How do Entrepreneurs spend their time and money when it comes to marketing their Small Business? Here are the results of Infusionsoft’s 2015 Small Business Survey identifying the number one challenge for Small Business Owners, how much is spent on marketing and activities Small Business Owners like most (and least).
Number One Challenge for Small Business Owners
It will come to no surprise to you that the number one challenge that Small Business Owners face is the “time to get everything Done”.
When I coach my clients, I recommend using either Basecamp or Trello as one of the primary tools that can help save time. Both of these are project management tools that are easy-to-use and will help you get more done. Either of these tools can be used to manage a team of people or just to help you (the Business Owner) to manage your own time.
Loved and Hated Tasks
We say it all the time – “the Small Business Owner wears a lot of hats in business”…but we never really talk about which “hats” they like to wear and which hats they don’t. It’s probably a good idea to set some goals to hire people what can help you with the tasks that you don’t like (but are important to the overall growth and operation of your business).
It doesn’t surprise me that Small Business Owners enjoy customer service, product development, marketing and sales activities. These activities are at the heart of the business (just where the owners like to be). Eighty-three (83%) of entrepreneurs are involved in sales activites – even businesses owners with five or more employees were involved in sales sixty-nine (69%) of the time. I find this interesting…Are owners actively involved in selling because that’s where they should spend their time…or is there some control issues? Just an observation :)
Here’s a really interesting one…I’m surprised at how low the marketing budget is in the list of priorities:
- Forty-three (43%) of entrepreneurs are spending $200 a month or less in their marketing budgets
- Thirty-three (33%) are spending between $200 – $1,000
- Twenty-four (24%) spend more than $1,000 a month in marketing
I would be really interested in knowing if the 24% of entrepreneurs spending $1,000 are making more and have larger businesses than those who spend less that $1,000. I know what you might be thinking, “they probably do make more that’s why they can spend more”. While that might be true, I bet they were investing in their marketing all along (which is why they grew).
Let me elaborate on this for a minute…
To be wealthy, you must save – agree? You cannot wait to save otherwise you’ll never be wealthy – correct?
The same is true with marketing…
To grow your business you must invest in marketing (time and money). You cannot grow if you do not do this – correct? Say yes with me…. :)
So, if you want to grow…why wouldn’t you spend at least $200 a month to do so? (I’m only talking to the 43% of entrepreneurs that aren’t investing at least $200 a month of course). Just another observation…
Most Effective Sales and Marketing Strategies
Customer referrals / word of mouth come in at a whooping 62%. Second on the list email marketing at 34%.
I have another speculation I’d like you to consider…
Is customer referrals / word of mouth ranked so high because that’s the most effective marketing strategy for Small Business growth? Or is referrals / word of mouth the strategy that most Small Business Owners invest their time in and therefore is leading? (I would also challenge that concept but that’s a whole other conversation…I think that more often than not Small Business Owners don’t have a strategy at all for referrals – it happens by chance or luck). What if we invested our time and money in being more effective in other areas of marketing…is there untapped potential? I believe so.
My question for you…
How committed are you to growing your business? I believe that you can tell very easily what is important to someone by looking at where their money flows. If “things” are important to someone – they tend to spend a lot of money on accumulating “things”. If someone really wants to be debt free – they don’t make minimum payments. Someone who likes to travel tends to spend money on traveling. Money flows to the areas that are most important to you.
So, if you know that you need to invest in marketing to grow your business…is your money flowing there?
Check where your money (and time) is flowing…that will tell you a lot about what’s really important to you.
IMAGE(S) SOURCE: Infusionsoft Blog – How Do Entrepreneurs Spend Their Time and Money?