Tag

business and small business Archives - Business Growth Partners

When is it the right time to spend money on marketing

By | Business

Money and marketing… the two concepts are often intertwined.

As a former accountant turned professional marketer this dilemma is something I come across quite often. As an accountant, it was my role to assist business owners to reduce their tax and their expenses. As a marketer, I now work on the other side of the profit and loss statement, helping business owners to grow their revenue base in a sustainable way.

We find that with many business owners the decision to spend money can be an overwhelming one, especially when it comes to undertaking a marketing strategy. Strategy in the form of a marketing plan is what we marketers consider to be a high involvement decision because it often requires a business owner to assess the effectiveness of activities they have been undertaking.

Add to this cyclic conditions of running a small business, and more often than not, the decision to undertake a marketing plan and pay for it can face continuous postponement.

The reality, however, is that nine out of ten start ups fail in the first year of operation. Of those that do survive, 40-50% are no longer in business after 5 years of operation. It’s a hard situation but one with quite a simple answer.

It was the playwright Plautus who famously wrote in one of his comedies “to make money you have to spend money”. He referred to this concept around turning something that was free into something that wasn’t.

A strategy in the form of a marketing plan is a piece of work that every business needs. Without a strategy, you are basically blindly running a business without being able to demonstrate to your customers why they should purchase your services. Unfortunately, so many business owners run blind, only to turn to strategy and planning after marketing tactics have failed.  The result is a lot of wasted time and money that could have been avoided had the business started with its plan and strategy.

It’s time that more small business owners don’t become a victim of this statistic. Why sabotage yourself from success by choosing to wait until you work on a strategy?

If you are unsure about the future direction of your business, now is the time to spend money on marketing, starting first with the strategy. Pave your way to success and get that marketing plan started.