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Numbers Make Cowards of Us All

From a purely simplistic view, when you reach the investment stage of your sales and marketing strategy, you will need to understand three things:

Your gross margins
Your operating expenses
Your targeted net profit

Your sales and marketing budget is factored into your operating expenses and with a set revenue goal in mind — or, for some of you, a targeted survival revenue goal — the current paid media bidding environment (what you need to spend on Google, Facebook, and other platforms to be competitive) will pressure your net profit.

When business owners see their net profit is pressured and that they’ll lose money, they start to think they cannot afford to market.

And pulling extra money from the cost of goods (COGS) which make up their gross margins is difficult, if not nearly impossible. After all, it costs you money to produce your product!

But you need to find the money to market. It’s essential to your success.

That means, unless you have secured a line of capital or have cash to invest, you will need to look at raising prices, developing alternative marketing methods (which, in this current pandemic, with everyone involved in the digital environment more than ever, will be tough) or make the decision that every business owner dreads and eliminate non-essential expenses in your operating costs.

Marketing is essential, the larger office is not.

Literally, never before in the history of mankind has paid marketing had more of an impact on a company’s P&L report.

So, don’t let those numbers make a coward out of you. Now is the time to take action and dig in.

This is something that a webinar on brand visibility will probably forget to mention.

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