Today, we're going to talk about one of the most important aspects of marketing – creating a marketing budget. I know, I know, it's not the most exciting topic, but bear with me, I promise to make it fun.
First things first, let's talk about why creating a marketing budget is more important than your daily cup of coffee.
Yes, you read that right – your marketing budget is more important than coffee! Here are three reasons why:
- Don't let your marketing budget take over your life savings: It's easy to get swept away by the latest marketing trends and ideas, but overspending can put you in hot water. A budget is like a life jacket, it keeps you afloat and stops you from drowning in marketing expenses.
- Find marketing that's worth the investment: A marketing budget helps you figure out which activities are worth your time and money. Imagine it as your personal marketing genie that helps you choose the marketing campaigns that give the best return on investment (ROI).
- Make data-driven decisions: Keeping track of your marketing expenses and results helps you see which strategies are working and which ones aren't. It's like a superpower that lets you make informed decisions and adjust your marketing game plan accordingly.
So now you know why you should have a marketing budget, how do you figure out how much to invest in your marketing?
Let's forget the idea that you should just set aside a certain percentage of your revenue and match what competitors are spending.
Every business is unique, so let’s make sure you focus on what YOU can realistically afford!
So, focus on your own financial situation and what you can realistically afford to invest in marketing.
If you're not sure about this, talk to your bookkeeper or accountant. They'll probably advise a small-ish number – especially if you haven't set a marketing budget before. However, remember, you don't want to go overboard and put your business in financial jeopardy.
So, start with a modest budget and increase it as you see results.
What to do
Now that we've established how much you're going to invest in marketing, let's talk about how to create your marketing budget.
How fun is this… it's a 2 step process.
Take a step back and escape into an ideal world where there are no limits! Imagine what kind of marketing activities you could do to engage your target audience.
Spend some time daydreaming – I told you I was going to make budgeting fun!
Make sure to list every activity under the sun that engages with ideal clients, then assign each activity its annual dollar figure.
That way, when you come down to reality land again, you're prepared for connecting with your perfect client base in the most engaging ways possible!
So, you've got your marketing activity list ready and you're ready to add up the numbers. Cue the scary music! It's like a scene from a horror movie, where you're faced with the daunting task of figuring out how much money you need to invest in your marketing. But don't worry, we're here to help you prioritise like a pro!
Take a deep breath and look at your total marketing budget for the year. Now, it's time to get real and work out which activities are going to give you the biggest bang for your buck.
Focus on the ones that are achievable within your budget. I repeat, achievable within your budget! Don't go overboard and spend more than you can afford. You don't want to be crying over spilled marketing dollars, do you?
Once you've narrowed down your top picks, make them work within that allocated amount.
2 Steps to creating a marketing budget. How easy was that!!!
Watch your efforts pay off
You did it! You've created a marketing budget that's tailored to your business needs and financial situation.
Bravo, you marketing maestro!
Now… don't try to do everything at once.
Remember, slow and steady wins the race. You can always save the other marketing activities for when you can invest more money.
And trust me, it's not a matter of “if,” it's a matter of “when” your business will take off and you'll have even more marketing dollars to play with.
So, set your budget, prioritise like the boss you are and watch your marketing efforts pay off.
Remember, marketing is an ongoing process, and you'll need to continually evaluate and adjust your strategy as your business grows and changes. But for now, sit back, relax, and enjoy the fruits of your budgeting labour.
Who knows, you might even have enough marketing dollars left over to treat yourself to a fancy latte. Cheers to your success!