When it comes to growing your small business, adding new clients consistently is a top priority. But how much should you spend to attract these new clients and increase sales?
How much should you spend on advertising and marketing?
The U.S. Small Business Administration (SBA) has suggested that “small businesses with revenues less than $5 million should allocate 7-8 percent of their revenues to marketing.”
Using the SBA percentage, if your net profit is $500,000, you gambling data philippine should spend $40,000 on advertising and marketing.
How much should you spend based on the age of your business?
First Year Business – 25-35%
The first year will be the most challenging, so you need more marketing capital to get noticed. Think of marketing as an investment in your business.
Established and Growing Business – 12-18%
After 2-10 years, your name is out there, and your business what steps can you take to reduce the number of unimportant is growing. Take advantage of the momentum and more of the market.
Well Established Business – 3-5%
After 10+ years, you have a well-established name and reputation. Now is the time to keep up-and-coming businesses from closing in on you.
What channels should you focus on?
When it comes to advertising and marketing, there are many channels you can choose from. So, which channels should you focus on? Ultimately, your marketing budget should go to the channels that help you reach cn leads your goals. What do you want to achieve this year? Revenue growth? Brand recognition? Growth of your email list?