New Business Sales & Marketing help

Newby100

Hi Guys
I really need some advice. I am just trying to launch my little company but don't have very much in the marketing budget. Can anyone give me an idea of how I should be spending on marketing. Is it a % of gross or net profit, or do I give a budget to my sales & marketing person. I have been quoted £100 per day (1 day a week) and 33% of my profit. As you can tell...I need any advice you can give me.:A

feygan

I can't eally say how much you should spend as it is really subjective depending on the type of business you do. For example a good tradesman will value word of mouth far more than a paper advert etc.

However one thing I have learned is how to generate some free good advertising using social media. Don't go the devils route of having a business facebook and twitter then hitting it with updates about every new deal or offer you have. It just spams your followers with rubbish which they quickly ignore. Instead use both as a form of free customer service.

For me I use my twitter as a non instant helpline, customers can leave a minor issue on there which I can happily respond to later. They still get things fixed and 9/10 times I don't waste time travelling to houses that really can be fixed with a few button pushes. My facebook page I mostly fill with quick tips and tricks that really cost me nothing in lost business but give some nice freebies as far as customers go.

Newby100

Thanks feygan
I am trying to launch my business to mainstream retail and also the tourism trade. Do you think 33% of profit is a reasonable assessment in addition to a daily rate when I have put up all the capital into creating the business?
I am so wet behind the ears with all this and just don't want to be ripped off.

paulwf

Setting a budget is very tricky as it depends on a multitude of factors. One very good starting point is to work on your monthly profit and loss forecasts then work back from there to see how much you can afford to spend. All I can do is give you two tips:

- there is a world of difference between marketing and advertising. Some of the most cost effective ways of marketing your business are low cost or free. They require more effort and creativity than chucking money at advertising but the reward will be much greater. Be actively promoting your business every single day but as a small business use paid for advertising as an absolute last resort.

- a lot of people make their money solely from companies paying for advertising. You are their meal ticket, they are not doing you any favours no matter how friendly they seem. Your sales and marketing guy will also try and increase the advertising budget to the limit.

Cash in the bank is essential for any new business, start with a small budget and track performance. Don't burn through too much money to start with, later on you'll wish you had some spare cash and it takes a few months to see what advertising works and refine your product and only then is it cost effective to spend more money.

danni.yelly

Hi Newby100, I've got to agree with both the comments above.
Marketing budgets really depend on the type of business and how much you actually have to spend on it.
There are many ways to advertise and promote your business for free or at very low cost so do consider these alongside paid advertorial. Eg: youtube, facebook, twitter, google hits, blogging, competitions, PR...
Think about adverts which stand out to you and which do not.
For example, most people flick pasts adverts in magazines without even looking at them.

Marketing these days is all about customer interaction. The customer wants to feel valued so find ways to interact with them.