Most of the startups have just bottleneck – they face the challenge of competing with the other business without having a decent budget and funds for their business. In a shoestring budget driving sales is a bit tough. A good marketing plan in place can help but you can’t work on your marketing plans too if you haven't already made some sales.
So, it’s very important to make the right move of budgeting in the nascent stages of marketing for a growing startup. You may not have large cash to spend in the initial stage and you’ll have to survive on a shoestring budget. So, how to make the most of your shoestring budget?
Here are the top 6 tips to promote your product successfully without spending a fortune and making the most of your limited budget:
Know your Affordability
The most important aspect of budgeting is knowing your resources, how much can you afford and how to use it. You need to figure out how much your startup can afford to spend.
For this, you need to evaluate your earnings and calculate how much of it you can dispose of or can afford to spend.
The most popular way to calculate your liquidity and affordability is to make your marketing budget based on the percentage of your sales. You can analyze your current sales or potential projections and then calculate your budget based on these two aspects. The best part is, you can step up or down at any time considering your current performance in your marketing budget.
Several entrepreneurs opt to spend 5% to 7% of their sales revenues and follow this thumb rule religiously. With this budgeting approach, you would be able to invest a part of your revenue that is small, affordable and would last for long.
You can read up to 3 premium stories before you subscribe to Magzter GOLD
Log in, if you are already a subscriber
Get unlimited access to thousands of curated premium stories, newspapers and 5,000+ magazines
READ THE ENTIRE ISSUE