Healthy reminder, your marketing dollars are an investment, not an expense. The budget for this investment should be based on your goals. Watch the video to find out more.
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Read below for the video transcription.
How to budget for marketing? Great question. Your marketing budget should be based on your business goals. Where do you want to go?
A good rule of thumb is 5% to 10% of your revenue If you’re a $2 million company and you want to be a $3 million company, it’s setting that 5% to 10%. And 5% is really the bare minimum in my mind about what, you know, to set it on that goal, the $3 million revenue.
Those are all going to go through all different kinds of marketing costs from websites to advertising campaigns, content, to events, to canvassing, whatever your marketing is. It’s going to come out of that, but attributing 5% to 10% should never be something that you just calculate based on what’s left over when everything else gets taken care of. “We’ve got this pool of money left and now let’s put it to marketing.”
This is an investment, something that will give a return on investment over time. And so treating it as such as is, is really important.
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