Creating your marketing budget can feel like a shot in the dark; that’s why you should set an initial budget and then adjust it based on testing. Managing your marketing budget correctly is crucial to make your business discoverable by customers.

Think of your marketing budget as an investment rather than a cost, which can be determined as a percentage of actual or projected revenue. For start-ups, the percentage taken should be higher compared to well-established companies.

To avoid unnecessary marketing costs and to make sure your marketing strategy has all chances to succeed, start by analyzing trends in the market and get a clear idea of the marketing costs spent in your industry. Your marketing plan should also be adjusted in regard to seasonality affecting your business. Remember, you should wait months before you see any results from your marketing efforts.

The budget of a good marketing plan should be divided into labor, technology, branding, design, content, search engine optimization, social media, paid advertising, and events management.  If performance does not compensate for marketing costs and unexpected expenses appear, then you must have been spending a big part of your budget on the wrong marketing channels for your business or on the wrong platforms.

Finally, as the marketing world is evolving and new trends are constantly surging, your optimal budget today may not be the same tomorrow, so keep testing.