Average Advertising Costs for a Small Business and the Ways To Secure Funding

Small Business Loan Request Letter Average Advertising Costs for a Small Business and the Ways To Secure Funding

Explore Average Advertising Costs for a Small Business

If you are thinking about starting a company, you need to make a precise budget to keep operations going and handle all expenses. To prepare the budget, you should consider the market and industry you are in and cover all important business components.

Since good marketing leads to sales, you should get familiar with average advertising costs for a small business.

If you realize you will not have enough resources to fund the business by yourself, you could look into available loan opportunities. DoNotPay presents effective products to secure financial assistance for your business.

Average Cost of Advertising for a Small Business

You should create your advertising budget by allocating a certain percentage of your total sales.

To get a better image of how much you should invest in marketing and advertising, you should consider these figures:

  • From two to three percent of the revenue—Some marketing professionals believe there is no need for startups and small businesses to earmark more than three percent of their annual revenue for marketing and advertising activities
  • Between seven and eight percent of your revenue—The U.S. Small Business Administration (SBA) suggests business owners should allocate from seven to eight percent in case their annual sales revenue does not exceed $5 million
  • From one to ten percent—Some experts are in favor of a wider range where the precise percentage depends on how:
    • Long you have been in business
    • Competitive your market and industry are

Advertising Costs for a Small Business Across Industries

There is a big difference between allocating one and ten percent for advertising or marketing in general. You could narrow this amount down by looking at the average advertising costs across industries:

IndustryAverage Advertising Budget for a Small Business
Furniture stores4.44%
Jewelry, leather goods, and luggage stores4.16%
Real estate and brokers3.84%
Schools and instruction2.87%
Beverage production2.73%
Amusement and recreation2.18%
Home furnishing stores2.16%
Personal care services1.99%
Speciality food1.88%
Brokerages and insurance-related services1.85%
Deathcare services1.83%

How To Prepare the Small Business Advertising Budget

While you should be aware of the industry and sector averages, you should not stick to that number firmly when drawing up your small business advertising budget.

You should also consider the factors important for your specific business, including the following:

  • Experience—If you have an established small business, you should rely on your experience and implement the tactics that have proven to be successful in the past
  • Marketing goals—To plan the advertising budget for your small business, you need to know what forms of (social) media, activities, and events are suitable for promoting your business and achieving your marketing objectives
  • Size and stage of your business—If you have a startup, you might want to invest a higher percentage of your revenue in advertising since good marketing can boost your sales
  • The market—You should find out where your competitors advertise to calculate how much money you need to invest to stand out on the market

How To Get Funds for the Marketing Budget for Your Small Business

Starting and running a company is a challenging task, especially if you lack financial support. While you need to prepare a detailed budget to get a clear picture of ongoing and future projects, you should also be aware of the costs you must cover.

Self-financing would be the best option since there are no fees or interest rates you need to pay on top of the borrowed money. If you do not have sufficient resources and need to borrow a certain amount of money for the day-to-day and projected activities, you could explore different:

  1. Types of small business loans—Based on your qualifications, credit history, and specific requirements, you should get familiar with how the loans work and consider applying for:
    1. Microloans
    2. Term loans
    3. Lines of credit
    4. Equipment loans
    5. Working capital loans
    6. Merchant cash advances
    7. Startup loans without collateral
  2. Lenders—While traditional loan providers—i.e., banks or credit unions—might be the most logical choice, you could also get financial assistance for your business from:
    1. Government institutions (for example, the Small Business Administration)
    2. Private organizations or foundations
    3. Alternative lenders

If you need help identifying loan providers that could meet your requirements, you should access DoNotPay’s Find Online Business Loan Lender product. We can send you a list of recommended lenders in a matter of minutes!

How To Make Sure You Will Obtain a Loan

When going through numerous loans and lenders, you should pay attention to the following:

  • Eligibility criteria
  • Interest rates and fees
  • Repayment terms and other conditions

Getting the best loan for your business and personal needs could be taxing if you do not prepare well for the process. To ensure your loan request is approved, you should:

  1. Gather the required documentation, including:
    1. Profit and loss statements
    2. Balance statements
    3. Cash-flow statements
    4. Personal and business credit scores
  2. Prepare a loan request letter—Register with DoNotPay to get an airtight loan request letter and grab any lender’s attention

Get the Necessary Funding With DoNotPay’s Help

To get a compelling loan request letter, access DoNotPay and take these steps:

  1. Open the Business Loan Request Letter feature
  2. Provide the information about your business
  3. Enter the amount of money you need to borrow
  4. Upload the previously collected documentation

Get Down to Business With DoNotPay

If your to-do list is getting longer by the day, we offer numerous solutions. You can focus on growing your business while we handle the endless administrative tasks.

Here are some of DoNotPay’s products and services that will assist your company tremendously:

DoNotPay FeatureOur App Will
Trademark Registration
  • Complete your company name, logo, or slogan registration application
  • Submit the application in your stead
Trademark Protection
  • Perform monthly checks
  • Notify you in case there is any trademark infringement
  • Help you file cease and desist letters
EIN Registration
  • Fill out and file your Employer Identification Number (EIN) application
  • Notify you of your new EIN
Register a DMCA Agent
  • Complete the DMCA agent registration process
  • Register the designated agent with the U.S. Copyright Office

There Is Even More We Can Do for You

Navigating the business world can be overwhelming. If your paperwork is piling up and disputes keep emerging, start using our app and declutter your workday from numerous chores.

The world’s first robot lawyer can help you deal with the following:

  • Breach of contract
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  • Self-certification with the Privacy Shield program

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