Figuring out a budget

Marketing costs are always a big question, especially for a new or starting entrepreneur.

Standard industry theory suggests that on average your marketing budget should be about 4% of sales.

If that works for you, great. If it doesn’t, choose a figure that is financially comfortable for you – as you look a year ahead, because you’re not going to spend your entire budget at one go.

Once you’ve established that figure, and you begin talking to marketing agencies, be honest about what you want to spend. By providing the agency with your comfort range, they will be able to respond with a realistic strategy to meet your marketing needs.

Generally speaking, a blind bid is a waste of everyone’s time.

Here’s to straight up conversation between clients and vendors.

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