Baton Rouge Financial Consultant | Increase Investments for Revitalized Revenue

Baton Rouge CPA

Most businesses experience trends of increasing and decreasing revenues. When new business slows and income begins to dip, many business owners react by cutting back on the item in their budget they think is most expendable: Marketing. Unfortunately, this is usually the wrong step to take.

When you cut your marketing budget, it follows that your revenue will drop, too. You are effectively slamming the door on new business. For many businesses, competition is fierce, and they cannot afford to fade into the background. For the rare few with little to no competition, they need to let people know they are out there, what they offer and anything new they are adding to their product or service line. If you want to add e-commerce into the mix, you need to reach people in your niche. 

Today’s businesses cannot survive through word-of-mouth referrals alone. Your business needs to attract new clients or customers constantly — not just in the weeks following a postcard blast or mass email. Scattershot approaches are a waste of money. You must stay visible.

In addition to attracting new customers or clients, you need to engage and maintain the loyalty of your existing clients.It is important to keep them looped into any specials you want to run, new services you offer, and the latest developments in your field. A multi-pronged social media campaign or email blast can be excellent ways to keep people informed on a timely basis.

Consistent, effective marketing helps you achieve both.

When your marketing budget increases, stronger revenue follows. Several factors influence how much your business should be allocating to marketing, including these:

  • Are you a new business? You may need to invest more until you have established a client base.
  • Is your business established and you want to maintain growth? Compare your current rate of new client acquisition to the number lost annually to determine how your current budget is doing.
  • Is business stagnant or decreasing? Consider investing an additional 5 to 10 percent above your current marketing budget, at least until the trend reverses.
  • How competitive is your local market? Higher competition requires greater investment to grow business.

You are likely familiar with marketing trends and may have done your own outreach, but is it the best use of your time. Business owners wear many hats, and the best use of their time is running day to day operations. Turn it over to an experienced team of marketers who understand your business.

For customized advice regarding your marketing budget and business growth, contact Apple Guerin Company today.

Apple Guerin Company LLC
Phone: (255) 767-1020
Url: https://appleguerin.com/
6421 Perkins Road, Bldg. A, Ste. 1B
Baton Rouge, LA 70808