How to Start an Instagram Consulting Business

Start an Instagram Consulting Business by following these 10 steps:

1. Plan your Instagram Consulting Business
2. Form your Instagram Consulting Business into a Legal Entity
3. Register your Instagram Consulting Business for Taxes
4. Open a Business Bank Account & Credit Card
5. Set up Accounting for your Instagram Consulting Business
6. Get the Necessary Permits & Licenses for your Instagram Consulting Business
7. Get Instagram Consulting Business Insurance
8. Define your Instagram Consulting Business Brand
9. Create your Instagram Consulting Business Website
10. Set up your Business Phone System

We have put together this simple guide to starting your Instagram Consulting Business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas.

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

• What will you name your business?
• What are the startup and ongoing costs?
• Who is your target market?
• How much can you charge customers?

Luckily we have done a lot of this research for you.

What will you name your business?

Choosing the right name is very important. Read our detailed guide on how to name your business. We recommend checking if the business name you choose is available as a web domain and securing it early so no one else can take it.

What are the costs involved in opening an Instagram Consulting Business?

An Instagram consultant can start their business at a very low cost — for many Instagram consultants who are just getting started, social media advertising may be their only expense.

What are the ongoing expenses for an Instagram Consulting Business?

Maintenance of tech equipment (including a mobile device and computer), a stable wireless connection, and advertising fees are the only ongoing business expenses for an Instagram consulting business.

Who is the target market?

The target market for an Instagram consulting business varies widely depending on the niche market the consultant wants to reach. Some Instagram consulting businesses cater to parenting influencers, others cater to athletes, etc. It's important that the consultant understands their target market.

How does an Instagram Consulting Business make money?

Instagram business consultants make money by helping customers grow their social media following, increasing engagement on social media posts, and/or by helping customers score paid partnerships with brands and other accounts.

How much can you charge customers?

Many Instagram consultants offer their customers a free week to try their program before asking them to choose a pricing level. Social media consultants may prefer to charge on an hourly basis rather than a monthly basis. Beginning social media consultants can charge between $15-$50 per hour. If you prefer to charge by month, social media consultants can charge between $399-$5,000 (or more) per month. With experience and proven results, social media consultants can increase their fees over time.

How much profit can an Instagram Consulting Business make?

An Instagram consulting business can easily make more than $100,000 per year, but it can take time to build up clients to get to that level.

How can you make your business more profitable?

As mentioned, the business owner's focus on growing their own social media account(s) is one of the most important ways to make their business more profitable. Working with multiple clients each month (instead of focusing on a single client at a time) can also increase Instagram consulting revenue.

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation.

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your Instagram Consulting Business is sued.

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history, which can be useful to raise money later on.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

Is this Business Right For You?

An Instagram consulting business is perfect for someone who knows the ins and outs of social media — and who is willing to stay up to date with changes to the platform's algorithm. Many people who try to grow their Instagram accounts get frustrated because it's challenging to stay current on what works well on the platform. An Instagram consultant should also have their own successful Instagram account or have proof that they've successfully grown Instagram accounts for others.

What happens during a typical day at an Instagram Consulting Business?

A day in the life of an Instagram consultant can vary widely. Some tasks that an Instagram consulting business may perform each day include:

• Meeting with clients to discuss social media growth strategy
• Taking training to learn more about changing Instagram algorithms
• Developing new strategies to help clients grow their accounts
• Creating content and posting for clients
• Invoicing and billing clients
• Meeting and strategizing with employees (if the business has grown to require a team)

What are some skills and experiences that will help you build a successful Instagram Consulting Business?

Social media savvy goes a long way in getting an Instagram consulting business up and running. Clients may also want to work with an Instagram consultant who shares a similar aesthetic, so it's important for an Instagram consultant to narrow down their target market carefully.

What is the growth potential for an Instagram Consulting Business?

If a consultant is willing to spend time learning new techniques to benefit customers, the growth potential for an Instagram consulting business is exponential. It may also be important for Instagram consulting businesses to stay on top of trends on other social media platforms, as popular platforms tend to ebb and flow with time.