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OCT. 2015


Core Business Strategies

By Holly Kile

Does your business

have a budget?

How about a specific

marketing budget?

I’ve met more than my fair share of business owners

who have a regular budget that covers things like

equipment or office supplies. They may even go so

far as to have a line item that says “advertising” but

that’s not enough. You need to have a full marketing

budget every year if you intend to continue growing

your business. Here’s how to create one in three

easy steps.
















Step one is to figure out what you’re working with

by gathering all of your financial data. After all, it

will be difficult to figure out how much you have

to spend on marketing if you don’t know what

your overall financial picture even looks like. Pull

together your data based on actual income that you

can count on rather than “I hope I get it” dollars.

As a general rule of thumb, in the startup phases of

your business, you can plan on spending around 5%

of your total revenue. Older businesses can run a

bit leaner only needing around 2 or 3%.

Now that you have your budget squared away,

you need to determine where you want to spend

those marketing dollars. Think about all marketing

avenues and give consideration to where your

dollars are most well spent. Many people operate

on a shoestring budget which means that you

likely won’t have much to work with in the

marketing department so be sure to maximize free

opportunities for marketing whenever possible if it

makes sense given your target market. Ensure that

you don’t just think about it all in your head but

rather write it down so that you have something to

refer back to as you go along.

This leads us into the final step which is to watch

the numbers. You want to gauge how your

marketing dollars are doing so that means you need

to track your spending. I recommend that you track

your spending as well as note what your return on

investment was so that you can use that information

to determine your following year budgets.

Your marketing budget doesn’t have to be

complicated but it does need to be included in

your overall business strategy. Without it, you will

likely end up not spending enough or spending too

much money that doesn’t give you the right returns.

Follow these three easy steps and your marketing

money should go much further for you.

Visit my website fo

r more information and check out

my video series on Indy BizTVShows®.