Budgeting for Small Businesses

Want more leads without wasting your budget? It starts with knowing how much to spend and where. Most small business owners throw money at marketing... Then wonder why the results don’t match the effort. Here’s how to build a smart, goal-driven marketing budget that fuels real growth: 🧭 1. Begin with the outcome, not the ad Ask yourself: → What do I actually want from this? → Leads? In-store visits? Booked calls? → Who do I want to reach—and where do they spend time? Your goal decides your spend. No clear goal? No clear return. 📐 2. Build your budget like a blueprint It’s not about what others spend, it’s about what you need. If your customers live on LinkedIn, don’t chase them on Instagram. If your sales happen face-to-face, don’t over-invest in clicks. Know your channel. Know your customer. Then shape the budget around that. 🧾 3. Don't forget the hidden costs Marketing isn’t just running ads. It’s also: – Keeping your website fresh – Making content worth reading – Tools, email software, design help – Training your team to keep up Even doing it yourself costs time. And time is budget. 🔄 4. Watch your numbers, not your hopes Track what actually moves the needle. → Which channel brings traffic? → Which content leads to sales? → What’s being seen but not converting? Review it monthly. Adjust without ego. That’s how good budgets get better over time. P.S. You don’t need a massive marketing budget to grow. But you do need one built with purpose. ♦️ I work with early-stage founders who feel stuck. → Not sure what’s next → Can’t get past the plateau → Ready to grow, but not sure how If your finances feel foggy, or your biz feels flat... Let’s talk. I help you build clarity and momentum.

3 major marketing mistakes I’ve learned (the hard way) Most small business owners don’t get into business to become marketers. But sooner or later, marketing becomes part of the job. I’ve spent 12+ years in marketing, and I’ve made every mistake in the book, which has led to: wasted money, wasted time, and (lots of) wasted energy. Here are three of the biggest mistakes I see small businesses make (and how to avoid them): 1. Trying to market to everyone Why it’s a mistake: When your message is for everyone, it resonates with no one. I thought casting a wide net would bring in more leads, but all I did was create noise. The broader the message, the less it lands. You end up overlooked or ignored. How to fix it: Get clear on who you serve best. Focus on the specific problems they have and how you solve them better than anyone else. Speak directly to them and forget the rest. That’s how you cut through the noise and attract the right people. 2. Doing random marketing without a plan Why it’s a mistake: More content, more posts, and more ads won’t fix the problem if none of it’s aligned. I used to jump from one tactic to the next without a real plan, and all it did was burn time and budget without moving the needle. How to fix it: Build a marketing strategy rooted in your business goals. Know who you're speaking to, what you're offering, and where you're showing up; and make sure every effort ties back to a clear outcome. Momentum comes from focused, consistent action — not scattered activity. 3. Focusing on features instead of outcomes Why it’s a mistake: People don’t care how your offer works; they care what it does for them. Early on, I talked about services, tools, and processes. But that’s not what sells. What sells is transformation. How to fix it: Lead with value. Instead of saying, “We offer bookkeeping,” say, “We help business owners get back hours each week and finally feel in control of their finances.” Show them what gets better in their life or business because of what you do. If your marketing feels scattered, stale, or like it’s just not working, you don’t need more content or more tools. You need a clear strategy that connects your message, market, and goals. That’s where everything changes. --- Your move. You don’t need more tactics. You need a plan. If you're ready to get one, then I'm here.

$15,000 down the drain. That's what a founder told me they wasted on a "guaranteed" marketing campaign from an agency that ended up producing zero results. Sadly, this startup's story isn't unique. Why do so many marketing efforts crash and burn? Here are 4 things that can help solve this: 1. Define your audience Don't try to appeal to everyone. Use data and customer interviews to identify your ideal customer profiles (ICPs). When you speak directly to their pain points, your marketing becomes instantly more compelling. 2. Validate your offering Ensure your product truly delivers value to your target customers. Collect strong testimonials and high NPS scores as proof. If you can't secure multiple positive reviews from your ICP, fix that before spending on marketing. 3. Craft resonant messaging Your copy should speak directly to your audience's needs and desires. Test and refine your messaging through your website and sales pitch. When it clicks, scaling becomes much easier. 4. Prioritize the right channels Don't spread yourself thin across every platform. Research where your audience spends time and rank channels based on targeting capabilities, cost-efficiency, and measurability. Give your agency a prioritized list to work from. I've seen countless startups turn their marketing ROI around by nailing these foundations first. Here's a tough question: If you had to pick just ONE of these four foundations to focus on right now, which would have the biggest impact on your business and why? #StartupMarketing #GTMStrategy

