One of the most common questions small and medium-sized business (SMB) owners ask is: “How much should I spend on marketing?”
Investing in marketing is essential for growth, but determining the right budget can be tricky. You want to spend enough to see results, but not so much that it stretches your finances too thin. Let’s break it down.
General Guidelines for SMB Marketing Budgets
Industry experts often recommend SMBs allocate a percentage of their gross revenue to marketing. A general benchmark is:
✅ 5% to 10% of total revenue for established businesses
✅ 10% to 20% of total revenue for startups or companies looking for aggressive growth
These percentages vary based on your industry, goals, and competition. If you’re in a highly competitive market, a larger budget may be necessary to stand out.
📢 Not sure what percentage is right for your business? Let’s chat!
Marketing Budget by Industry
Not all businesses require the same marketing budget. Some industries require higher marketing investments to compete effectively. Here’s a general breakdown:
- Retail & eCommerce: 10-15% of revenue
- B2B Services: 5-10% of revenue
- Healthcare & Professional Services: 7-12% of revenue
- Restaurants & Hospitality: 10-15% of revenue
If you’re unsure where your business fits, start small and scale up as you see results.
How Startups & New Businesses Should Approach Marketing
If you’re just starting out and don’t have an established revenue stream, you may need to allocate a fixed budget instead of a percentage of revenue. Many startups find that $1,000+ per month is a good starting point to build brand awareness and generate leads.
The key? Be strategic. Prioritize marketing channels with a high return on investment (ROI), like:
- Search engine optimization (SEO)
- Email and SMS marketing
- Google & social media advertising
- Reputation management (customer reviews)
How to Make the Most of Your Marketing Budget
💡 Set Clear Goals – Know whether you’re focusing on brand awareness, lead generation, or customer retention.
📊 Track Your Results – Measure marketing performance and adjust your strategy based on data.
🎯 Choose the Right Channels – Not every business needs to be on every platform. Pick the marketing tactics that work best for your industry and audience.
📢 Need help stretching your marketing dollars for maximum impact? Let’s strategize together!
Final Thoughts
Marketing is an investment, not an expense—and when done right, it drives revenue and growth. Whether you’re just starting out or scaling up, the key is to spend strategically and track your results.
If you’re unsure where to start, we’re here to help! Let’s talk about a custom marketing plan that fits your budget and goals. Reach out today!