How much should small businesses spend on advertising?

Can anyone share any best practices when it comes to calculating an advertising budget for a small business? Is there a best approach?

Top voted answer
Maini Homer

Maini Homer, Owner at

Generally the rule of thumb is to test and measure... Ask yourself this.... If you found a source of advertising that paid you $10,000 for every $1000 spent, how much would you throw at it?

Daniel Spark

Daniel Spark, Director

I agree Maini, test and measure. There is not a magic number that will suit every business. There is no use spending more money on advertising than you see returned, although sometimes the return is not easily measurable.

Brian Dorricott

Brian Dorricott, Business Specialist at

Absolutely - test and measure.

But perhaps you're on the wrong track

"The price of being unremarkable is advertising."

So how can you make yourself more remarkable so that word-of-mouth (still the best form of introduction) can happen? Check out the Gaddie Pitch as a way to articulate this.