How to Make a Marketing Budget in Word
According to Webstrategies Inc., companies set aside at least 8% to 16% of the total revenue as a marketing budget. The percentage in which small businesses allot for marketing is greater than those matured enterprises. The reason is that these companies have to set a benchmark for their expenses. For a better understanding of marketing budgets and how to make one, read through the guidelines below.
1. Make a Plan
Making a plan is important when making a budget. Since the task demands more time and effort, you should avoid committing errors as much as possible. So, start making a list of your priorities and begin the plan as soon as you have them. From your perspective, determine how you want the future of your business to look like and identify what things you need to do to achieve it.
2. Use Correct Formulas
You can’t guarantee a perfect budget, but it is possible to make one with accurate data. This is because marketing budgets involve money. With that, you need to divide portions of the resources to several marketing activities. To simplify the distribution of your resources, provide or use the correct formulas in your budget plan.
3. Start the Calculations
Calculations are easy if you are to deal with not too much money. But if your marketing budget’s scope is for the whole year, you need to keep an eye on the calculations. Every penny counts, so be meticulous in calculating and allocating the budget. If making an annual budget calendar looks overwhelming, you can start off with a monthly marketing budget plan instead.
4. Make It Readable
The breakdown of expenses should be legible and easy to understand. With that said, use simple fonts in your budget plan. This will make the document look neat and professional to look at. There is nothing better than a comprehensible budget document. Moreso, make sure to label everything correctly so that the readers can easily recognize the variables.
5. Meet with Your Team
For final considerations, meet with your team and talk matters over. Initiate a discussion with them, gather feedback, and make a report. Since this involves documentation, you should write it down on a meeting minutes. With this, improvements can be made to the budget plan.
What is a marketing budget?
The marketing budget is an allocation of the business' resources intended for specific purposes. The budget that a company allocates for marketing will be used for promoting and selling of products and services. The budget also includes market research and advertising.
Why is a marketing budget important?
A marketing budget will ensure that you are on the right track with your expenses. Your expenses should not exceed your budget or else the business will undergo a shortage of resources. According to Empiread, a business should invest and spend money to make more money. So, you can consider a marketing budget as an investment rather than an expense.
Why should a business allocate budget for marketing?
According to Deloitte, the marketing budget of a business depends on what industry it operates. Every business should provide a channel to gain profit through the services and products they offer. That’s when marketing plays its role in promoting what a business can bring to the table.
Do businesses need a budget plan?
If a business intends on being successful, it should create a budget plan. Having a budget plan means disciplining your business to stick with the resources available. As much as you want to spend money on other things, the budget plan will prioritize the expenditures and dictate which ones require the most attention.
What are the advantages of having a budget plan?
Making a budget plan has some advantages that can help improve your finances. Here are some of them:
- It makes you aware of your spending.
- It limits overspending.
- It improves financial control.
- It makes saving easier.
- It helps you secure your finances.