What is the average marketing budget for a small business

Let us explain! Years that require more spending will arise whenever you need to invest in the foundation for all of your day-to-day marketing activities. For example, an up-to-date, performance-based website is key—perhaps the key—to a solid marketing foundation. We speak with many caterers and entrepreneurs who have websites generating less than 5, visitors per month—a perfectly respectable amount of traffic for many small businesses.

Consider, though, if one of these websites was underperforming and converting only 1 in every 10, visitors into a customer the conversion rate. With 5, monthly visitors which is on the high side for many caterers , a 1 in 10, conversion rate would translate to only one new online customer every two months. Now consider an updated and conversion rate-optimized website—a website that converts every 1 in visitors into a customer. Their latest figures, published in October , show marketing spend averaging at The B2B Marketing I refer to is here.

All rights reserved. Made in Wimbledon by 3mil. Hit enter to search or ESC to close. Close Search. By lorna 3mil. How much do you currently spend? Click here to complete a 4-question survey no requirement for you to give us any contact details so we can see just what small business owners are allocating to marketing How to work out what you should spend As small business marketing consultants , the way we help our clients to calculate their marketing budget depends on the answers to six questions.

How much did you spend on marketing last year? How much of that spend delivered a good return on investment ROI? How many new clients did you acquire, compared to how many you lost? Do you want your growth to be faster, or the same, as last year? How long is your typical sales cycle? How competitive is your market and where do you sit in the hierarchy? How much on marketing technology — to help deliver the marketing? Networking events? How much of that spend delivered a good ROI?

Get more from your marketing budget by identifying what is and isn't working for you. For sales revenues to grow, you need to be able to do, at least, one of three things: To increase prices To sell more to your clients To sell to more clients For this to happen, the creation of leads needs to start before the revenue starts to increase.

General Rule of Thumb There are huge numbers of articles out there that will tell you how much you should spend on marketing. Call now to discuss your marketing budgets and how to get the best ROI.

Book an online consultation to improve your marketing budget ROI. Nigel Davey. A Helping Hand Delivering your marketing Small Business Marketing September 29, 6 reasons you need to be doing internal marketing. This is the most delicate situation your business can be in, so do your research!

Tip: Rate your competition level on a scale of The higher your number, the higher your marketing budget should be. Variables: Two factors really come into play here: your competition and your profit margin. The higher your profit margin, the more you can afford to spend on marketing.

Remember, these suggestions are just a starting point. If your revenues are flat or falling you need to give your marketing efforts a boost. After a few months, you should see the trend reversing. Tip: When a business owner needs to cut expenses, often the first thing they do is cut the marketing budget. Embrace it! Need help figuring out what your marketing budget should be?