If you're looking to grow your business you need to find the time or the money to do so. Startup founders typically burn out selling and marketing their products and services. However, when it comes time to scale your efforts even the smallest budget can go a long way if you are intentional in the planning and execution of it.
How much money do startups invest in marketing?
The rule of thumb is to prepare yourself to invest more when executing your go-to-market strategy. At the beginning of launching a business, it does take a bit more effort and capital to get the word out there. The US Small Business Administration reports that it isn't unlikely for small businesses to spend upwards of 20% of total revenue in marketing their new business. As a business grows, we see those percentages decline to be between 7-12% of total revenue. The same report showed on average that established businesses spend between 1 to 4% of revenue on advertising alone.
How to maximize a marketing budget
The best way to maximize a marketing budget is to have a plan and stick to it. Of course, it's essential to leave room for creativity and last-minute opportunities; however, going into the year with a solid plan is the best way to ensure the success of the marketing program. A plan also allows for deeper creativity instead of wasting time scrambling to figure out what to do month over month.
Creating a solid marketing roadmap or client value Journey is another way to efficiently structure your digital sales and marketing effort. Building a roadmap is a great way to see if you have any leaks in your marketing process. An example of a leaky system might be not having proper systems or procedures in place to gather emails or complete purchases.
Another way to maximize your marketing budget is to make sure you are always performing growth marketing activities. There are only three ways to grow your audience online:
1. SEO
2. Partnerships and leveraging other people's audiences (OPA)
3. Advertising
It is ideal to allocate a budget to all three of these growth tactics, but if your bootstrapping I would suggest starting with SEO and partnerships. It is advisable to hold off on advertising until your marketing roadmap is complete-- otherwise, you may be wasting your money and losing out on valuable opportunities.
How can I make sure my marketing strategy is working?
No one likes throwing money out the window, especially in business. The easiest way to test if you are earning favorable ROI from your marketing activities is to track the results of all the campaigns and tactics that you employ. Implementing a regular data review practice in your business is essential for understanding how to improve the performance of your marketing. Regular reviews will also help inform exactly how to spend your money efficiently.
💬 Need help making your marketing budget? Book a free session with me. Hi! I'm Victoria, Growth Hacker and marketing mentor to female founders at Ugli Ventures. I create and manage sales-focused marketing strategies. Let's schedule your free 30 min strategy session where I'll share tangible, tactical advice on how you can create or improve your marketing plan. Book Now.