A short advisory video by Mike Andes that explains a simple method to forecast next year’s revenue growth and estimate the marketing budget: multiply expected new customers by the annual value per customer to get revenue growth, and multiply desired new customers by customer acquisition cost to get the marketing budget.
Here's a really fast way to determine how fast your business is going to grow next year, as well as what your marketing budget needs to be to see that growth. First and foremost, the number of new clients that you're going to get next year. Multiply that by the annual value of that customer is going to be how much dollars in revenue you're going to grow next year. Also, if you know that number of new clients that you want to get next year, and you also know the customer acquisition cost of how much you're going to have to spend in marketing to get one customer, then that's going to be your marketing budget for the coming year.
