Setting aside money to attract and retain customers

Marketing is critical to your business’s sustained success, but it doesn’t have to be expensive.

Marketing spend as a percentage of revenue

Marketing is not a one-size-fits-all strategy. Many small businesses spend between 5 percent and 10 percent of their revenue on marketing. A business-to-business company that is not trying to attract retail customers may commonly spend less than 5 percent. Your marketing strategy needs to be unique to your business and your audience, especially when you are just starting and establishing stable cash flow. M&T Bank can guide you to the resources you’ll need to build a marketing strategy appropriate for your business.

To determine how much you need to spend on marketing, you need to identify which channels will reach your targets. A content-rich website gives your brand a home base. Email and text messaging are great for promoting your business, driving website traffic and collecting subscribers. Social media often works well for short-form content and videos. These marketing channels and many others each have different costs. There are small business marketing tools that can help you manage multiple channels at once, potentially consolidating some of your expenses. If done well, marketing doesn’t have to cost a lot to make a big impact on your bottom line.

The right plan for success

Before you can determine your marketing budget percentage, you need a clear picture of how your business is going to operate profitably. Things like a market analysis, financial projections, your mission statement and SWOT analysis comprise your business plan, which is a very important part of building your successful operation. M&T can help you find answers to the questions you may have so that you can construct a business plan that helps you determine the correct marketing percentage of revenue for your specific situation.

M&T Bank can provide resources to help you build an effective marketing strategy. Schedule an appointment with your local M&T branch.


Small Business Planning

Our resources can teach you how to get your small business in front of more people to increase brand awareness, gain visibility, increase business and much more. Learn more about small business planning.

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