fbpx

logo

Copyright
© 2016 glossmarketing.com.au. All Rights Reserved.

 

Why Marketing is an Investment not an Expense

Why Marketing is an Investment not an Expense

Why Marketing is an Investment not an Expense

A few years ago when I was working at a digital agency, there was a downturn in the economy and of course the first thing businesses started cutting back on was their marketing budget. I remember opening a business magazine and seeing a great ad by an advertising agency (don’t remember what one though) that on one page said “Why advertise on 2012”, then on the next page it simply said “2013”.

A lot of businesses, especially start-ups and small business simply see marketing as an expense. An expense they try to keep as small as possible. It’s the first thing that is cut when things are tight and the first thing that gets cut when business is booming! Then the well runs dry and boom…they turn back to marketing to get them new leads. Marketing, when executed properly, yields a return on your investment. This can be in the form of new leads, clients, signups, web traffic etc.

We hear all the time, “I need more clients”, “Sales are low”, “I want more people to follow me on social media”, which is very well and fine, but you need the money to invest in your marketing to solve these problems!

Now I understand that when you start a business, funds are tight. But as a small business you have to remember you are competing with larger businesses. Sure, there is always a young staff member who could manage your social media, someone’s friends husband who can build a website or why not just do your marketing yourself. But the money you think you’re saving now, is it worth it in the long run, when you don’t end up getting those new customers because the marketing wasn’t executed properly and there was no sound strategy behind it? I certainly don’t attempt to do our businesses bookkeeping and I would never attempt to do BAS! Whilst I might understand the basics of accounting, I know my limits. We have an experienced, qualified bookkeeper who does that for us.

How many of you reading this have a budget for marketing your business? I bet not many. Without a budget you won’t be able to have a strategy in place to see what can be implemented. A budget also allows you to report ROI and in the case of digital marketing, where results are in real time, it allows you to adjust and reallocate funds depending on what is getting you the best results.

Don’t expect much too soon. You don’t buy an investment property and sell it a week later for a record profit. A lot of small businesses expect too much, too soon and then give up. The problem is they needed results in the first few months.

Regardless of the type of business you are, seeking out marketing professionals is a sound investment.

I read this quote the other day which I think sums it up perfectly – “If you don’t take the time and money to invest in yourself, who is going to take their time and money to invest in you?”

If you need some help with your marketing, join us at one of our Small Business Marketing Tips Workshops in Perth or Bunbury during February!



INSTAGRAM

Actionable marketing tips delivered to your inbox!

When you join the Gloss community, you'll receive fortnightly actionable marketing tips and be alerted to the latest updates/changes in marketing.

Thanks for joining the Gloss community. Your first marketing tip is on its way!