Small Business Advertising 101: Why Marketing is an Investment and Not an Expense

As a small business owner, it might sometimes feel as though you are presented with a constant stream of expenses that you need to balance with the money that is coming into your business account. While you certainly have many things on your plate, it is not productive to label every outgoing dollar as an expense; some should be reframed and viewed slightly differently.

For businesses that view marketing as an expense, budgets are often reduced during cost-cutting measures designed to increase profit margins. We believe it is essential to view marketing as an investment because when executed correctly, every social media post, advertisement, and marketing campaign will positively impact your bottom line in some manner.

The Importance of Investing in a Strong Marketing Strategy

Although you might initially feel that you cannot justify channeling much-needed cash into your small business advertising strategy, it is imperative to remember that marketing is directly linked to your business’s overall success.

A well-designed marketing strategy will help you build your brand awareness. Solid marketing techniques will help you connect with potential customers and clients, generate leads, and build a community around your brand. At the same time, your efforts here will help you create a positive reputation and give you the credibility needed to convert those potential leads into paying customers.

A robust marketing strategy will also help you increase your sales. When you have proven that you are a credible business and you have expanded your reach, you will find it much easier to generate those all-important sales that will help you strive for even more meaningful success as your business grows.

Like any investment, it is natural to feel apprehensive at the start of the process. It is essential to ensure that your marketing teams can deliver on their promises and prove their success. Additionally, while you might want to start small and invest in a single channel to begin with, developing a fully realized strategy from the outset will ultimately have a significant impact on the level of success you can generate. The critical thing to remember here is that you don’t need to spend a lot of money to see beneficial returns.

Small Business Advertising and Return on Investment (ROI)

When money is invested into an advertising and marketing initiative, your business will experience a return. The ROI you drive will ideally be greater than the cost of your initial investment, but this isn’t always the case and doesn’t automatically mean that your investment was a mistake.

For example, investing in a well-designed website will deliver beneficial results for most businesses because we find ourselves in such a digital-focused world. However, websites can sometimes present a negative ROI. This may happen if your offering hasn’t been positioned correctly or you don’t have a carefully designed target audience. Ensuring that your whole marketing approach is fully realized before pushing ahead with individual components is essential.

A Note on Cooperative Marketing for Your Small Business

The good news is that you can choose to employ various strategies and approaches depending on the goals and objectives you have for your small business. Collaborative marketing might be a good choice for your operation, particularly if you can identify a clear sales channel partner for whom collaboration will drive mutually beneficial results.

Devising and implementing a robust marketing strategy is one of the best ways for you to invest in the future of your small business. NimbusMark can help you create a fully realized marketing strategy that will allow your small business to achieve your core goals and objectives. Contact us today to help streamline this process and start maximizing your results.


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