This is a question that every business of every size asks every fiscal year, how much should I actually be spending on marketing? There are a lot of different reasons you should be spending more or less on marketing, but no matter what, marketing is essential for any business to grow and expand. You need to make more people aware of your business and how to you can help them live their lives better.
Because marketing is so important, it is a good idea to invest some time into figuring out exactly how much you should be spending on marketing each year. If you are looking for answers to these questions for your small business, here are some methods to help you decide how much you really should be spending on marketing for your small business.
Spend a Percentage of your Annual Revenue
This is the most popular method to use when deciding how much to spend on marketing for your small business each year. Most people use anywhere from 8-12 percent of their annual revenue for marketing purposes. This is a great method to use if your business is stable and you are not necessarily looking to increases the customer base drastically or change your financial plan. Use this method if you want to play it safe and keep things the way they are.
Spend Slightly more than your Competition Does
If you are struggling with losing business to competitors, or you want to pull customers from your competitors a little more than you have before, it is a good idea to find out what those competitors are spending on their marketing and spend a little more than that. This way, your name will come up before your competitors and you will be the first seen by those looking to obtain your services or products.
Spend as much as you can Afford
A great option for business owners who are looking to grow their business exponentially and gain more exposure for their business, it can be beneficial to spend as much as you can afford on marketing. This will help you gain a lot more customers and get your business’s name out there. This is not a method you should use every year, but only temporarily to grow your small business. If you think the amount you can come up with on your own is still not enough for the growth that you want for your small business, consider a site like TitleMax.com to find a loan to make up the difference.
Spend Less to grow other Parts of your Business
Many people today have actually found it beneficial to cut back on their marketing budget to grow other parts of their business. If you are seeing that people are finding your advertisements and your business easily and you are happy with the amount of customers you are bringing in, then your money may be better spend in another part of your business. You can increase your marketing for free by focusing on free marketing pathways, like social media and good customer reviews.