Previously creating a marketing budget for a small business involved lots of guesswork. That’s an expensive and ineffective approach. But thanks to technology, many small businesses are adopting many available tools for creating a successful marketing budget. However, the steps, the many resources, and the examples available can be so confusing. The thoughts that could be flying your mind are; do I have enough money? Or do I waste my money on something ineffective?
Why do you need a marketing budget?
If you have a problem creating a marketing budget, then it’s understandable. It can be so overwhelming wading through dozens of marketing options when you’ve lots of other expenses to take care of.
Below are some steps in creating a successful marketing plan
Consider the big picture
To succeed in your business, you have to consider a budget at any stage of your small business. When you know the stage you’re in the business journey will help you big time in making crucial decisions. Your business can fall under two categories; start-up or running. Your business, start-up, or expert status will impact how much you need the marketing budget. When at the start-up phase, you should expect to spend more than when at the running stage.
Outlining your sales funnel
These are the steps your potential customer will have to make until they purchase your service or product. Outlining the sales funnel helps you understand how your clients will find you, things they need to know before buying, and factors contributing to the final decision. If your business is already up and running, you need to map out the possible sales funnel the existing clients take to purchase from you. Notice the tactics that are working and how much you’re spending on the tactics.
List the operational costs.
This is the most straightforward of all other steps in setting your marketing budget. Here, you create a spreadsheet with both the current and anticipated operational costs. These costs may include sales tax, web hosting, professional fees, and any other that you need to run the business. These will paint a picture of what you expect to work with in regard to your marketing budget.
You now know the stage at which your business is your current or future sales funnels, and the total cost of running your company. It’s the right time to set goals. Here are a few questions you’ve to ask;
How much revenue are you looking forward to? How much do you need to sell to achieve your revenue goals? After you’ve checked your goals, you need a system to track your progress.
Scope out the competition
When setting a marketing budget, the niche is of utmost importance. Keep track of the competitors and study their marketing campaigns carefully. Check out the major players and the methods they use for advertising.
Create the marketing plan
At this stage, you need to understand where your business is and where it can go. How much money do you need to achieve your marketing goals? The essential tools you need to get started and how do your customers want to be marketed to?
Once you get your plan fleshed out, you’ll have an easy time setting your marketing budget.
Whether you’re starting out or not, creating a marketing budget for your business doesn’t have a daunting task. Get specific about the marketing plan and get to know where your money is going. Most importantly, get a marketing expert to help you out.