The Overlooked Investment in Business Success

It’s fascinating—and a little concerning—how many small businesses, and even new ones, dive headfirst into operations with no funds allocated for marketing. We’ve seen construction companies invest hundreds of thousands of dollars into heavy machinery. Restaurants spend a fortune on interior design and equipment. Yet, when it comes to marketing, there’s often nothing left in the budget.

At Five Star SEO, we’ve encountered countless small business owners who enthusiastically reach out to us for help, only to realize they don’t have even $500 set aside for marketing. This isn’t rare—it’s alarmingly common. And it begs the question: How can a business expect to grow if no one knows it exists?

Why Referrals Aren’t Enough

Many small business owners proudly state that their business thrives on referrals—and that’s fantastic! Referrals are a testament to your work. But for most businesses, referrals alone are not enough to sustain long-term growth. Over time, markets change, customer bases evolve, and competitors emerge with fresh strategies.

Even businesses that have been around since the days of yellow pages often find themselves struggling to adapt in the digital age. Relying on reputation alone can leave you behind, especially when competitors are actively marketing their services and reaching new audiences.

Think of marketing as an investment in the future of your business—not just an expense.

The Realities of Starting a Business Without Marketing

We understand the excitement of starting something new. You’ve poured your heart, soul, and savings into your dream, and you believe in your ability to solve your customers’ problems better than anyone else. But here’s the hard truth: If people don’t know about your business, they can’t care.

A strong marketing strategy does more than just promote your services—it connects your solutions with people who are actively searching for them. Without marketing, even the best businesses can go unnoticed.

How Much Should You Budget for Marketing?

So, what’s a reasonable budget for marketing? While every business is different, here are some general guidelines based on industry data:

Startups: Aim to allocate 12-20% of your projected revenue toward marketing in the first year. This includes building a website, running ads, creating branding materials, and more.
Established Businesses: Allocate 5-10% of your annual revenue to maintain and grow your presence. This might include SEO, paid advertising, and content marketing.
Rule of Thumb: The U.S. Small Business Administration recommends allocating 7-8% of your gross revenue toward marketing.

If your business generates $100,000 annually, a marketing budget of $7,000 to $10,000 isn’t just a good idea—it’s essential for sustainable growth.

A PSA for Small Business Owners

To anyone starting or running a small business: Please don’t overlook the importance of marketing. Budgeting for marketing should be as fundamental as budgeting for rent, inventory, or employee salaries. The truth is, without marketing, the likelihood of long-term success diminishes significantly.

The digital world is vast and competitive. Your expertise won’t speak for itself if no one knows about it. So, make sure your business has a voice—and the budget to amplify it.

At Five Star SEO, we care about the success of small businesses, and we’re here to help you navigate your marketing journey. Let’s ensure your hard work gets the attention it deserves.

Need guidance on where to start with your marketing? Contact us at Five Star SEO, and we’ll help you create a customized strategy that fits your goals and budget.