With the increased use of Internet and smart devices, a new form of marketing has evolved that has proven effective. Digital marketing is the electronic form of marketing wherein products and services are marketed over the Internet on blogs, websites, apps etc.
It uses the digital platform to post and display advertisements on ones computers and smart devices. Every other person today is connected to the Internet in some form or the other, that is, either through e-commerce sites, social media or simply email.
Cost effective means of advertisement
From Google to small start-ups everyone is getting into the business of digital marketing. It is not only interesting but there is decent earning as well. Digital marketing has evolved into a quick and efficient means of advertisement. If you'll compare it with other forms of marketing, you'll find it to be cheaper but with a far better reach. If you want to increase your business and enter the global market, then digital marketing is the best way as you'll get all kinds of premium marketing services at reasonable costs.
Here are the steps that will help you start your own digital marketing company.
Formulate a business plan
Every business requires clarity about what you want to do, where you to want to reach and how you wish to proceed. Without clarity it is impossible to do business and achieve success. If you are planning to start a business of your own first formulate a business plan. Get in touch with an expert who can formulate a business plan for you.
The business plan provide intricate details about your business, that is, its nature, registered office, capital structure, investment required, profit ratio, targeted customers, revenue generation, expenditure- both fixed and variable, market size etc. A business plan also consists of projections, both financial and operational, that will allow the investors to understand your aim. It will tell them about the profits the company will earn and return on investment they'll receive. A business plan provides all the necessary information about your proposed business.
Understand the market
Once you have formulated a business plan, analyze it. Keep an open mind and find out ways to make improvements and get a strategic edge. Digital marketing company should be started by a person who is either an IT technician or knows about how the sector works. A person without a degree or knowledge about digital marketing must first gather information and only then step into the market.
These days many of the existing Digital Marketing Companies are dealing with clients across the globe. So it is important to study the market. Understand how it works. In business there is no room for hypothesis. You have to make practical decisions. Use your experience and understand how existing companies work. Do not take impulsive decisions instead base them on facts and figures.
Register a company
A company is undoubtedly a good form of business entity. To do business, you need to form a legal entity that is recognized by the Indian Government. A company provides a separate legal entity which is distinct from its thousands of owners. The owners of a company exercise limited liability. It has perpetual succession, which means your company will exist even if the directors cease to.
A company can get into contracts and transactions in its own name and even accept loans. If you want to start a digital marketing company, get a company registered as per the rules mentioned in Companies Act, 2013. The process of registering a company is mentioned here.
Company registration process is simple and doesn't take more than 15-16 days if every step goes right. After the registration process is complete you will receive a certificate of incorporation (COI) from the Registrar of Companies. This means you can now commence business in the name of the company.
When you transact with other businesses you would have to maintain certain documents like PAN, TAN etc. You have to register your entity with tax departments. Once your digital marketing company is registered apply with Income tax department for PAN Card. After the company's PAN is received apply for service tax number and TAN number. The first 10 digits of the service tax number are that of the PAN card. Obtaining a service tax number is essential as you will be providing digital marketing services and will need to collect & pay service tax if you exceed the minimum threshold limit of revenue.
Digital marketing is no doubt one of the best forms of marketing but it is still limited to certain demography only. For instance, advertisements in newspapers and magazines come with QR codes which are linked to the brand's or its product's website or website. But how many people scan it and actually view the information. Very few, indeed.
It is very important to understand that there is a specific customer base for digital marketing because not every business is compatible with it. Secondly, digital marketing is effective if the customers are from X and later generations as people of our parents or grandparents age are not comfortable with Internet or related technologies. They use internet but prefer other mediums over it.
I want to share this interesting detail with you where the products were innovative but there was no market or clients for them because they were too ahead of their time. These products suffered because the target clients were not so matured for such innovations.
Sega introduced the online gaming concept in 1993 years before Play Station Network, Xbox Live were launched. My Journal existed before Facebook. Microsoft smart watch existed before Apple Watch, Moto 360. Palm Treo launched smart phones 5 years before Apple did it. The concept did not pick up well.
In a nutshell you need to choose your target clients well.
Form a team
Digital marketing is a team work wherein you'll at least need a designer, a campaign manager, a programmer, a marketing person, a debugger along with other professionals. Gather adequate people and form a team. Start small but gather an effective team.
A team can work as one if all the people in it work together in harmony. All of them should work in unison towards a single goal that is to make the venture a success. As a team leader it is your duty to search for people who agree with your strategy and leadership.
With a mix of these simple yet important tips you can build up good foundation for your Digital Marketing Business.