Your marketing budget is more than figures and dollar signs. It’s the opportunity to draw up a game plan for success. Coming up with a sound marketing budget will:
When you hit the road to a new destination (or if you’re like some of us who struggle to back out of our driveways without a GPS), what do you need? A map.
Your road map shows you where you’re starting, where you’re going, and helps you plan out any pit stops or detours along the way, all without losing sight of your end destination. Think of your marketing budget as a map to reaching your marketing and business goals.
First, nail down your gross revenue and your projected revenue.
How old are you? Oops, sorry—not you personally. How old is your business?
1–5 years? When you’re just starting out, you should dedicate 12%–20% of your gross revenue or projected revenue on marketing. You’ll want to spend a little more than an established company to make sure you hit the ground running.
More than 5? 6%–12% percent of your gross revenue or projected revenue should do the trick. You can get away with spending a little less since your brand already has some clout.
Spend some time narrowing down your goals. Good starting places include:
Make sure to set up SMART goals: Specific, measurable, attainable, relevant, and timely.
Now that you know how to start and where you’d like to go, you have to figure out how you’re going to get there. Taxi? Uber? Train?
BRANDING - Your brand is your company’s tone, mission, heart, and soul. It’s your first impression on a blind date.
That’s your brand.
CONTENT MARKETING - Content is king. Smart content strategy attracts the right people to your brand.
SOCIAL MEDIA - How much time and energy should you spend on social media campaigns? Keep in mind, sharing is caring (and free).
WEBSITE - From your home page to your blog, your website is the heart of your marketing strategy.
TRADITIONAL ADVERTISING - Yellow pages, newspapers, and billboards. If you’d see it on an episode of Mad Men, it’s traditional advertising.
Take a look at your return on investment, or ROI, on each marketing avenue to determine which methods are working best for you.
Still looking for more info on how to build the best budget possible for your business?