Robert Wallace says, “Ask nearly any startup founder what their marketing budget is, and you’ll often be met with a chuckle and — “Marketing budget? What marketing budget?”.

Cash restraints and unpredictability can equate to rocky projections. And while the idea of having an actual marketing budget may seem unattainable for many early-stage companies, the good news is that today, marketing experimentation is relatively cost effective and approachable — making it easier to build an actual budget.

Before you begin, your leadership team (even if it’s just two of you) must outline clear strategic objectives and generate sales-revenue targets. From there, it comes down to brass tacks. The following tips will guide you through the marketing tactics that can help entrepreneurs and young ventures give budgeting for marketing a proper try.

1. Start with standards.

There is no one-size-fits-all method for developing a marketing budget. Generally speaking, the amount you devote should be a percentage of revenue generated — often between two to 10 percent, depending on industry standards. If the data is available, look at the past 12 months of revenue, and determine an appropriate percentage“.

Think You’re Not Ready for a Marketing Budget? Think Again.

‘Entrepreneur’ Blog

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