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Local Business Owners or Professionals: How to Determine Your Marketing Budget

HOW TO DETERMINE YOUR MARKETING BUDGET

Determining Your Marketing Budget: A Guide for Local Business Owners and Professionals

As a local business owner or professional, you understand the importance of sound financial planning. But how much should you invest in marketing your own business? Marketing and advertising are critical investments for the growth of any small to medium-sized business. Knowing how much to spend on marketing can make the difference between stagnation and significant growth.

Facing challenges in your professional services businesses

Let’s break down how to estimate your marketing budget and the benefits it can bring, particularly through online marketing.

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How Much Should A Local Business or Profession Spend on Marketing and Advertising?

1. How to Estimate Your Marketing Budget

Percentage of Revenue

The most common approach is to allocate a percentage of your gross revenue to marketing:

► New Businesses: Allocate 12–20% of gross revenue to establish your brand and attract clients.

► Established Businesses: Allocate 5–10% of gross revenue to maintain and grow your client base.

Industry Benchmarks

According to the U.S. Small Business Administration and other industry reports:

► Professional service firms: Typically spend 6–12% of their revenue on marketing.

► Financial advisors and accountants: Often lean toward the higher end to stand out in competitive markets.

Growth Goals Approach

Base your budget on your desired growth rate. For example:

► Modest Growth (5–10%): Invest enough to maintain existing clients while gaining new ones.

► Aggressive Growth (20%+): Double down on marketing efforts using reviews, a conversion-focused website, sales funnels, AI lead generation, digital ads, SEO, and social media, and more.

Sources for Reliable Data

► Industry Benchmarks: SBA.gov and Nielsen Marketing Reports.

► Competitor Analysis Tools: SpyFu, SEMrush, and Google Trends can help gauge what competitors are spending.
► Digital Marketing Reports: Platforms like Google Ads and Meta Business Suite provide cost-per-click (CPC) and ROI estimates.

Example Marketing Budget Using Percentage of Revenue

2. Benefits of Investing in Marketing and Advertising

Investing in marketing and advertising, particularly online, can transform your financial services business. Here’s how:

Build Your Brand’s Authority

► Establish Trust and Credibility: A professional website, educational blog, and active social media accounts position you as an industry expert.
► Expand Your Reach: Online ads can target clients based on location, demographics, and interests.
► Build Relationships: Engage with your audience on social media and build relationships with potential clients.

Increased Visibility

► Reach a Wider Audience: Online marketing allows you to reach a wider audience within and beyond your local area.

► Improve Search Engine Ranking: SEO and local SEO strategies improve your visibility in search engine results pages (SERPs).
► Reach Your Ideal Clients: Online advertising allows you to target specific demographics, interests, and behaviors.

Generate a Consistent Flow of Leads

► Generate Qualified Leads: Properly run online marketing campaigns can effectively generate leads and drive inquiries and appointments.
► Targeted Campaigns: Use Google Ads, Facebook Ads, YouTube and LinkedIn to reach highly specific audiences.
► Lead Magnets: Offer free resources like e-books, checklists, webinars, or calculators to capture leads.

Save Time with Automation

► Marketing Automation: Tools like the Business Growth System automate follow-ups, nurture leads, and schedule appointments without extra effort.

► Automate Lead Capture: Utilize tools like website forms, AI voice and AI chatbots to capture leads 24/7/365.

Improve ROI and Cost-Effectiveness

► Analytics: Track your online marketing campaigns in real-time, measure their effectiveness, and optimize them for better performance.

► Cost-Effective Strategies: Digital marketing often costs less than traditional methods like print or radio ads but delivers higher returns.

► Optimize Spending: Adjust your campaigns based on performance data to maximize your return on investment.

Engage Your Audience Effectively

► Personalized Content: Email and SMS campaigns tailored to client interests will improve engagement.

► Interactive Tools: Online calculators, scheduling apps, and chatbots make it easy for prospects to take action.

3. Conclusion: A Smart Investment in Your Growth

Make It Happen

► Start Small and Scale: Begin with a modest budget and gradually increase your spending as you see results.
► Track Your Results: Monitor your marketing campaigns closely and track key metrics such as website traffic, lead generation, and conversion rates.
► Regularly Review and Adjust: Regularly review your marketing budget and make adjustments based on your performance and changing market conditions.

Your marketing budget is more than an expense; it’s an investment in the growth and sustainability of your business. By calculating the right budget based on your goals and leveraging the power of online marketing, you can attract the right clients, build long-lasting relationships, and grow your revenue predictably.

4. Want To Find Out How Much Money You Are Leaving On The Table By NOT Using A Marketing Automation System?

Easy Math Will Tell the Tale

Our ROI Calculator reveals the impact that a powerful Marketing Automation System can have on your bottom line. Go here to use our ROI Calculator and enter your numbers to find out:

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5. Next Steps

Book a Free Strategy Session

Ready to see how the right marketing strategy can transform your local business or profession? Contact us today to discuss a custom plan tailored to your needs.

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