audience. The Company will advertise its offerings in popular magazines and news dailies. Obtaining relevant placements in industry magazines and journals will also help in increasing brand visibility.
Public Relations
[Company Name] will hire an experienced PR agency/professional(s) to formulate a compelling PR campaign to boost its brand visibility among the target audience. It will look to garner stories about the company and its offerings in various media outlets like newspapers, podcasts, television stations, radio shows, etc.
Word of Mouth Marketing
[Company name] will encourage word-of-mouth marketing from loyal and satisfied clients. The Company will use recommendations and word-of-mouth marketing to grow the customer base through the network of its existing customers.
Pricing Strategy
[Company Name]’s pricing will be moderate, so customers feel they receive great value when availing of the social media marketing services. The customer can expect to receive high-quality social media marketing for a more affordable price than what they pay at an ultra-premium social media marketing agency.
VII. Operations Plan
Functional Roles
To execute on [Company Name]’s business model, the company needs to perform several functions, including the following:
Service & Administrative Functions
- Business Development
- Creative executive
- Administrative assistant
- General & administrative functions including legal, marketing, bookkeeping, etc.
- Hiring and training staff
Milestones
[Company Name] expects to achieve the following milestones in the following [] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Kickoff of promotional campaign |
| [Date 5] | Launch [Company Name] |
| [Date 6] | Reach break-even |
VIII. Management Team
Management Team Members
[Company Name] is led by [Founder’s Name], who has been in the social media marketing industry for xx years. [Founder] is a certified and licensed social media marketing expert. While [Founder] has never run a social media marketing business himself, he has been active in the industry as he has worked for leading social media marketing companies as a social media marketing expert and managed it for xx years.
[Founder] graduated from the University of ABC, where he majored in communications & marketing.
Hiring Plan
[Founder] will serve as the CEO. In order to launch the social media marketing agency, the company will need to hire the following personnel:
- Creative Director
- Social Media Marketing Specialist
- Human Resources Manager
- Web/Graphic Designer
- Content Creator
- Sales and Marketing Executive
- Accountant
- Client Service Executive
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’s revenues will come from social media marketing services rendered to its customers.
The major costs for the company will be staff salaries. In the initial years, the company’s marketing spend will be high, as it establishes itself in the market.
Capital Requirements and Use of Funds
[Company Name] is currently seeking $200,000 to launch the social media marketing agency. The capital will be used for funding capital expenditures and location build-out, hiring initial employees, marketing expenses, and working capital.
Specifically, these funds will be used as follows:
- Store design/build: $110,000
- Working capital: $90,000 to pay for marketing, equipment and salaries.
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model:
| Average Number of Clients | |
|---|---|
| FY 1 | 42 |
| FY 2 | 63 |
| FY 3 | 96 |
| FY 4 | 162 |
| FY 5 | 243 |
| Annual Rent | $36,000.00 |
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRETAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
