Mary wants to buy a new pair of shoes to make her look hot at her friend’s party next week. She only has $75 dollars in her clothing budget and the shoes she wants are $150. What does Mary do? She knows she only has so much to spend so she gets creative. She goes to a local high-end consignment store and searches for quality shoes at a bargain price. Or she shops around for shoes with a comparable look at a lower price.
A company, like Mary should have a budget for their clothing, er…marketing. Marketing is like clothing isn’t it? It’s the perception that others have about you based on how you present yourself. Like any fiscally responsible person, a company should have a marketing budget. So what’s yours?
To determine your marketing spend look to your company’s annual gross revenue. The rule of thumb is this: your marketing budget should be anywhere from 1% to 10% of your annual gross revenue. If your annual gross revenue is $1,000,000 then your marketing budget is between $10,000 and $100,000. But if your annual gross revenue is $30,000, your marketing budget will be between $300 and $3000.
Question: How does a small business survive on such a budget?
Answer: You find tactics that work that don’t cost a lot of money.
There are a number of free or low cost tactics that anyone can do on a minimal budget. At Ratioreports.com there’s a module that’s all about promotions for your business.
For now just know to look good you don’t have to spend a lot of money. Like Mary, you can find alternative choices within your budget.
Find out more at www.ratioreports.com