Set a Marketing Budget to fit your Business Goals
For your business to grow, you need capital but you also need strategic allocation. Growing your business takes time, money, and dedication as it is not something that happens overnight. Budgeting can be overwhelming as most people are unsure of how and where to start or what activities they should be budgeting for.
Spending money is easy, but getting a return on the investment can be hard. Once you spend your capital, you cannot get it back unless you spend it correctly. Budgeting for advertising and marketing will help you visually see where your money is going and how you may want to reevaluate in the future. Just like in life, we allocate money for rent, mortgages, car payments, food, vacation, and other luxuries and bills, one must budget for business as well.
Underspending goes hand in hand with overspending. By not spending anything or not spending enough, sure you are saving, but you are also losing business. Believe it or not, not everyone knows about the businesses around them or can find the businesses online that they need. This is where advertising and marketing comes in. Some business owners also do not know how much to spend or budget for marketing. The US Small Business Administration and the Counselors to America’s Small Business states that the average amount spent on marketing is only 4%-6% of total sales, and that to be effective 2%-10% of total sales must be spent. With only 2%-10% of sales being spent on marketing and advertising, you can still save while using your money wisely.
With all being said, advertising is a form of marketing, and to succeed marketing must be performed. Marketing is essentially your basic ingredient to all successful businesses. Many businesses fail simply because they overspend or underspend. When taking advantage of correctly marketing and budgeting, return on investment will prosper. For the best results, we suggest using a marketing plan so you can obtain strategic budgets. You should know what you are spending, where you are spending, and how you are spending it.
We can help you with your marketing and or budgeting plan. Give us a call to learn more!
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