Starting a digital media company can be a very lucrative business opportunity. There are many important steps to take in order to make sure your business is successful.
Here are the steps you can take to get started on building your very own digital media company.
10 Steps to Launching a New Digital Media Company
1. Choose Your Type of Digital Media Company
The first step in launching a digital media company is to identify the type of digital media business you want to launch. You might choose from the following types among others:
- Video production company
- Social media agency
- Digital marketing agency
- Web design firm
2. Name Your Digital Media Company
Give your digital media company an identity so people will think of it as a well-known and respected brand. You can take the name of your digital media company from your industry, focus on a geographical location, or use your own name among other options.
The main goal for naming your digital media company is to make it sound appealing and trustworthy so that potential clients will want to hire you.
3. Determine Your Digital Media Company Business Model
There are several possible types of business models for a digital media company including:
- Commission-Based: You receive a commission for every project you complete.
- Retainer-Based: You charge a monthly fee to work on an ongoing basis with a client.
- Project-Based: You charge a one-time fee for each project you complete.
No matter which model you choose, make sure that it aligns with your business goals and the services you offer.
Read more about choosing the right business model for your digital media company.
4. Choose a Legal Form for Your Business
By incorporating your digital media company, you will limit your liability. You can incorporate as a Limited Liability Company (LLC), a C Corporation (C-Corp), or an S Corporation (S-Corp). Or you can operate as a sole proprietorship.
The business structure you choose for your digital media company will determine the amount of taxes you pay and which state or federal tax forms you need to file.
5. Write a Digital Media Company Business Plan
All digital media company owners should develop a business plan.
A business plan is a document that outlines the goals, strategies, and operations of a business. It can be used to secure funding from investors or lenders, as well as to guide the day-to-day operations of the business. The business plan should include information on the company’s products or services, market analysis, financial projections, and management team among other things.
When developing your digital media company business plan and strategy, you should think about the following questions your customers might have:
- What services do you offer?
- What types of media do you produce?
- How long have you been in business?
- Why should I hire you?
- What is your process for producing digital media?
- How much do you charge for your services?
- Do you have any discounts or promotions?
- What are the terms of your payment?
- When will my project be completed?
- Do you have any guarantee or warranty?
Answering these questions in your business plan will give potential customers a better understanding of what your digital media company can do for them.
Read our article about how to write a digital media company business plan.
6. Apply for the Necessary Permits and Licenses
There may be required licenses and permits you need to obtain before launching your digital media company.
You must also register your digital media company as a legal entity with the state where you plan to do business. You can simply file an online form through your Secretary of State website.
Registering with the federal government is also essential so you can properly pay taxes for your business. You will also need an Employer Identification Number (EIN), which you can apply for at the IRS website, if you plan to hire employees.
7. Determine Your Budget & Apply for Funding as Needed
In developing your digital media company business plan, you will figure out how much funding you need to start and grow your business.
If you have your own funds to invest in your digital media company, you may consider taking advantage of that. In addition to your personal funds, other forms of potential funding for your digital media company include traditional bank loans, SBA loans, credit cards, angel investors and family and friends.
Read our article about the costs associated with starting a digital media company to help you determine if funding is needed.
8. Get the Technology & Software Needed to Run Your Business Efficiently
When you start your digital media company, it’s essential to have the right technology in place to maximize efficiency. You definitely need a computer with Internet access, and accounting software for tracking expenses and revenues.
You may also want to invest in design software such as Adobe Photoshop or Illustrator if you plan on offering design services. Video editing software is also a good investment if you plan to offer video production services.
You can purchase most of this software online, and many of the companies offer free trials so you can test out the products before committing to a purchase.
You should also have a process in place for storing and backing up your digital media files. This can be done on an external hard drive or through a cloud-based storage system such as Dropbox or Google Drive.
9. Market Your Digital Media Company to Potential Clients
Before you start selling your services, you have to let the world know you exist. The first step is to create a website so people can learn more about your services and how they benefit them.
After you launch your website, start promoting it through social media channels like Facebook, LinkedIn and Twitter. Also consider networking with other people in the digital media industry through social media and blogs so they can help share your business.
You also need to start gathering the materials needed to execute on your promotions strategy, which is your strategy for attracting new customers. Digital Media businesses should consider the following promotional strategies for which you should start getting prepared:
- Create a website and social media pages to market your company and services.
