As a small business owner, you’re used to setting a budget for operational expenses like supplies, utilities and rent. They are relatively easy to predict and occur at regular intervals. But the same isn’t always true of marketing costs. Factors like a new product offering, seasonal timing or the type of promotion can influence how much you spend. Here are three approaches to setting your marketing budget. Consider which is right for you.
The right method for setting your marketing budget depends on a number of factors like age of business or type of industry. These three approaches offer a range of options to choose from. Unlike your utility bill, marketing expenses have the ability to generate additional revenue, so it is important to carefully consider which approach will produce the best results for your business.
* Source: Beesley, Caron. “How to Set a Marketing Plan Budget that Fits Your Business Goals,” U.S. Small Business Administration, SBA.gov, January 2013.