How do you start a social media management agency business in 2027?

Startup costs: Very low — $1K-$4K. Buffer/Later/Sprout ($30-$300/mo), Canva Pro ($15/mo), CapCut Pro ($10/mo), basic camera/lighting if doing UGC ($300-$800), laptop, LLC. AI tools (ChatGPT, Claude, Midjourney) ~$60-$120/mo for content drafting.

LLC / contracts / insurance: LLC standard. E&O $500-$1.5K/yr. Contracts must address: account ownership (client always owns the handle), approval workflow + turnaround SLA, crisis-comms protocol (who responds at 11pm on Sunday), kill-fee 50% of next month, content licensing if using UGC creators.

Customer acquisition: Local businesses and DTC brands are the main pools. Instagram + TikTok DMs to brands with weak feeds work surprisingly well — show them what you'd post. LinkedIn for B2B social. Niche down hard: "TikTok for restaurant groups" or "LinkedIn for B2B SaaS founders." Generalist social agencies get crushed by in-house creators in 2027.

Revenue model: Retainer $1.5K-$8K/mo for organic-only, $4K-$15K/mo if including paid social. Add-ons: UGC creator coordination, influencer seeding, crisis monitoring. Avoid "X posts per month" pricing — sell outcomes (engagement, follower growth, lead volume) instead.

Year-1 reality: $40K-$130K solo, $80K-$200K with a content editor + community manager. Margins are thin because content production is time-consuming. Win by templating: brand voice doc, content pillars, asset library, AI-assisted drafting workflow. Clients churn fast if you can't show measurable outcomes in 90 days.

Honest: in-house creators eat agencies alive on price. Survive by being a Swiss Army knife (strategy + production + paid + reporting) clients can't easily hire as one person.