Your Budget Is A Statement Of Your Priorities.
I have been speaking to many differing levels of business owners this week. It is interesting to see how they interact with B2B interactions.
Trust is key. Open, honest relationships are vital if you want to work with business.
If you want to promote your business and would like some ideas from a marketing business and that business just came out and said………………………….. What is your budget? How do you react?
There are many differing results that I have observed. There are:-
Well how much does it cost?
– How much would you suggest?
– I don’t know.
– Not much.
– If you give me a price, I will let you know if I can do it.
– What do you think?
– Well, it’s your job to tell me.
All these answers strike fear within. These answers tell me that the business owner has not thought any of it through and they just need more business but have not considered a budget to work towards.
What would I expect a business owner to say?
Our current turnover is x, we have set aside a budget of x for the coming 6 months. Could you come up with some suggestions for my business? I expect an increase from x to x. Is there anything you need to know?
This sounds like a business owner that has placed a value on their business and their marketing. The owner trusts the marketer to go away and think creatively with a plan of action.
Is no budget ok?
Of course it is. You just have to think Uber Creatively. You need to roll up your sleeves and crack on. It is better to know that you have no budget and plan for marketing than having not thought through a plan of action with regard to your business and it’s marketing.
I am certainly not afraid of asking the questions, I have seen businesses that are uncomfortable answering them. I would be interested to hear why some businesses may feel this way.
I often assume that it is down to trust. But then I wonder what the worst case scenario of telling a marketing company your budget would be. Could they over inflate their prices? Could they be looking to get every penny out of the budget? Over inflated prices can be assessed by speaking with 2 or 3 companies. This does come down to trust. It also comes down to aligned values. As for the company spending every last penny of the budget, well that’s the idea of a budget.
The answer to this conundrum is………………………….
Test & Measure Everything
If you test and measure everything, you know what works, what doesn’t and what gives the greatest return on the money that has gone in. Turn off everything that doesn’t work and push the things that work harder.
Don’t be afraid to let slip your budget and your aspirations of the budget. Throwing money at the wall is where you will have a problem.