When determining an ad budget, reviewing
financial statements is key. They provide insights into available cash flow, profit margins, and historical marketing ROI. This helps ensure that the budget aligns with the company’s financial health and strategic goals. I usually allocate a percentage of revenue, commonly 5–10%, based on these figures. It’s essential to strike a balance between spending enough to grow and staying within financial limits.
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Hello, I'm Emily Carter at RahaFinancial.
Financial statements are formal records of a business’s financial activities and position. They include the balance sheet, income statement, and cash flow statement.