What's better: (a) Budget 100% revenue growth and come in at 80% (b) Budget 50% revenue growth and come in at 70% IMO, option b is much better for two reasons: (1) Option a will have an unexpectedly high burn. (2) Option b sets a culture of outperformance. Some thoughts: This is very frequently the case - companies that miss their revenue budget don't miss their opex budget. Meaning, they spend in line with plan but generate less revenue and less gross margin than plan which translates to an unexpectedly high burn. This normalizes inefficient spending which is a problem that compounds. Depending on the capitalization of the company, an unexpectedly high burn rate can also create all sorts of problems related to the liquidity of the company with consequences ranging from moderate to devastating. The flipside is also true. Usually when companies beat their revenue budget, they still spend within their opex plan which leads to a lower than expected burn rate (or higher than expected profitability). This means the company ends the period with a stronger than expected cash position while still posting strong growth. It also reinforces the expectation of efficiency and operating leverage across the organization. Furthermore, consistently beating your budget sets a culture of outperformance which begets further outperformance. On the flipside, consistently missing your budget sets a culture of underperformance such that often times the budget loses meaning within the business because no one expects to hit it. When the budget loses meaning, efficiency, ROI, KPIs, etc. lose meaning and companies can become rudderless. Lastly, and perhaps most importantly, my best companies consistently met or beat budget. And of course, my most challenged companies almost never met budget. It's much better to walk in the path of the winners.

One thing I’ve learned working with founders is that not every platform is built the same - what works on one might fall flat on another. This is the key lesson for founders: don’t assume a platform is working just because you’re using it. Instead, look for Signs of Life - indicators that a paid media channel has real potential for your business. Here’s a practical guide to get you started: ✅ Analyze your existing data Before diving into new channels, start with what you already know. Where are your best customers coming from? What platforms are they already engaging with? This is your first clue. By looking at real behavior, you can find channels that have hidden potential. ✅ Build lookalike audiences Once you’ve identified a channel that shows promise, take it a step further by using a lookalike audience. These are the people most likely to resonate with your message. Target them, and you increase your chances of success. ✅ Start with a small budget The biggest mistake I see founders make? Going all in too fast. Instead, run a small, controlled test. Put a limited amount of money behind your ads targeting this lookalike audience, and pay close attention to early indicators like click-through rates (CTR) and conversions. These metrics will tell you if the channel has potential. ✅ Track the right metrics Focus on the numbers that matter: CTR, engagement rates, and conversions. If your audience is seeing the ad but not engaging, it could be an issue with the creative. If you see strong initial traction, that’s a Sign of Life. ✅ Test and tweak your creative What works on Meta won’t necessarily work on TikTok. Each platform has its own language and culture, so don’t copy-paste your strategy across channels. Test different creatives, messaging, and formats to see what resonates best on each platform. ✅ Scale when you see Signs of Life Once you see strong engagement and positive results, it’s time to gradually scale. Increase your budget bit by bit while continuing to monitor performance. Special thanks to Lenny Rachitsky and Timothy Davis for the Signs of Life concept and the insights! I help startups identify and accelerate their unique marketing advantages to gain a competitive edge. If you’re looking to level up your paid media strategy, let’s connect: https://t2m.io/tmVRzGGc #startups #founders #paidmedia #growthstrategy #marketing 

3 Common Ad Mistakes Wasting Your Budget (And How to Fix Them): Running ads can be a game-changer, if done right. But too often, small businesses waste money on simple mistakes that can easily be avoided. Here are three common ad pitfalls and how to fix them: 1. Targeting Too Broadly: ➡ Casting a wide net might seem like a good idea, but it often leads to wasted spend. ➡ Instead, narrow your audience based on clear demographics, behaviors, and interests to reach those most likely to convert. 2. Ignoring Ad Creative: ➡ A boring or unclear message won't capture attention. ➡ Your ad needs to be visually compelling with a clear call to action that speaks directly to your audience's pain points. 3. Not Tracking Performance: ➡ Without proper tracking, you're flying blind. ➡ Set up conversion tracking and regularly analyze key metrics like CTR, CPC, and ROAS to optimize your campaigns for better performance. ↳ Drop "FIX" in the comments, and I’ll send you my Ad Optimization Checklist to stop wasting budget and boost conversions!

When I talk to clients, there’s one question that always comes up: how do we get more results with a tight budget? Here’s how: 1️⃣ Audit What’s Already Working Most budgets get wasted on campaigns that don’t perform. - Go into your ad platforms (Google Ads, Meta, LinkedIn) - Look for campaigns with high CTRs and low CAC - Cut the rest and double down on the ones that are driving real leads 2️⃣ Use Automation to Save Time and Money Manual work eats up time and adds hidden costs. - Set up automated rules in Google Ads to pause underperforming campaigns - Use AI tools like ChatGPT to create quick variations of ad copy - Automate your lead follow-up with CRM workflows 3️⃣ Focus on High-Impact Channels You don’t need to be everywhere, you need to be in the right place. - Look at your Google Analytics data. Which channels are driving conversions? - Shift budget to platforms where your audience actually spends time - Example: If LinkedIn CPCs are too high, experiment with Meta ads or email 4️⃣ Repurpose Your Best Content Save time by turning one idea into multiple assets. - Take a successful blog post and turn it into a LinkedIn carousel. - Chop up a webinar recording into 5 video snippets for Instagram Reels - Reformat an infographic into a PDF guide for email marketing 5️⃣ Measure Everything (and Adjust Fast) Every dollar counts, so make sure you know what’s working. - Set up conversion tracking in your CRM and ad platforms - Monitor your ROAS weekly, not monthly - Example: If a campaign isn’t delivering within 7 days, pause and reallocate the budget You don’t need a big budget to get big results. You just need focus, creativity, and data. #DemandGen #B2BMarketing #SaaSMarketing

