What's your marketing budget?
Ahh, the dreaded question - have you got budget for that? I ask it all the time and it's a really important question when planning any marketing activity. Budgeting is a skill I do not enjoy using, but it is vital.
So, where to start? The first thing I do is work out how much overall budget a company has to spend on all marketing activities. Then I allocate that budget to various marketing activities and get started. Sounds simple right? Like most things, it can be more complex. Quite often there are lots of variables to consider and I always believe, above all, staff time will be the biggest cost, which is hard to measure.
Allocate a percentage of revenue
I would recommend allocating between 5 percent and 10 percent of your overall business revenue to marketing. Revenue is the total amount of money a business receives.
Your revenue is £10,000 per year
You allocate 5 percent to marketing
Marketing budget per year = £500
Set SMART objectives
Having clear goals for what you want to achieve is essential. Work out what you would like your return on investment (ROI) to be and set SMART objectives.
Divide up your budget
Will you focus on digital marketing? Do you need to set aside extra budget to reprint brochures this year? Divide up your budget accordingly. It may also be worth putting aside a little budget for contingency, in case something crops up! Depending on what your business does and how much budget you have, your marketing mix will vary.
Put controls in place
Ideally, one person should manage the marketing budget and oversee all expenditure. Having a sign-off process for any marketing spend helps to keep track of everything and ensures you stay on budget.
I hope you find this useful as a starting point and if you would like any support working out your marketing budget or planning your activity, just get in touch.