Every business is faced with necessary expenses, but which should be the highest priority?
- Marketing / Advertising
Of course, these are all necessary expenses, but which one is most important? If the rent isn’t paid, you won’t have a business location for long. You don’t have much choice when it comes to taxes. Not paying them will eventually cost you your business. With no employees, who will wait on your customers? Suppliers must be a priority, or there will be no product to sell.
The most important expense is sales and marketing even if you are convinced you have all the current customers you need. Why? Even if you are doing everything right to retain your current customers, there is a normal attrition rate of at least 15% a year due to move aways, death, poaching by competitors or any other natural causes. Without a constant growth of new customers, your business will slowly atrophy and disappear instead of growing and prospering. Always keep in mind that your competitors, wether large or small, are attempting to increase their market share by essentially putting you out of business.
Since advertising is your most important expense, the next major requirement is to maximize the return on investment for your campaigns. This can be accomplished by testing, testing and testing, then pay close attention to analytics. There is a plethora of potential media available to accept your advertising dollar and there is a case to be made for each one. Local online exposure should represent a major portion of your ad budget in most cases since 90% of consumers utilize their computers and smartphones to research products and local businesses that supply these products and services. 70% of those consumers search online, then buy locally off line! Consumers spend 70% of there disposable income within a 5 mile radius of their homes.
For resources, ideas, and simply useful information, visit our website at MFAS Consulting.