A trusted partner for business owners, Everest Business Funding, comments on what kind of funding a business should spend on marketing entering the new year.
DORAL, FLORIDA, UNITED STATES, January 6, 2022 /EINPresswire.com/ — Everest Business Funding helps entrepreneurs and business owners by providing support for growth and expansion through working capital. The client-focused company works with a wide range of businesses. It provides its business professionals with an average market and advertising outlook, with industry as a factor rather than a focus. Everest Business Funding answers many questions for clients that revolve around money talk, including how much money in a business budget should go towards advertising.
According to the United States, Small Business Administration, a great general advertising rule to go by is any small business with less than five million dollars in revenues should render seven to eight percent of revenues to advertising and marketing. That seven to eight percent should split the payout into brand development costs and business promotion costs. This rule of thumb averages based on the assumption that a business has margins in the range of ten to twelve percent.
A company that is still in its start-up stages and in the prime time of building a brand might allocate twenty percent or more towards marketing and advertising compared to more mature businesses depending on the industry. Any business owner or entrepreneur can start setting up their company’s advertising and marketing budget by checking out the business’ gross revenues, present or projected, then determining what percent of that should be set aside for advertising purposes. Depending on the industry, run-rate marketing usually falls between two and three percent and increases up to three to five percent for start-up marketing.
“When determining advertising budgets, after analyzing an average based on company margins, it is critical to factor in the nature of the industry, business size, and growth stage and timeline,” said a business consultant at Everest Business Funding.
It is essential to know how much a business sets aside to spend on advertising and how that funding will be spent. Creating and following a marketing plan is critical to ensure funding is adequately dispersed in the most strategic way. Making a marketing plan means doing target audience research to see what advertising options are best to invest in and setting marketing goals to build a brand’s awareness.
About Everest Business Funding
Everest Business Funding provides alternative finance options and revenue-based funding to small business owners. They serve a diverse pool of businesses, from healthcare to retail, to help them obtain working capital to grow, buy inventory, launch marketing campaigns, or hire staff. Everest Business Funding’s clients are treated with respect and receive high-quality guidance and service from its professionals.