- Network with other professionals in the digital media industry.
- Write articles and blog posts about digital media topics.
- Give presentations about digital media at industry events and conferences.
- Produce videos and podcasts about digital media topics.
- Offer free consultations to potential clients.
- Develop partnerships with other businesses in complementary industries.
- Invest in search engine optimization (SEO) for your website.
- Advertise your digital media company online and offline.
- Stay up-to-date on industry news and trends so you can adjust your marketing strategy as needed.
Read our article about how to market your digital media company for more tips.
10. Get New Clients & Grow Your Business
When you promote your services, you’ll start to get interest from potential clients.
Make sure you’re ready to serve these clients. Also, be sure to establish systems to ensure consistency and reduce costs. And be sure to find and train the right people to help you grow your digital media company.
Read our article about how to effectively grow your digital media company to learn more.
Starting a Digital Media Company FAQs
Why Start a Digital Media Company?
There are many reasons to start a digital media company. The first reason is that the industry is growing rapidly. The second reason is that there’s a lot of money to be made in digital media. And third, starting a digital media company is a great way to be your own boss and have control over your career.
What is Needed to Start a Successful Digital Media Company?
To start a successful digital media company, you need the following:
- A great business idea
- A marketable skill or talent
- The right technology and software
- A well-designed website
- An effective marketing strategy
- The ability to get new clients and grow your business
- The right team to help you execute your vision
How Can I Start a Digital Media Company From Home?
Yes, you can start a digital media company from home. In fact, many digital media companies are started from home. All you need is a computer, an internet connection and the right technology and software. Establish a workspace and home office. Then, start promoting your business online and offline.
How Can I Start a Digital Media Company Online?
To start a digital media company online, the first step is to create a website. Your website should include information about your services, your team and your work. You should also have a blog so you can write articles about digital media topics. Then, start promoting your website through social media and other online channels.
Ensure that clients can book your services online.
What are Some Tips for Starting a Digital Media Company?
Here are some tips for starting a digital media company:
- Research the market: Make sure you understand the digital media industry and what it takes to be successful in this field.
- Find a niche: When you specialize in a specific area, you’ll be able to stand out from the competition.
- Develop a business plan: This will help you map out your goals and objectives.
- Get the right technology and software: You’ll need this to run your business effectively.
- Create a professional website: This is your digital media company’s home base.
- Promote your business: Extensively use social media and other online channels.
- Get new clients and grow your business: Focus on providing quality services to your clients.
- Stay up-to-date on industry news and trends: This will help you adjust your marketing strategy as needed.
Where Can I Find a Simple Checklist for Starting a Digital Media Company?
A simple checklist to use when starting a digital media company is as follows:
- Choose Your Type of Digital Media Company: This should be based on what you are best at and how much experience you have. Remember to keep your interests, skills, and experience in mind at all times.
- Name Your Digital Media Company: This should be done with care, as your brand is important for attracting the right customers. A simple, memorable name will go a long way.
- Choose a Legal Form for Your Business: Whether you choose to become a sole proprietorship, partnership, LLC, corporation or another option will depend on your business. Ensure that you are aware of all the implications of each type.
- Determine Your Digital Media Company Business Model: Determine how your business will make money. Will you sell products, services, or a combination of both?
- Write a Digital Media Company Business Plan: Your business plan will also help you determine what your start-up costs will be and will provide a roadmap with which you can launch and grow.
- Apply for the Necessary Permits and Licenses: In most locations you will be required to apply for a business license and/or permits before you can begin operations.
- Determine Your Budget & Apply for Funding as Needed: You will need to know how much money you have to spend on all of your business-related expenses before opening any doors. If needed, apply for a small business loan or other funding options.
- Get the Technology & Software Needed to Run Your Business Efficiently: You need to have the right tools in place to succeed. Implement software that will help you manage your time, contacts, and business operations in general.
- Market Your Digital Media Company to Potential Clients: A solid marketing plan will be crucial to your success. It should focus on attracting the right customers so that you can provide them with the services they truly need.
- Get Clients & Grow Your Business: Once you have a solid marketing plan, it's time to actively pursue and secure those who could benefit the most from your services.
Summary
Starting a digital media company requires effort, but with the right tools and advice in place, you can make it a success. Follow the steps outlined in this article to get started on the right foot and begin attracting the clients you need to grow your business.