A new study involving start-ups and small-medium enterprises (SMEs) in the United States reveals that a number of them operate sans a marketing plan.
The survey, which covers 350 SME owners, shows that in 2019 alone, 50 per cent of businesses has been launched without a marketing plan.
Outbound Engine, the research instigator, asks SME owners various questions related to their business operations. Salient questions include topics like expanding their revenue, the stress of running a start-up or growing company, hindrances to their business goals, cost-efficient marketing strategies, and the like.
Below are highlights from the study:
Factors Affecting SMEs in 2019
Small business owners cite a number of reasons why they hardly have time to create a marketing plan. And the reasons they cannot plan out their marketing campaigns properly are as follows:
(1) they’re stressed
(2) they’re overwhelmed
(3) limited budgets
(4) not enough time
62 per cent of small business owners is equally or extremely stressed about their business in 2019 than in 2018. Well, supposing survey responses were clear and indisputable indicators.
In effect, their marketing efforts are falling to the wayside, the study finds:
25 per cent of survey respondents has no clear idea or strategies when it comes to growing their businesses in 2019.
86 per cent of respondents prefer to work on other business endeavours than focus all their energies on marketing.
Each week, more than 58 per cent of small business owners spend five hours or less on marketing.
55 per cent of small business owners allocates less than 5 per cent of their yearly earnings to marketing efforts.
Little Efforts Make a Big Difference
It is better for those who are stressed out over the thought of investing time, effort and resources into marketing campaigns to take these next statistics seriously.
According to the study, small business owners need not spend all of their time or resources just to get an impressive ROI.
In 2018, even little marketing investments drove revenue growth for many small and medium enterprises than those who didn’t even bother to invest in marketing.
Data reveals that time investment – even as little as 5 per cent or less - can help boost revenue.
81 per cent of survey respondents who allocated 5 to 10 per cent of their yearly income to marketing efforts claimed they did experience revenue increases last year.
However, only 50 per cent of survey respondents who allocated below 5 per cent of annual earnings to marketing efforts experienced revenue increases.