In today’s economically uncertain times, many entrepreneurs are seeking innovative ways to boost their income. One of the most accessible and lucrative options is to start an Instagram business.
With over a billion global users, Instagram offers an unparalleled opportunity to connect with audiences, build a brand, and generate multiple revenue streams.
In this guide, we aim to break down all the steps to launch your new Instagram business–from getting started with Instagram business chat, attracting new audience members, creating content, and ensuring your business remains legal and compliant.
Step 1: Define Your Business and Niche
There’s work to do before generating and posting content. First, you must decide what your business is, what products or services you aim to sell, and who your prospective customers or audience happen to be. Ultimately, you must understand your business’s purpose and what need it is fulfilling in the marketplace to create an effective Instagram marketing strategy as it is critical when you start an Instagram business.
- Choose a Niche: This will be your business’s area of focus, such as fashion, skincare, or fitness verticals. It could also focus on something very specific, such as pet care products, home decor, or jewelry. The more specific, the better; it will allow you to target a clearly defined audience.
- Understand Your Audience: Pinpoint audience demographics related to age, gender, location, interests, and pain points. You must know your target audience to be savvy about the type of content that will appeal to them.
Step 2: Set Up Your Business Profile
A personal Instagram account won’t suffice for business purposes. To start an Instagram business, you’ll need a business account, which provides access to valuable features like analytics, shoppable posts, and ad tools.
Know that having a business profile on Instagram gives you access to valuable features, including Instagram Insights (an analytics platform), shoppable posts, and the ability to run advertisements.
Follow these steps:
- Sign up for an account using your email address or Facebook account.
- If you decide to switch your account to a business one, go to your settings in Instagram and click “Account.” From there, choose “Switch to Professional Account.” Follow the prompts to select the “Business” option.
- Optimize your profile and ensure it’s complete and aligns with your business’s brand DNA. Make sure to use a picture or logo that represents your business, and write a bio that explains what your business is and why it is special.
- Choose a call to action button, like “Shop Now” or “Learn More.”
- Since Instagram only allows one clickable link in your bio, make sure that you showcase your website, Etsy store, Amazon storefront, professional portfolio, or landing page.
Step 3: Establish Your Business Offline
To start an Instagram bussiness, selling your products, and bringing in revenue, you want to ensure your business is correctly structured and established in the “offline world”… namely, on paper.
This includes deciding on your business structure, which could mean running a Sole Proprietorship, a Partnership (if you have other business owners involved), a Limited Liability Company (LLC), or a Corporation.
These formats all have pros and cons related to how liabilities, assets, and taxation occur and have different operating and recordkeeping requirements, too. However, the most popular option among Instagram businesses is the LLC.
With an LLC, personal and professional liabilities remain separate (think of it like having a personal Instagram handle and a business profile). With an LLC, your personal bank account, retirement account, and the like remain distinct from business liabilities and losses. So, if your Instagram business is sued or you run into copyright or licensing issues, your personal life is shielded.
At the same time, the setup process for an LLC varies by state; you’ll want to consult a guide for starting an LLC in California, Florida, Maryland, Tennessee, or whatever state you’re in.
Additionally, be aware of these factors as they relate to registering an LLC, which, again, varies by state. From a general point of view, the registration process includes the following:
How to Register an LLC
- Just as you wanted to make sure the name of your Instagram business was completely unique, the same rule applies to your LLC. Confirm that your business name has not been claimed by any other company that is located in your state.
- Appoint a Registered Agent, which is a person or service that can help you form your LLC and manage all necessary documentation as it relates to the requirements in your state. For additional insight on this matter, visit Northwest Registered Agent Review.
- File a document known as the “Articles of Organization” with the Secretary of State. This will convey information related to your business name, your Registered Agent’s contact name, LLC Member details (who owns the company), etc.
- Pay the registration fee assigned by your state–this typically costs as little as $20 and maxes out at $300.
- Log on to the IRS website and register for an Employer Identification Number. It is a totally free and easy process.
- Open a business bank account. Make sure this account is completely separate from any personal accounts you may have
Once your business is all set up from a legal point of view, now it’s time to hop back online.
Step 4: Create High-Quality, Visually Appealing Content
On Instagram, content is King. To stand out, attract followers, and convert that audience into paying customers, you must feature visually appealing, high-quality content that resonates with viewers.
Some best practices to implement in your content creation process:
- Ensure you post consistently. Instagram relies on an algorithm, and it rewards accounts that post regularly. A good approach is to use a content calendar to plan your posts, align with your audience’s behaviors, and sync with engagement patterns.
- Confirm all photos and videos are high quality and free from licensing or copyright violations. Use professional-looking images, cohesive aesthetics, and thoughtful compositions. Invest in a good camera, double check your lighting, and get up-to-speed on editing tools like Adobe Lightroom to enhance your imagery.
- Mix up your content to keep it interesting. Consider product posts, behind-the-scenes pictures or videos, user-generated content (UGC), stories, reels, and IGTV. Using a mix of both short and long-form content is proven to attract more eyeballs.
- Use hashtags on everything to expand the life and reach of your posts. Get clever and creative here to inspire a viral moment.
- Once content is posted, make sure you dedicate time to engaging with the people who comment on your posts or send you Direct Messages. People want to feel like they are talking to a human, and that they matter to the companies they do business with–hearing from you can do a lot to increase sales and brand affinity.
Step 5: Use Instagram Ads to Increase Visibility
Depending on your budget, Instagram ads can help you reach an even larger audience that brings in targeted traffic to your business. There are multiple types of ads, including photo, video, carousel, and story–and all go beyond what organic growth can provide alone.
Of course, it is necessary to set a budget you’re comfortable with and decide just how much you want to spend. Consider starting small, testing different ad types and targeting options to see what works–then increase as you see results and generate new revenue. If something is working, run with it, and if something is not resonating, stop spending money on it.
Start an Instagram Business: Final Words
To start an Instagram business successfully, you need to combine strategy, creativity, and consistency. By following the steps in this guide, you’ll be well on your way to building a thriving brand that connects with audiences and generates meaningful revenue.