How Much Should a Small Business Spend on Marketing? (2026 Guide)
The common rule of thumb is that a small business should spend 5% to 10% of its revenue on marketing — closer to 10% if you’re trying to grow quickly, closer to 5% if you’re established and maintaining. But that number alone is almost useless without knowing where to put it. Spending 10% badly is worse than spending 5% well. Here’s how to set a realistic budget and, more importantly, where it actually pays off for a local business.
The Starting Point: 5-10% of Revenue
If your business does $300,000 a year in revenue, a marketing budget of 5-10% means roughly $15,000-$30,000 a year, or about $1,250-$2,500 a month. Adjust based on your situation:
- Newer or growth-focused? Lean toward the higher end — you need to build awareness from scratch.
- Established with steady referrals? The lower end may be plenty to maintain visibility.
- Tight margins? Start smaller, prove what works, then reinvest the returns.
This is a guideline, not a law. The real question isn’t “what percentage” — it’s “what gets the best return for my business.”
Where the Money Actually Pays Off (for Local Businesses)
For most local small businesses, the highest-return spending isn’t flashy ads — it’s the foundations that make you findable and trustworthy:
Your Google Business Profile and reviews (often free). This is the single biggest driver of local customers, and the profile itself costs nothing. The “spend” here is the effort to keep it active and collect reviews. (Here’s the checklist.)
A website that works. A fast, modern, mobile-friendly site with SEO built in is a one-time-ish cost that works for you 24/7. (Here’s what it costs in Edmonton.)
Consistent social media. A steady presence keeps you top of mind. The cost is either your time or a flat monthly fee — and consistency matters more than budget size.
Ongoing SEO and AEO. Showing up in Google (and now AI search like ChatGPT) compounds over time, unlike ads that stop the moment you stop paying.
Paid ads have their place, but for most local businesses they should come after these foundations are solid — otherwise you’re paying to send people to a weak website or an empty Google profile.
Predictable Pricing Beats Guessing
One reason marketing budgets balloon is unpredictable agency retainers and surprise fees. The fix is transparent, fixed pricing so you know exactly what you’re spending. At OnePoint Solutions, services are priced up front — signage at $149/month, social media at $300/month, SEO at $200/month, websites from $499 — with no padded retainers. That makes a small-business marketing budget easy to plan instead of guess.
A Simple Way to Decide
If you’re not sure, start here:
- Sort out the free/cheap foundations first — Google Business Profile, reviews, a working website.
- Add one consistent channel — usually social media or ongoing SEO.
- Measure for 90 days, then put more money behind whatever’s actually bringing in customers.
That sequence gets results without overspending, and it tells you exactly where your next dollar should go.
The Bottom Line
Plan for 5-10% of revenue, but spend it on the foundations first — Google Business Profile, a solid website, consistent social, and ongoing SEO — before reaching for paid ads. The goal isn’t to spend the most; it’s to spend on what actually brings customers through the door. For most Edmonton and Canadian small businesses, that’s a few hundred to a couple thousand dollars a month, spent deliberately.
OnePoint Solutions offers transparent, fixed-price marketing for small businesses across Canada — no padded retainers. See our services or get a free quote to plan a budget that fits.