How Much Should a Small Business Spend on Marketing?

29 June 2026·3 min read

Quick answer: A common guideline is to spend around 5–10% of revenue on marketing, with newer businesses chasing growth often going higher. But the right number depends on your stage, goals and margins. More important than the exact figure is spending it on the right things and tracking what it brings back. Start where you can, measure, then scale what works. 📈

"How much should I actually spend on marketing?" is one of the trickiest questions for a small business. Here's a realistic way to think about it — without overcommitting or underinvesting. 💖

Psst — a tip for keeping tool costs low: the scheduler I use, Pallyy, has a free plan to start on.

The common rule of thumb

Many businesses aim for roughly 5–10% of revenue on marketing. Newer businesses or those pushing hard for growth often spend more; established ones coasting on reputation may spend less. Treat it as a starting point, not a law. 🌴

What your budget depends on

Factor	Spend less	Spend more
Stage	Established	New / growing fast
Goal	Maintain	Grow quickly
Margins	Tight	Healthy
Competition	Low	High

💡 Where it goes matters more than how much. A small budget spent on the right channels with a clear strategy beats a big budget sprayed everywhere. Spend less, but spend it smart.

📱 Keep tool costs low: Pallyy

Batch, schedule and auto-post to every platform from one calm dashboard — with a free plan to start, it's a low-cost way to stay consistent.

Try Pallyy free →

What counts as marketing spend?

Ads (social, Google)
Tools and software (email, design, scheduling)
Content creation and design
Help — a freelancer, agency or coach
Your time (often the biggest "cost" early on)

If your budget is tiny

You can do a lot with little. Free tools, organic social, a Google Business Profile and an email list cost mostly time. Start there, prove what works, and reinvest as the returns come in. 🌴

The smartest approach

Start with what you can afford, put it behind one or two channels, track what each dollar brings back, and scale the winners. Marketing budget isn't about a magic number — it's about spending with intention and measuring the return. 🚀

Frequently asked questions

How much should a small business spend on marketing?

A common guideline is around 5–10% of revenue, with newer or fast-growing businesses often spending more. The right figure depends on your stage, goals and margins. What matters most is spending on the right things and tracking the return.

What percentage of revenue should go to marketing?

Many businesses target 5–10% of revenue, but it varies. Growth-focused or newer businesses may go higher; established ones may spend less. Use it as a starting point and adjust based on results.

What if I have almost no marketing budget?

You can still do a lot — free tools, organic social, a Google Business Profile and an email list cost mainly time. Start there, prove what works, and reinvest profits into paid channels as you grow.

How do I know if my marketing spend is working?

Track what each channel brings back — leads, sales and revenue, not just likes. If a customer is worth more than it cost to reach them, it's working. Scale the winners and cut what doesn't pay off.

Keep reading 🤍

Go deeper on your marketing budget 🤍

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Written by

Kate, founder of Chronically Online

I help Gold Coast and Brisbane businesses grow with branding, websites and marketing that actually works.

Work with me ✦