Question
How much should a startup spend on marketing?
Answer
The SBA suggests businesses under $5 million in revenue put 7-8% of revenue toward marketing, while growth-stage startups often push higher. The right number depends on your stage and how aggressively you want to grow.
| Stage | Marketing as % of revenue |
|---|---|
| Established small business | 7-8% |
| Growth-stage startup | 15-20% |
- Blend the channels: the strongest results come from pairing digital ads with physical materials.
- Print is cost-efficient: postcards, flyers, and cards deliver low cost-per-impression and build local recognition.
- Track and adjust: shift budget toward whatever channel is actually producing customers.
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