Should Your Small Business Decrease Or Increase Your Marketing Budget For 2021?

Accountancy Resources

Should Your Small Business Decrease Or Increase Your Marketing Budget For 2021?



Uncategorised Author: Admin

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How much money are you planning on spending in 2021 on your marketing? Here’s some food for thought:

Small businesses who have to trim expenses or who are trying to succinctly plan their budgets for the coming year often either slash marketing budgets or underfund their marketing strategy because of worrying about operating leanly. But if anything, marketing should be something you prepare to invest more in — especially in times of struggle.  How else will you grow? You can’t typically shrink to greatness.

Don’t read this the wrong way; you shouldn’t throw as much money at marketing as possible and hope something sticks. Rather, you should strategically plan and carefully watch how your marketing budget is spent, ensuring you do everything you can to spend it on the right things.

The right approach will maximise your ROI. Thankfully, the internet age makes it easier than before to be spendthrift because you can watch results unfold in real time, allowing you to stop a campaign that’s bleeding money or to enable you to ramp up something that is working well, capitalising on a specific marketing method.

Coming up with a marketing budget and determining where to spend the money isn’t always easy but here are some tips:

Examine how things worked out for you in the past year. 

  • Where did your new business come from?
  • Did you do a good job of continually engaging new customers to make sure they bought from you more than once?
  • How much did you spend on various marketing activities and did they yield results?
  • Were there marketing areas you wish you had focused more on?

Competitive Analysis

  • Who are your biggest competitors?
  • What are your biggest competitors doing in their marketing campaigns (another great thing about the internet age is the fact that online marketing is totally transparent and you can see what your competitors are doing without having to get into corporate espionage!). What are they doing right? What are they doing wrong (that you can fill a needs gap for)?

Get Some Help

There are many ways to get help with your marketing. You can find a wealth of resources to help you find new ways of marketing, to find tools that help you measure results, and of course, you can hire a marketing consultant to help you, too. Make sure your marketing campaign centres around relationship-building and customer experience.

Whatever you choose to do, don’t underestimate the value of marketing for a business of any size.  Marketing helps you reach out and build strong connections and helps you continually strengthen those connections, too.

Regardless of what investment you made to start this business or what your budget was in the past, consider closely examining not only the amount you spend but the way you spend it in the coming year and you should be able to get better return on whatever investment you make.


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