Not investing enough in marketing
You might feel hesitant to spend money on marketing, but investing in marketing is critical for driving growth and increasing revenue. It’s important to allocate sufficient resources to marketing efforts to ensure they are effective.
Working with an accountant when writing a business plan will help ensure realistic budgets are put in place, which align with your business goals. For example, if your goal is to increase sales by 20%, you may need to allocate a larger budget to marketing efforts that focus on lead generation and customer acquisition.
It can also be helpful to research:
Industry benchmarks to see what other businesses in your industry are spending on marketing. This can give you a baseline for your own budget
Your customer acquisition cost (CAC)
Your customer acquisition cost (CAC) can help you determine how much you need to spend on marketing to acquire new customers. You should consider the lifetime value of a customer when calculating your CAC.
The competitive landscape
The competitive landscape. The level of competition in your industry can impact the amount you need to spend on marketing to stay competitive.
Available resources. Your marketing budget should also take into account the resources available to you. For example, if you have a small marketing team or limited resources, you may need to allocate more funds to outsourcing marketing services.
The right marketing budget will depend on your unique business needs and circumstances. It may be helpful for you and your accountant to work with a marketing consultant or agency to determine the most effective budget for your business.