Are You Spending Too Much (or Too Little) on Marketing?

Every business owner asks the same question when they start thinking about marketing: “How much should I actually be spending?”

It’s a fair question. You’ve got bills to pay, staff to look after, and suppliers to keep happy. Marketing feels important for growth, but how do you know if you’re spending too much or not enough?

Search online and you’ll find a hundred different answers. Some say spend 5% of your revenue. Others say 10%. A few will tell you to throw 20% at it if you want to grow fast.

The trouble is, percentages don’t pay your bills or fill your calendar. They can’t tell you whether to run Google Ads or fix your website first. So let’s skip the guesswork and walk through something more useful.

Why the “standard” advice is confusing

The usual advice is to spend 5 to 10% of your revenue on marketing. It’s a fine starting point, but it ignores everything that actually matters: how old your business is, how fast you want to grow, who your customers are, and what industry you’re in.

Percentages on their own just don’t tell the whole story.

Don’t forget the cost of your time

Marketing isn’t only about money. It’s also about the hours you and your team pour into it.

Say you spend five hours a week on marketing, and your time is worth £50 an hour. That’s £13,000 a year in labour. Your real marketing investment is your spend plus your time added together. It’s worth knowing that number.

What stage is your business at?

Where you are in your journey makes a big difference.

New businesses often spend 10 to 15% of revenue to get some traction. Businesses focused on growing quickly might push that to 12 to 20%. Established businesses that are comfortable in their market might spend just 5 to 8% to keep their momentum.

In plain terms: if you’re trying to grow, you need to invest more upfront. If you’re established, you can tick along on less.

Where should the money actually go?

Every business needs two foundations: a professional website and a way to stay in touch with customers, which is usually email.

After that, spend where your customers actually are. Don’t chase trends or pour money into a platform your customers never use. A local business might invest in Google Ads. A clothing boutique might live on Instagram. A service business might do well on LinkedIn or good old-fashioned networking.

Making a small budget work

If you’re just starting out, or cash is tight right now, you’ll need to make a little go a long way. And that’s fine.

When money is limited, you trade time for money instead. Focus on high-impact, low-cost activities: social media, an email newsletter, simple videos, and asking happy customers for reviews and referrals.

A small budget can still deliver. It just takes a bit more of your time, and a lot of consistency.

How do you know if it’s working?

This is where you take a step back and look at the results.

If enquiries are steady and you’re growing the way you hoped, your budget is probably about right. If things are quieter than expected, it might be time to invest a bit more.

But be careful. Throwing more money at a channel that isn’t working won’t fix it. Sometimes the answer is to move your budget somewhere else, not to spend more.

Want a second opinion?

If you’re not sure whether your marketing money is working as hard as it could be, we’re happy to take a look. Our free website and marketing review will show you where your budget is best spent, with no pressure and no jargon.