Startup Marketing Budget: How to Write an Incredible Budget for 2023
When proposing potential ads at your startup, one of the first questions you’ll likely encounter is, “How much will this cost?” If you’ve prepared a killer startup marketing budget, you will be well-equipped to help executives understand and buy into your vision.
A marketing budget should detail how much you’ll spend on paid advertising, fit into your overall strategy, and prove a worthy expenditure based on revenue earned.
In a world where 82% of startups fail from cash flow problems, the stakes are higher for these new businesses. Startups often face limited resources and smaller budgets, making it difficult to stake claim to a marketing budget.
This post covers how to determine what your marketing budget should be and what it needs to include.
Table of Contents
- Marketing Costs for a Startup
- Startup Marketing Budget Considerations
- Tips for Writing a Startup Marketing Budget
- How to Write a Startup Marketing Budget
Marketing Costs for a Startup
When your company is new, determining an initial marketing budget can be confusing. In some cases, budget decisions are top-down, inspired by competitors, or made by setting a goal.
If this isn’t the case for your startup’s operations, focus first on what will bring in the most revenue. Revenue determines what your marketing budget should be and where funds should be allocated.
The money gained from your gross revenue should fund your marketing budget. So, how much of your gross revenue will you need? The average marketing budget for startups should be 11.2% of overall revenue. This percentage gives marketers enough resources to build brand awareness and start attracting leads.
If you’re starting your budget from scratch, consider using a marketing budget template to outline your phase one marketing activities and costs.
Download Free Marketing Budget Templates
To identify your gross revenue, calculate your total number of sales/increases.
If you don’t have a gross revenue estimate yet, determine how much you are projecting to make and use those numbers as benchmarks. Explore tools to help you estimate your gross revenue, like this online calculator from the Small Business Association.
Now that you understand the first step to making a budget, explore other potential needs you may have.
Startup Marketing Budget Considerations
So, what do you need to include in your budget?
Once you have money earmarked, you can begin breaking down the costs. Think of what costs naturally occur in your day-to-day and what resources you’ll need to make your marketing happen.
You can put this information in a spreadsheet or template, like these free marketing offerings from HubSpot.There are no real rules with budget design, as long as …read more
Source:: HubSpot Blog
