How much to spend on advertising?

Many small businesses look at their advertising budget as a
"once and a while" expenditure. They'll allocate some funds (usually
when business is down) and hope for a advertising miracle.

Haphazard advertising budgets usually generate erratic results.

While a growing company shouldn't spend more on marketing than profits warrant, a consistent budget will produce consistent results over time.

There are many factors that may influence your budget considerations, such as:
YOUR INDUSTRY, YOUR LOCATION, YOUR COMPETITION, TIME OF YEAR, etc.

Some business experts recommend 10 to 15% of projected revenues as an advertising budget for new (or growing) businesses, however, it's more important to establish a budget that you are comfortable with and to be consistent.

Think of your advertising budget as a monthly expense, like your utility or phone bill, not as an optional expenditure.

 

 


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