Marketing Budget – A quick How to …
Before going and spending your whole marketing budget at once you should create a marketing and advertising plan. Just having a budget is not enough. A year has 365 days and you will not want to have spend your complete marketing funds after the first quarter.
Deciding upfront when spending how much money on what type or marketing will give you some better understanding of how to budget your funds and allows you to prepare properly throughout the whole year on your marketing campaigns. Here is a quick spreadsheet-style marketing budget plan that allows you to create something similar for your own business. We added already several options so that you get a kick-start in planning your marketing and advertising for whole year.
Proper planning and allocating funds for your different ways of marketing will give you a better understanding how this whole business thing works – especially when you are just starting out and almost everything looks kind of new to you. Adjust the plan to your business requirements. If you are an online business only you can specify the different ad networks one by one and remove things like “Travel” from the list.
When entering a new market you will need to spend more money on marketing to gain market share. Do not be overly concerned if your first quarter of doing business shows much higher marketing expenses compared to the other ones.
Many small businesses use their sales results to determine how much money to spend on marketing (percentage of gross sales). This will usually work well for established businesses.