BSK: Spend
By this point, assuming you've been following each card in order, you're probably thinking. All these Values and Goals and all this stuff about Positioning and Story stuff is nice, but... How much is it going to cost me?
The cop-out answer here is that it depends on so many things, and the purpose of this post is to explain why Spend management is essential and how to approach it for your branding and marketing.
Whether it's a piece of content, a campaign, a rebrand, a new brand, hiring videographers, or paying for ads. It all costs money.
Having a number to work towards is important for the most obvious reason - no one has infinite money, so you need to budget and plan your Spend so you don't go broke.
But there is another crucial reason to set a number for your Spend, and it's all to do with those of you working on your own, the rebels, the
'solopreneurs'.
I'm going to call it the 'Anti-Black Hole' Policy. Let's go over some facts.
When I talk to new business starters and ask questions like - what's your budget? How much are you willing to spend?
The typical answer is a cross between - I don't know and a complete hesitation to talk about money.
Going back to the fact that everything will cost money and if we know the number, the job is more straightforward to arrange. Not having a number to work with also speaks to a deeper problem related to your exit plan.
A big mistake I see many people make is not setting a clear "point of exit," meaning they don’t know how or when to objectively assess their project because they haven’t defined what they are aiming for - they don't have a number to work towards.
This is dangerous because not only does it become depressing to spend money and not know where it's gone, but it can also put your life savings - your backup plan - at risk.
The risk of not having a number is that countless amounts of your money go into a mysterious black hole with no clue what happened and no way of getting it back.
This principle touches on how you approach your Goals and your overall strategy.
Starting a business is very personal, and it can be hard to know what to do next when you get close to things. Setting clear Goals and Spending limits helps manage this problem.
So, it comes back to the key question: How much will you spend on this project? How much are you going to spend to achieve your goals?
Some extra information to keep in mind is the costs you have in marketing.
1. Management/Admin Spend
An agency, producer, consultant, coach, advisor, or contractor will take this as payment.
2. Creative Spend
Whether it's on making content, copy, videos, event banners, etc. This is money spent on making assets you will use in your content marketing, paid ads, events, or branding.
3. Ad spend
These are funds paid to Facebook, LinkedIn, Google, newspapers, TV stations, influencers, and podcasts to boost your exposure to new audiences and advertise your business. Your assets can be boosted, and you may also need to create bespoke assets specifically for an advertising campaign.
Knowing how much you plan to spend helps you determine what you can afford for each type of Spend. When it all aligns with the different spend parts of your business, you have a more complete view of what your marketing and brand strategy is costing you.
That's it for Spend; see you on the next one (Mode Selection).
Last Updated: 29/Dec/2023