1. Home
  2. Guides
  3. How much should a small business spend on marketing?

Guide

How much should a small business spend on marketing?

There's no single right number. A useful way to decide is to work backwards from what a new customer is worth and how many you need, then spend on the channels that bring them in at a cost you can afford.

Work it out from your numbers

  1. Average job or customer value: what a typical new customer spends, including repeat work.
  2. Your margin: how much of that you keep.
  3. What you can afford per new customer: a share of that margin.
  4. How many new customers you want each month.

Multiply what you can afford per customer by how many you want, and you have a monthly budget to test.

Where the money usually goes first

  • A website that converts: a one-off cost that every other channel depends on
  • Your Google Business Profile: free, but needs time
  • Local SEO: monthly, builds over months
  • Google Ads: fast, but stops when you stop paying

Track and adjust

Ask every new customer how they found you, track calls and forms, and move money towards what works. See how to tell which marketing is working.

Start-ups and businesses entering a new area usually need to spend more at first to get known. See free advertising ideas if budget is tight.

Want this done for you? See our websites and SEO for local businesses, or get a free audit.

Find out where you rank today.

Send your website and the suburbs you service. You get a free video audit within two business days.

Get my free audit