How to set a marketing budget for your startup

Guest contribution by Dan Cormac

As a startup, you will have a number of expenses to cover. You will probably have to buy stocks. A business website is a necessity these days. Then there is also rent, utilities, office supplies, employee salaries, etc.

With so many other expenses, it can be easy to overlook — or understate — your marketing budget. Yet your advertising strategy is arguably more important than any other facet of your business. This is particularly the case for a startup. You’re an unknown in the world of established brands and you need to make a splash to get noticed.

Therefore, you need to develop a budget that will do justice to your promotional efforts. To help you, here is a quick guide to developing a marketing budget for your startup:

Why do you need a marketing budget?

As mentioned above, when you start a business, you are unknown. Those you want to attract to your products or services have no idea who you are and how you can help them. While you can visit individual stores and phone potential customers, these tactics can sometimes be met with disinterest in your brand. Cold calling can seem intrusive, even if it wins customers from time to time. However, with smart marketing, you can put your business in front of those you want to find you, without eating into their time.

Without a marketing budget, however, you run the risk of overspending and you may not reap the benefits.

Follow the steps below to develop the best budget for your startup

• Determine your finances

  First, you need to determine your overall finances for your startup. Only then can you delegate a certain amount for your marketing budget – although the specific figure will need to be refined. Your marketing budget should be part of a larger business plan. If you don’t, you risk not leaving enough money in your business account for other equally important tasks.

  If you are struggling to find money for your marketing projects, you have one option: financing. For example, you could take out a loan to set up your marketing efforts. Even if your credit rating is not the best right now, payday loans for bad credit are available.

  Additionally, you need to apply some flexibility to your marketing budget. While it’s crucial not to overspend, sometimes you’ll need to invest a little more than originally planned, in order to create something very special.

• Find your customers

  How can you target those who need to see your business without doing key research first? Before you rush out and invest in expensive TV ads, for example, you need to know that your customers will actually be in front of their TVs. If you’re marketing to younger audiences, it may be wiser to focus on social media marketing, using your budget to post targeted ads on Facebook and Instagram.

  To research your customers, ask the following questions:

  • What age group are you targeting? Is it an older audience, retirees or young professionals?
  • Where are your target customers based? Are you a local business or a national business? Do your customers live in town or are they in rural areas?
  • Does your target audience favor a particular brand or company? For example, if you are a new food brand, do they regularly interact with Ben & Jerry’s? Do they buy most of their outfits from Hollister? By understanding where their current loyalties lie, you can use that knowledge to tailor marketing with tone of voice, colors, and more. similar.

• Decide which marketing paths to take

  When it comes to marketing a business, you are spoiled for choice. There are many different methods to spread the word. It’s up to you to decide what will work best for your brand.

  An obvious starting point is with online marketing. Due to the way people are regularly on the internet, it makes sense to target them with social media, email marketing, pay-per-click (PPC), and website content.

  However, physical advertising techniques should not be avoided. In fact, it is advisable to try to have a healthy mix of online and physical marketing methods.

  It is also essential to remember that some marketing channels are free. Creating a business Facebook page is free, as is creating a business Twitter account. However, social networks are not the only free resources. MailChimp offers low-volume email marketing, though you’ll need to upgrade to a pay-as-you-go account to reach a larger audience.

• Understand current trends

  Understanding consumer behavior and the latest trends is integral to developing an effective marketing strategy.

  You have to keep in mind that the world of marketing is dynamic and constantly changing shape. Just look at the recent trend of mobile overtaking desktops for internet browsers. Statistical points out that in February 2020, mobile devices accounted for 52% of web pages viewed globally. There are also SEO changes, technological advancements, social media trends, and more. which you need to be aware of for your business.

• Analyze your success rate

  Ultimately, you can only get an accurate number for your marketing budget by analyzing the results. Statistics you should study include:

  • The number of visitors your website receives each month
  • The number of leads you generate each month
  • The percentage of visitors who turn into leads each month
  • The number of impressions and responses to your social media posts, emails and other marketing efforts

  By taking a closer look at the numbers, you’ll be able to gauge which advertising techniques are working and which ones should be removed. This will ultimately help you narrow down your marketing budget.

Final Thoughts

Marketing is no longer a desirable aspect of a business; it is a necessity. Without customers, your business won’t just falter; it will fail. Marketing allows you to reach those potential customers and turn them from “maybe” into loyal customers who come back time after time.

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Dan Cormac knows how to make his money work. A freelance financial journalist, Dan is passionate about personal finance. Whether you want to escape the shackles of debt, save for a home, or retire a decade from now, Dan explores the most effective ways to reach your financial goals.