Marketing can be an enigma to many business owners: How often should I post? Am I supposed to make my own graphics? Do I need to do TikTok dances?
These are all great questions, but they’re not quite where you need to start. Like any other part of a business, marketing costs money. So, narrowing down how much your business is able to invest in new clientele and spreading your name is an important first step.
As a rule of thumb, marketing budgets should be 8-12% of your gross revenue. This will vary, though, depending on your business goals. If you have too many clients and aren’t looking to expand, you may hold off on increasing your marketing budget for a season. Alternatively, if you are hoping to grow your business, you need to grow your marketing budget.
If you want to see a 20% increase in revenue, you should allocate an additional 20% into your marketing budget. Generating new leads, building name recognition, and being at top of mind for potential clients is crucial to business growth, and these goals are accomplished by allocating the necessary resources. Marketing doesn’t have to be hard or scary, you just have to know where to start.