A new study focusing on small businesses in the US reveals that a huge number of small brands are working without any sort of plan for their marketing.
The survey from Outbound Engine asked 350 small and medium business (SMB) owners about a number of areas, including revenue growth, stress, their biggest hurdles, their marketing strategies, and more.
Of the business owners surveyed, approximately half of all SMB owners do not have a marketing plan for 2019 and are unlikely to create one.
Small Business Marketing Struggles
The lack of marketing plans in the survey is largely attributed to an increase in small businesses being overwhelmed or working with limited budgets.
According to the report, 62% of SMB owners say they are as or more stressed about their business this year compared to last.
Further, the study finds that:
- 25% of SMB owners surveyed are unsure of how they plan to grow their business in 2019.
- More than half (55%) of SMB owners spend less than 5% of annual revenue on marketing.
- More than 58% of SMB owners spend five or fewer hours on marketing each week.
- 86% of respondents say they prefer to spend their time on other business activities rather than marketing.
Small Changes Lead to Big Rewards
While the study shows that many businesses feel lost or unable to focus on their marketing, it also reveals that investing just a little more time or money can pay dividends and reduce business stress.
According to responses about last year performance, small increases in marketing investment led to more revenue growth for SMBs in 2018. Additionally, spending just 5% more time on marketing was tied to increased revenue growth.
This is reflected in the finding that 81% of respondents who invested between 5% and 10% of annual revenue into their marketing reported revenue growth in 2018. Meanwhile, only 50% of respondents who invested less than 5% of revenue into marketing saw growth.