Keep your marketing efforts on track and on budget.
Building a successful marketing plan involves tact, know-how, and a plan to make the most of your budget. Many companies, especially budding small businesses, either overspend or underspend on their marketing efforts—though large corporations find themselves crunching numbers just the same.
The best way to combat this is to lay a monetary foundation for your marketing and develop a well-defined plan for spending your funds wisely. This foundation starts with understanding your target market and market position inside and out, knowing the 5 Ws (who, what, when, where, why), and what it will take to accomplish your goals.
Take a look at our four-step plan for creating a marketing budget for your small business.
1. Analyze Your Funnels
Deep dive into your sales funnel and track its results throughout the revenue cycle from prospect to customer. Consider how many leads you are generating per month and the cost of those leads. How many of those leads convert into closed deals? This will reveal potential weak spots for improvement that should be addressed in your budget.
2. Tally Operational Costs
Before you put any money into your marketing budget, know your operational costs. How much does it cost to keep your business running outside of marketing? You should also determine if you’d save money in the long run by hiring an agency to handle your marketing, potentially gaining a better ROI.
3. Set a Goal-Based Budget
Set aside money for your marketing based on business goals. For example, what are your objectives for the next quarter? Dedicate a percentage of your budget towards X, and a percentage towards Y, until you’ve allocated your entire budget toward actions that will help you meet your goals.
4. Plan for Growth
Last but not least, don’t forget to plan for growth. Your marketing is an investment, not a cost, in the longevity of your business. Simply framing your mindset in that direction will help you plan a more thoughtful marketing strategy.
Focus on your audience, focus on your funnel, and focus on your goals. Then work your budget out from there. Contact us today if you need help navigating your company’s marketing efforts.