How Much Should a Small Business Actually Spend on Marketing?

One of the most common questions founders ask — and one of the least honestly answered.

Most advice either quotes a vague percentage or pushes you toward expensive agencies before you are ready. This guide does neither.

The Short Answer

There is no universal number. What you should spend depends on three things: your revenue, your stage of growth, and what you are trying to achieve.

A Realistic Starting Point

A commonly used benchmark is to allocate between 7 and 12 percent of your gross revenue to marketing. For early-stage businesses still building awareness, some experts recommend going higher — up to 15 to 20 percent — because visibility takes investment before it pays back.

If your revenue is £200,000 per year, that means somewhere between £14,000 and £24,000 annually, or roughly £1,200 to £2,000 per month.

What Stage Are You At?

•       Early stage (just starting out): Focus your budget on foundations first. Brand clarity, website, basic SEO, and one or two channels done well. Spreading budget thin at this stage wastes money.

•       Growth stage (ready to scale): This is when paid advertising, SEO, content, and email start to compound. Budget here should be tied to a clear cost-per-acquisition target.

•       Retention stage (established and growing): You are spending to keep customers engaged, not just acquire new ones. Email, CRM, and nurture campaigns often deliver the best return here.

What to Prioritise Before Spending

Before putting money into ads or agencies, make sure you have:

•       A clear brand message and positioning

•       A website that converts visitors into enquiries

•       Basic tracking so you know what is working

Without these, any spend on paid marketing is likely to underperform.

The Honest Truth

Budget is only part of the equation. A small budget used strategically will outperform a large budget spent without direction every time.

If you are unsure where to start, the most useful investment is often a marketing audit — understanding where the gaps are before deciding where to spend.

At Verve & Metric, we help businesses work out exactly where their budget will have the most impact, based on where they are right now. Get in touch to talk it through.

‍

‍