Top Four Recent Marketing Questions from Small Business Owners

Over the past three months, I have been honored to spend a great deal of time with a group of brilliant small business owners. These leaders’ businesses run the gamut from engineering services to inventors, executive recruiters to restaurants, and everything in between. The Goldman Sachs 10,000 Small Businesses program has allowed me to learn about these amazing folks, as well as from them.

During our classes and breaks, my classmates asked me some marketing questions, and I noticed that many of the inquiries were similar. So it seems natural to share these insights in a more public way, in the hopes that they will be helpful to other small business owners and leaders.

What percent of my budget should I allocate to marketing of a new product?

There is no specific formula to calculate this. We typically recommend 5% – 15% plus, depending on the category you are in, competition, customer, client, timing, etc. The world we live in is constantly changing from day to day. The global economy changes. So make sure you have done your due diligency on product, place and price in addition to promotion. It makes a difference.

How much of my time should I spend on marketing?

Dear small business owners, you know your business better than anyone. No one is more passionate or determined to make your business a success than you. There is no cookie-cutter answer to this question. What we do know is that your time is best spent on marketing strategy and not execution. Your time is your inventory. Spend it working on your business not in it. Whether it is an internal or external resource, have someone help you. Your business will thank you.

How quickly should I see results of marketing efforts?

Marketing is a marathon, not a sprint. It is a long term commitment. We tell our clients we are not successful unless we are growing your topline sales but we need time to gain real results. You need to continuously put your business or product in the right places to reach your target market over an extended period of time. Make sure you have defined your ROI reasonably and that you are tracking it on a consistent basis.

Can you guarantee me a four to one ratio topline sales return on my marketing investment? 

The answer is no. If an outside marketing partner, other than a media buying firm, is telling you otherwise, look for another partner.

I hope you found these questions and answers helpful. I could wax lyrical on branding and marketing all day long! If you have questions, don’t hesitate to contact me at julie@itsfrontporch.com or connect with me on LinkedIn. Happy marketing y’all!