As small firm owners and their teams plan their business budgeting for the next few quarters, they are getting a better idea of how much money they will set aside for marketing, hiring, investment and the many other aspects that go into keeping a company afloat.  Small-business owners that want to increase their sales numbers in 2013 need to look into allocating more money toward processes that increase lead generation and strategies to help potential customers learn about the firm.

Many owners at small firms are approaching the new year with a renewed sense of optimism, or at least an inkling that the economy won’t greatly affect the business. Recent data compiled by Ad-ology Research found more than 92 percent of small-business owners and decision makers expect their revenue to be flat or grow in 2013. Having confidence in the company will give managers the opportunity to invest more in improving the bottom line at the firm by expanding the customer base.

“For the third consecutive year, more than half of all small businesses are confident that their sales will increase,” said C. Lee Smith, president and CEO of Ad-ology Research.

Advertising, marketing spend to increase
According the company’s Small Business Marketing Forecast, nearly 31 percent of SMBs who spend more than $1,000 on advertising are making arrangements to increase that this year. Lead generation strategies such as direct response and email marketing will be the main points of contention for SMBs in 2013. Just under 20 percent of companies that are using email marketing sent out emails 11 times or more in the past year, while approximately 9 percent summoned the members of their mailing list at least 26 times during the same time period.  

“It’s also the third year in a row where more than 90 percent of small businesses say their advertising budget will remain flat or increase,” Smith said.

Mobile, social strategies also popping up
Innovations in technology are giving small-business owners the opportunity to invest in newer, cost-efficient initiatives such as mobile and social media marketing. Roughly 20 percent of small businesses plan to boost their ad spend on social media networks like Facebook, Twitter and LinkedIn.   

“Mobile marketing will be increasingly important to small businesses in 2013,” said Smith. “30.5 percent of SMBs will use mobile advertising, apps or texting as part of their advertising due in part to its ability to geo-target potential customers.”

Social media becoming more popular with small firms
Many small-business owners feel as though they don’t have enough time for social media, causing them to to shy away from investing time and money into such strategies. However, an infographic created in October 2012 by VerticalResponse – an online software provider for small businesses – showed owners at smaller firms are warming up to social sites. Sixty-six percent of small businesses are spending more time on social media, compared to the previous year, with 43 percent setting aside more than 6 hours per week. One-quarter of respondents peruse the social sites between six and 10 hours on a weekly basis.

The two main social media sites, Facebook and Twitter, are leading the way for SMBs. The infographic revealed 90 percent of small enterprises are on Facebook and almost 70 percent have a Twitter handle. Participating on social media sites is half the battle, and firm owners are getting the hang of it. Fifteen percent of respondents post to Facebook numerous times per day, while 21 percent of Twitter users said the same.

 

 

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