We all know the importance of planning, so in order to successfully market your business you will have developed a marketing plan. This plan will include all the information pertinent to your business marketing, not least the budget! However, this may lead you to wonder ‘what steps do I take to determine my budget in my marketing plan?’
Identify the Foundations
All businesses need certain marketing foundations to get started. These vary from business to business depending on what you are selling, who you are selling it to, the price-point etc. You need to identify what are the essential foundations you NEED to get started with your business marketing. This could include:
- Branding
- Website
- Social Media Profile Set Up
- Business Cards
- Signage
But could also run to:
- Brochures
- Flyers
- Price Lists
- Appointment Cards
- Uniform
- Exhibition Graphics
- Photography
- Video
- And much more…
Identify Ongoing Marketing Methods
Next comes the identification of the primary marketing strategies that you will use to promote your business on an ongoing basis. Again, this depends on your business, but could include:
- Regular Social Media Content
- Social Media Adverts
- Blogging
- Search Engine Optimisation
- Google Ads (Pay-per-Click)
- Networking
- Print Advertising
- Direct Mail
- PR
- Awards
- Case Studies
- Loyalty Schemes
- Exhibitions
- Radio Advertising
- TV Advertising
It is unlikely that you will be able to afford ALL the possibilities to start with, so prioritise your list – most to least important.
Get Quotes
Now there may be some things that you feel you can do yourself and others where you will need professional help. Get quotes for the top marketing methods you have identified. Remember to include all aspects of each method. For example with PPC there will be set up costs for the campaigns, the ad spend itself, maintenance cost for the campaigns, plus there may be landing page design, copywriting, build and even photography costs.
Get quotes from at least three providers so you can see what a fair price is. Check the work and references of the people you get quotes from…don’t just use the cheapest price in your budget as they may not deliver the results you need.
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But the benefits of joining our NoLimits business community don’t stop there. By becoming part of our community, you’ll have the opportunity to connect with other business owners, share insights and ideas, and build valuable relationships that will help your business thrive. Don’t miss out on this amazing opportunity to supercharge your business and join us today!
Calculate ROI
Now you know how much the foundations and essentials will cost you can calculate your Return on Investment. You will need to know
- The approximate volume of enquiries the marketing methods will generate
- Your probable conversion rate from enquiry to sale
- The gross and net profit in each sale (before marketing)
If it is hard to calculate this down to the product or service level you could look at annual or monthly figures. Remember that if you retain clients you need to look at the lifetime value of the client, not just the revenue from the first payment.
You will now be able to calculate how much you can afford to invest in marketing and therefore which methods you will be able to budget for.
Test, Measure and Refine
At the start of your business it is likely that you will have to limit your marketing efforts in line with your budget, but as time goes on and your marketing is effective you should have more to invest. It is essential though that you continue to assess and refine your marketing efforts and budget. A bigger business will not continue to thrive on a small business marketing budget, but neither should you keep spending money on marketing that you don’t know is actually working.
I hope this has helped you to understand the steps you can take to define your budget in your marketing plan. You’ll find more helpful advice on marketing in the Articles section.
By Duncan McKechnie
Join the NoLimits Business Community
Are you a business owner looking to take your business to the next level? Join our innovative community of like-minded professionals and gain access to a wealth of valuable resources, including a community portal to chat with other business owners, ebooks, business development software, and growth events that will transform the way you do business. Best of all, these resources are completely free and will be available to you forever.
But the benefits of joining our NoLimits business community don’t stop there. By becoming part of our community, you’ll have the opportunity to connect with other business owners, share insights and ideas, and build valuable relationships that will help your business thrive. Don’t miss out on this amazing opportunity to supercharge your business and join us today!