Marketing is an Investment not a Bill
Are your marketing campaigns just another line item on your expense sheet? I can tell you right now that’s the wrong approach.
Advertising or marketing for small business is an investment it’s not a bill, sales and marketing is the absolute lifeblood and the driving force in any small businesses. You need to spend money to make money, don’t spend money to save it, gone are the days when the Yellow Pages book comes around.
Once you’ve set your ad and pay that bill, you are now crossing your fingers and hoping for a good year ahead. You need to set forecasts and expectations for your marketing campaigns. Nowadays, there are endless platforms that can effectively reach your audience as well as analytics and insights that would further your campaign.
It’s given small business owners complete control, complete flexibility, more importantly, scalability in their advertising.
But for this to work, it does require two key ingredients, a healthy baudget and the right expectations. Budget is essential; I’m not saying that it demands massive investment from the get-go and I’m not saying for every business owner to run out and drain their bank account and throw it into advertising.
You can start small, the starting point is to know your figures and your numbers.
Ask your self these questions:
- How do I start advertising?
- Where should I be investing?
- What’s the average revenue per job?
- What is the volume of leads you need?
Understanding these metrics will give you the control and power to start deciding what investments should need to be made into the dedicated advertising channels.
Now that you’ve answered the above questions you need to understand the conversion rates by:
- Calculating the average profit margin per job
- How many new jobs you need for this to be successful
- How many jobs are you quoting vs. number of leads
- How much am I’m willing to invest per lead to turn a profit
- How many leads you need to get to the number of customers you need
If you know your average value per customer, what are you prepared to spend to win a new customer? It’s going to be the key deciding factor before you spend a dollar on advertising.
Let’s say you spend $1 to make $10. Is that a healthy investment? Does that harness the growth of your business? … Absolutely that’s 900 profit%! This is what a well thought out, highly targeted and strategic digital marketing strategy can do for your business. Here are real analytics for Google Ads for one of our current clients (wishes to remain anonymous).
Real-life Case Study of a Sydney based trade business working with AiiMS
Analytics from June 2020
With all the right elements in place, you can analyse these figures, month in month out whilst generating consistency, adopting trends, and scaling your business accordingly. Also, having the right team, understanding and expectations, these are the types of results that you can achieve!
Aiims helps hundreds of businesses a day and are confident in knowing the numbers and setting realistic expectations. We invest into marketing and invest to win. If you need a hand in growing your business, feel free to reach out to us.
What Are You Waiting For?
Drive Traffic & Grow Your Business