Getting the most from a limited marketing budget is quite a challenge for the average small business owner. I always ask, business owners how much they spent last year – and how much business did that bring in. Can you answer that question? And are you sure that all of your spend brought the best possible return? This article, gives some simple rules of thumb on setting budgets, an easy way to track your spend and some tips on where to spend your valuable budget. Generally people look for a 1:10 ratio on new products and 1:20 ratio on established products to maintain momentum.
Before you allocate any marketing budget, you must have set some goals on what sales you are looking to achieve. After all a game of soccer would be pretty pointless without goalposts!
Generally people look for a 1:10 ratio on new products and 1:20 ratio on established products to maintain momentum. This means that for every Euro spent, you should get at least 10 euros in sales.
Going back to last year’s budget, did you track it? Did you measure the effectiveness of all of your spend on Marketing? Large companies do micro analysis on all campaigns, with lots of testing. At minimum, you should track and monitor everything you spend.
It is good practice to have a sheet, such as the table below, which you keep on hand and update as you go along. advanced capital solutions reviews