So how much money do you think you need to spend in your ad budget? This can be a very tough question; however I can only let you in on some rules about spending your money. In the end it is your business and your money that is being spent.
A good place to start is to see what you have in mind for your goals. Do you want to be the big dog? What I mean is… are you planning on eating up all the competition and take over the industry? If you want to do this you are going to have to spend a lot of money. We all also want to be more than the guy who just gets by, so in this case we are going to need an ad budget.
There is no doubt that nearly 50% of new businesses fail within 2 years. It’s very depressing when you’re in this situation, but usually the business ends up running out of money, and forced to shut down. The problem with this is these businesses that fail often start out with great hopes and ideas but in the end they don’t have enough cash to back it up. Cash is everything when it comes to running over the competition and taking over the niche that you are in; make sure your dreams are reasonable, and relate to how much money you currently have.
It is very important to plan ahead before you start any type of business. The “organizing” part of the business is the part that no one wants to do, but it is something we must do in order to achieve our goals. I have listed below some tips you need to write out and put together before you plan on spending a whole bunch of money.
How big is your business, or business goals?
What is its yearly income?
What do you want to succeed in with your advertising?
Have you studied your competition, and hypothesized how much they might be spending?
If you are in a highly competitive business you are going to want to be the big dog so you can run them over and keep their tires flat. Once you are the big dog it becomes a little easier, but there is more responsibility. You have to keep your reputation in order to “stay in business”.