Budgeting for beginners.

• Author: Seaward, Elaine

Any marketing professional who has ever undertaken the massive endeavor of building a marketing budget knows that it is time well spent. Much like a strategic or marketing plan, a budget lists the objectives and goals of what the firm plans to accomplish, set out in numbers. The budget should be a tool that reflects the firm's strategic plans, and the marketing budget should showcase your business development goals.

Lawyers, analytical and detail-oriented, are always interested in seeing where their money is going. Having a detailed plan will provide answers for the firm's management and other shareholders throughout the year. Further, it provides a checklist when an attorney wants to undertake an activity that does not fall within the firm's strategic marketing plans.

The thought of preparing a budget can be overwhelming to someone who has not done this before, but the process is actually very manageable. Preparing a budget from a practical standpoint is about two things: getting organized and determining what numbers to use.

Start with a working knowledge of Excel/Lotus spreadsheets, and meet with your firm's CFO or administrator to learn whether the firm has guidelines or a template for budgeting. Designing your spreadsheet properly with assumptions, multiple worksheets, summary sheets and linked data can save you hours down the road, and can assist with the organization and presentation of your budget.

Next, you should endeavor to match your budget to the firm's general ledger accounts so that your marketing budget can be entered into the firm's financial system and tracked easily (budget vs. actual) as expenditures occur. If you're new to the position, consult with your CFO or administrator and ask to review the firm's chart of accounts that pertain to marketing.

Lastly, meet with the appropriate individuals to get a sense of the firm's plans for the upcoming year. These include growth, attrition and any other special strategies or decisions that will affect your budget. Is your firm opening a new office? Hiring associates or lateral partners? Rebranding the firm's marketing materials or Web site? Will there be budget cuts that will impact marketing? These are just a sample of the types of questions you should cover to assess the firm's plans before you can budget for the many activities that fall under the marketing umbrella.

Organize Your Data

Organize the marketing budget first in broad categories, which may include business...