At the very beginning, your marketing team may consist of one or two hearty souls - or possibly just the CEO’s own enthusiasm.
It’s hard to have marketing without marketers. And even if how much you spend varies a little, what you spend it on will likely fall into a few key categories. A big push leading up to the holidays, or a special one-off campaign, can drastically increase your marketing spend for the quarter.īut generally speaking, marketing expenses will be pretty constant. Your marketing budget may fluctuate on a month-to-month basis. You’ll need people, tools, and strategies, and you’re going to have to pay for at least some of these. If you’re planning to grow quickly (of course you are!), then expenses can’t be avoided.
START UP BUDGET HOW TO
How to determine the marketing budget for your startup
START UP BUDGET SOFTWARE
It’s also going to depend on the software and subscriptions you need to do the job. That depends on the strategies you’re using, the market you’re in, and how much your executives want to spend. Of course, you’ll then have to figure out where to allocate all that spending. Marketing agency WebStrategies puts the average at 11.4%, although it has B2C budgets considerably higher than for B2B businesses. Older companies (assuming you’ve established some level of market share) should commit 6-12%. The authors say that younger companies (1-5 years old) should spend 12-20% of gross revenue on marketing. Newer companies should allocate more to marketing, to help speed up growth. They suggest you make your marketing budget a percentage of revenue, so you need to know what you’re working with.įactor in your company’s age. Know your (estimated or gross) annual revenue. So it’s important that you’re given a fair budget.Īccording to Wordstream, there are two main factors in determining your marketing budget: Marketers aren’t necessarily budgeting experts, and the final say is going to come down to the CEO - or someone with “C-” in their job title.īut you are going to be somewhat responsible for how the money is spent. You may not personally be worried about the pounds and pence, dollars and cents. How much should a startup spend on marketing? Then, we’ll look at the far more efficient and effective way to pay for the things you need to do your job. Let’s take a look at how most startups allocate marketing budget, and how most of these payments are executed.
And you didn’t get into marketing to fill out expense reports.
Even if you’re a bootstrapped startup, you’ll need tools and services to manage many of the tasks that you can’t do on your own.īut have you thought much about how you’ll pay for all this? Not where will the money come from? But rather, what’s the process for making these payments?Įxpense management is a pain for everyone. Modern marketing teams have a long list of expenses.
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