7 Expert Tips To Allocate A Marketing Budget For A New Startup Business!
According to a
report in the Times of India, “India is home to 81 unicorns as of now, with a
total valuation of $274 billion.” With so many startups joining the league of
Unicorns, it has become essential for the existing ones to focus on their
branding and marketing game.
Branding and
marketing are those two pillars in an organization that help a business to
reach out to its potential customers. But as there are so many marketing
avenues, small startup businesses often face the challenge to determine where
they should invest their limited marketing resources.
Startups often lack clarity
at early stages on how much time, money, and effort they should spend on their
advertising, public relations, branding, social media planning, and content
strategy at the outset.
So, if you have
a startup business made from your dreams, passion, and determination, here is a
list of some of the most effective strategies to help entrepreneurs and
founders to develop first-time marketing budgets to optimize their investments
and achieve maximum results:
1.
Master One Method First
Just like when
we learn driving, we want to do everything at once. But, as the primary rule,
we learn to control the steering wheel. Similarly, as an entrepreneur, you
should pick one thing and do it well. Once you have mastered it you can start
focusing on building out the other options as you begin to get more business. Focus
all your efforts, time, and money on a single method and use that as your power
to get more business and break through the noise.
2.
Pick Measurable Outcomes
When looking out
for the best marketing choices, it is best to find out what you want for your
measurable outcomes to be. For instance, if you want to sell 200 products in
your first month, with an average value of INR 500 per customer, you should
provide this to a marketing company to receive quotes on actions, and not just
marketing services. It will help them to filter out the options deemed best for
your business on actual budget samples.
3.
Allot a Budget to a Few Targeted Areas
It will be
unrealistic for any business to allot a budget without considering their
revenue. A new startup must need to consider its targeted areas and how much
budget should be allocated. It is best to focus on one target area and then
grow into others as traction is gained. You can also take an online
business course for entrepreneurs
to learn more about marketing and advertisement.
4.
Find Out How Each Strategy Will Impact Your Business
While budget
allocation initially is a smart decision, understanding how each strategy is
going to impact your business is paramount. Dedicating between 10 to 20 percent
of gross revenue is a good starting point to invest in marketing and
advertisement. Basics such as collaterals should not go beyond 5% of your gross
revenue unless a brand strategy calls for it. PRs, advertising, communications
are all similar. But to determine what will help your business to grow and
attract your potential customers is essential. Focus on what is going to help
you succeed.
5.
Build a Scalable & Multi-Year Strategy
In the first
year, you need a logo, a website, and some basic branding elements. But one most
essential thing is content. You need great content for any marketing strategy
to work. And as your company grows, you can spend more on advertising and
promotions. When your company begins to scale, you can increase your budget.
6.
Know Your Customer Journey
One of the most
crucial things that every startup must do is that they should have a solid
understanding of their customer journey. Run test ads on social media platforms
and Google to find out how much you will have to spend to acquire a customer. You
can also take an online course for entrepreneurs for
marketing.
Investing in PR
and branding can help you to lower your ad expenditure, only if done right. It
will also increase your conversions, and give you a better idea of how much you
must invest and in which medium of marketing.
7.
Begin with Organic Marketing
There is no magic formula or shortcut to
marketing your brand and advertising your products to increase your revenue.
Startups should always begin with organic efforts, such as content marketing,
PR, SEO, before diving into big ad spending. Why? It offers three benefits:
a). It reduces your budget
b). It lets you
find out what works by trial and error before investing in advertising.
c). Delivers ROI
Every single
penny plays an essential role in a startup budget. Hence, it is important to
allocate the budget carefully for marketing and advertising. Hope the above-mentioned
techniques will help you to seek out choices that will give you the best
results for your startup business.
Having a
compelling marketing idea is great. But you know what is even better? Personal
guidance to increase your brand presence consistently to facilitate sales,
engage your customers and close leads. Our Problem
Solving Courses can help you to overcome marketing and advertising
challenges.
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