How Much Should I Spend on Marketing? A Guide for Small Business Owners
One of the most common questions small business owners ask is:
“How much should I actually be spending on marketing?”
And it’s a good question — because in a world full of shiny tools, endless platforms, and agencies promising the moon, it’s far too easy to overspend, underspend, or spend on the wrong things entirely.
In this guide, we’re going to simplify that decision.
We’ll cover what the experts say, what actually works in the real world, and how to make marketing work for your budget — no matter how small it is right now.
Why Your Marketing Budget Matters
Marketing isn’t just another expense.
It’s an investment — the engine that brings in customers, builds your brand, and grows your income.
But without a clear budget, it’s easy to:
Waste money on tools or ads that don’t move the needle
Panic-spend during slow months
Avoid marketing altogether because you “can’t afford it”
Having a solid budget means you’re being intentional — and that’s where the real results come from.
What Do the Experts Recommend?
Let’s start with some numbers:
The Small Business Administration recommends spending 7–8% of gross revenue on marketing if you’re doing under R10 million/year and have margins of around 10–12%.
Start-ups or businesses looking to grow quickly often go higher — 10–15% in the first few years.
More established businesses with strong word-of-mouth or referral networks may spend less but stay consistent.
But here’s the catch: those percentages only work if your revenue is stable and predictable — which isn’t always the case for small businesses, freelancers, or side hustlers.
So how do we make it practical?
A More Realistic Approach for Small Businesses
Instead of just applying a blanket percentage, try this 3-step process:
🧮 Step 1: Decide What You Can Comfortably Afford Each Month
Even if it’s small.
R500? R1,500? R5,000?
Choose a number that won’t put pressure on your cash flow but still allows consistent activity.
🎯 Step 2: Choose ONE Core Goal for Your Marketing Right Now
Are you trying to:
Get new leads?
Increase brand awareness?
Retain existing customers?
Launch a new product/service?
One goal = one focused spend.
Trying to “do it all” often means spreading yourself too thin — and getting poor results everywhere.
🧩 Step 3: Build a Simple Monthly Breakdown
Let’s say your marketing budget is R2,000/month and your goal is to grow your email list.
Here’s how that might break down:
R800 on a well-designed lead magnet (once-off)
R500/month for a platform like MailerLite or Brevo + automation setup
R500 on Facebook/Google Ads to promote your free offer
R200 buffer for design, scheduling tools, or support
It doesn’t look like much — but it’s focused. And focused beats flashy every time.
Where Your Marketing Budget Shouldn’t Be Going
Let’s call out a few common traps:
🚫 Paying for followers or “reach” without strategy
10,000 followers mean nothing if they don’t convert or care.
🚫 Spending big on design without clarity
A beautiful site or logo that doesn’t sell is a pretty waste of money.
🚫 Jumping from tool to tool
Choose platforms you’ll actually use — and stick with them long enough to see results.
How to Get the Most Out of a Small Budget
Here are a few ways to stretch your budget without stretching yourself:
Repurpose your content across email, blog, and social
Use free tools like Canva, Notion, and ChatGPT for content and planning
Build simple landing pages instead of full websites when starting
Focus on organic visibility (SEO, Google Business Profile, blog posts)
Collaborate with others — referral partnerships, guest posts, shout-outs
Marketing doesn’t have to be expensive. It has to be consistent.
When to Increase Your Budget (and When Not To)
Increase your spend if:
You’re getting good results and want to scale
You’ve proven your offer and want to speed things up
You’re moving into a launch or seasonal high
Hold off if:
You’re unclear on what’s working
You don’t have time to track or follow up
You’re spending out of fear rather than strategy
More money doesn’t mean better results — better focus does.
Example Budgets by Business Stage
🚀 Starter Budget (R500–R1,500/month)
Free Canva
Starter email tool (MailerLite free plan)
Weekly content on social
One lead magnet (PDF or checklist)
💡 Growth Budget (R2,000–R4,000/month)
Ads for traffic
Lead magnet + email automation
Blog post support or SEO plugin
Basic analytics setup
📈 Scaling Budget (R5,000+/month)
Google Ads + Landing Pages
Professional email campaigns
Content repurposing + scheduling tools
Monthly strategy check-ins
Final Thoughts: It’s Not About the Number. It’s About the Intention.
You don’t need to spend R10,000/month to market your business effectively.
You just need to:
Know your goal
Be consistent
Spend with intention
Marketing is how your business grows. So treat it like growth — not a gamble.
Need Help Setting a Budget or Choosing Tools?
🎁 Download our Small Business Marketing Clarity Kit
Inside: content calendar, SEO checklist, and a one-page strategy map to help you market smarter — not harder.
👉 [Download Now]
