Small Business Marketing Kit For Dummies, 3rd Edition

Step 8: Establish Your Budget

No one ever built a successful business by marketing with leftover time or dollars. Your plan needs to define how much your business will devote to its marketing program. Avoid pulling out last year’s budget and adding x percent for inflation. Opt instead for a zero-based budget, which means starting with nothing and adding in costs to cover the development of each element in your plan. Include costs for ad creation, media placements, direct mail, website and new page designs, trade show fees, displays, packaging, and other tactics.

If you’ll employ the professional assistance of freelancers or an agency or if you require additional staffing to implement your plan, incorporate those costs into your budget. Then add a contingency of up to 10 percent to cover unanticipated costs. Include your marketing budget as an integral part of your marketing plan, get it approved, and invest the money wisely.

Most businesses invest a combination of marketing dollars and marketing hours to achieve success. The more time you invest — in networking, social media, and one-to-one outreach — the fewer dollars you’ll likely need to budget. In general, mature businesses aiming to maintain market share and growth levels usually budget 2 to 5 percent of annual sales for marketing. Start-ups, those aiming for high growth levels, and those trying to overcome strong competition ...