One of the most frequent questions we hear is how much should businesses be spending on marketing. While there is no hard-and-fast rule, there are some generally agreed upon guidelines that will help you determine what is right for your business.
The general rule is 5% of your business’s total revenue should be invested back into the business to maintain your current presence. If you are looking to grow, 10%-20% of your business’s total revenue should be invested to increase your presence, visibility and market share.
Now to a business owner, this may seem like a large amount of money that could go towards salary for a new employee or a larger office space, but keep in mind this is the most important investment you can make in your business’s future. In the article, “Why successful companies keep investing in ongoing marketing“, the author asks, why does Coca Cola still spend billions on marketing every year? He concludes that “Marketing is food, not medicine”.
It’s not the last minute fix to bring customers in when your phone stops ringing. It is the consistent, everyday meal that builds and maintains a healthy business.
Also, keep in mind that your marketing budget includes all marketing expenses including the cost of marketing staff as well as costs like printing, buying advertising space or hiring a marketing team.
Once you know approximately what you are supposed to spend, how do you know you are maximizing this money? You must test and measure all of your marketing efforts in order to know what is working. You have to know how much each a marketing effort costs you and how much you are getting in return. This can be as simple as asking each new customer how they found you and keeping the data in a spreadsheet or as detailed as visitor analytics on your website. The key is to find a number of varied marketing channels that work for you and then run them consistently.
If you’re just starting out, you may now be thinking that this is great if you are an established company with consistent cash flow, but what do you do if you don’t have much cash?
Instead of money, invest your time.
The same percentages above work for how much of your time should be devoted to marketing. If your marketing machine in humming and a lot of it is automated or outsourced, you may only need to spend 5% of your hours on marketing. If you’re looking to grow, 10%-20% of your week should be dedicated to working on the marketing of your business. So, if you work 40 hours a week (wouldn’t that be nice!), you’d spend 4 hours on marketing. Now you can spread that time throughout the week or do it all at once, whatever works for your schedule, but it is absolutely critical that you protect that time. Treat your business as a client. Working on your marketing is just as, if not more, important than working on clients’ projects because it ensures future business and allows your business to continue to provide services to your clients.
Marketing can be tremendously overwhelming because there are so many options. If you have questions about the information above or don’t know where to start, contact us!
What to see how your doing? Download our Marketing Audit for free!
Our baby is 8 this year and it’s really hard to believe. Owning our own business has been a roller coaster ride–exciting, terrifying, and sometimes hurl-inducing–but we wouldn’t trade it for anything. I know many of you know what we’re talking about.
We want to sincerely thank you. Your support, cheerleading, love, dedication, and loyalty drives us to work harder and inspires us to do and be better. We are so happy to know you and have the opportunity to work with you. Thank you!
Love–Jessy + Lisa
The new version of WordPress has been released! So, what’s new in WordPress 3.8?
Yes, you can do these upgrades yourself, but a word of caution: As with any upgrade, there is a possibility that the new software could conflict with your existing site. So make sure you ALWAYS backup your website and know how to restore it if something goes wrong. ALWAYS (really, I mean it)
You have other, more important things to work on so let me introduce our Monthly Maintenance Plans. Here’s what you get:
Basic Plan: Just the Updates Please
Plus Plan: Updates plus 1/2 hour of website edits or training – nice!
Premium Plan: Updates plus 1 hour of website edits or training – what a deal!
Click here to fill out the WordPress Website Update form
or give us a call at 858-220-7478.
Now that the new year is upon us, it is time to reflect on the past year. How successful was your marketing? Did you get the money that you invested in marketing back in new business? What areas can you improve? What worked and what didn’t? What needs attention? Where are you missing opportunities?
To help you answer these questions, we created a Marketing Audit. Its purpose is to help you identify what marketing areas you might be missing or need to improve. Download our Marketing Audit below and use your answers to identify and prioritize areas to work on next year.
Happy Holidays! We will be closed from December 23rd to January 1st for the holidays. We’ll be back in the office on January 2nd to answer emails and phone calls. Have a wonderful holiday and we’ll see you next year!
Lisa & Jessy
Fall is here and the holidays are one their way! The end of the year is a great opportunity to thank your clients and customers for the business and for their support and loyalty.
Here’s some rules to follow to really show your clients that you are grateful that they choose to use your services:
If you are planning on sending Custom Holiday Cards, now is the time to order them so we have time to create something special.
Give us a call at 858-220-7478 or fill out the order form to get a quote!
Some other holiday ideas to show how grateful you are:
Its time to recharge our batteries! We will be closed September 12th through the 25th to visit our families on the East Coast. If you need a project completed before or during that time, please let us know asap. Otherwise, we’ll see you when we get back!
Sometimes I find it so hard to be productive when it is gorgeous outside – which presents a bit of a problem when you live in a place with arguably the best weather in the US. While I was watching surfing videos, I mean, working, Inc. Magazine wisely sent this article to my inbox: 10 Ways to Be Productive in the Summer. Here are the two that stood out for me:
Conduct your personal annual review – instead of reviewing your past year, readjusting goals and rearranging your priorities at the end of the year, do it now. Why make it harder by trying to review the past year when you’re already exhausted from the busy holiday schedule. Brilliant!
Do something “it’s never the right time for” – we all have something that we’d love to start or change for our business but who has the time, right? You do, right now!
For more details on these and their other ways to be productive, read the article here.
A quick reminder that we’ll be closed this Thursday 7/4 and Friday 7/5 to celebrate Independence Day! Happy Fourth!
Hello! We will be closed on Monday 5/27 for Memorial Day. We hope everyone has a safe and happy holiday!
Belladia is seven today!! It’s amazing how fast the time goes. Happy Birthday to our sassy, spunky, determined, creative, challenging-but-totally-worth-
Jessy & Lisa