How to set a small business marketing budget in 2024

Introduction – Small business marketing budget

Let’s address the elephant in the room. You need to invest in your business. Where I meet many service providers, coaches, consultants, and personal brands is at the stage where they have a brand identity, a website, and an offer that sells. But the investment they have made in getting this all set up hasn’t resulted in a return on investment from their marketing efforts. In fact, 65% of small businesses struggle to generate leads or see significant ROI from their marketing.

Often this is because they have done a bit of this and a bit of that, and perhaps worked with different providers. But there is a disconnect, and something is not working. 

 

This is usually because, while a web designer plays an important role, they are not necessarily marketers, and there is no strategy or foundation behind the website that has been created. For you as the business owner, this is incredibly frustrating because you don’t know what you don’t know—until you do!

 

In this blog my aim is to help you understand the need for setting aside a budget for your marketing each year. Why you need to invest back into your business with the right professional support, and how to go about finding the right support. Also what a typical marketing budget would be for a small business in 2024.

The Importance of a Marketing Budget For Small Businesses

One of the biggest mistakes small business owners make is assuming they can rely solely on word-of-mouth, organic growth, or free marketing tactics. 

While these methods can bring in some clients, they are often not enough to achieve sustainable growth. Without a dedicated marketing budget, your efforts are likely to be inconsistent and less effective. A well-planned marketing budget allows you to strategically allocate resources towards activities that drive results, such as paid advertising, content creation, or professional marketing services. It ensures you have the tools and strategies in place to reach your target audience and stand out in a crowded market.

As a business owner I relied on word of mouth for too many years. At one extreme I was so stacked out with work for one client, they were dominating my time and resources. In another case my jobs had run dry because I hadn’t been networking or keeping up with building relationships. This leads to a feast or famine type scenario which is stressful.

So ensuring you have a plan of action to be consistently marketing your business so those desolate months don’t mount up, but rather your marketing efforts compound into a steady stream of work is key.

Once their initial set up is done, I see many small businesses and startups not seeing the importance of finding a marketing model that works for them and seeking to invest in that and the right professional support.

As a business owner myself, there is only so much you can do on your own. At some point you need to bring in outside help to fill in the gaps of the areas that you are not specialist at. Yes, as smallYes as small businesses we have to wear a lot of hats at times, but there are certain hats that really should be worn on someone else.  

What is the Average Marketing Budget for a Small Business?

When it comes to setting a marketing budget, many small business owners wonder what the “right” amount is. While there’s no one-size-fits-all answer, a common guideline is to allocate between 5% to 10% of your gross revenue to marketing efforts. This percentage can vary depending on the stage of your business, industry, and growth objectives.

For example, if your annual revenue is £100,000, a 7% marketing budget would mean investing £7,000 in marketing activities over the year. Startups or businesses in highly competitive markets may need to spend closer to 10% (or even more) to build brand awareness and gain market share. Conversely, more established businesses with strong brand recognition might get away with spending less.

It’s important to remember that this budget should be seen as an investment rather than an expense. Properly allocated, your marketing budget can drive growth, increase revenue, and deliver a strong return on investment over time. By understanding your business’s unique needs and working with a professional marketer, you can ensure that every dollar spent on marketing is working hard to bring in leads and build your business.

Type of Marketing Budget	Description
Startup Marketing Budget	For startups, establishing a well-defined marketing budget is crucial to gaining traction in a competitive market. A startup marketing budget allows you to strategically allocate resources towards building brand awareness, generating leads, and acquiring your first customers. Without a solid marketing plan backed by a realistic budget, even the most innovative products or services can struggle to find their audience. Investing in marketing early on helps startups create a strong foundation for growth, ensuring that they reach the right people with the right message, and begin scaling their operations effectively.
Small Business Marketing Budget	A small business marketing budget is essential for sustained growth and long-term success. Even with limited resources, having a dedicated budget ensures that you can consistently promote your services, attract new clients, and retain existing ones. A well-planned marketing budget allows small businesses to compete with larger companies by focusing on targeted strategies that yield high returns. Whether it’s through social media, content marketing, or local advertising, investing in marketing enables small businesses to build a loyal customer base and establish a strong market presence.

 

Why You Need a Marketing Budget: The Key to Sustainable Growth for Small Businesses

As a therapist, consultant, coach, or solopreneur, the idea of setting aside a marketing budget can feel daunting—especially when you’re time-rich but cash-poor. 

You may be juggling multiple responsibilities, trying to grow your practice or business with limited resources. However, if you want to attract more leads and clients consistently, investing in marketing isn’t just an option; it’s a necessity. 

