Starting and running a small business is no easy feat, and with the fast-paced changes in the business world, it is important for small business owners to stay up-to-date with the latest trends and best practices. One of the most significant changes in the business world has been the shift in costs from production to sales and marketing.
In the past, the main expenses of running a business were associated with production. From purchasing raw materials, to machinery and labor costs, production expenses were the largest part of a business’ budget.
However…
With the advancements in technology and automation, production costs have significantly decreased, making sales and marketing the primary expenses for small business owners.
The shift to sales and marketing has created a new challenge for small business owners. With the decreasing costs of production, small businesses are now facing more competition than ever before. It is no longer enough to have a great product or service; small business owners must now also invest in sales and marketing to reach their target audience.
Unfortunately, many small business owners in the B2B space have not yet embraced this change.
A significant number of small business owners are still not investing in sales and marketing, which puts them at a significant risk of being left behind. With the rise of competition and the shift to digital marketing, small businesses must now allocate a portion of their income towards winning their next client.
So, how much should small business owners set aside for sales and marketing? The answer varies, but the speaker in the video suggests that 10-40% of a small business owner’s income should be allocated towards winning their next client. This may seem like a large percentage, but it is a necessary investment to stay ahead of the competition and grow your business.
The shift in costs from production to sales and marketing is a reality that small business owners must embrace.
Investing in sales and marketing is no longer an option, it is a necessity to remain competitive and grow your business.
Set aside a portion of your income towards winning your next client and stay ahead of the competition in today’s fast-paced business world.