There’s no single right number — but there is a sensible way to work it out, rather than picking a figure that feels vaguely reasonable.
Think in terms of goals, not a fixed percentage
Generic advice often suggests a flat percentage of revenue. In practice, it makes more sense to work backwards from what you’re trying to achieve — a certain number of new enquiries, a specific growth target — and build a budget around that.
Separate one-off investment from ongoing spend
A new website is a one-off investment. SEO, ads and social media are ongoing running costs. Budgeting for both separately gives a clearer picture than lumping everything together.
Don’t underfund ads to the point they can’t work
A very small ad budget spread across too many keywords or audiences often produces no meaningful data at all — sometimes a smaller, more focused budget on fewer priorities outperforms a wider, thinner spread.
Consider a monthly retainer for predictability
Rather than large, irregular spending bursts, a steady monthly retainer tends to build more consistent, compounding results over time.
Review and adjust based on what’s actually working
A marketing budget shouldn’t be set once and forgotten — regularly checking what’s actually converting, and shifting budget toward it, matters more than the initial number itself.
FAQs
Is there a rough starting point for a small business?
It varies hugely by industry, but starting with a modest, focused budget on your one or two highest-priority channels tends to work better than spreading thin across everything at once.
Should I spend more on ads or on organic (SEO/social)?
Ideally both, but if forced to choose, it depends on how quickly you need results — ads for speed, organic for long-term compounding value.
How do I know if my budget is actually working?
Track enquiries against spend consistently — if you can’t answer this, that’s usually the first thing worth fixing before adjusting the budget itself.
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