When times get tight, business owners have to make tough decisions about where to make cuts.
Often, the budget tightening results in less money spent on marketing. When you need to boost sales, it doesn’t make sense to spend less time telling current and potential customers about your products and services. Yet, that’s where many entrepreneurs look to “trim the fat.”
If you find yourself in that situation, here are a few tips to help you make the most of a small marketing budget.
Plan For Every Penny Of A Small Marketing Budget
No matter what your budget is, you should have a plan for how you are going to use it.
One big mistake small business owners make is that they don’t plan a budget for the entire year. Instead, they come up with an amount and then end up spending it all on one tactic or campaign.
A better approach is to create an annual marketing plan. This ensures that your brand maintains a consistent and sustained presence with your target audience throughout the year.
Invest In Social Media Advertising
Social media advertising offers a solid, trackable return on your marketing investment. It’s affordable and highly targeted. That makes it a great option for a small marketing budget.
If your target audience is active on social media, you will likely see results with a minimal investment. Take advantage of the targeting features that social platforms have to offer advertisers to hone in on your ideal customers.
Use Multiple Streams
If you have the money to spend, consider placing your message in multiple streams. For example, you might place online ads, social media ads and launch a direct mail campaign. Put tracking methods in place to determine which method produces the best results.
Setting Your Budget
A small marketing budget calls for smart spending, but how much should you be setting aside to begin with?
There are two methods to consider. One way is to see what your competition is doing and try to match or exceed them.
Another method is to invest a percentage of your revenue on marketing. Look at your previous year’s sales revenue and your projections for the coming year. Take a percentage of what you expect in sales revenue this year and dedicate that amount to marketing. A common range is between 7.5% and 10%.
Look for advertising options with the best ROI, and plan every penny of your small marketing budget to help your business maintain an even playing field with your competition, stay top of mind with current and future customers, and ensure the best return on your advertising dollars.