How Much Should I be Putting Away For My Advertising Budget As A Startup?
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There is a lot to think about when wanting to start a business.
How much will you need to get your idea of the ground?
Who are going to be your clients?
Where do they hang out?
Who is your market?
What is your ideal niche?
What do your customers want?
Okay you kind of get my drift.
But seriously – the important number one question we should be asking as startups is – How much will it cost to get my business idea in front of those people who truly want what I have to offer?
Let’s just do some quick maths.
No Customers + No Sales = No money
When it comes to us marketing our business so many of us get stuck right here. I know I did when starting Rachael Academy. After being in business for three years and really struggling to make a living from it, I figured that there might be something I was doing wrong.
The Light Bulb Moment
I then came across a Facebook post by a business competitor talking on the subject of investing capital into marketing and advertising our business. My ears were tingling as this was a new concept to me indeed.
” You mean I’m going to have to take money out of my own pocket and invest it back into marketing my own business?“
Funny as this may sound, you’ll be surprised to know that, there are so many of us business owners out here who truly don’t believe that any invest into marketing will make a difference on our bottom line and are scratching our heads wondering why we’re not making any money within our business. “I was one of them.”
Having a marketing budget is real. It’s not just a fad word we throw around at networking events, it’s something were’re going to have to do, if we want to be successful with our business and even more so during theses times.
This’s isn’t a rant post, but hopeful a post that will help break the fear of investing into your dream. I like to think of it like this. Say that you want to by a new house or car and you don’t have enough of your own money to buy the car or house and you decide you’re going to visit your friendly bank manager for a small loan.
The first thing they’re going to ask you after all the niceties, is do you have some of your own money to put down as deposit for your dream house or car? I mean if this is your dream – right? You’re going to put some skin in the game for what you really want – right?
Yes that sounds good, but what a lot of people don’t talk about online, not ever, is the relationships that so many of us have with money.
It’s like like that secret admire you’ve been having your eye on and you’ve spent your nights drooling over their picture, to one day finally get the chance to meet them in person and you quickly realise that they were a complete let down, I mean all that wasted time and invested into gazing into their eyes, be it from a small picture you had managed to find of them on the internet.
Money can be like that. We like the concept of having it, winning it or making it, but when we have it we quickly realised it’s not as exciting as you thought it was going to be.
If you are truly serious about this dream business of yours and you’ve got this far to launch it then you might as well go the full hug and do whatever possible to make it a success. Here are a few things to think about when coming up with a marketing budget for your startup.
What Is Your Vehicle?
When it comes to creating a marketing budget, we first need to look into which platform will work best for our new business, product, service and brand and to do that we need to look at a couple of points.
Your actual budget
Your personality and lifestyle
Where your customers hang out
These three points will help you narrow down things and help you focus on the right areas of your business to market to get a better result.
What Is Your Message?
What you have to say and your offering is going to play an important part when it comes to marketing your business and your marketing budget. Here is what I mean
Do you know what your potential customers want from you?
How many times do you need to showcase your message before you will potential get your fist sale?
What is your call to action going to be and which platform are you going to use to do it?
Once you’ve looked into your vehicle and your message the next step for creating a marketing budget is putting things down on paper so you can see it clearly. Here are some points you will need to have on your marking budget plan.
How much money do I have to spend?
You’re going to have to calculate your actual spend budget. This doesn’t have to be the full amount, as you could easily break it up to a monthly amount. As long as you have a number in mind that you will dedicate to your marketing budget. Be realistic to your own circumstances. When I started out I could only afford £10 a week on marketing and advertising, but you will be surprised how far £10 can go if spent right.
What areas of my business am I going to spend it in?
This questions is key for your success. I would suggest spending it in the areas that will bring you the highest return on your money ‘ROI’ Let me give you an example.
I had taken some time off social media last year, 8 months to be precise, and during those months I lost some money and business from this. I talk about the reasons why in my article which you can read here. So when getting back to marketing my business I went straight into putting my money in the areas that was bring me an income before.
There will be signs, even be it small. We know the areas in our business that works the best – well invest in that and do it repeatedly.
These tips should get you started on creating a successful marketing plan. I would love to know how you got on so do feel free to drop me a line. Feel free to also leave me your thoughts below.