Selling your company one day will be enhanced by having a solid brand name
Ask yourself this question – are we allocating our marketing investment dollars effectively?
Here is a general rule of thumb as it pertains to a marketing investment - 60-20-20.
What this means is 60% of your marketing dollars should go toward attracting new customers to your company. 20% of the dollars should go towards retaining existing customers and 20% should go toward the general building of your company brand. And with each of these, your goal should be marketing your brand in a way that makes your company memorable to your target and existing customers.
As you think about this for your business, do you know what the percentage mix is?
No two companies are alike so the mix can be different but generally it should be 60-20-20. The first step is knowing what your mix is. Building a brand that is well positioned in your served markets and a brand that is well respected doesn’t come by chance. Evaluate your marketing spend by tracking things like new leads coming in daily or weekly from targeted audiences, conversion rates of those leads, customer acquisition costs, retention of existing customers, etc. etc. Assess whether the leads coming in are quality both in volume and in terms of whether they are from your target audience…if not, this could be a red flag that your marketing investment isn’t working for you.
An acquirer one day will assess your brand equity in the market. Ensuring today that your marketing investment is building a strong brand will be a gift to your future self. It will be a gift because an acquirer will reward you in their valuation when they see a strong performing brand and one that has exciting growth runway left going forward. Don’t leave your marketing investment to chance or to the latest shiny marketing opportunity – be strategic, be intentional and build the worth of your business.
