It's essential for businesses to keep track of where their money goes, especially when it comes to the funds they use for promoting their products and services. That's why we've created a beginner's guide to developing a small business marketing budget.
Think About Your Goals First
First and foremost, consider exactly what you want to achieve. In other words, what are your short-term and long-term goals? How many customers do you want to acquire, and how much revenue do you want to earn? Once you define these goals, set a specific dollar amount toward advertising through a digital platform like Google Ads. When it comes to paid search, a general rule of thumb is to set aside 6% of your gross revenue for campaigns.
Consider Industry Trends
As a growing business, you need to prepare to outperform your competition, which may mean investing in a variety of technologies to keep up with other companies. If you keep up with current and future trends in your industry, your business is certain to see success.
Allocate Money Toward Your Team
Remember that operational costs are still a crucial part of your marketing budget. Eventually, you may need an entire team of people to promote your business for you--and hiring an in-house marketing team is undoubtedly expensive. However, a helpful group of talented individuals can take your business to the next level, which will more than compensate for the costs. Think about how much it'll cost to train and keep employees, and then make sure to allocate money toward your team members.
Tweak Your Budget When Necessary
As with any budget, your company's financial plan shouldn't be set in stone because--as we all know--things happen. Instead, try different advertising methods, and if they don't yield the results you want, don't be afraid to adjust your budget accordingly.