Did you know the idea that an ostrich buries its head in the sand is a myth?
An ostrich flops on the ground when it senses danger. Its lightly colored neck and head blend in with the sand, making it look like its head is stuck in the sand.
Pretty cool trick, huh?
- Sticking your head in the sand when it comes to creating a communication budget is not such a neat trick
- Neither is blending in with the scenery
Part 4 of a 10-part series on creating your business communication plan explores common myths about creating a budget.
Myth #1 – You Don’t Need a Budget
One of the most common mistakes small business owners make is skipping the budgeting step altogether.
- Some just lump it in with expenses
- Others don’t plan communications so why have a budget
One Lump or Two?
Do you look at business communications as just a cost of doing business?
How do you define business communications? Basically, there are two types.
- Internal communications – e.g., emails, memos, training, meetings, intranet
- External communications – e.g., emails, phone calls, face-to-face meetings, marketing campaigns, customer service, social media platforms
If you’re a sole proprietor, your internal communications has you talking to yourself – not necessarily a bad thing.
When you look at the examples of external communications, it’s more than an incidental expense.
- There’s software, technology support, personnel (even if that’s just you)
- Outside vendors and supplies
Not having a budget for communications is like not opening your bills –
You might not know the total spent, but it still exists.
Wouldn’t you rather control your expenditures than have them control you?
Myth #2 – You Have No Money for Communications
One of the things that drives marketing and communications professionals nuts is the notion that what they do is fluff.
It’s the attitude that it’s a nice thing to have, but it’s not essential.
- Small businesses often look at it as a necessary evil
- They do it when they can
- But, they really don’t have the money for it
There are options for a shoestring budget.
1. Social Media
You knew that one was coming.
The 2011 Social Media Marketing Industry Report reports that 67 percent of self-employed and 66 percent of small business owners (2 or more employees) strongly agree social media is important for their business.
- Start with free versions – Most free subscriptions or memberships to social media platforms offer a wealth of options like free networking opportunities or free company pages.
- Create a business blog – You have control over your blog. Make it the center of your social media communications. Drive prospects and clients back to your blog from other platforms like LinkedIn, Twitter or Facebook. You can go the free route, although I recommend you do self-hosting – more control – there’s that word again. The costs are minimal.
- Use video – Most individuals have video cameras or recording devices. There is free or low-cost screencasting software. You can create a free YouTube account for sharing videos. It’s an inexpensive and highly popular means of communication.
2. Share services
Small businesses are all around you.
Explore the idea of sharing services.
For example, if you enjoy writing but hate anything technical, hook up with a techie-type. Exchange your writing skills for some of their technical ones.
- It will never happen if you don’t ask
- The worse that can happen is they say no
- Then go find someone else
3. Write for industry publications
Industry publications are always looking for articles from experts.
That expert is you.
Submitting articles to the publications you and your customers read have many advantages.
- It establishes you as an industry expert
- It increases the visibility of your business
- It generates leads
Two years after writing an article for a health care magazine, I still receive queries from prospects who read my article.
Not a writer? That leads to the next tip.
4. Outsource
I know, I know – it’s a luxury you cannot afford.
Consider the following.
- List all the time-consuming tasks you hate to do
- Include what you don’t do particularly well
- Estimate the time you spend doing those tasks
If you have no idea how much time you spend, track it for a few weeks or a month.
Outsource what takes away from your productivity.
If it still scares you, start small.
- Pick one time-consuming task
- Consider freelancers
- Ask other business owners and colleagues for referrals
There are plenty of talented, new businesses looking for work. And it won’t cost you an arm and a leg.
Myth #3 – Your Communications Don’t Cost Anything
While the prior tips focus on free platforms and help, your time is your most precious commodity.
By establishing a budget, you determine what communications give you the biggest bang for your buck.
There’s a reason those ideas are clichés. They’re true.
Getting Started
This series primarily targets the sole proprietor or small business owner.
Budgets are important for the success of our businesses.
- They raise our awareness on where and how we spend our money
- They offer a benchmark for the future so we improve our results
There are all kinds of formulas and suggestions for allocating your budget.
At a minimum, look at last year’s tax return. What did you deduct for Marketing & Advertising? Then take a hard look at your results.
Start small – but, get started.
This post shares resources for small businesses, including forms and templates.
In the next post of the series, we’ll look at different communication vehicles.
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This is Part 4 in a 10-part series for developing a business communication plan. I would love to have your feedback. Please share those in Comments.
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Prior Posts in Series
Part 1 – Does Your Vision Statement Reflect Your Dream?
Part 2 – Learn From Lieutenant Colombo to I.D. Your Killer Client
Part 3 – Why Blind Hog Business Communication Objectives Don’t Work
Follow-up Posts in Series
Part 5 – Are Your Business Communication Vehicles Driving You?
