We are roaring into 2024, and it has been anything but dull. In order to keep your client books full, you must continue to devote money to your marketing efforts. How much should your practice spend on it’s marketing budgets to keep front and center of current and future clients? 

Small Business, Big Numbers

First, let’s look at what small businesses across various industries do across America. The U.S. Small Business Administration (SBA) recommends “small businesses with revenues less than $5 million should allocate 7-8 percent of their revenues to marketing.” For a $1million / year business, that’s $70,000 annually on marketing. For a $5million small business, that’s a $350,000 recommended annual spend.

For veterinary practices, things look a little different. What percentage do most veterinary hospitals do for their marketing? If you do a quick Google search, you’ll find many well-known companies in the industry are reporting that hospitals are spending anywhere from .5% to 5% on their marketing budgets.

Using this range, here’s where you should expect to fall for your marketing budget:

• If your revenue is $2 million, at a 5% investment, you should be spending $100,000, or $8,333 per month.
• If your revenue is $1 million, at a 5% investment, you should be spending $50,000, or $4,166 per month.
• If your revenue is $750,000 per year, at a 5% investment, you should be spending $37,500 per year, or $3,125 per month.
• If your revenue is $500,000 per year, at a 5% investment, you should be spending $25,000 per year, or $2,083  per month.

Whether at the top or bottom of this percentage range, these marketing budgets are considerably less than what the SBA suggests. It’s important to find your budget sweet spot that allows you to find new clients without putting too much strain on your bottom line. Remember, whatever your revenue, unless you invest in marketing your business, that revenue isn’t likely to grow. This is where working with a professional marketing company can be useful.

How Should Businesses Set Their Marketing Budgets With This Wide Range of Numbers? 

How do you incorporate marketing into your business model? Here are a few tips to help you get started:

• Include  marketing into the yearly budget of the hospital. If you are considering a startup, add additional marketing to the launch plan to get a wider reach with potential clients.
• Realize marketing should generate revenue for your business. Many people in the veterinary practices see it as a cost center and that is it. Marketing’s entire job is to generate revenue and shore up sagging P & L sheets. 
• Research to find the best marketing company to support your practice. Remember—you get what you pay for with marketing. Many marketing companies say marketing is all the same. This is the same as saying a car is a car, right? So, a Toyota Camry is the same as a BMW is the same as a Porsche, etc. There are different price tiers for a reason, and those that charge more are going to be doing more. Spend time finding a marketing company that will actually be looking out for your needs. 

This year, take a look at your marketing budget and figure out a budget that is closer to the SBA recommendations. Marketing matters and, when done consistently, it can keep your bottom line healthy and growing throughout the year.  Beyond Indigo Pets is here to help you make the most of your marketing budget to get the results you want. To learn more, please fill out this form or call (877) 244-9322.