How high should marketing expenses be for small businesses?
Asked 3 years ago
I'm in the process of starting a new store on Shopify where I'm going to be selling workout clothes like Gym Shark, and I was wondering what marketing expenses I should budget for. Is there an initial lump sum I should spend on marketing before my store opens, and after that, is there a certain percentage of my total sales revenue I should continue to spend on marketing? Does my business niche determine the amount of money I should spend on marketing or are they unrelated?
Abeeha Qasmi
Saturday, October 02, 2021
As a golden rule, investing 11% of your seed money on marketing and brand awareness is recommended. In start-ups, it is noticed that they spend 7-8% of their revenue on marketing on average. Although, there is not a hard and fast rule. Some start-ups spend more than 25-30% of their income in marketing to make a breakthrough entry into the market. How much you spend on marketing will largely depend on the marketing strategy you utilise.
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