Marketing budget for small businesses: how much to spend and where to start
“How much should we spend on marketing?” has no universal answer, and percentages of revenue copied from large companies rarely fit. A better starting point is what a customer is worth to you and what you can afford to pay to win one. From there, the budget follows almost by itself.
Start with customer value
Calculate what an average customer brings in gross profit over a realistic period, for example the first year. A café guest who comes twice a month with an average bill of €9 and a 65% margin brings about €140 a year. A B2B customer with a €6,000 project and 40% margin brings €2,400. These numbers set the limit for acquisition costs.
Calculate the acceptable acquisition cost
Decide what share of the customer value you are willing to spend to win a customer, often a quarter to a third. Then work backwards: with known conversion rates, you can estimate how many enquiries and visitors you need and what they may cost.
Split the budget
A practical split for small businesses:
- Fixed basics: website, hosting, Google Business Profile, CRM and email tool.
- Proven channels: the ads, platforms or events that already bring customers.
- A test budget of around 10–20% for one new channel at a time.
- Time: content and posts cost hours, which also have a price.
Channels by stage
A new business first needs visibility where demand already exists: the Google profile, a clear website and search ads for urgent needs. Established businesses add retention: newsletters, referral programmes and offers for regulars. Brand campaigns come last, when the basics work.
Review monthly
Compare the cost per enquiry and per customer for each channel once a month, and move money from weak channels to strong ones. This only works if every enquiry records its source. We connect ads, website and CRM so the numbers are available without manual work; tell us your channels, and you will receive a fixed price.
Frequently asked questions
- Is there a rule of thumb for the marketing budget?
- Percentages of revenue are often quoted, but they ignore margins and customer value. Calculate from what a customer is worth and what you may pay to win one.
- What if we have almost no budget?
- Invest time first: a maintained Google profile, reviews, a clear website and asking for referrals cost little money.
- How long should a test run?
- Long enough for meaningful numbers, usually four to eight weeks, with a fixed budget and a clear goal.
Tell us your average order value, margin and current channels. We will help you calculate the budget and connect the numbers.
Calculate the budget