How Much Should a Small Business Spend on Marketing When Just Starting Out?
If you’ve ever searched “how much should a small business spend on marketing”, you probably saw a lot of generic advice like “10–20% of your revenue” or “at least $2,000 a month.” But let’s be so for real, if you’re just starting your business, you may not even have revenue yet, and dropping thousands on marketing feels impossible.
So what’s the realistic answer for small business owners who are trying to grow on a budget?
Let's break down how to create a marketing budget that actually makes sense for your brand, your goals, and your bank account in plain language, with real numbers
Why Your Marketing Budget Matters
Marketing is how people find you, trust you, and buy from you. Without it, even the best product or service can sit untouched.
When you’re just starting out, your “budget” isn’t only about money, it’s about time and resources.
More time, less money: You’re doing it all yourself, posting on Instagram/TikTok, creating graphics in Canva, engaging with followers.
More money, less time: You’re outsourcing design, hiring freelancers, or running ads so you can focus on your business.
Neither path is wrong, but knowing where you are helps you budget smart.
How Much Should a Small Business Spend on Marketing?
First, let’s talk numbers. The most common advice you'll hear is to budget a percentage of your revenue for marketing. For established businesses, this is often between 5% and 10%. But for a brand new business or a startup, you often need to spend more to get noticed.
“Experts” often recommend that new businesses or companies in a growth phase should budget somewhere between 10% and 20% of their projected gross revenue for marketing.
For example: If you're planning to make $5,000 in your first month, a 10% marketing budget would be $500. If you’re a little more aggressive with your goals and want to make $10,000 in your first three months, you’d be looking at a budget of $1,000 to $2,000 for that period.
Here’s the truth: there’s no one-size-fits-all number.
Now, I know what you’re thinking: “But I don’t have revenue yet!” And that’s okay. If you don’t have steady revenue yet, pick a flat number you can stick to (even if it’s just $50–$200/month). The key is to start somewhere, track what works, and reinvest as you grow. This is just a starting point. Think of it as a way to mentally allocate resources, so you don't get sidetracked. Your real budget is what you can realistically afford to invest right now.
A Starter Marketing Budget for New Small Businesses
Your marketing is about investing in the tools, time, and talent that will help you grow. Remember if you aren’t investing money then you’re investing your time. Here's a quick reality check on what should be in your budget:
Branding & Design (One-time: $500-1,000): A curated brand identity and templates go a long way.
Your Website & SEO ($50 - $500+/month): This is your digital storefront. You’ll need a domain name and a website builder. Platforms like Squarespace, Wix, or Shopify are affordable and professional.
Content Creation ($0 - $1,000+/month): Whether you're creating your own Reels and TikToks or hiring a photographer and videographer, this is a real expense. The more time you put in, the less you have to pay. The less time you have, the more you’ll need to invest.
Email Marketing ($0 - $50/month): Tools like Mailchimp or ConvertKit are crucial for building an email list. They often have free plans to start, so this is one area where you can save in the beginning.
Paid Ads ($100 - $5,000+/month): Ads aren’t required at the beginning, but once you’re ready you can spend as little or as much as you want. When you're just starting, think of it as a test. Start small, maybe $5-$10 a day, and see what works before you scale up.
Budgeting Tips for Small Businesses with Limited Cash
If your budget is more on the "bless your heart" side of things, don't worry. Here’s how you can invest your time and energy strategically.
Focus on what’s free (but requires consistency):
Organic Social Media: Post consistently on Instagram and TikTok. Use a strong content strategy to build a community and tell your story in an interesting way.
Email List Building: Start building your email list today. Offer a free download or a discount to get people to sign up. Your email list is a direct connection to an audience that is interested in your brand (they signed up didn’t they) .
Content Marketing (Like This Blog!): Write blog posts or create videos that answer your audience's questions. This builds trust and authority and helps you rank on Google.
If you’re thinking money wise:
$0–$50/month: Stick to free marketing (organic social, networking, free Canva templates).
$100–$300/month: Add in Canva Pro, email marketing, and maybe small ad tests.
$500+/month: Start outsourcing design, ads management, or content creation.
Think of marketing as planting seeds, you don’t have to grow the whole garden overnight, but you do need to start somewhere.
The Bottom Line
So, how much should a small business spend on marketing? As much as you can realistically invest without stressing your finances but at least enough to create consistency. Start small, focus on building a strong organic presence, and increase your budget as your revenue grows.
At the end of the day, a big budget can’t fix a bad strategy. And a small budget won't stop a good one. It's about being smart and knowing where to put your energy.
Remember, marketing isn’t an expense, it’s an investment. The effort (or money) you put in today is what helps customers find you tomorrow.
If you’re not sure where to start, Gleaux can help you stretch your budget and get results. Book a strategy call today, and let’s map out a marketing plan that actually fits your stage of business and your wallet.