by Charleen Montano May 16, 2022
So you’ve got a great business, and you’re sitting on the precipice of growing it. You’ve decided to take it to the next level…. by spending money on promoting it!
Woo hoo! Not quite yet.
There are many options out there for growing your business, but if you don’t have money to spend or time building (which takes time), what do you do?
The answer is simple: supplement it with some ad spent!
In the small business community, we often hear different views on the topic of whether or not to invest in paid advertising. Some believe Facebook and Twitter are free options, while others argue that they are platforms that can generate a return on your investment.
The truth is that most platforms require you to spend a portion of your budget in order to see substantial results. This doesn’t mean that paid advertising is the only viable option. It simply means that the decision should not be made solely on a given platform’s affordability (or lack thereof).
The factors that should play into your decision include targeting, reach, demographics, frequency cap, and even bid difficulty. While there is no universal bible for how much is too much when it comes to paying for reach, I’ll provide some insight into why spending money can help you get more money in the long run.
Or, if a video is more enjoyable to you, you can also watch the live video– Jose Silvera, the CEO of Strive Enterprise, makes videos that could help you grow your business– live weekdays at 9 AM and 3 PM. PST on YouTube and Instagram!
When it comes to promoting a business, there is no one-size-fits-all solution. Each business is unique and has its own marketing strategies and spending needs.
With that said, there are some commonalities that most businesses experience and go through before reaching the top of the industry. Here are the stages of business growth.
Stages of Business Growth
At this stage, you’re still getting your business off the ground. You might not have any customers yet, and you may not even know what to sell.
But that doesn’t mean you can’t start building a marketing plan for your business.
At this stage of the game, you should be thinking about how you will attract new customers and build a brand for yourself. One way to do this is by creating a marketing plan for your startup business.
A marketing plan is a document that outlines how you will market your product or service and what your goals are for doing so. It’s an important tool because it helps ensure that your efforts are focused on achieving those goals — something that’s especially important at this stage when resources are limited and time is short (and often spent getting things done internally).
Overall, this is the time when your product is still new, and you need to gain awareness. At this stage, it’s best to focus on creating content and building an audience first. Then, once you have a solid base of followers, you can start thinking about paid advertising.
The growth stage is when a business begins to generate significant revenue. The key to this phase is that it must be sustainable and repeatable. Success in the growth stage comes from creating a product or service that customers love and getting those customers to spread the word about your business.
Once you have achieved real, sustainable growth, you can begin to focus on growing the business further by adding new products or services. At this point, the focus shifts from product development to marketing, sales, and distribution.
To grow your business successfully in this stage, you need to understand how customers interact with your product or service. This includes understanding how they use it and what motivates them to buy it again and again. You also need to know your target audience and how best to reach them.
Finally, you need an effective system for capturing leads (prospects) from potential customers and converting them into paying users of your product or service as quickly as possible.
Once your product has gained popularity, it’s time for paid advertising. You want to get your name out there as much as possible so that people will know about your brand or product – and hopefully buy it! It’s still important to create great content and engage your audience, though, because they’ll be more likely to click on an ad if it looks interesting!
The maturity stage is the semi-final stage in a business life cycle, which occurs when the company has reached a point of stability and profitability. At this point, the company has become a mature enterprise with strong financials and a solid reputation.
The maturity stage is also known as the decline phase or decline stage because sales begin to decline after reaching a peak during the growth phase. The decline stage can be further divided into two sub-stages:
Post-peak decline: After reaching its highest sales volume during the growth phase, a company will experience a decline in sales for some time until it reaches its saturation point. This decline is caused by market saturation, increased competition, and changes in consumer preferences.
Maturity: Once a company reaches its saturation point, it enters its maturity stage and begins to stabilize its sales volume while maintaining profitability levels across all product lines and regions.
Now that people know who you are and what your company does, there’s no need to spend money on advertising anymore! Instead, focus on getting customers through other means like SEO (Search Engine Optimization) or organic Facebook ads (although keep in mind that Facebook recently changed its algorithm).
Saturation is the point at which a market has reached the saturation point. In other words, when there are no more potential customers for a product or service.
Saturation occurs when there is no more growth potential in the industry because of market saturation. A company may be past its industry’s saturation if they see flat or declining sales and profits.
The saturation stage is reached when all the public demand has been satisfied by existing suppliers, and new suppliers cannot enter the market because of high entry costs (e.g., purchasing plant and equipment).
The key to success in this stage is to focus on quality rather than quantity since it will be hard to find new customers at this point. It would help if you also considered raising prices to increase profits, as demand will not increase much further anyway.
Your business will develop at a given pace. Most likely, you will never sit down and decide, “right, let’s grow!” You simply can’t. Because of that, growth happens naturally – or not. Depending on how you perceive it.
Is it possible to grow your business in four stages?
Just remember that while no two businesses are the same, we all have to start somewhere. If you’re looking to grow your business overall, give some thought to what stage of business you’re hoping to achieve next.
Now, without further ado, let’s determine when you should be paying to promote your business. Let’s fly high and land on the final stage of business by making yourself aware of promoting your business and when you should pay for it!
