This is a question that I am asked on a regular basis. The answer really depends on what you want to achieve. If you’ve been reading our recent blogs and following the advice in them, you’ll know that before you rush into any marketing, you need to plan what you want to achieve and then work out the best way of doing it. Once you’ve done that, you need to think about how much it might cost and how much you can afford to invest in your marketing.

While it would be great if you had enough money to carry out all the marketing that you want to do, you probably don’t have a limitless budget to spend. You need to invest in your marketing, to make sure that your business grows; and at the same time you need make sure you have enough to live on, without blowing it all on your marketing.

Many business owners fail because they don’t plan their marketing properly and because they don’t consider the finances. They start a business with a great idea and loads of enthusiasm, but they just do not have the financial backing to succeed. You don’t have to have a huge budget to make a go of your business and your marketing, but you need to know how much you can afford and how best to spend it, before you get your credit card out.

Do you need a budget, or should you just make it up as you go along? The answer to that question is that you should definitely start out with a budget. Even if you don’t stick to it, you need one to start with. The reason for this is because it will stop you spending far more than you can afford. When someone comes along with a ‘great offer’ you will know whether or not you can really afford it and what return you might get from your investment.

This blog will help you decide on your budget and what you can afford to invest. Then, in future posts we’ll look at what different types of marketing might cost, and how you can work out the possible return on investment you will get from them.

What Can You Afford to Spend?

How do you decide on your budget? Here are three methods you can use:

1. The “10%” Method. This is where you allocate 10% of your turnover to your marketing. As your business grows, so can the marketing that you can afford to do. If you are starting from the very beginning, with no clients and no turnover, you need to think about how much you can afford to get you started and find your first clients.
2. The “How much have I got?” Method. This method is about looking at what funds you realistically have available to you, which you can allocate to marketing. If you have been made redundant, you might have a sum of money you can put to developing your business. If you are working while setting up your business, you can allocate a proportion of your salary. If you are already running your business, look at what money is coming in and what you can afford to invest in your marketing.
3. The “How much does it cost?” Method. With this method, you need to look at all the marketing activities you’ve identified that you want to carry out and calculate how much it will all cost. Then you need to look for that investment – either from your own savings or from external sources. You can speak to banks, investors or family to raise the funding you need. While this method might see you relying on outside help, it means you can definitely afford to do everything in a very professional manner.

Spend some time thinking about the different ways of setting your budget and how much you can or want to spend on your marketing.

Cut the Cost of Your Marketing

On 29 March 2017 we’re running our next free webinar at 11am. We’ll show you how to identify and then attract your ideal clients so that they actually come and ask you to help them. No more chasing after the wrong clients! And it means that you can spend even less on your marketing! Click here to register your place on the webinar. We look forward to seeing you there.