5 Essential Steps to Create the Budget Tailored to Your Needs25 min read

“A goal without a plan is just a wish.”

On December 3rd, 2024, we hosted our final workshop of the year in partnership with Local First Arizona. The focus? Helping local businesses create a solid marketing budget. But we didn’t want the conversation to stop there, so we decided to break it all down in this blog – just for you!

Why A Marketing Budget Is Crucial

Ever feel like your marketing dollars just disappear without making an impact? Let’s change that. First, let’s clear up a common myth: a marketing budget isn’t just a financial plan. It’s a roadmap to your business’ success. Let’s dive in a little more…

Align Your Goals With Your Resources

Every business has goals – whether it’s increasing sales, building brand awareness, or launching new products. But achieving those goals takes more than just good intentions. A marketing budget aligns your objectives with the resources you actually have or will need!

Instead of throwing money at random strategies, a budget helps you focus on what will deliver the best results. Think of it this way: A budget isn’t just about spending money – it’s about spending it wisely. For example, if growing your email list is your priority, you can invest in email marketing tools and campaigns.

Avoid the Pitfalls of Undefined Budgets

Without a clear budget, it’s easy to overspend on ineffective strategies or miss out on opportunities that could truly make an impact. Imagine paying for ad campaigns that people enjoy but fail to drive traffic to your e-commerce website or store (which was your main goal)! That’s like throwing money into a black hole.

A well-defined budget keeps you on track, helping you avoid costly mistakes and focus on tactics that actually deliver results. And the best part? You don’t have to navigate it alone – we’re here to guide you every step of the way!

Mojo Approach to Marketing Budgets

Setting up a Marketing budget is intimidating. We know it’s the task you keep pushing to the bottom of your to-do list. At Mountain Mojo Group, we simplify the process, making it actionable, clear, and (dare we say) enjoyable! Here’s how we help businesses like yours create budgets that work:

1. Identify Your Assets

What’s in your marketing toolbox? That’s your starting point. Assets are the tools and resources you use to promote your business. They include:

• Digital Assets: Website, email list, and social media profiles.
• Visual Assets: Brand kit (logos, fonts, colors), photos, videos, and infographics.
• Physical Assets: Print materials and product displays.

Next, dig a little deeper:

            → Is your website user-friendly?
            → What’s your social media presence like?
            → Are your email lists segmented and active?
            → Are you already using any marketing tools or software?

If you notice gaps – like outdated visuals or missing tools – make a list! Prioritize what’s most important to hit your 2025 goals.

2. Set S.M.A.R.T. Goals For Your Organization And Your Marketing Strategy

Never heard of S.M.A.R.T. Goals before? Here’s a quick rundown:

• Specific: Be super clear about what you want to achieve.
• Measurable: Add some numbers to track progress. We recommend using benchmarks to have an idea of what your industry looks like.
• Achievable: Keep it realistic (no moonshots, please).
• Relevant: Make sure it fits with your overall business goals.
• Time-bound: Put a deadline on it.

It can be “Increase the revenue by 20% before Q3”, or “Expand into new markets within 2 years”. Now, think about the marketing goals that will help you hit those organizational goals. Here are a few ideas:

           → Boost e-commerce traffic by 30% by mid-2025.
           → Grow your email list by 1,000 subscribers by the end of 2025.
           → Hit a 15% conversion rate on social ads by Q3.

Write your S.M.A.R.T. goals down and keep them as your focus point to guide you through this process.

3. Build Your Marketing Team

Marketing isn’t a solo sport – it takes a team. Whether it’s a content writer, designer, or social media manager, having the right people in the right seats is key!

But let’s be real: hiring a full team takes time and money. That’s where marketing agencies like Mountain Mojo come in. We have the talent ready to jump in and start working on your strategy quickly. Plus, working with an agency often costs less than hiring full-time employees:
→ Hiring a full-time marketing manager? That’s about $93,514/year, on average, according to Built In statistics.
→ Working with an agency? Retainers typically start at $2,500/month. It gives you the flexibility to acquire different rates based on your marketing needs.

Are you a hardware store planning your marketing budget for 2025? Download our FREE 2025 Hardware Retail Budget Template now!

4. Prioritize High-Yield Marketing Tactics

Not all marketing efforts deliver the same results. Some strategies, like social media ads, can drive immediate traffic, while others, like SEO, take time but build sustainable growth.

For example, if your website isn’t optimized, running ads won’t necessarily lead to more sales. It’s essential to fix those gaps first, and then, you can focus on tactics that will drive results.

Here are key areas to focus your Marketing efforts:

• Digital: Social media ads, SEO, email marketing.
• Traditional: Print ads, direct mail, events.
• Community: Sponsorships and partnerships.

5. What Should Your Marketing Budget Be?

Here’s everyone’s favorite question! For small businesses aiming for steady growth, we recommend 5 to 10% of your revenue. If you’re pursuing aggressive growth, aim for 15 to 20%.

For example, if your annual revenue is $500,000, a 10% marketing budget would be $50,000. You can allocate it in whatever way makes the most sense for your goals. Here’s a breakdown (note: this is just an example and not a recommendation for every company):

• Digital: 50%
• Traditional: 30%
• Community: 20%

With Mojo, this type of budget includes:

• Asset creation
• Campaign execution
• Regular check-ins, analytics, and reporting

Common Budgeting Mistakes to Avoid

Let’s be honest – there are a lot of ways a marketing budget can go wrong. From wasting money on ineffective strategies to ignoring what the data says, mistakes happen. But at Mojo, we are here to help you and avoid those! Let’s see what mistakes we don’t make to ensure your budget works as hard as you do – the most important is at the end of this page!

Forgetting About Data

Data is your ultimate guide! A Deloitte study found that businesses using data-driven insights are 23 times more likely to gain customers and 6 times more likely to keep them. Ignoring analytics is like flying blind – you’ll waste time and money on campaigns that don’t deliver.

At Mojo, we love diving into the numbers. We regularly check in with you to review your ROI and performance metrics. This keeps us on track, ensuring your strategy stays focused and your budget delivers outcomes that matter.

Ignoring Essential Areas of Investment

That’s why we take a holistic approach. We make sure every tactic we use connects back to updated, valuable, and optimized assets. Think of it as tying a perfect marketing circle – everything working together to bring you the best results!

Throwing Money at Actions That Don’t Bring Results!

That’s not how we roll at Mojo. We track your assets, efforts, and performance, cutting back on what’s not working. This way, your budget is focused on the right tactics, delivering the results you actually want to see!

How To Get Started With Mountain Mojo

We know budgeting your marketing tactics can seem daunting, but we’re here to make it simple and stress-free! Ready to see your marketing budget in action? Follow the steps above or contact us today – our team will get back to you right away to help you get started.

Want a glimpse of life with the Mojo family? Follow us on Facebook and Instagram for behind-the-scenes fun, expert tips, and all the good vibes you need to stay inspired!