According to AllBusiness, small businesses that produce less than $5 million in revenue typically budget 7-8% towards marketing. This includes multiple marketing avenues including web design, advertising campaigns, events, blogs, and promotional items. If your budget for marketing expenses is below this average amount, you should consider reevaluating your strategy.
3 Steps For Creating A Marketing Budget
Do you feel stuck when it comes to building a marketing budget? Need a plan that is well-defined and delivers results? We will break down the steps for success in creating a targeted strategy that meets goals, considers costs, and prepares for risks.
1) Determine Your Needs & Business Goals
Take some time to evaluate what your business goals include. Do you need more leads? Are you capturing leads but losing them? Do you require more branding? In order to answer some of these questions, you may have to do a little digging. Dive into the numbers to determine what goals should be set. Be specific about your needs and include details.
2) Current & Future Marketing Costs
How much can you afford on future marketing growth costs and how much are you currently spending? By analyzing these numbers, you can determine where money is going and develop a targeted plan for marketing expenses moving forward.
3) Planning For Risks
In marketing, there isn’t always a straight answer. Testing through trial and error is the best way to find out which techniques do and do not work for your business. However, you can’t test campaigns without costs–risks are a part of creating a successful marketing plan.
Before going all in, determine how much you can afford to risk. If you spend $5,000 towards marketing and don’t get the ROI expected, can you still survive? If your business would go under, don’t take the risk. Instead, re-evaluate marketing allocations and come up with a more reasonable budget.
Ready To Dive In?
If you have developed a marketing budget and are now ready to begin strategizing, contact us. Our SEO experts can help determine your needs and make a plan that drives growth!