You’re looking at two things. Marketing and how much you’re going to have to spend for it. If you think marketing is a job of your own, then you’re naturally wrong. You’re going to need tools. People will then join your team.
Marketing your brand is not full of hassles as you may think it is. Mainly, it needs a clear vision. It sets your business in motion. For a start-up, marketing creates core business values. The right kind of marketing will define your brand.
Determining Costs for Startup Marketing
You have acquired working capital. That’s great. Maybe you have taken out one of the startup business loans. Options like these are always a good idea because you can take your time to return the money later. It’s a comfortable option because the amount is distributed and repaid in small instalments.
You are dealing with quite a large amount of money here. It’s for a business, of course. You use a part of it to market your brand. Pay attention a little here. This very amount ensures the profitability of the rest of the money, doesn’t it? At the startup phase, your business will get all its nourishment from marketing. Invest in it. But do so smartly.
What Statistics Say
New and old companies will have to spend different amounts on marketing. But that again depends on the capital and the type of your business.
Statistics can help you get a sneak peek at the costs involved. On average, companies need to spend about 11.2% of the gross revenue on marketing. For an older company, it stays in the range of 6% to 12%. Younger brands and startups – who are operating on the 1 to 5-year scale – will have to invest more money. The rate for these brands comes down from 12% to 20%.
That being said, we can now look at the factors that come together in determining overall marketing costs.
Technology You Want to Use
How would you run your brand without software and technology? You’ll need them. Your team is going to need them. Tech will consume some part of your working capital. Here is how to find it:
- Understand business technology. Do in-depth research about the software you want to use. Find several apps from different developers and find the one with economic value. Do you need automation? As a startup, deciding on automated software is completely your decision. Automated software is not always free. So, take note of the subscription charges.
- It’s not difficult to find free marketing tools. If you research a little, then you might get lucky. Your digital marketing team can help you out.
You do not have to be a tech expert or a nerd. But you have to understand the basic way of how technology works. It’s going to come in good help.
Budget for Paid Advertising
Paid advertising sounds scary. But they are more effective than you think. They can get people to connect with your brand in a direct fashion. Considering this perk, the investment for paid advertising shouldn’t feel painful.
- PPC and Social Media Ads are things you need to buy. Startups might find it a little difficult. But, as mentioned earlier, startup business loans can help.
- Statistics say you need to use around 20% of your yearly budget to achieve successful advertising. You may not have to do that. So, try to understand your business needs first.
- Consider costs for running ads on other media. You have TVs, radio stations, physical/ digital signage, and many other options. You can also choose to make ad films for your brand. That’s some extra cost included.
Here Comes Content Marketing
It’s nothing new. But it’s super important. Content marketing can literally be the reason for your brand’s success. The good news is it isn’t costly as it may sound to you.
- There are free content marketing tools out there to generate ideas. They are also supportive of your market research.
- You have to find out the number of deliverable content. Some of the quality deliverable content may need financial support.
- Sit down with your marketing team. Ask them frankly to discover or create an affordable content marketing plan.
What about Branding?
Marketing is to tell people what you have for them and if they can make their fortune with it. In other cases, people will simply relate to their essential needs with your products. Branding connects your brand with these things. The following factors might need investment:
- A website for your brand
- Business cards
- Business Signage
- Billboards
- Swag
Last but Not the Least: Hiring a Marketing Team
Initially, you can encourage yourself to take action in ‘solo mode’. But that might appear like a daydream a few days later. Instead, working with a team can give you clarity into this department of business.
- You can check the rates of digital marketers online and compare them (of course!). Find a local brand, if possible for quick meetings and emergency management.
- If you are a small brand, then you may hire one or two digital marketers at the ‘infancy’ stage of your startup. Expansion may come later.
- For the budget side, working with marketers remotely can help. You may also choose to work with freelancers if that’s okay.
To Conclude: Is It Possible to Start a Business on a Low Budget or No Income?
Of course! Your money management has to be super strategic. Taking out loans can be a saviour in these scenarios too.
Even if you have no income or you have an alternative source of it, you can take out business loans. For example, you can ask us for an on-benefit business loan. It serves as an alternative income to repay the loan.
Are you one of the people on benefits? Need a loan today from a direct lender organisation? We can help. You won’t have to worry about guarantor or broker interference. We have offered business loans to entrepreneurs from all walks of life. We trust your intense passion for business. Let us help fuel it.
Jessica William operates as a Senior Consultant and Chief Content Editor for 10 years at 1Onefinance. She assists the firm in getting a grip on the new lending laws and regulations. She does so by researching the trends, consumer requirements, and new audience preferences. Jessica is responsible for making important financial and administrative decisions.
Apart from helping consumers with the best solutions, Jessica Williams helps them ensure financial stability. She analyse the business data, finances, expenses, and revenue/ income of customers and determines necessary changes. Jessica finished her Doctorate in finance and law and implements her knowledge to the best interest of the firm and customers.