There’s a saying in the video production industry, “good video isn’t cheap and cheap video isn’t good”.
That may sound cheesy, but it’s the honest truth! To expect an Oscar-nominated movie or Super Bowl quality commercial on a shoestring budget sounds silly when you read it, you’d be surprised at how often businesses have this mindset. That’s not to say that you can’t do a lot with a little, but expecting those sort of results is simply fanciful.
Instead of banging your head against the wall hoping to secure unrealistic results for pennies on the dollar, build a marketing budget that’s right-sized for your business and your desired outcomes (btw - hope isn't a strategy!). Read on to learn how…
Start by outlining what your business objectives are for your company or project. Whatever they are, the best place to start any new endeavor is always with the end in mind. Knowing where you want to end up makes creating your plan to get there simple and effective. Without it, you’re bound to meander and fall into the bogs of wasted money, energy, and opportunity.
When outlining your objectives, be very clear with what you want to accomplish and when. Set quantifiable metrics for each objective, along with milestones to signal if you’re on track to reach your goals on time (or if you need to pick up the pace, or even adjust them entirely).
Once you have your objectives nailed down, you can determine a budget that’s safe for your business and future.
Let’s say you and your team have determined that you want your marketing efforts to increase revenue by 25% (from $1M to $1.25M) in the next 12 months. Your next step will be to determine how much you are willing (and able) to invest in order reach this goal. Would you be willing to invest $25,000 to reach your desired outcome of $250,000? $50,000? $100,000? At the end of the day, only you can determine the figure you’re comfortable with investing.
Whatever number you decide to invest, it needs to be in proportion to the amount you’re trying to gain. Investing $25,000 to make $250,000 sounds reasonable and attainable. Spending $5,000 to make $250,000 on the other hand is disproportionate and just silly. Be sober minded and realistic with your budget and its ability to reach your desired outcomes.
Lastly, determine if the project you are undertaking is able to save you money or create any forms of emotional contribution. These are forms of value you should certainly take into consideration when establishing your budget. (Read more about the different forms of value for your business here)
PS - Still hungry for more ways to set your marketing budget without making a big mistake? Check out the video below.