Remember when your business started? You relied on word-of-mouth and it worked! Soon your small lawn mowing business went from mowing your neighbor’s yard to being referred by your neighbor to mow their friend’s yard, and before you knew it, you were on your way.
Word-of-mouth marketing is great and typically how most small businesses gets their start, but usually this takes you only so far. At some point, you’ll need to rely on other sources of marketing to continue growing. But here’s where it gets tough. There’s so much out there! Where do you start?
First, you have to start with a plan and a budget to support that plan. A generally accepted rule of thumb for your marketing budget is 2 – 10% of your annual sales volume. When thinking about how to spend your budget, you need to consider two main things:
- The establishment and/or refinement of your brand and the various mediums you will use to promote your brand – from logos to websites, sales presentations, brochures and advertising.
- The ongoing expense of promoting your brand to both customers and potential prospects. When considering these things, you will begin to establish your marketing plan. This plan should include the items above while also understanding your target customer (so you can determine the best mediums to reach them) and understanding your competition (so you can differentiate your business and gain new customers).
The U.S. Small Business Administration, SBA.gov, has some tips and templates for developing a marketing plan for your business. While developing a marketing plan and budget can take some time, it will help you focus on your priorities, and in turn continue the growth of your business.