While most people see advertising as a "when you need it" type of thing. Advertising and creating a budget plan for it can be crucial to your business.
There are hundreds of advertising campaigns you can create and all cost money. Utilizing the best methods for allotting these funds can help grow your business at a steady base that doesn't endanger your businesses health.
The mighty dollar is what keeps entrepreneurs coming back for more but unfortunately not all business owners are adept to financial savvy experience. Leaving them with either ineffective campaigns or strapping themselves to much for cashflow to keep their business running smoothly.
One of the biggest downfalls to a business owner is overspending on any business expense without having a savings fund for emergencies. First thing is first, we recommend, and so do many experts, to have an emergency fund at all times. In personal finance its been heard to have at least 3 months of living expenses saved up at all times. And to never spend them unless it is a true emergency.
So, your business is just like a living breathing thing. It needs many more moving parts to function properly and to generate you revenue. That's why having a savings on hand is a great way to secure your business. And is the first part of having a budget for marketing and advertising.
Some people may say they have enough liquid assets to cover an emergency. However, what if your liquid assets are essential for running your business. Times get tough for everyone but it may be a good idea to plan ahead.
Which brings us to our second part of budgeting is to plan ahead. In many situations advertising campaigns can stretch longer than a month. Most business owners have campaigns ready to execute 1 to 2 quarters in advance. Leaving themselves with enough budget left over each month for smaller ad opportunities. I like to call these "Fluff Ads" the ones we use for small community engagements and simple one and done ads.
So now you may be thinking well how much should I save. This is really depending on your business industry, health of your business, and goals. In many cases business owners that are doing quite well tend to spend 5% - 10% of their total gross revenue. However, depending on your situation this can differ. Startup businesses that are sole owners and bootstrapped by their own pockets may have a hard time spending this amount of revenue.
In these situations there are alternatives to advertising that fits a more economical budget. Outreach and Public Relationship are always an option. Including sponsorships, community get to gathers, volunteering, and so much more. This is what I like to call "time vs money". A very effective way to gain new interest to your business by spending time in the place of funds.
At the end of all budgeting methods one thing is clear. There should always be someway to track your budget spend and what your spending it on. If you are like many out there that are just starting out good old spreadsheets are the easiest way to track this data. Simply creating a new sheet per month and entering the spend, campaign, date, description, paid/unpaid, and a link connecting to those assets. There are many ways to create a spreadsheet that fits your needs.