Marketing Budgeting

Intelligent businesses create marketing budgets that range from 1 to 14% of projected gross sales for the upcoming year. The U.S. Small Business Administration recommends small businesses with revenue less than 5 million) allocate between 7% and 8% of total revenue to marketing — assuming margins are in the 10-12 percent range. The key is to carve out some budget and work toward your ideal percentage. For instance, in the first year of your budget, you may need a web redesign + SEO to rank high in Google. Strategically, this would be the best allocation of your budget. The following year apply that same budget amount to digital marketing tactics that push interested prospects to your new website. The goal over time is to use multiple tactics and track results to determine the most cost-effective ways to generate leads that convert into sales. If you’d like to discuss your plans for next year, let me know how we can help.