See How much money do you need to spend your first marketing, is not easy to Find the money to market and advertise a business is often. So when times are tough people tend to cut back in the area of advertising.
Most businesses that come to me for advice have very limited budgets but sometimes as little as $20 per week.
Take This Step of my advice:
- The size of the budget doesn’t matter but how you use it does. It is all relative. example: A company with a $20 per week marketing budget probably needs to generate a few thousand dollars per year. A company with a million dollar marketing budget needs to turn over tens of millions per year.
Determining how much money you should spend promoting your business is a difficult decision.
The accepted way to arrive at a marketing budget is a percentage of your total turnover.
anywhere from 5 per cent to 20 per cent. If the figure you picked was 10 per cent and you turn over a million dollars a year, you are planning on spending $100 000 per year in advertising and marketing.
always wise to talk to your accountant or financial advisor when it comes to setting a budget, but remember, marketing should be a fixed cost like rent or electricity. If you don’t actively promote your business it will soon disappear. If you wait until you are desperate you are under a lot more pressure to get the results.
some marketing for his company. He had been operating for over fifteen years and he had never spent a cent on marketing. This man was very successful but in the last five years competition had increased.
Don’t feel that you need to have a marketing budget of hundreds of thousands of dollars to produce results. There are thousands of small businesses that have advertised very smartly for very little financial outlay.
Look realistically at what you can afford on a weekly basis. And set this money aside and assess your marketing options.
- Try not to be stressed about the amount of money that you have available and spend the time and energy deciding what to do with it.
Don’t be afraid of telling people what your budget is, especially if they are trying to sell you some form of advertising. Tell them what you can afford and ask them what they can do to promote your business with this amount of money. Every deal is negotiable. If they want your business badly enough they will offer you an incentive to do business with them.
- worth mentioning is that spending any money on marketing is a waste of time if you can’t give your customers what they want and, more importantly, what they expect. I always ask business operators to look long and hard at their business before they start marketing to make sure that they can meet these expectations. After all, what is the point of spending money on getting new customers only to have them come to your business once and then leave in disgust.
Finally a restaurant opened up. They had fantastic pre-opening marketing and there was a very real air of anticipation that the place was going to be very good. When it finally did open the food was lousy and the theming ordinary so people didn’t go back. I expect this business to close its doors in the near future. They sold people the promise of a fun experience but they couldn’t come up with the goods.