Create a Marketing Budget for Entrepreneuers
Have you ever wondered how much you should spend on your marketing budget? Or even, how do I structure a marketing budget. Or even– what? I need a marketing budget? But yeah, you do. Why? Cuz I told you. Just kidding. Here’s why. You are in this business for the long haul. Not just to see if you can do it. Not cuz you had some free time and thought you would see if your idea would work. You started your business for a reason. A very personal reason. To create a better life for you and your family, to spread your passion, to help and serve others, financial freedom, putting your kids through college, saving for retirement. Whatever your WHY, you want to be successful. You’ve invested a ton of sweat equity to get this far, now let’s take you further with ease and confidence.
Breaking down a Marketing Budget
A marketing budget can be a significant process but as solo entrepreneurs and small businesses, we don’t have the team or needs of mid-to – large corporations. That’s why I’m breaking it down so you can be successful and not throw your hard-earned cash down the money pit of digital marketing. Oh, I am making the assumption that you have a digital marketing platform– if not see my previous posts on getting started. In order to know what to spend on marketing you first need to set your objectives and goals for building your business. Think of this as the foundation of your business. As each of us are at different stages, therefore, we will have different objectives and goals. Think through where your customers are in their journey with you. If you are just starting out you are probably looking to build brand awareness and create leads for your funnel. If you are established, it may be on turning leads into conversions and possibly retention of current customers. Each phase of the journey has really unique tactics you can employ to meet your objectives and goals.
Define Your Business Objectives and Goals
I tend to look at objectives as those overarching priorities of my business– build brand awareness, generate new sales leads, increase sales, increase conversions, build social media presence. Once you know your objectives, start thinking through goals for each month, quarter, and then annual goals. The next thing to think through is where your audience is in their customer journey with you. Your sales funnel should support that journey helping them move down through your funnel while meeting your objectives and goals. Knowing where they are will help you to decide which tactic you need to invest in— video, pay per click, social media, social media ads, podcast, blog, etc. Now that you know your objectives, goals, and where your audience is in their journey with you it’s time to look at your budget.
Digital Marketing
Investing in digital marketing can be expensive. The key is to have clear-cut goals for each campaign, test, measure, and optimize the campaigns that are performing the best. Remember, your marketing budget isn’t only about running that ad. It should also include all costs that are associated with your marketing— ads, hiring VA/Agency to run your ads, marketing tools (email, design software, video, etc.) software, website, etc. Though those tools may also support other pieces of your business you cannot determine a correct marketing budget if you haven’t allocated all the actual costs. You will probably overspend as you don’t have clear insight into your operating costs, marketing, and other expenses. Knowing how much you can spend allows you to know how much to bucket for each funnel or campaign. And now measure your results. One for historical purposes to have insight into the effectiveness of your campaigns, where to double-down on those that are hugely successful. Remember you are playing the long game. Make long-term goals and invest wisely in your business.