One of the first questions business owners ask is how much they should spend on marketing. The honest answer is that it depends on your industry, your goals, how established you are, and how much growth you want. What you can do is use a clear method to arrive at a figure that makes sense for you.

Start with your goals

Decide what you want marketing to achieve in the next year, such as a number of new customers, a new service launched, or a new area entered. Goals turn marketing from an expense into an investment you can measure.

Common ways to set a budget

  • A percentage of revenue. Many guides suggest setting aside a share of revenue, and the right share varies by industry and stage. A new or fast growing business often invests more than an established one.
  • Based on goals. Work out how many customers you need, how many enquiries that takes, and what it costs to generate them.
  • Based on what you can afford to test. If you are unsure, start with a modest amount, track results carefully, and increase what works.

What to include

  • Foundations. Your brand identity and website, which support everything else.
  • Visibility. SEO, your Google Business Profile, and listings.
  • Content. Social media, photography, video, and blogging.
  • Paid advertising. Google or social ads, remembering that ad spend is separate from the fee to manage it.
  • Tools and software. Email platforms, scheduling tools, and analytics.
  • Support. A freelancer, a partner, or team time.

Spend where it will work

If you have little budget, invest first in the basics that cost relatively little and last: a clear website, a complete Google profile, and a steady flow of reviews. Add paid channels once the foundations are working, so you are not paying to send people to a weak page. Our comparison of Google Ads and SEO can help you decide where to put the next dollar.

Track what you spend and what you get

Record where each enquiry comes from, such as search, social media, referrals, or ads, and compare that to what you spent. Without tracking, you cannot tell what is worth repeating. Review the results every few months and move money toward what performs.

Avoid common mistakes

  • Spreading a small budget across too many channels.
  • Stopping marketing when business is busy, then scrambling when it slows.
  • Expecting instant returns from channels that take months to build.
  • Choosing a provider only on price. Our guide to hiring a digital marketing partner covers what to ask.

If you would like a realistic budget for your business, book a free consultation and we will talk through what makes sense.