Tip#7: When planning your budget, think about your profit.
You are running a business and your website needs to provide value to your business. It’s an investment, just like advertising, and so spending money and time on a website that no one visits is money down the drain!
If your website cost $10,000 and provides no leads or business value, then you have wasted $10,000!
However, if your website cost $60,000 and provides a verified $100,000 value of additional profit the first year, then you have recouped the cost of your initial investment in a matter of months and have a tool that can provide long-term value!
Deciding on how much budget really depends on your specific needs. Think about how much is your business dependant on online customers/sales? How scalable is your business? What is the customer lifetime value of each new customer you gain from an online strategy? How competitive is your industry?
For example, if each new customer is worth $500 of profit and an effective website and marketing strategy can generate 100 new customers a month, then you can work out the maximum you can spend and still be profitable.
If you are running a brick and mortar business, then you might feel your customer base is due to your location/footfall and your website of less importance. You run the risk of underestimating the power of online marketing that can target specific locations or your existing customers.
If you are working with a good website company/freelancer, then they should be able to guide you and provide more details of different levels of investment can return. In the case that you have under-budgeted, they may be able to suggest a simplified approach that utilises your budget effectively. Or they might have to tell you that your budget is insufficient for the purpose - no one benefits from the launch of a website that is destined to fail.