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What should a small business spend on marketing?

3 September 2026 · 5 min read

You'll often see percentage of revenue rules of thumb for marketing budgets. They can be a starting point, but they don't account for your margins, your growth goals or how your customers find you.

Work backwards from the goal

  • How many new customers do you need this year?
  • What is a typical customer worth to you over time?
  • Roughly how many enquiries does it take to win one customer?

That gives you an idea of how many enquiries you need, and what you can sensibly spend to get them.

Separate the fixed and the variable

Some marketing costs are steady (website, content, local search). Others scale (advertising spend). Treat advertising spend as a separate line you can turn up or down based on results.

Budget for time, not just money

Marketing done in bursts rarely works. A modest, consistent effort usually performs better than a large one-off campaign.

Measure what you can

Track where enquiries come from. Even a simple "how did you hear about us?" question on your enquiry form is valuable.

No one can guarantee a particular return from marketing. A sensible budget, a clear plan and honest measurement give you the best chance of spending well.

General information only. It does not take into account your specific circumstances and is not financial, legal or tax advice.

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