There is no exact answer to how much you should spend on advertising. What you spend will depend on your promotional objectives Renell Wren Youth Jersey , your target customers, the characteristics of your product or service Ryan Finley Youth Jersey , and the type of business you are in.
Several methods for deciding on a budget are used successfully by small businesses. Here are some of those methods: The percentage of sales method is probably the most frequently used. A percentage of projected sales revenue to be devoted to advertising is predetermined. Suppose you learn from your trade association that firms similar to yours allocate five percent of revenue to advertising. You’d estimate the amount of your sales for your first year of operation to determine what your advertising expenditures should be. Let’s say your sales for card printing business are very low especially on business cards. Then you have to pay more attention to get more sales. You need to allocate a proper budget for advertising to generate more sales.
The fixed dollar per unit method uses an absolute dollar amount in the advertising budget for each unit of product sold or produced. You’d have to estimate how much it would take to sell each unit and then set your advertising budget for the year. A business card printing shop owner who plans to print 500 cards might estimate a cost of $1 to sell each card. The advertising budget would be $500.00. The fixed dollar per unit method like the percentage of sales method represents formula thinking. It ignores the goal that advertising must achieve- to bring in sales.
Matching competition can be viewed as a defensive way to develop your advertising budget. Spending as much as your competitors assumes that your advertising strategy should be similar to theirs. It also assumes that your competitors know the right amount to spend. And it’s pretty nearly impossible to find out how much your competition is actually spending in any case. This is not the method you must use.
The affordable method isn’t really a method at all. It simply answers the question: how much am I willing to spend on advertising? Business owners who use this procedure as a basis for deciding on an advertising budget don’t truly understand the function of advertising. Of course, there are practical limits to how much you can afford. The Can I afford approach is the self-fulfilling prophesy.
Advertising leads to sales. The amount you spend on it should be keyed in some way to the amount of sales you want. Suppose an entrepreneur is willing to spend only a small amount on advertising during the first year of operation. At the end of the year Germaine Pratt Youth Jersey , meager sales and disappointing profits- the results of the inadequate advertising program- might lead to even less money being budgeted during the second year. This method of developing an advertising budget could result in the ultimate failure of the business.
As a practical matter, the amount you decide to spend on advertising should be related to your planned sales targets and the objectives for your advertising program. This means you should carefully assess your firm’s need for advertising and set specific objectives before you make your budget. The advertising objectives must be based on your sound understanding of the target audience and identification of the outcomes the advertising must produce. At this point you can determine the costs of reaching your objectives. In this way Drew Sample Youth Jersey , the budget results from what you want to achieve rather than your achievement being limited by what the budget will permit.
Recent studies have shown that industrial supervisors are working at less than 60 % of their potential. Basic management skills training is guaranteed to change all this and at such little cost.
Building and maintaining relationships The building, protecting and repairing of relationships is at the center of all our lives. Family life is the best possible example of relationships at work. You spend almost as much time in work as you do with your family so it is not surprising that relationships are considered of fundamental importance.
The art of motivation is nothing new to us as we do it as a matter of routine in our lives. We motivate our children to succeed and we encourage our friends in their pursuits. Building and maintaining relationships takes time and effort but these can be so easily lost. An excellent relationship developed over five years can be lost in a second due to a hasty comment or a sudden action.
As a supervisor or manager you will build and maintain thousands of relationships during your career so it is worth developing your relationship skills. Although relationships and motivation are not exactly the same they are totally inter-related.
For example Jonah Williams Youth Jersey , when you successfully motivate someone to do something then that will improve your relationship. On the other hand, if you have a good relationship it becomes easier to motivate because you are trusted.
Here are some good tips on building good relationships
1 Build new relationships quickly and carefully
The advantage of new relationships is that they start from a clean slate. This is a great opportunity to build a healthy and lasting relationship. Be careful not to show favoritism