Just because we're going through a pandemic, doesn't mean we shouldn't be putting our businesses out there. In fact, this is one of the best times to focus on marketing! Budgets are understandably tight and uncertain at the moment, so don't feel bad if you can't hire someone to do it *ahem*. We'll be here to help with some free tools you can use, but don't forget to think about the long-term and consider small ways to spend in the meantime (hello, Facebook Ads).
Let's talk about a marketing budget.
First, to figure out how much, you need to know what you will be spending "marketing" money on. There can be many different marketing costs that go into a business, large or small. We all need the same things to get our business out there for our customers to see.
Here is a list of different marketing needs for most businesses:
- Brand Marketing Materials (includes business cards, uniforms, flyers, PR, etc.)
- Website Development (includes domain, email, web hosting fees -- which are annual)
- Digital Marketing (includes SEO, email marketing, social media, paid ads, etc.)
- Traditional Marketing (includes TV commercial, radio, billboards & magazine ads)
- Miscellaneous Marketing (includes sponsorships, content creation, photo & video)
You now know where you might be spending your marketing spend. To be sure you are "Keeping Up with the Kardashian" or with "... the Jones" - you must do some sort of marketing for your business. You cannot expect your perfect customers to find you without you putting your business out there.
If your business has a brick + mortar location, your costs will be different than those that are strictly online or a service based business. There will be exterior signage that are needed for your customers to find you when they visit. Right now, even for brick and mortar businesses, being online is extremely important for longevity.
There is a traditional recommendation that you should spend 2–5% of your sales revenue on marketing. To give you an example to better understand what that means for your budget, we will use round numbers.
Main Street Business (a completely made up business) made $100,000 in sales in 2018. The recommended marketing budget for this business would be $2,000 - $5,000 for the year. That doesn't seem like a lot, does it? Maybe it does. But that breaks down to $166 - $416 per month on your marketing.
Remember from above, there are a lot of things that fall into the marketing budget.
A tweetable tip from a marketer: If you want to grow your business to increase your total sales revenue. You need to focus on your marketing. That could mean identifying your best marketing strategy and putting your focus and your ad spend there.
The first thing many business owners cut when cutting costs is marketing. The funny thing is, marketing is the first thing that will generate new business for you.
Have questions? Shoot us a message and we can provide any assistance possible. On April 17th at 12:30 pm I'll be providing a FREE marketing Q & A Facebook Live, make sure to join!