“If I was down to the last dollar of my marketing budget I’d spend it on PR” – Bill Gates
The investment you make in your business should be considered as a percentage of gross revenues or expected revenue projections if operating for more than one year. Startups should create budgets based on revenues projections, capital funding of owners and investors, CAC and revenue targets.
How much should you allocate towards marketing?
- Mature businesses should allocate a minimum of 2% to 5% at a minimum to keep a consistent level of patient flow.
- 4% to 7% in a scenario where the practice is struggling or growth is starting to stall
- 5-10% if you want to accelerate your growth
- Start-ups vary depending on your capital and goals for revenue.
Calculate Your Marketing Budget- Marketing Budget Calculator
Summary– If this is your first time creating a budget and your fledgling business has been operating less than 2 years you should analyze your financial results quarter by quarter. If operating over 2 years, analyze year by year results for at least the last 2 years. Factor in changes that have occurred in your market, industry, legislation, with customers, demographics, competition, services, increase or decrease in staff, and inflation. Include your team and ask for their valued feedback. Keep records of all marketing and advertising expenses