One of the most common mistakes we see small business owners make?

They either spend nothing at all on marketing, or they overspend without a strategy. Usually in panic after a slow month.

The truth is, marketing isn’t a luxury. It’s a core business function, just like accounting, stock, or payroll. 

But if you're running a small or local business in a place like Crawley, West Sussex, budgeting for marketing can feel overwhelming. Especially when cash flow is tight.

This guide will walk you through how to build a realistic, sustainable marketing budget, understand what kind of marketing actually works for small businesses, and how to make sure you’re getting a return on your spend.

Why Small Businesses Must Budget for Marketing

If you’re not consistently showing up, your competitors will. 

Simple as that.

Marketing is what brings in new customers, retains existing ones, and keeps your brand visible in a noisy world. That doesn’t mean you need a six-figure budget but you do need a planned and regular investment.

Here’s what happens when you don’t budget for marketing:

• You rely on word-of-mouth only (which dries up eventually)
• Sales stay flat or dip and spike at random
• You panic and throw money at random ads or agencies
• You stop marketing again once you're “busy”
  

This reactive cycle causes feast-and-famine revenue patterns. Something we see all too often at Curve Accountancy when reviewing client accounts.

How Much Should a Small Business Spend on Marketing?

There’s no one-size-fits-all number, but a good rule of thumb is:

5–10% of your monthly revenue

• 5% if you’re in a more stable, established business phase
• 10% or more if you’re in growth mode or launching something new

So if your business turns over £200,000 per year, a marketing budget of £10,000 to £20,000 annually (£833 to £1,667 per month) would be reasonable.

The key is consistency, not one-off spending sprees.

What Should You Spend Your Marketing Budget On?

This is where business owners get stuck. You don’t need to be on every platform or try every tactic. Instead, focus on the essentials:

1. Local SEO and Google My Business

Especially important for businesses in Crawley, West Sussex, where many customers search for services like:

• “Accountants in Crawley”
• “Hairdresser near me”
• “Dog grooming West Sussex”

Optimising your Google Business Profile and building local links is often among the highest long-term ROI marketing spend for local businesses.

2. A Proper Website

Your website doesn’t need to be super fancy but it does need to:

• Look professional
• Explain what you do clearly
• Include contact info, testimonials, and service pages
• Be mobile-friendly

If your site looks DIY or loads slowly, it can harm your reputation and your local SEO rankings.

3. Paid Ads (With a Strategy)

If you want quick results, Google Ads or Facebook Ads can work but don’t run them blindly. Use them to:

• Target local customers
• Promote time-sensitive offers
• Retarget website visitors

Always set a budget cap and track performance.

4. Content Marketing

Blog posts, email newsletters, and short videos can help you:

• Educate your audience
• Show up in search results
• Stay top of mind

This is especially useful for service-based businesses in sectors like finance, fitness, beauty, trades, or coaching.

Realistic Marketing Budgets by Business Type

Business Type: Beauty Clinic in Crawley

Monthly Revenue: £8,000

Suggested Marketing Budget: £400–£800

Typical Activities: Local SEO, Instagram ads, GMB updates

Business Type: Electrician in West Sussex

Monthly Revenue: £10,000

Suggested Marketing Budget: £500–£1,000

Typical Activities: Google Ads, reviews, website updates

Business Type: Online Coach

Monthly Revenue: £5,000

Suggested Marketing Budget: £250–£500

Typical Activities: Social ads, landing page, email list

Business Type: Retail Boutique

Monthly Revenue: £15,000

Suggested Marketing Budget: £750–£1,500

Typical Activities: Events, influencer promos, SEO

Business Type: Accountancy Firm (like Curve)

Monthly Revenue: £30,000

Suggested Marketing Budget: £1,500–£3,000

Typical Activities: Blog content, SEO, LinkedIn strategy

Budgeting Safely for Marketing

When you’re a small business owner, it’s natural to be cautious. Here’s how to make sure your marketing spend is smart.

1. Set a Monthly Cap

Decide what you can afford and stick to it. Don’t “test ads” with £500 one month, then £2,000 the next. Spread it out.

2. Track ROI

Use software or ask your accountant to tag marketing-related costs and monitor:

• Leads generated
• Sales from marketing channels
• Customer acquisition cost

At Curve, we often help clients analyse this through monthly management reports.

3. Avoid Long Contracts

Be wary of marketing agencies or platforms that lock you into 12-month deals. You want flexibility as your business grows.

4. Treat It Like Rent or Payroll

Marketing shouldn’t come from leftover funds. Treat it as an essential monthly outlay that protects and grows your income stream.

Can You Claim Marketing Costs as a Business Expense?

Yes. Marketing is a fully allowable expense in most cases.

That includes:

• Social media ads
• SEO and website development
• Printing flyers or banners
• Hiring photographers or videographers
• Email marketing software
• Paying agencies or freelancers
  

Just keep clear records and ensure it’s directly related to promoting your business. Your accountant can handle the rest.

Marketing Is the Lifeblood of Growth

If you want consistent income, loyal customers, and growth year after year, marketing isn’t optional — it’s essential.

Budgeting even a small, regular amount each month can help you:

• Avoid panic decisions
• Build trust in your brand
• Attract the right kind of customers
  

And if you're not sure where to start or how to plan your budget, Curve Accountancy is here to help.

Need Help Creating a Marketing Budget?

At Curve Accountancy in Crawley, West Sussex, we work with local business owners to build profitable, sustainable strategies, including how to budget for marketing without risking your cash flow.

Whether you're running a salon, an online service, or a high street shop, we’ll help you find the right balance between spending wisely and growing confidently.

Book a free consultation and let’s take the guesswork out of your business finances.