When to Pay to Promote Your Business?
Promotion is the lifeblood of any business. Without promotion, your business stays stagnant, or worse…it dies.
In your business’s early days, you might feel like you can’t afford to invest in promoting your business. You’ve got a limited budget and aren’t sure if it’s worth spending on promotion.
But how do you decide when it’s the right time to invest?
Here are some tips to help you decide when to promote your business:
BUSINESS WITH $350-900 BUDGET A MONTH.
When you’re trying to make money online, there is a myriad of options at your disposal. It cannot be obvious to determine the best way to monetize your website. And it’s even more frustrating to do all the work only to find that you’ve created your business in a way that makes it difficult for people to see or reach you. one of the ways we would recommend is having a sales course (meaning an email marketing guru course, Google ads guru course, Facebook ads guru course) from our website striveenterprise.com in helping guide you through the process and provide some advice along the way.
It would help if you also had a plan on how you’re going to promote your business long term. This includes having a budget for advertising and marketing to scale up as needed, depending on how well you are doing with your current campaigns.
If you do not know what kind of budget, start small and build up from there.
BUSINESS WITH A $1000-2000 BUDGET A MONTH
If you are still in the early stages, you should manage it all by yourself because it’s cheap, fast, and accessible. But when things start getting bigger, it is time to hire people who can help you grow faster!
For most entrepreneurs, this is a tough decision. You may have invested a lot of time and money into your business, and you don’t want to give up control. But if you’re going to grow your company, at some point, you will have to start delegating tasks that are taking up your time.
Here are some reasons why it makes sense to outsource some of your work:
You’re spending too much time on tasks that don’t add value to your business. If you’re spending hours each week trying to make sure all the widgets in your store are working properly, for example, that’s a good reason to hire someone else — or at least outsource the task, so it takes less time from you.
Your workload has become overwhelming. If you find yourself working all hours of the day and night and still not getting everything done, it might be time to consider bringing in help.
You need help with a specific project or task that isn’t part of your core competency or expertise. If you’ve never run Facebook ads before (or any other form of paid advertising), hiring someone who knows how can save you time and money over the long term by helping you optimize those campaigns so they actually work instead of just wasting money on clicks that don’t really work or convert.
BUSINESS WITH A $7000+ BUDGET A MONTH
When your business has a monthly budget of over $7000 for marketing, you can either go with a professional marketing agency that will take care of the things you used to do or hire an employee who knows what they are doing and will continue the advertising results, run more ads across different platforms, send out newsletter emails, etc.
Moreover, you’d need to hire a full-time salesperson or sales team to follow up and close deals.
By generating a lot more leads and deals, you’ll be able to start implementing automated processes to help reduce the team’s workload and improve efficiency.
Having someone else working for you can be very beneficial for your business. You don’t want to spend all day on Facebook and Instagram doing ads. Then, you have to go back into your website and make changes to get more sales leads.
If you have someone else working with you doing everything else while also managing the ads and getting sales leads, it would be so much easier for everyone!
The first thing you need to do is develop a budget that makes sense for your business. You can spend as much or as little as you want on Facebook ads, but I would recommend starting with at least $100 per campaign.
If you don’t have $100 to spend on your campaigns, then don’t worry! You can start small and scale up later when you have more cash on hand.
Once your budget is set, you can start creating your first campaign!
Is Paid Promotion Still Worth Your Money?
Well, promoting your business is one of the most important things that you need to do. However, many people don’t understand why it’s so important and how it can help their business grow.
If you want to be successful in business, you need to promote yourself and your brand as much as possible. Here are some reasons why doing so is so critical:
1) It increases your visibility – The more people know about your brand and what you do, the more likely they’ll be interested in buying from you. If they don’t know who you are or what you do, they won’t buy from you and will look elsewhere for supplies or services.
2) It creates trust – When someone hears about a product or service from someone they trust, they’re more likely to purchase it because they know that person wouldn’t recommend something unless it were good quality or value for them. In other words, if someone recommends something high enough to make them feel like they can trust it, they’re more likely to buy it themselves, too, because of that recommendation alone!
3) It pays off in the long run – If people trust what you’re saying enough that they’re willing to try out your products or services themselves, then this means that they’ll probably engage and stay with you. You build trust with them, and now they are willing to pay for your product and service. And once you get to the top of the industry, you will no longer need any hardcore marketing but just kind of a reminder advertisement or for some new products or design launching.
If you are thinking of starting your own business, then you have already visualized what it looks like to be successful. Now, it’s time to do something about it. Promoting your company is essential, and it may be expensive at times, but that is the price of success. You simply can’t ignore this if you want to grow your business in the most efficient way possible.
When you are doing business on the go, it is imperative that you promote yourself—frequent your local pubs, restaurants, and clubs for networking. Always maintain a good posture such that you can make an impression. Also, wear nice attires, especially when presenting your business plan.
To be successful in any business, one must spend money to make money, as this is a simple formula for growing your business big and small.
See you soon. Adios!