Small business owners who hope to be successful have to get their name and services out into the public. The only way to do this is through effective marketing. Marketing today means more than handing out business cards and hanging a few flyers. Because marketing can take a good chunk out of a startup’s budget if it is done done with a fair amount of forethought, it’s important to understand the factors to consider.
1. The Percentage Rule
You need to look at your long-term financial outlook before establishing a marketing budget. Once you determine a forecast for your yearly net income, dedicate no more than 8 percent of that amount to marketing. You could spend this evenly through the year, or maximize your spending around certain holidays and other events. Regardless of the schedule, if you spend more than 8 percent, you start eating away at capital that could be better spent elsewhere.
You have goals with regards to your overall business, and you should have goals for your marketing campaign. Decide on goals for lead generation, social media followers and overall sales. This will help you determine how to spend your budget wisely. Keep in mind that your goals can always be adjusted as need be.
3. Including Branding
Marketing and branding are not the same thing. Marketing sells your services, while branding tells people about your message and values. Your marketing budget should balance both of these things for maximum effectiveness.
If marketing is something you are unsure of or simply something you don’t want to tackle on your own, our team is here you. We know how to maximize your dollar for effective impact. Reach out to our team today.