Working with a safety margin
Posted: Mon Feb 17, 2025 4:06 am
As you probably noticed, both methods we presented are imprecise. And that is why a safety margin is essential for your marketing budget.
Basically, you should always estimate a little more for each budget item, a good margin is 15% to 20% of the value.
Taking into account the financial availability of the company
The first two methods assume that you have a good amount of flexibility to accommodate marketing expenses in your company. And that works very well for medium and large-sized companies.
But on the other hand, small businesses may face a resource constraint.
In this case, the best method is to start from the value that can be made available to the sector and then allocate it among the expected expenses . This process is basically a matter of allocation.
If you only have $20,000 for marketing next year, how are you going to allocate that money among budget items?
To do this, of course, you need to take into account an estimate of how much each item will cost and be aware that you will need to make a much greater effort to negotiate prices and reduce costs.
You may need to eliminate some less important items from your planning. That's why it's essential to keep in mind the strategic goals of the sector and prioritize the items that will really have an impact .
Why make a marketing budget?
We have already talked a lot about how macedonia phone number list to budget for the marketing sector of the company. Before concluding this post, let's reinforce the importance of this practice.
Planning the marketing budget is important to ensure that the company's resources are being used well . In this way, waste in activities that will not bring returns or even opting for more expensive options without a good reason can be avoided.
A well-made budget is also a guarantee for the company's plans and prospects .
When a budget exists, you can compare what was planned with what was actual , determining whether expenses are within what was anticipated and authorized at the beginning of the period.
This way, you'll know that your company's resources are not being used randomly.
Do you want to learn more about marketing and, above all, about digital marketing?
Rock has prepared an entire ebook focused on how to apply digital marketing to your business !
Basically, you should always estimate a little more for each budget item, a good margin is 15% to 20% of the value.
Taking into account the financial availability of the company
The first two methods assume that you have a good amount of flexibility to accommodate marketing expenses in your company. And that works very well for medium and large-sized companies.
But on the other hand, small businesses may face a resource constraint.
In this case, the best method is to start from the value that can be made available to the sector and then allocate it among the expected expenses . This process is basically a matter of allocation.
If you only have $20,000 for marketing next year, how are you going to allocate that money among budget items?
To do this, of course, you need to take into account an estimate of how much each item will cost and be aware that you will need to make a much greater effort to negotiate prices and reduce costs.
You may need to eliminate some less important items from your planning. That's why it's essential to keep in mind the strategic goals of the sector and prioritize the items that will really have an impact .
Why make a marketing budget?
We have already talked a lot about how macedonia phone number list to budget for the marketing sector of the company. Before concluding this post, let's reinforce the importance of this practice.
Planning the marketing budget is important to ensure that the company's resources are being used well . In this way, waste in activities that will not bring returns or even opting for more expensive options without a good reason can be avoided.
A well-made budget is also a guarantee for the company's plans and prospects .
When a budget exists, you can compare what was planned with what was actual , determining whether expenses are within what was anticipated and authorized at the beginning of the period.
This way, you'll know that your company's resources are not being used randomly.
Do you want to learn more about marketing and, above all, about digital marketing?
Rock has prepared an entire ebook focused on how to apply digital marketing to your business !