A Complete Guide to Small Business Marketing Strategy and Budget

According to the SBA, the latest statistics show 33.2 million small businesses in the US. But unfortunately, the statistics also show that more than 20 percent of small enterprises fail in the first year, and almost 50 percent of small startups fail within the first five years, according to the Bureau of Labor Statistics. 

Those stats prove the importance of a sound marketing strategy, but with limited resources, how do you both identify the elements of and adequately budget for an effective marketing campaign?

A properly budgeted marketing plan helps keep your strategy on track with your startup's overall finances in mind so that you can achieve your business goals.

What Is a Small Business Marketing Budget?

The first step is defining your business goals and marketing objectives. Ask yourself what you want to achieve with your promotion campaign.

Step #1: Decide on Goals and Objective

You can establish goals that focus on the following:  – Increasing brand awarene – Driving more sale – Boosting lead – Earning more subscriber – Retaining existing customers

When you make a budget breakdown, you want to specify the sales funnel. It’s an essential element that allows you to define the areas you will spend your money on.

Step #2: Establish the Sales Cycle

In other words, your sales funnel is a process your audience goes through to become a paying client. It’ll typically involve the following stages:  – Awareness (the audience becomes aware they have an issue and starts seeking solutions) – Interest (the first interactions that hook potential customers and draw them slightly deeper into the funnel)

Consideration (the audience looks at the choices available) – Intent (the lead narrows their focus on businesses that deliver the best solution for their demands); – Evaluation (the prospect has now almost decided to purchase your product or service. They might begin negotiation over the price, terms of purchase, or both.) – Purchase (they pick your company and become a client).

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