Entrepreneur, Startup or New Business – How To Set a Marketing Budget 101

How Much Should I Spend On Advertising That Potato?

If you are an entrepreneur, startup or new business, there’s nothing worse than knowing you must spend on marketing and having no clue what it’s going to cost, how open-ended it’s going to be, and what you should get for your money.  If you don’t need to advertise to get more customers, then you’re one in a million and we’re envious – please contact us urgently!.

We know that answering the question “what’s it going to cost” usually ends up with some online research, complicated vague answers – our favourite “it depends”, and much frustration, so part of our policy is too keep it transparent and simple and tailor each quote based on your specific business, no matter what the size.

The Best Way to Set a Marketing Budget – Read On And Be Honest With Yourself

In One Sentence – In less than 10 seconds – What does your business do and for whom – Quick! – If you don’t have clarity how can you expect customers to understand you

You have some basic choices – follow like a sheep, be guided by industry norm percentage of turnover and what your competitors do, or, consider the things that will influence what you must spend to play the game

  • Do you have content? – if not then get some together – preferably to keep you ahead of the curve before even considering spending one penny.
  • We know you can sell – but can you close? – waste of time and money getting leads if you don’t have the people or process in place to return that phone call quickly, or whatever it is you do.
  • The business lifecycle stage – from startup to mature and everything in between – and what this means in terms of needing traction, available cash flow, profits and direct competitors in your sector
  • You can’t and don’t need to use every possible platform to get traction or grow – the ones you do choose will have a direct impact on the marketing costs.
  • A medium to long term view will help you make better financial decisions now – sometimes some time is required to build up generic sales (lower cost marketing) and then you can reduce the paid spend
  • The nature of your products, services and sector, and how competitive the online market is (and costly) in terms of acquiring traffic, new leads and more business.
  • What your turnover is and what profit you want to make

It doesn’t need to be complicated and will save you a heap of wasted time and money

You simply need to reverse engineer starting with your business plans, turnover and profit requirements, then look realistically at the costs of planning, platform implementation and lead acquisition that will directly achieve those business targets. Measuring the return on this investment as easily as possible is part of the picture, and continually fine-tuning. (you’ll be amazed at how many leading corporations don’t do this).

Indicative Consulting Costs

We give indicative costs and have a fee structure that relates essentially to the level of complication or simplicity of the work and directly to the hours of relevant expertise required. Oh, and its all reversed engineered to the methodology mentioned above. So basically, we can cater for different size businesses at different stages of their growth lifecycle.