How Much of a Business Loan Should Go to Your Marketing Budget?

Using a Business Loan for Marketing and Advertising

Do you have a marketing budget for your startup? When starting a business, you may want to think about getting a startup business loan. There are many entities that are willing to provide you with a business loan for your business too. Once you get a loan, you will need to allocate the funds for specific purposes. One of these purposes includes marketing.

Part of your business plan should include a budget of what you are willing to spend on each aspect of your business, especially for marketing. The amount of money from the loan you’ll want to dedicate to marketing depends on which marketing strategies you feel would best help your company.

How You Need to Hit the Ground Running with Marketing

Once you start up a business, you will need to begin marketing it immediately. Online purchasing is a rising trend so the first thing you should do is hire a team to design your website to use search engine optimization (SEO) strategies. This is important for getting your business known.

As well as using SEO, it will be important to use pay-per-click advertising, social media sites that can complement your business website, doing direct mail ads, television advertising, email marketing, and attending trade shows. All of these methods are different marketing strategies that you can choose to use for your business.

Once you have decided what strategies you want, researching prices for these services will give you a better idea of how much you’ll need to budget specifically for marketing.

What is SEO

Search engine optimization (SEO) is the process of improving the quality and quantity of website traffic to a website or a web page from search engines. SEO targets unpaid traffic (known as “natural” or “organic” results) rather than direct traffic or paid traffic. Unpaid traffic may originate from different kinds of searches, including image searchvideo searchacademic search, news search, and industry-specific vertical search engines.

New to SEO? Check out: Beginner’s Guide To SEO 


Why Is SEO Important for Marketing?

SEO is a fundamental part of digital marketing because people conduct trillions of searches every year, often with commercial intent to find information about products and services. Search is often the primary source of digital traffic for brands and complements other marketing channels. Greater visibility and ranking higher in search results than your competition can have a material impact on your bottom line.


What Percentage of a Loan Should go to Marketing  

The percentage of your loan that should go to marketing will often vary depending on the funds you have available and what you need them for. It is a good idea to allocate at least 20% of your loan to marketing costs. This will help you save money as well as have funds available for other things such as inventory, employees, and office overhead.

Depending on how effective the marketing methods are, you will want to adjust the percentage you spend on the results you desire. However, in most cases, you will benefit most by allocating between 10% and 30% of your loan for marketing costs.
Whenever you are looking to get a loan to finance your business, you will want to know how much of it will be necessary for marketing.

Marketing Budget

To use the loan for marketing, you will need to consider the many ways in which you can market your business. Using methods such as direct mail advertising, internet marketing, trade shows, and email marketing will give you the best chance of getting your money’s worth. In most cases, it will be beneficial to devote at least 10% of your loan to marketing costs.


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