Your startup will look like a beautiful bonfire for a few days.
You will feel very happy making “marshmallows and smokes.”
Then… as the wood consumes, it WILL stop burning!
The faster you add wood to the fire, the faster it will burn!
The same thing will happen to any startup that relies on marketing money to achieve sales!
The scarce resource on the bonfire is WOOD!
How much “wood” do you have? Limited amounts!
To answer the question; how much should you spend on marketing?
I repeat… you should spend ZERO money on marketing if you intend to survive!
“But… but… then how will I sell?”
- THAT’S YOUR JOB!
- THAT’S what you should be focused on!
Marketing is like a bonfire, you need to feed it to keep it alive. If your startup relies on marketing dollars to achieve sales, you don’t have a good business model!
(Yes, this could be solved with an efficient sales funnel, but as a startup you will most likely run out of cash BEFORE you get your sales funnel right.)
Startups need to focus their limited CASH to deliver their promises and to survive, not sales efforts! Making the best use of this resource is the MOST important job you have as an entrepreneur.
“Burning” marketing dollars should NOT be it.