The Marketing Budget Dilemma: Where Should Small Businesses Invest?
- Lorraine A
- May 26
- 2 min read
Why Marketing Budgets for Small Businesses Miss the Mark
If your marketing budget feels like a black hole—money in, nothing out—you’re not alone. Many marketing budgets for small businesses overspend on the wrong things, underinvest in what matters, and then blame the budget instead of the allocation.
A big budget isn’t the goal. A smart one is.
What’s your biggest struggle with marketing spend?
No clear ROI
Don’t know where to start
Tried things that didn’t work
I just copy competitors
1. Don’t Start with Ads—Start with Strategy
Boosting posts without a plan is like throwing money at the wind. Before you spend a shilling on paid media, answer these:
Who are you trying to reach?
What do you want them to do?
What’s your most profitable offer?
Until you’re clear on those, no budget will fix the problem.
Where to invest instead:
A strategy session or audit to map your buyer journey
Research to understand your market and ideal clients
Clear messaging and positioning
2. Fix the Foundation Before Driving Traffic
You don’t need more traffic if your website isn’t ready to convert. Many businesses sink their budget into ads but send people to a site that confuses, frustrates, or delays buying.
Where to invest instead:
A landing page that focuses on one offer with a strong CTA
Mobile optimisation and fast load times
Clear value proposition and trust signals
What’s your website’s biggest weakness?
Slow or not mobile friendly
Unclear messaging
Doesn’t convert
Not sure
3. Double Down on What Already Works
Tried something that brought in sales before? Don’t let go of it just because it’s not trendy. Many small businesses abandon what works because they’re chasing what’s new.
Where to invest instead:
Reuse your best-performing content in different formats
Scale up your highest-converting campaign
Add automation to free up your time
4. Test, Don’t Guess
Every business is different. What works for one brand might flop for another. If you’re not testing your marketing efforts, you’re gambling.
Where to invest instead:
A/B testing for ads, landing pages, and CTAs
Analytics tools to track performance
Small-scale tests before scaling budget
How do you decide what marketing tactic to invest in?
Gut feeling
Based on competitors
I test and track
I don't really know
5. Prioritise Retention Over Reach
Many small businesses focus only on getting new customers and ignore the ones they already have. Retention is cheaper, and often more profitable, than constant acquisition.
Where to invest instead:
Email marketing to re-engage past buyers
Loyalty offers and referral incentives
Content that keeps people coming back
Build a Marketing Budget for Your Small Business That Pays You Back
You don’t need a huge budget—you need the right one. That means:
Starting with strategy, not tactics
Fixing your conversion points before paying for traffic
Doubling down on what’s proven
Testing smartly
Nurturing the customers you’ve already won
Make every shilling or dollar (whichever currency you trade in) do the work of ten. That’s how small businesses grow sustainably.
Need help building a smarter marketing budget? Let’s talk.
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