July 2008

Budgeting for business

Far too often businesses do not budget their marketing spend properly. They might know how much an advert, a new website or brochure costs but they do not work out the return on that investment. The definition by the Chartered Institute of Marketing ends with the word profitably. If we are not going to make a profit then why are we spending time, money and other resources to increase our loss.

This is why asking every person that contacts your business how they heard of you is so important. Then you need to record the value of the enquiry, whether it becomes confirmed revenue and if other business results. For example the person staying on business may be moving to the area and needs accommodation at weekends so his/her family can house hunt.

When you know which promotional tools are working best for you then you know it is worthwhile investing more of your budget. Then you alter your marketing mix accordingly.

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