BSK: Spend
By this point, assuming you've been following each card in order, you're probably thinking. All these Values and Goals and all this stuff about Positioning and Story stuff is nice, but... How much is it going to cost me?
The cop-out answer here is that it depends. The purpose of this post is to explain why Spend management is essential and how to approach it for your branding and marketing.
Whether it's a piece of content, a campaign, a rebrand, a new brand, hiring videographers, or paying for ads. It all costs money.
Having a number to work towards is important for the most obvious reason—no one has infinite money, so you need to budget and plan your Spending so you don't go broke.
But there is another crucial reason to set a number for your Spend, and it's all to do with those of you working on your own, the rebels, the 'solopreneurs'.
I'm going to call it the 'Anti-Black Hole' Policy. Let's go over some facts.
When I talk to new business starters and ask questions like - what's your budget? How much are you willing to spend? The typical answer is a cross between - I don't know and a complete hesitation to talk about money.
Everything will cost money, and if we know the number, the job is more straightforward to arrange. Not having a number to work with also speaks to a deeper problem related to your exit plan.
A big mistake I see many people make is not setting a clear "point of exit," meaning they don’t know how or when to objectively assess their project because they haven’t defined what they are aiming for - they don't have a number to work towards.
This is dangerous because not only does it become depressing to spend money and not know where it's gone, but it can also put your life savings - your backup plan - at risk.
The risk of not having a number is that countless amounts of your money go into a mysterious black hole with no clue what happened and no way of getting it back.
This principle touches on how you approach your Goals and your overall strategy.
Starting a business is very personal, and knowing what to do next can be hard when you get close to things. Setting clear Goals and Spending limits helps manage this problem.
So, it comes back to the key question: How much will you Spend on this project?
Some extra information to keep in mind around marketing costs.
1. Management/Admin Spend
Whether you’re spending on an agency, a producer, marketing consultants, business coaching, or advisory, they will all need to be paid.
2. Creative Spend
Whether it's on making content, copy, videos, event banners, etc. This is money spent on making assets you will use in your content marketing, paid ads, events, or branding.
3. Ad spend
These are funds paid to Facebook, LinkedIn, Google, newspapers, TV stations, influencers, and podcasts to boost your exposure to new audiences and advertise your business. Your assets can be boosted, and you may also need to create bespoke assets specifically for an advertising campaign.
Consider Pricing as part of your Spending strategy.
Here is a list of prompts to consider when it comes to Spend, costs, and Pricing:
What is the overall budget as part of your Spend?
What will it cost you to run the business? Produce the project? Create the content?
What will be part of your upfront costs versus the ongoing costs of your marketing operations?
How much do you plan to spend on paid advertising?
How will you price your product or service?
What budget do you have approval for?
Knowing how much you plan to spend helps you determine what you can afford for each type of Spend. When it all aligns with the different spend parts of your business, you have a more complete view of what your marketing and brand strategy is costing you.
That's it for Spend; see you on the next one (Modes).
Last Updated: 22/May/2024