While determining which promotional strategies to include within your budget plan, you must first consider your overall expense budget. This will help you to ascertain how much can you afford to allocate towards the promotion, distribution and sales, of your product or service.
How To Create A Marketing Budget Template?
(Example of Marketing Budget Template)
Small business can greatly benefit from proper planning of business expenses and budgeting. An excel template has ready header and formulas for proper calculations. Here’s how you can create your budgeting template in Microsoft excel.
1. Open excel and use the column headers for typing out the months and a separate subtotal column to record the year. Next, group the row headers together into various sections for indicating different expenses. Thus, you can create rows for recording office expenses, market research, office salaries, marketing communications, catalogs, advertising, branding, promotions, investor and media relations, direct and online marketing, website design and support, customer acquisition support, sales lead generation and distribution channel support.
2. Customize your spreadsheet as per your business needs. For instance, if you run a small business, you will probably require only a few line items for promotion, channel support, newspaper advertising, expenses to market and distribute your goods to various places, creating a web presence and paying the salary of a few employees. However, if you run a larger business with multiple products, then you may need a dedicated spreadsheet for each product.
3. Select the budget methodology such as a percentage of the historical sales. The historical data will offer information on the efficiency of various marketing strategies. For instance, if you have participated in various trade shows in the previous year, then it will reallocate your available funds towards those events that have produced the maximum sales-generating leads. In case you don’t have any historical data, you could use the comparative data or industry trade association data from related industries. For instance, if you own a restaurant business, then a new home and office construction projection within your area, will help you plan the expenditure for potential sales and incremental promotion expenses.
4. Enter a monthly number on the basis of your methodology. In case you have been using a percentage of historical sales method, you could enter the formulas in the column representing a specific month and then duplicate it for all the other months. You could adjust the formulas by planning for altering economic and business conditions. However, it is vital that you remain realistic. Thus, for instance, merely increasing the advertising expenditure from 5 to 10 percent, will not directly result into the doubling of sales as these two factors are not necessarily co-related.
5. Link your sales and promotion expenses to the final sales and profitability impact. This will help you to secure greater support from the management. By using historical financial statistics, you will be able to show the management how specific increase in promotion expenses will lead to an increase in sales. Thus, for instance, if increasing the online marketing expense by 10 percent last year had led to a 20 percent increase in the online orders during the year, then your company’s management may even agree to a rise in the online market spending this year.
By preparing your budgeting template with the help of a software spreadsheet, you will be able to easily make the overall calculations simpler.
What Is A Marketing Budget?
This type of a spreadsheet will give you an estimate of the overall projected expenses for sales, market research, promotion, staff compensation, distribution etc. The goal of this spreadsheet is to allot expenses periodically so that the required funds are available when needed. This sheet is usually created by the sales department in coordination with the organization’s finance team. The overall budgeting is based upon the targeted plan for attaining higher sales and the resulting profits. Listed below are the things to consider while planning the same.
1. Determine your objectives for the promotion planning – You need to ascertain the key objectives and strategies for your business. Your objective may be to sell a specific quantity of products within a specified period of time. This will help you to achieve what you wish to accomplish.
2. List out your strategies – This will help you to reach your business goals. Your strategies must be set with a time frame such as goals to be attained within a week, a month etc. Your strategies must include joining an array of networking associations, press releases, printing a brochure or creating a website.
3. Set up the spreadsheet by listing out the strategies as per the timeline set by you – Create columns for dates, objectives, strategies and expenses, for achieving the prime goals for your business.
4. Estimate the income projection for your business – Determine how much income will be utilized on the total operating expenses and how much can you allocate toward the sales and promotion strategies.
5. Determine the estimate cost of individual strategy – Find out the costs of building and maintaining your company website, joining networking groups and placing advertisements with various print and broadcast media.
6. Set up your budget within your spreadsheet for the business you can afford to carry out – This type of planning must be based upon the income projection and available cash. This will help you to eliminate expensive strategies that are not fitting in your budget.
How Can A Template Help You?
An excel template will help you to plan as well as allocate the available funds. By filling out the planned figures in each of the .xls template cells, you will be able to easily forecast which type of spreadsheet will work best for your type of business setup. The formula will also automatically update all the totals in every section. It will also help you to maintain the running total of every budget aspect.
A multitude of business projects as well as personal initiatives, can greatly benefit from a budget plan. The expense budget template for MS excel will run you through a series of costs that are being currently unaccounted for. It will even give you an overall understanding of multiple strategies to help you market your product or service.