Establishing And Selling The Budget
Invariably the marketing department needs a budget to sell products through the reseller channel and to execute promotions. When establishing a budget, it is critical that you cover all the expenses. For this, you may wish to download the sample budget template located within the appendix of the marketing plan.
Sell The Budget Using ROI
Once you’ve established your budget you usually have to sell it to management. The best way to accomplish this is to ensure you have calculated a return on investment (ROI) for each expenditure. The budgets with ROI page contain some helpful examples.
Sell The Budget Using Industry Ratios
It is also helpful if you can show how your expenses are typical for a “profitable” company that is similar to your own. For this, it is helpful to have access to industry ratios. Software Success conducts an annual survey where they compile the ratios for operations, development, sales, and marketing, etc. for companies of various sizes that sell direct, through the channel, etc.
Click here to view several helpful expense ratios, download a valuable PDF and find out more about their economical reports.
Additional Budget Categories
- Budget ROI (budgets based on ROI)
- Finance Ratios (the typical operating and marketing ratios for the software industry)
- Finance (how to get funding to cash flow your business)
How To Finance Your Company
In some cases, you may not have enough money to do an effective product launch and ongoing promotions. You can either go into guerrilla mode, bootstrap and make do with what you’ve got, or you can get additional financing to help get the budgets you need to grow faster. Click HERE to find out more about financing your company.