As the year draws to a close, it is time to begin to think about what your business would like to achieve in the new year.
Before the festivities kick in, have a budget planning session which will enable you identify business objectives and a budget that will drive those objectives. Finalising a plan and setting aside a public relations (PR) budget now means that you will immediately hit the ground running after the holidays.
These are five tips to help you develop a PR budget for the new year.
Based on objectives and tasks to be achieved in the new year
This is the ideal way to develop a PR budget. It is based on strategic planning such that objectives are set, a strategy is identified, and each activity is budgeted for. However, it is noteworthy that one can never fully anticipate everything that will happen in the business terrain in every given year. Nonetheless, the margin of error is slim, and this method reduces wastes associated with over-budgeting or inefficiencies that could result from under-budgeting are avoided.
A percentage of projected revenue
This is a simple approach to budgeting that treats the PR budget as a cost of sale alongside other expenses. The disadvantage is that it could lead to over-budgeting could result in wastage or under-budgeting and that might cause inefficiencies.
An incremental percentage of the current year’s PR budget
This approach is also advantageous for its simplicity. It could be adopted by established businesses that have operated for several years and as such, have historical data to rely upon. It is important to note that this method might not be the most appropriate in a market like Nigeria where economic indices such as inflation or exchange rates are unstable and unpredictable.
By matching your main competitor
For a business that is new to PR, this method serves as a guide as to what would be a sufficient PR budget to achieve results. The disadvantage, however, is that if your main competitor is wasteful, your organisation runs the risk of being wasteful too.
What you can afford
This is a realistic approach. Let’s face it, if your business is a start-up that is trying to make ends meet, you will likely frown on the idea of matching your main competitor if they have a deep pocket. So the realistic thing would be to work with what you have.
Whichever approach you choose to adopt, what is more important is that you set aside a PR budget because as Winston Churchill said: “He who fails to plan is planning to fail.” And if you’re wondering why you need a PR budget because PR should be “free,” here are twelve reasons why you do.
You may also apply any of the techniques to budgeting for the entire business. And if you need the help of a public relations firm, we’d be happy to be of service. Leave us a note on the contact page and we will get back to you.
