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The importance of a small business marketing budget for growth (and how to make the most out of it)

Small business owners are always looking for new ways to grow.  But, in order to do that, you need to create a budget that allows you to finance your growth.  The following information will help you figure out how to create a small business marketing budget that works for you.

 

Steps To Developing a Small Business Marketing Budget

Whenever someone starts a small business, they have a goal in mind.  However, just like most other things in life, you need to fund it.  Hence, you need to create a budget, and creating one takes several steps.

 

First, as Forbes suggests, look at your sales funnel, and analyze your results.  Marketing software will help you figure out the number of monthly website visits, generated leads that lead to sales, the costs, and incoming revenue.

 

Steps To Developing a Small Business Marketing BudgetClick To Tweet

 

The importance of a small business marketing budget for growth_Comms Axis post image_offline marketing at trade shows with printed cards and networking_Small business owners are always looking for new ways to grow - read Nick Rojas' guest post to see how your small business marketing budget can help!But, always remember to align your budget with your goals.  Ask yourself what your objectives are – both short-term and long-term.  Remember to think about marketing, blogs, collateral, promotions, and advertising.

 

You should also consider looking at your budget as an investment.  Don’t make the mistake of just looking backwards, and deciding where you need to cut costs.  Instead, look to the future, and think about your return on investment – or ROI – over time.  By understanding future trends, you will be able to understand what will work, and what won’t.

 

Determining Your Marketing Budget

Having all of this information is good.  But, as Entrepreneur tells us, another step in determining your budget is to do the math.  If you’ve been in business for less than five years, you should set aside 12 – 20 percent of your revenue for marketing.  If you’ve been in business longer, it’s acceptable to allocate as low as 6 percent.

 

The reason you want to start so high is that people don’t know you yet.  In order to get the word out about your new company, budgeting for marketing is a necessity.  In fact, it’s advisable to get as much money as you can in the beginning.  That way, you can market your business, and be ahead of the game when new customers start knocking at your door.

 

There are several things you should focus on when you create your company.  Namely, your brand, develop a website, represent yourself on social media, advertise yourself, and content.  Considering all of these things are necessary to get your message out there.

Determining Your Marketing BudgetClick To Tweet

 

Optimizing Your Budget With Social Media

Social media can also help you with all of your content. After deciding on what message to send, you can choose from Facebook, Twitter, Instagram, and many others.  However, make sure you represent yourself on multiple social media networking sites in order to reach a bigger audience.  After all, most people use more than one.  However, two or three should suffice.

 

Boosting your social media posts, and creating ad campaigns, are also great ideas.  You may have to pay extra to do so.  But, you have the potential to reach thousands of people instead of just hundreds.  So, it’s worth extra money here-and-there to do it.

 

Another great idea is to create an email marketing list.  You already several contacts.  Use the list to spread your message quicker.  By sending one campaign to several people at a time, you not only save time.  You also save money by being able to use your time more wisely on other things.

 

Optimizing Your Marketing Budget With Social MediaClick To Tweet

 

Reasons To Get Working Capital Loans

If you’re wondering how to start funding your small business, you need not worry.  Mulligan Funding can help you.  There are several reasons to consider a working capital loan.  First, emergencies happen when you least expect them.  A loan can get you out of trouble in a hurry.

 

Of course, the change of weather causes different inventory needs.  A working capital loan helps you get what you need now.

The importance of a small business marketing budget for growth_Comms Axis post feature image_Small business owners are always looking for new ways to grow - read Nick Rojas' guest post to see how your small business marketing budget can help!

Unexpected problems also cause bigger funding needs.  A loan can help keep you afloat during the hard times.

 

Of course, the biggest reason to get a loan at the beginning is to help you move forward.  Since there are no restrictions on how to use the money, you can start funding everything right away to help your business grow.

 

Reasons To Get Working Capital Loans - Small Business Marketing Budget | Blog PostClick To Tweet

 

Small Business Marketing Budget – Conclusion

Starting a business can be a lucrative opportunity.  But, in order to do so, you need to gather the funds and create a budget.  Once you gain the money, allocate everything in your budget, you should be able to move forward with a small business that will help you grow in no time.  We specialise in delivering cost-effective and results-oriented services for small businesses and start-ups – why not get in touch for a free “no obligation” chat by emailing us or filling in our contact form?!

 

The importance of a small business marketing budget for growth (and how to make the most out of it)Click To Tweet

 

Sources:

6 Steps To Developing A Small Business Marketing Budget: https://www.forbes.com/sites/allbusiness/2017/05/02/6-steps-to-developing-a-small-business-marketing-budget/#12bf4914355c

How To Determine The Perfect Marketing Budget For Your Company https://www.entrepreneur.com/article/243790

5 Ways To Optimize A Small Marketing Budget http://www.wordstream.com/blog/ws/2016/04/06/small-marketing-budget

Working Capital Loans: The Most Common Reasons For Using Them: https://www.mulliganfunding.com/blog/working-capital-loans-the-most-common-reasons-for-using-them

 

About the author, Nick Rojas

Nick Rojas is a business consultant, specialising in digital and SEO marketing, and journalist / writer who lives in Los Angeles and Chicago. He has consulted small and medium-sized enterprises for over twenty years. His work often discusses social media, marketing, and branding in regards to small and medium enterprises (SMEs).

Dan Purvis
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Dan Purvis

Founder & Director at Communications Axis
Dan Purvis is Director at Comms Axis, a digital marketing agency specialising in content, social media & website services for businesses of all sizes. He is also a Media Champion for the Alzheimer's Society, helping spread awareness and understanding of this cruel disease.

Dan Purvis writes for a number of leading business, social media and marketing sites, including Smart Insights, Marketo, MarTech Advisor, Marketing Tech News, MarTech Today, MarTech Exec, and Business2Community. Dan's also ranked by Brand Republic as one of the Top 50 UK Marketing & Social Media influencers.

Dan is passionate about the philosophy behind Comms Axis: we bring content, marketing and sales together to connect businesses with their audiences.

We pride ourselves on delivering tangible business value and ROI alongside excellent customer service. We work with a broad range of clients and industries, from B2B to B2C, from technology to cosmetics, from start-ups / SoHos to pan-European and global brands.
Dan Purvis
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2 Comments

  1. Great info here. Personally, I prefer to bootstrap it as debt for a business can be hard to handle. However, I know many businesses take out loans to get things going.

    Regardless, there’s quite a bit of importance in setting a good budget for marketing and sticking to it. In addition, it’s important to track the marketing you’re doing so that you’re not throwing away dollars on advertising that’s not producing.

    Personally, and I am bias, I would invest a heavy amount in website and blog content because it can be used over and over again to attract new leads and bring in profits.

    Thanks for the solid info Nick!

    • Dan Purvis Says:

      Hi Benjamin – great comment, thanks!
      I agree that a loan is off-putting for many – I also prefer to allocate revenue towards marketing, rather than borrowing money.
      Advertising can become a huge money-pit if you’re not sure how to do it and, especially, not sure how to track and monitor its performance.
      And, yes, 100% agree about the website and content marketing being of huge value to any brand of any size!
      Thanks, Benjamin – I’m sure Nick will reply when he sees this 🙂
      Dan

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