Jul 23, 2018
Olya Grynyshyn
0
509

How much should you spend on marketing? And how do you budget that?

A good rule of thumb for small businesses with revenues less than $5 million a year, is to allocate 7-8% of their revenues to marketing. Then, split that budget between 1) brand development costs (this includes the funnels throughout you’ll use to promote your brand like your website, blogs, marketing collateral, etc.) and 2) the costs of actually promoting your business (think campaign costs, advertising, events, etc.) [U.S. Small Business Admin.]

Even though that sounds intimidating, it is very important to use all your funds in the most efficient way possible, and dare we say, get more bang for your buck.

Here are a few surefire ways to stretch your marketing budget:

Create strategic partnerships with companies that have already established themselves as high-traffic entities, and create opportunities at little to no cost.

Many times, your company brings elements to the table that the other organization may not have, creating a balance of power between the two companies, and they might be willing to introduce you to their audience.

Furthermore, get creative in your plans! Old school media outlets like Radio and Television are highly competitive and expensive. Because social media is a relatively inexpensive avenue for marketing, you can always start advertising with a low budget to test the market, and as you acquire more development, you can increase your investment 20%, 30%, or even 50%.

Take it a step further: Sometimes it’s wiser to invest a smaller amount to be buddied in with a local TV or Radio talent, instead of the program itself. For example, if a radio DJ has 100,000 followers on their social media, we’d sooner recommend to work with them directly to showcase your business within their personal platform.

If you are a company that wants to take your business to the next level, and are in need of a marketing team who can brings these elements to the table, you can contact us at connect@vessconsultinggroup.com or 512-368-4707.

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