Part 6 – A Control Freak Guide to Business Communication Roles & Responsibilities
Part 7 – Does Your Message Stink From the Headline Down?
Part 8 – 3 Chopped Lessons for Your Business Communication Timeline
Part 9 – Is Your Hamster Wheel Business Communication Getting You Nowhere?
Part 10 – Do You Have Your Business Communication on Autopilot?
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Helping you Keep it simple, clear & uniquely yours – contact me for help with your business writing needs.
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Well done. I admit that I do not have a formal budget. But I do keep track every now and then of what is being spent and revisiting whether it is all optimal. I have found that placing a limit on spending in variable areas can help, but I rarely approach the limits that I set (because I am a cheapo when it comes to spending).
Hi David: Thanks for stopping by. You definitely are not alone in not having a budget. As a writer, I cannot tell you how many times I ask a client what their budget is for a project or their marketing and they have none.
If you are at least tracking it, you’re one step up on a lot of people. As a sole proprietor myself, I totally relate to cheapo. 🙂 But, since my time and hard-earned $ are so precious, it’s good to know I am getting the best bang for my buck.
Thanks again for stopping by, David.
Unavoidable reality for sure Cathy!
All too often ignored or brushed under the carpet (or indeed – head in sand!)
Just about every business has to deal with this area. You’ve broken it down extremely well though.
I just submitted it to BizSugar.
Cheers!
Well, how sweet, Jym. 😀 I’m glad you liked it. I know I still have to occasionally spit the sand out of my mouth. 😉
Thanks for stopping by and sharing your comments (and my post). I do appreciate it.
Hi Cathy, Great breakdown…too few entrepreneurs forget about setting a budget when they are not forced to… like you would in the confines of a large organization.
I especially like the idea of trading services….in fact, I’m toying with that idea myself right now. I’d love to supplement my content creation and/or backlinking in exchange for some blog mgmt (technie and finance) type activities…
Thanks, Geoff Good luck with the trading of services. I like the idea of you scratch my back, I’ll scratch yours. Hope it works out for you-sure is a big $ saver.
How can you run a biz without a budget? Seriously? I know EXACTLY how much I spend each month on communications. Maybe I am just the exception to the rule?
Being techie/management/accountant types, we have budgets for everything. And, KPI for each group. If one blows the budget (not usually a problem with communications and marketing), but the KPI are met or exceeded, you can usually get a little more. Don’t even consider it, if it’s the opposite.
Hi Martha: I suspect there is more than one without a budget or who track it. They are just trying to get their business off the ground that they become overwhelmed by the whole prospect.
For many, it’s one of the biggest adjustments for someone transitioning from being an employee to being your own boss. Unless you’re a “techie/management/accountant type.” 😉
Hey Roy – Let’s hear it for you “techie/management/accountant types.” 🙂 Communications should have their own Key Performance Indicators as well or how do you know if you’re hitting the mark?
When you can combine the dollar & cents practical side with the creative side, it’s magic. 🙂
Thanks for sharing your thoughts, Roy.
Thanks for posting Cathy.
To me, the communications plan is the output of the brand strategy. You have to know what to communicate (and why). Too many companies jump into communications (we need a website, we need print ads), without first having developed a clear and strong brand message/platform.
Once you have a brand plan, then you can figure out the optimal ways to communicate the message (given whatever resources you have available).
Thanks again – best wishes.
Dale M.
Hi Dale:I couldn’t agree with you more – hence, the communications plan 🙂 The next part of the series will touch on the what and why of communications.
I also agree a brand is so important. If you don’t know what your identity or message is, how can you expect customers to?
Thanks for sharing your perspective, Dale.
Great post, Cathy! More than having a great list of products and services, it is the ability of the entrepreneur to reach the right people that can make their business venture a success or failure. It’s great that you mentioned different communication tools that we can all use regardless on how big or small our budget is. Sometimes, I find it quite surprising that despite so many tools available that you can use for free, there are still lots that blame their inability to reach out is because of a lack of budget.
Hi Adeline: Thanks for stopping by and sharing your comments. There is so much we can do now with communications and its has been shown time and time again that even the smallest of businesses can thrive.
Love this Cathy… right on!
Why, thanks, Anne. I take that as a great compliment coming from you. 🙂
Perfect. Just perfect. Thanks, Cathy. You’ve made sense of WHY budgets have to include communication. Ridiculous to think a person could run a business without paying to promote it!
Thanks, Lori. Flying by the seat of your pants is an approach that could prove – well, embarrassing. 😉
Appreciate you stopping by.
I happened upon this article during a Google search for “business communications.” Glad I found it, because this series is exactly what I’ve been needing.
I’m a freelance writer in the personal/career development arena. But I want to get more into career coaching. I know that means I have to revamp my external communications. Thanks for the tips!
Glad you found it helpful, Nikki. Thanks for stopping by.