As a business owner, you’ll know that the fastest ticket to failure is opening your doors and expecting people to come and spend money. The old adage ‘if you build it, they will come’ may be true in some situations, but in today’s crowded market place you can be guaranteed that no matter how niche the product or service you offer is, there will be someone out there doing exactly what you do competing for the same customers. Marketing, therefore, is the most crucial tool in a business owner’s arsenal to ensure a steady income stream and continued growth. It should be obvious, therefore, that incorporating a marketing budget into your business’ fiscal planning is an absolute must. Yet still, many businesses will ‘play it by ear’ so to speak with their marketing costs, and as such are not utilising the power of marketing to its fullest extent. If you’re one of these people, we’ve hopefully got something that will help. We’ve compiled our top 5 reasons as to why you need to put a marketing budget in place for your business. By taking steps towards implementing some or all of these tips, you will be able to leverage your marketing efforts much more effectively towards achieving your goals.
Not budgeting risks marketing losing priority
Businesses incur many costs on a day to day basis. Wages, rent for premises, stock costs, the list goes on. When you’re busy juggling all of the responsibilities running a business entails, if it’s not already planned for, marketing costs can seem much less important than more pressing bills that need to be paid. So what happens then? If you haven’t budgeted for marketing and therefore can’t afford to pay for it month to month, it’s unlikely that you will be able to employ the services of an agency or consultant to best represent your business. If your marketing is DIY, you risk becoming distracted by one of the other million issues or responsibilities you have, and marketing falls by the wayside entirely. You must budget for marketing to ensure it remains a priority for your business.
Your business cannot grow without marketing
It’s extremely simple: unless you’re making a concerted, deliberate effort to market your business, it will not grow. Growth comes from a constant stream of new customers learning about and using your product or service. If you do not put aside money to put towards this, all hopes of growth will be utterly destroyed. Even if the most effective marketing tool you’ve found is dropping leaflets, it’s unlikely that somebody will do this for you for free, and as a business owner can you afford to put aside time to traipse from door to door dropping leaflets? A marketing budget enables you to grow your business.
You cannot plan a marketing strategy without a budget
Leading on from the previous point, as we know how important marketing is for business growth, it must be noted that no marketing efforts will be as effective as they could be unless they form part of a wider marketing strategy. Setting strategic goals for your business and then planning your marketing efforts around activities that will directly contribute to those goals being achieved requires knowing how much money you have to spend on each arm of your plan. Not only will this simple step leads to an exponentially more effective marketing strategy or campaign, but it will also prevent you from overreaching yourself and putting a strategy into place that is too expensive and will put your business in a difficult position. Budget your marketing for a more effective strategy moving forwards.
Effective marketing requires consistency
We touched on this in the introduction: it will be extremely difficult to build an effective professional relationship with any marketing agency or even in house marketer if you do not have a consistent budget to put towards your marketing. Marketing experts know that a great strategy is the first step towards success, so if they are dealing with having wildly different amounts to be able to spend on a monthly basis, not only will it make you look unprofessional and hurt a potentially lucrative business arrangement, it seriously harms the efficacy of any marketing efforts put in place.
Proper budgeting is crucial for business growth
Proper budgeting in all areas of your business will be crucial for achieving growth. If you don’t know how to put money aside for all the costs and responsibilities incurred when running a business, it will become very difficult very quickly. If you feel you lack the skills necessary to properly budget, consider looking for some free, online courses in budgeting for business.