The age-old adage “speculate to accumulate” holds particularly true in the world of small business. To accumulate clients and build a thriving business, you must be willing to speculate—by investing in the right marketing strategies and support.

ALL MARKETING NEEDS CONTENT

Whatever marketing you do for your business, you need the right content that aligns to your ideal audience, their challenges, needs and desires. If you are focussing on social media, paid ads, organic search or networking, you still need to have a clear brand identity and be able to explain, succinctly, what you do and how you solve their problem. Putting your ideal client at the heart of your content and ensuring that it is both engaging and relatable is key. And so making sure you have a clear message that cuts through the noise and connects is what we are trying to achieve.

Investing in the Right Business Support at the Right Time

Knowing when and where to invest in your business can make all the difference. As a solopreneur or small business owner, your time is precious. You can’t afford to waste it on ineffective marketing tactics or trying to do everything yourself. This is where professional business support comes into play. Hiring a skilled marketer or marketing consultant can help you craft a tailored strategy that aligns with your business goals. They can provide the expertise you need to optimize your marketing efforts, ensuring your budget is spent wisely and delivers the best possible return on investment.

But timing is crucial. Investing in marketing too early, before you’ve clarified your brand message or defined your target audience, can lead to wasted resources. On the other hand, delaying marketing investments for too long can result in missed opportunities and stagnant growth. The key is to recognise when your business has reached a stage where external expertise can accelerate your growth and take you to the next level.

You need an offer that sells.

13 things to do before you invest in a website.

1. Set up up Google Business Profile

A Google Business Profile is a great way of starting with an online presence without spending too much time or money. It allows you to test your ideas.

2. Test

It is an important lesson to know that your business (and website) is dynamic. It should never remain static or stagnant. As your business evolves, so does your marketing, your message, your content and your positioning. And that is fine, and completely normal. If we all knew the silver bullet that made our businesses succeed, you wouldn’t be reading this blog right now! So factor in that testing, discovery, trying things out, failing, trying again; it is all a part of the fabric of running a small business. And so investing heavily at the start is not a good idea until you have an offer that sells. 

CAPTION: Soar ahead of the competition, drive traffic to your website and see your business take flight!

What to Look for in a Professional Marketer

When you’re ready to invest in professional marketing support, choosing the right partner is essential. Here are some key factors to consider:

• Experience + expertise:
  Look for a marketer who has experience working with businesses similar to yours. They should understand the unique challenges and opportunities in your industry.
• Proven results + happy clients:
  Ask for case studies or testimonials from past clients. A good marketer will have a track record of delivering measurable results, such as increased website traffic, higher conversion rates, or more qualified leads.
• Strategic thinking:
  A professional marketer should be able to develop a customized strategy that aligns with your business goals. They should be able to identify which marketing channels and tactics will be most effective for your target audience.
• Transparency + communication:
  Choose a marketer who is clear about their pricing, processes, and expected outcomes. They should keep you informed and involved throughout the campaign, providing regular updates on progress and results.
• Connection + compatibility:
  Finally, ensure that the marketer’s values, work style, and personality align with yours. A good working relationship is key to a successful partnership.

Tactics for finding your professional

• Join free Facebook groups:
  Find supportive communities where you can learn from experienced professionals and other business owners. Engage with the members, ask questions, and get recommendations on marketing partners.

Example group: [here]

• Attend free online events to see them in action:
  Many marketing experts host free webinars or workshops where you can see their approach, ask questions, and assess if they’re the right fit for your business needs.

Sign up: Free weekly SEO catchups

• Networking:
  Join networking groups or events, either locally or online, to meet marketing professionals and other small business owners. Building relationships can lead to finding the right partner.
• Join now: [here]
• Consider a low cost membership:
  Some marketing professionals or agencies offer affordable memberships with resources, tools, and access to their services at discounted rates. This can be a great way to test their expertise.
• Learn more about mine: [here]
• Invest in a power hour:
  here

CONCLUSION

Speculate to Accumulate with a Strategic Marketing Budget for Your Small Business

Investing in marketing might seem like a risky proposition when resources are tight, but it’s a risk worth taking for both startups and small businesses. For startups, a well-defined marketing budget helps you gain traction in a competitive market and build a strong foundation for growth. For small businesses, it ensures sustained growth and the ability to compete effectively with larger companies. By allocating a marketing budget and seeking the right professional support, you position your business for long-term success. Remember, you need to speculate to accumulate. A strategic marketing investment can help you attract more clients, build a strong brand, and achieve the growth you’ve been striving for. For more guidance on creating an effective marketing budget or to discuss how we can help your business thrive, see the links below or book a free discovery call.

SOME LINKS TO HELP YOU…