How Much Money Should I Spend on Marketing to Start a Business?

Small business should have a set marketing budget.

Up to 50 Percent of Your Budget

Startup businesses generally spend more on advertising than companies that have been around for a few years because new companies need to make their presence known. Depending on the type of your new business, you might have to spend 50 percent of your budget on marketing and advertising, according to SCORE.

No Definite Number

There is no ideal figure for the marketing budget of a new company, according to Business Week. Setting a marketing budget for a startup is difficult because you do not have a sales history. You must be flexible in your budget, and you may want to spend 1 to 12 percent based on projected sales, or a fixed-dollar amount that can last 6 to 12 months.

Bottom Line

Nobody can tell you a perfect marketing budget because it depends on your goals and type of business, according to Business Week. Keep in mind, however, that new businesses generally need to spend more than older companies--and don't be afraid to spend money on quality marketing and promotions. Consumer packaged goods companies, for example, may have to invest half of their sales in the first year to marketing.

References

• SCORE: Setting a Marketing Budget
• Business Week: Best Foot Forward from the Start