Mobe Training Tips – Marketing Budget
1. Do not market at all, or market very little or
2. They carelessly lose money marketing, which then puts them back into the first category
3 Steps to Create a Marketing Budget- Mobe Training ideas & strategies
The Budget Plan
Prior to even investing 1 dollar into marketing, you will first need a financial plan of attack.
Estimates from the US Small Business Administration website say that typical businesses will spend 2-3% of their revenue for marketing and about 3-5% for startup business marketing. This
amount could vary depending on the stage your business is currently at. For instance, if you are just starting out, you might go as high as 20% of your revenue to reinvest into your marketing budget.
Another thing to consider, is what these percentages get allocated towards. Some examples are:
* Brand creation and development
* Promotion and advertising
A good idea is to split the budget between these 2 primary categories.
Implementation of your Budget
This part will take some time effort. The first thing you must learn to do is to get good at tracking.
Or if not, hire someone who can do this for you; it will be worth the investment. As mentioned earlier, those who fail usually aren’t able to understand the budget of marketing and the importance of it in the first place.
Stick to your budget like your life depends on it. Especially at first. With proper tracking set up, you will be able to see the infamous “return on investment.” So for example, if you have $5k per month for marketing, make sure you are sticking to that number and see how your return can be attributed to your output.
Monitor and Adjust
Here is the fun part – when done right! And this is also the part that separates the winners from the losers in the game of business.
Looking back at our example of $5k per month, you want to see how your return is based on what and where you are spending your money. If you can tie this back to a loss or a break-even, you will of course need to adjust and re-plan your allocations. But don’t worry – this is normal when you are
marketing! You sometimes have to lose money to make more later.
If and when you make a profit, no matter how small, this is where you can tweak things and make small adjustments (one at a time) until you can start to track your results for higher profits. When something works, you can THEN start using more money to scale up your business.
These examples are obviously simplifications that can be applied to all businesses. However, do not underestimate the simplicity. Often times, people in business try to over complicate things,
instead of sticking to the basics until successful.
With a marketing budget, be sure to start with a plan, stick to it, track your results, and then monitor and adjust accordingly.