When it comes to running your business, you have all the tools you think you need. The product supplies to create your service/product, the administrative tools (accounting software, protocols on the sales method, payroll, computers, shelving, etc) and your location (whether it’s a physical or digital product i.e. Shopify) to sell your product or service.
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There is one thing that most small businesses forget to budget in when they startup. Marketing. This simple yet complex item has the potential to take over your budget if you are not careful. You need to have a marketing plan, not only to create promotions but also to continually replenish your customer base. Therefore, you need to narrow down an appropriate budget to match.
It doesn’t have to be a huge process, but it is an essential one none the less. Sites like Medium Marketing can help you as you begin to research the best budget for your organization. They can give you tips and tricks to specialize this just for you.
But, in a nutshell, the big reasons why you need a budget for marketing are as follows:
Reasons Why You Need a Small Business Marketing Budget
1. PRODUCT AWARENESS
Sure, word of mouth is a tried and true method of advertising, but after a while, if you don’t outreach past those you talk to on a regular basis, you will slow your growth. For those, you have previously shared your product/service with may come up with a reason to avoid talking to you. They might have already helped you in sending some referrals, but you have to now go past them to see where else to stretch your market.
We have all seen on the internet, celebrities tying their name to the latest and greatest products. How do you think they were made aware of them? Marketing these products on your website – social media platform or even by buying facebook ads. By making these investments, it puts your items in front of a demographic you have discovered. Then, once you have drawn in some attention, those influencers can become a part of your marketing scheme. This small commission (or form of advertising cost) comes into play each time a new sale or purchase occurs based on that recommendation. Its an extension benefit of growing your business and voice.
This is important. By creating this strategy, you then create a direct link between a plan and the resulting action. This allows you to propel your business. If you rest on your laurels, your business will stagnate. By utilizing strategy, it will give you the checklist you need to allow to continue to grow, learn, expand your business. It forces you, like a home budget, to maximize when you put your dollars out there – if you have some lagging sales or older product to move, allows you to move it first before a new product launch.
These are just a few reasons why small business needs a marketing budget ready to go. As always, it is what you make it. We can help you create the strategy, plan, and budget – reach out today.
We are here to help you in this brainstorming-research session, to decide the next best moves, how it aligns with your goals and the forecast model you spent so much time creating.