When we have to develop a digital marketing plan we come to the head of social media strategies, the usability of the web or the type of audience we are going to address, but very few think of the financial plan, great headache for the majority!
Although there are multiple applications, tools and platforms that can help you carry a routine, or professionals who take care of other companies’ finances, with this blog I want to show you is not always as difficult as it seems and with a little patience, you can carry your own digital marketing financial plan.
Online Marketing Financial Plan
The first thing we need to know is what information will be provided by the digital marketing financial plan. This section was not invented by a man who was bored and wanted to annoy all those who were part of a business, on the contrary, he intended that before undertaking a business or a restructuring of the company we should remember how far we could come up with the cash of the company.
When you want to do some remodeling at home you call a professional and ask him for a quote, right? This budget includes the materials needed to carry out the work, the cost of labor that will be needed and other extra expenses that may be incurred. As a marketing plan is the same, to carry it out you will have to elaborate a detailed budget that reflects all the expenses in which you will incur so that the result is the expected one. The use of billing software, will allow you to group expenses and revenues by categories and projects, so that you can see the evolution of each of them in a detailed way in a future balance sheet.
Let’s go in parts:
Mark the goals you want to achieve: % annual profit, desired annual sales, etc.
Make a budget of all the expenses that come from actions or strategies online: purchase of measurement tools, adwords campaigns, payment of tools of promotion in social networks, etc.
Make a “guess” of the results you expect to obtain: increase in the number of customers, number of sales planned, etc.
These two premises are the key to prospecting our plan’s profit and loss account. For this, we should keep in mind the following accounts to know the financial situation of our company:
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Statement Of Results
This is the financial statement that clearly shows what you spend the money on and what products and services you enter the income. The objective is to be able to compare the evolution of income and expenses over a certain period of time, thus detecting where to cut or increase cash.
Statement of income
Balance Of Situation
It is the statement of financial position or, more simply said, is a financial report that shows the situation of the company at a given time.
To realize this state it is important that you take into account all your assets, that is, everything that is yours (furniture, buildings, existence, etc.) and your liabilities, everything you owe to third parties (bank debts, etc.). In addition, in this section you will find your net worth, which is nothing more than the total value of the business once you deduct all your debts.
With all these well-structured data we have everything we need to establish:
Threshold of profitability: with which we measure the volume of sales from which the company will start to obtain losses or profits.
ROI Approximation: shows the return on investment made.
These ratios will help us to evaluate the scope of the objectives that were proposed in the beginning of the online marketing plan.
If you are interested in delving deeper into this kind of concepts, I leave you the first chapter of a highly recommended book: Little Capitalist Pig. If you like it as much as I do, does not hesitate to visit the blog of its author.
As you can see there is nothing that can be done in 5 minutes, a financial plan requires time and patience and, like everything, at the beginning is quite cumbersome but as soon as you take the dynamics is another routine of your business. And no one better than yourself to see what’s wrong and what can get better!
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