Why Your Business Needs a Marketing Budget: 5 Reasons to Invest
As the calendar year comes to a close, it’s the perfect opportunity to plan your budget for the year ahead. According to a recent report from Deloitte, businesses are allocating more than 13% of their total budgets to marketing in 2023—a 2% increase from the previous year. But what’s the right marketing budget for your business? While the answer may differ from one business to another, having a defined budget—even a modest one—can significantly contribute to your growth strategy.
A Strong Starting Point: Maine’s Impressive Business Survival Rate
Maine is a fantastic place to run a business, especially if you’re a startup or a growing small to medium-sized enterprise. According to the Kaufman Foundation, 88.13% of Maine-based startups survive beyond their first year—ranking Maine as #1 in the U.S. for startup longevity. How does marketing play into this success? Let’s delve into five compelling reasons why you should include marketing in your budget planning.
1. Amplify Your Referral Business
Referrals through word-of-mouth are invaluable for small businesses. Strategic marketing can significantly boost these referral rates. From showcasing customer testimonials to crafting targeted social media campaigns, investing in marketing can elevate your referral strategy, enabling you to reach more potential customers.
2. Stay Competitive as a B2B Business in Maine
For B2B companies primarily operating within Maine, marketing is a non-negotiable. A well-planned marketing strategy can differentiate you from your competitors and help build a loyal customer base. Whether it’s email marketing, SEO, or content marketing, effective strategies can keep you at the forefront of a competitive market.
3. Marketing Fuels Scalability
If you’re setting your sights on growth, your marketing strategy should grow with you. From solidifying your brand to ramping up customer engagement, each element of your marketing plan plays a role in your business’s scalability. Investing in marketing can help your business move beyond mere survival, positioning you for sustained growth—even beyond Maine’s borders.
4. Achieve High ROI
The prospect of a high Return on Investment (ROI) is among the strongest arguments for allocating a budget to marketing. The impressive survival rate of Maine-based businesses, as reported by the Kaufman Foundation, underscores the potential ROI of strategic marketing investments. Essentially, money spent on marketing should be viewed as an investment in your business’s future, rather than a cost.
5. Build Resilience Through Marketing
A robust marketing strategy can serve as your safety net during market volatility and unforeseen challenges. Diversifying your marketing efforts allows for greater adaptability, giving your business an additional layer of resilience.
There it is—five compelling reasons to invest in marketing for your Maine-based business. With the state’s excellent track record for business longevity, a strategic investment in marketing can do more than ensure your survival; it can set the stage for thriving success. As you finalize your budget for 2024, don’t overlook the vital role that marketing can play in your business’s growth journey.