3 percent.
Based on 100 percent, 3 percent is really a very small amount. Yet that small amount is largely responsible for a company’s success in any given year. Surprisingly, many companies, both large and small, see 3 percent as too big so they go even smaller.
Now you are probably asking “3 percent of what?” Good question. It represents the percentage of your budget that should be allocated to your marketing advertising budget. And it’s 3 percent of your sales revenue. So, if your sales revenue is $500,000, then $15,000 is the minimum that should be budgeted. This covers the marketing necessary to give your company the visibility it needs to help sustain its profitability.
Fourth quarter is the ideal time to begin planning for the new year so that you are prepared right from the start. Imagine that you and your competitors are at the starting gate on that first day of the new year, waiting for the race to begin. Is your company the horse that may not even be at the gate because it refuses to enter the queue? Is your company the horse that starts strong only to break stride halfway though the race? Both imply a lack of preparation and planning.
Knowing and understanding why resources need to be allocated to the right marketing strategies is key to any businesses long-term success. Without marketing, no one knows about you. No one can find you. And people may not understand entirely what you do even if they do find you. Marketing enables a company to deliver a clear message to it’s target audience. It brings your company to life.
Be the most prepared at the starting gate in 2014. Set the pace for your competitors to follow. Begin working on your marketing budget to make it a reality today.
Keep it disciplined.