Here's why winning with budgets under $5,000/month on Google Ads is hard and what you can do to make them work. Unless you have a history with manual bidding, Google's smart bidding is likely your best option for your campaigns. That means you need to get 15-30 high quality conversions per month at a minimum to be successful. This data requirement is a big problem for small budgets. Let's take a local HVAC contractor running Google Ads with a $3,500/month budget as an example. I typically recommend you get at least 10 clicks per day (300 per month) in order to realistically reach your conversion needs. This would mean the campaign needs a max average CPC of about $11.50. From experience, I know that's really hard to reach. The higher your click cost moves the less likely you are to hit your conversion goals. Additionally, high quality HVAC leads can easily cost $200-$300/month. At that rate, you're barely hitting 15 conversions per month, if at all. The problem compounds from here because low conversion accounts tend to require more aggressive bidding which raises the CPC higher and makes it even harder to hit your goals. So, what can you do instead? My recommendation, is to change your offer and find something that makes it easier to reach 30+ conversions per month. However, make sure they are still high quality. For example, you may offer a "Planning Your Next HVAC Upgrade" or "How To Know Your HVAC System Needs Replaced" download with good tips and tricks. Getting these downloads is easier and you can capture an email address for future email marketing. These leads are lower intent, but you're still capturing your ideal audience of homeowners and building an engaged audience. Another option could be to offer a low cost maintenance program or inspection. People are more likely to convert on these offers than on a furnace upgrade. That allows you to meet the customer, build a relationship and be positioned for their next major HVAC need. You'll still capture emergency leads, but you'll also be able to move into capturing potential future high-ticket sales such as a full system replacement. What other small budget tips do you have?

The $3,000/month Google Ads strategy we've used to help small e-commerce stores become profitable. Most agencies won't touch small budget accounts. After managing millions in ad spend monthly, I understand why - it requires an entirely different approach. Forget what you've heard about splitting budgets between search, display, and shopping campaigns. For small budget e-commerce, here's what actually works: 1. Put 100% of your budget into shopping ads initially   - They generate 80%+ of e-commerce Google Ads revenue   - They're typically cheaper per click than search   - They build the foundation for future scaling 2. Create a two-campaign structure:   - "Top Sellers" campaign: Allocate 80% of budget   - "Everything Else" campaign: 20% of budget with lower bids 3. Set up for maximum efficiency:   - Use manual CPC bidding for precise control   - Start with competitive bids (research on Keyword Planner)   - Exclude tablets and search partners   - Implement thorough negative keywords This isn't just theory. I've implemented this exact approach for countless small e-commerce businesses who were ready to give up on Google Ads. With this strategy, you'll be gathering essential data while maximizing return from your proven winners - setting you up for future scaling when the time is right. Want my detailed guide on implementing this exact strategy? Comment "STRATEGY" below and I'll share it with you. (Make sure we're connected first!) #GoogleShoppingAds #EcommerceStrategy #SmallBusinessMarketing #PPC #SEA #SEM

Scaling without financial alignment is growth in reverse. Here's how to optimize strategy, accelerate growth, and hit goals. As businesses scale, aligning financial strategy with short-term objectives and long-term vision is critical for sustainable growth. I've worked with many companies that was growing fast but struggling to keep financial goals in sync with their rapid pace. Here's how I’ve helped them recalibrate and accelerate growth:    1. Re-assessing the Budgeting Process: - We dive into their current budget - Identify inefficiencies, misallocated resources, and cash flow bottlenecks. By focusing on forecasting and creating more flexible budgets, we made sure the company could stay agile, even during rapid change.    2. Aligning Department Projects with ROI: Instead of treating each department's initiatives in isolation, we developed a framework that measured and tracked Return on Investment (ROI) for every key project. - Each department was aligned to strategic financial goals. - Projects that didn’t generate strong returns were optimized or postponed. - ROI prioritization became the backbone of decision-making.   3. Setting Clear KPIs and Milestones: - We defined key financial metrics for both short-term and long-term. - This allowed departments to align their actions with tangible outcomes. Knowing exactly how their work contributed to the broader financial goals, employees were on board, engaged, and proactive. Results: Cash Flow Improved by 25% in just 3 months Project ROI Increased by 30%, with higher returns on departmental investments Long-Term Financial Strategy now aligned with short-term operational goals The Takeaway: Financial alignment isn’t just about controlling costs—it’s about ensuring that every department, every project, and every dollar is pushing your business toward your ultimate goal. When you align your budget with ROI-focused projects, you achieve growth faster and smarter. If you need help developing and executing a financial strategy DM me Please share your thoughts in the comments Follow me, Beverly Davis for more finance insights  #FinanceStrategy #BusinessGrowth #ROI #Budgeting #FinancialGoals #StrategicPlanning #Founder #CEO