How many small businesses actually have an advertising budget?
Friday, March 21st, 2008Sitting down and calculating an actual advertising budget is an essential growth aspect for any business. Yet it seems that almost none of the small businesses that we talk to have a well thought-out, calculated budget.
Having a budget can also help you analyze your current marketing strategy and help you verify that your current advertising is working.
Your first step should be to determine what you spent last year. Then add your growth percentage and divide that number by twelve. Here is an example:
Lets say you spent $20,000 on advertising your business last year. That means you had an averaged monthly budget of $1666. Try to increase your budget by 10% this year. This means your new yearly budget should be $22,000, or an average of $1833 per month.
By continuously (and carefully) increasing your years ad budget, you should see an increase in sales and revenue!