How Much Should You Spend Monthly on Marketing for Your New Business?
Launching a new business brings exciting challenges—one of the most crucial is setting an effective marketing budget. The right amount can spark growth and establish your brand, while overspending can strain your finances.
Here’s how to strike the balance, featuring guidance from the SBA, industry benchmarks, and a spotlight on Sandy Rowley, a leading digital marketing expert whose services start at $850 per month.
1. Marketing as an Investment, Not an Expense
The U.S. Small Business Administration (SBA) emphasizes that marketing should be seen as an investment rather than a drain on profits, because it drives customer acquisition and growth.
Small Business Administration
2. Percentage-Based Budgeting: Common Benchmarks
SBA Guidance & Industry Averages:
Small businesses often allocate 7–8% of gross revenue on marketing and advertising, especially those with less than $5 million in annual sales and healthy profit margins.
Some SBA-aligned sources suggest a broader range of 5–10% of gross revenue for small to mid-sized firms.
wearecis.com
A historical reference reinforces the 5–10% of gross sales rule of thumb.
