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If you have been keeping up, you'd know it has been getting tougher for business owners to obtain adequate capital to finance important aspects like digital marketing for the business. Only half of SMEs were even eligible for financing last year.

Although reports show that there has been some improvement in SMEs' access to necessary capital to finance their business in 2018, there is little to low improvement amongst the number of SMEs who remain ineligible for financing. Poor cash flow and low annual revenue stall their opportunities.

In 2018, half of SMEs declared an annual revenue of less than $300,000 and less than $10,000 average cash balances. There is little improvement from the 52% of SMEs who declared the same amount of revenue in 2017.
(Singapore Business Review, 2019)

Here's our summary on the critical situation that SMEs face in today's market:

Digital advertising/marketing spend is up.

More people are fighting for the same users.

Online ventures gets more expensive.

SMEs have to pass up on many new and promising opportunities due to limited resources, hence starving their core business with time while compeitors stride ahead and make new breakthroughs in the market.

Like a vicious cycle, the lack of cash flow and low annual sales volume lead to automatic disqualification for the small business loan applicants who needs marketing funding to turn their business around.

Unfortunately, most Singaporean businesses are eventually forced out for their market.

The ones remaining will be global MNCs or investor-backed groups with deep pockets. Though capable of offering what the MNCs are able to in terms of quality of service, without marketing financing our SMEs simply cannot compete. Most small business owners may have the tenacity to outlast and innovate in any challenges but are still rendered helpless without financing schemes.

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How Much To Spend On Marketing In 2020? How Does Your Marketing Budget Measure Up?

Do you know that as advertising growth in APAC continues to be driven by digital formats, digital advertising sales has increased by at least 16 per cent in 2019 to reach USD90 billion, representing 49 per cent of total ad sales.
(DigitalMarket Asia)

Across the board, 10 times more marketing budgets are increasing for 2019 than are decreasing. In fact, a full 60% of the marketers who answered in a “2019 Budget Survey” reported that their budgets for 2019 would be higher than in 2018.

So, how much should a company spend on marketing in the next year?

Most companies spend between 7% and 8% of their gross revenue on marketing. Noticeably, the retail industry allocates the highest percentage of total spend to advertising.

  • Retail: 21.9%
  • Automotive: 12.6%
  • Financial services: 12.2%
  • Telecom: 10.7%
  • CPG & consumer products: 8.8%
  • Travel: 8.0%
  • Computing products and consumer electronics: 7.8%
  • Media: 6.1%
  • Entertainment: 5.1%
  • Health and pharma: 2.6%
  • Other: 4.3%

[The CMO Survey]

It’s nearly unanimous among small or large business, to invest more in digital media in order to engage consumers and increase lead conversions. Almost three-quarters of small businesses use social media as part of their digital marketing strategies to spread brand awareness and generate sales leads.

  • Ninety-five percent (95%) of small businesses are committed to spending more on digital marketing in 2019.
  • Nearly two-thirds of small businesses (63%) will increase spending on social media, and 54% will invest more in their business’s website.
    (The Manifest)

Small businesses can increase their profits by evaluating which digital marketing channels have the highest return on investment (ROI). 

On average, it is recommended that you should allocate as much as 8% of your annual revenue toward marketing.

Also, a survey showed that most Singapore companies are not using enough of their marketing fund on digital marketing and it is one of the reasons why their digital marketing efforts are not bearing fruit.

2020 will be ever more competitive and the appropriate allocation and usage of digital marketing funds in this all-digital business landscape can make or break a business, especially a young budding one. Some of the top and forward-thinking companies in Singapore are prospering abundantly from investing heavily and well in the digital marketing aspects that optimises sales for their business.

 

How We Can Help You Get 15K Upfront Marketing Funding While helping You Grow Your Business

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 iFoundries x Jenfi

With more than 14 years of experience in the digital industry, iFoundries specializes in helping businesses like yours devise results-driven website and digital marketing strategies.

We have recently collaborated with local Fintech company Jenfi to offer up to SGD25,000 marketing funds upfront for companies registered in Singapore (except for sole proprietorship).

We want to help our clients grow their business and see results without them worrying about marketing budget. We believe that every business should have an equal opportunity and standing to win in their business just like any MNC, with the right capabitilies.

We want to help, and we can.

Who is Jenfi?
Jenfi is a local Fintech company that offers business loan alternatives to SMEs who are Singapore private limited companies or a private limited partnership. They are a specialised financing company that is dedicated to marketing and growth captial, helping companies grow their business without the loan application hassle and stringency that banks or other financial institution require.

How it works

  • Provide us with information about your business and get a decision in as fast as 24 hours.
  • Grow sales faster with dedicated funds to spend on marketing.
  • Pay back by sharing a small percentage of your weekly revenue. No fixed repayment date.
  • Qualify for additional amounts to accelerate marketing spend and sales growth.

Fund up to 12 months of your marketing expenses today.

Do not be left behind by your competitors who are already investing substantially into digital and accelerate your marketing spend and sales growth today.

Find out full details and how to apply here.