How To Start An Instagram Business (2025 Updated)

Contents

If you’re looking to launch or expand your business into the online sphere in 2025, an Instagram business could be just the ticket. Instagram – along with other social media platforms – continues to be a remarkably simple and effective tool for e-commerce and marketing, helping you to reach wider audiences while engaging directly with your customers.

Not sure where to start? We’ll walk you through some key legal considerations that might affect your Instagram business – from setting up your Instagram Shop to running giveaways – and provide tips on how to hit the ground running in today’s fast-evolving digital marketplace.

Is It Just A Hobby Or Am I Running A Business?

The first thing to consider is whether your Instagram activity is merely a hobby or a genuine business venture.

There isn’t a single factor that unequivocally differentiates a hobby from a business. It largely depends on your unique circumstances and intentions. Generally, you’re likely running a business if you aim to make a profit as part of an organised, deliberate and planned operation. For instance, keeping proper accounts, maintaining financial records, having a dedicated business bank account, or holding any necessary licences and qualifications are strong indicators that you’re operating as a business. You might also explore our guide on How Can You Tell When A Hobby Turns Into A Business for more insights.

On the other hand, a hobby is typically pursued for personal enjoyment. While you can share your hobby on Instagram, doing so exposes you to a different set of obligations and responsibilities. One advantage of keeping your operations as a hobby is flexibility – you set your own pace and focus on personal satisfaction rather than the rigours of business management. Moreover, if you sell your creations only to recover costs, you might not need to declare earnings to Inland Revenue.

However, choosing to operate as a business brings its own benefits. Registering your venture enables you to obtain an NZBN (New Zealand Business Number), simplifying your dealings with customers, suppliers, and even government agencies. It also allows you to build a recognisable brand identity that customers will eventually trust. For more on setting up, do check out our How To Start A Business In New Zealand guide.

How Do I Use Instagram To Promote My Business?

Plan Your Business Strategy

If you’ve decided to launch as a business, the first step is to document your ideas and map out your strategy. Think about who your target customer is and the best ways to reach them. Consider the type of photo and video content that will align with your brand image and help you stand out. You may also wish to read our article on Starting With The Right Business Plan to gather more ideas.

Choose A Business Structure And Register For A New Zealand Business Number (NZBN)

There are three common business structures: sole trader, partnership and company. While operating as a sole trader might be simpler and less expensive, incorporating as a company can provide you with limited personal liability, which is an important consideration if you’re aiming for growth. You can find a detailed comparison in our article on Does Business Structure Matter?

Once you’ve selected your structure, registering for an NZBN will provide your business with a unique identifier recognised by customers, suppliers, and government bodies alike.

Create Your Instagram Business Account

Instagram offers a dedicated ‘Business’ account loaded with features and insights that can be invaluable for your marketing efforts. The conversion from a personal to a business account is straightforward and doesn’t require any formal business verification, making it an accessible option as you take your first steps.

Whether you plan to use Instagram as an informal marketplace or as a full-scale marketing tool, the Business account allows you to:

Promote posts with targeted advertisements;
Monitor ad performance and control your advertising budget;
Access Instagram Insights to understand your audience demographics and content performance – metrics include profile visits, likes, comments, shares, saves and overall reach;
Utilise Call-to-Action Buttons (such as ‘Book Now’, ‘Reserve’ or ‘Order Food’) that directly engage customers;
Create Shoppable Posts allowing users to purchase directly through Instagram.

Set Up Your Instagram Shop

If you wish to utilise Instagram not only for marketing but also as an e-commerce platform, its Shopping features have expanded significantly in 2025. With Instagram Shop, you can tag your products in posts and stories so that users can click through to learn more or purchase directly from your website.

To set up your Instagram Shop, you must have an Instagram Business account, a connected Facebook Page and an uploaded product catalog. Whether you upload your products directly or sync with an eCommerce partner, ensure your website is fully compliant with legal standards. This includes having well-drafted Website Terms & Conditions, clear Products/Services Terms outlining payment, refund and delivery policies, as well as a comprehensive Privacy Policy. For further information, see our detailed guides on When To Use eCommerce Terms And Conditions and How To Start A Business In New Zealand.

Additionally, with 2025 seeing increased digital sales, enhancing your online storefront can be complemented by our eCommerce legal services which help ensure all your digital transactions are secured and compliant.

How Do I Ensure My Instagram Business Stays Legally Compliant?

Instagram Giveaways

Running Instagram giveaways in 2025 remains a popular method to boost engagement and brand exposure. However, such promotions, whether conducted as a sweepstake or a contest, must adhere strictly to legal requirements.

Instagram’s Promotion Guidelines allow giveaways provided you are fully responsible for the promotion’s lawful operation. This means you must design official rules, communicate clear terms, and ensure all eligibility criteria are met – particularly for age-restricted products or services. Always include a disclaimer stating your giveaway is “not sponsored, endorsed or administered by, or associated with, Instagram”.

For more details on running promotions legally, read our insights on Competitions – Do I Need a Permit? or get in touch for expert advice on operating a competition.

Buying Likes And Followers

Whilst the temptation to buy extra followers to boost your brand’s credibility is understandable, this practice can do more harm than good. Purchased followers are often bots or inactive accounts, meaning they won’t engage with your content genuinely. In fact, relying on such tactics may damage your reputation and even lead to temporary suspension or deletion of your account under Instagram’s Community Guidelines.

Can I Stop Someone Else From Reposting My Business Content?

Yes, you can. If you create original photos or video content and post them on Instagram, you automatically own the copyright under New Zealand law. When you upload your content, you grant Instagram a licence to host and display it; however, the intellectual property rights remain yours.

This means you can take action if someone republishes or reproduces your original content without your permission. To learn more about protecting your intellectual property online, check out our guide on How To Avoid Copyright Infringement On Instagram and our resources on Copyright Licence Agreements.

Always remember, if you wish to share someone else’s content, secure the necessary permissions to avoid potential legal issues.

As Instagram’s platform continues to evolve in 2025, staying updated with its legal requirements is essential. For additional guidance on social media legalities, our Consumer Law and Digital Marketing sections offer further insights into maintaining compliance while engaging your audience.

Moreover, it’s important to regularly review your social media policies and terms, especially when introducing new features like shoppable posts or interactive ads, to ensure your business remains legally protected and ahead of the curve.

Need Help?

Starting a new business venture can be both exciting and overwhelming, and we understand that you want to get everything right. Whether you’re setting up an Instagram business for the first time or expanding an existing operation, having sound legal advice is crucial.

If you have further questions, our team is here to help. You can reach us at [email protected] or call on 0800 002 184 for a free, no-obligation chat. For a comprehensive legal health check, view our services at All Services and ensure your business stays compliant and robust in 2025.

Rachel Hay

Rachel is a Content Writer at Sprintlaw. She has previously worked in commercial law, intellectual property and environmental law and is currently working towards her Law and Science degree at Macquarie University.