By Leader Contributor Glenn H. Gould III, CEO of MKJ Marketing
Most small businesses do not create annual marketing budgets, and frankly, that’s one of the differentiating factors between family-owned funeral businesses and corporate-run funeral homes.
Not having a budget can be good for the business, as it allows owners to assign funds where they are most necessary, such as building maintenance, interior décor, or marketing. Firms that follow budgets religiously will delay making necessary investments, which will ultimately impact case volume and sales. So, a marketing budget needs to be flexible to meet unexpected needs.
On the other hand, marketing budgets can be very productive. Marketing budgets help owners define what business they are in: Are they a discount firm with a large budget for price advertising or a legacy firm that depends more on branding?
Want to learn more about how to create a successful marketing budget? Click here to learn more from Glenn about MKJ Marketing’s upcoming seminars in Vail and Boca Raton.
The budgeting process forces management to explore advertising options, which is necessary to keep your advertising fresh. Many firms just repeat the same advertising year after year, sometimes going back 20 years or so, so they are ignoring the recent trends in advertising, particularly digital.
Forming a budget can be a group effort, which is good, as owners tend to be older and not as knowledgeable of digital options.
Setting the next year’s budget is typically influenced by the previous year, so the process is repeated while also reflecting the projected sales for the coming year.
Most importantly, creating a budget forces management to reflect upon changes in the business and the business environment, which is very important during this period of increasing cremation rates and inflation.
Not considering cremation and inflation in your business planning can be a critical error, which can lead to a serious decline in profit. Budgeting is a good time to consider price increases, and just as importantly, cause management to consider price increases more often. During a dynamic period, when the business basics are in transition, it’s critical that prices reflect current costs.
Want to learn more about how to create a successful marketing budget? Click here to learn more from Glenn about MKJ Marketing’s upcoming seminars in Vail and Boca Raton.
