Don’t Make This Common Mistake: Underestimating Your Marketing Investment

You wouldn’t open a brick-and-mortar store with perfect displays and beautiful lighting but no grand opening announcement, not even a sign out front, right?

Yet every day, I meet passionate, hardworking business owners who do the digital equivalent: spending months obsessing over their logo, choosing paint colors, perfecting their product or service. Then, when it comes to actually getting the word out?

Crickets. No plan. No budget. Just hope and word of mouth.

Here’s the hard truth: Hope is not a marketing strategy.

Why This Matters (a Lot)

According to the U.S. Bureau of Labor Statistics, about 20% of businesses fail in their first year, and nearly 50% don’t make it past year five. One of the biggest culprits? Poor marketing, or no marketing at all.

The Small Business Administration recommends that new businesses invest 12–20% of gross revenue in marketing, and established businesses should still dedicate 6–12%, even if they aren’t in aggressive growth mode. But most small business owners fall far below those numbers, and it shows.

The Word-of-Mouth Trap

Let’s clear this up: Word of mouth is awesome. It’s powerful, credible and valuable, but it’s not scalable or always reliable. It takes years to build enough momentum to make word of mouth alone work. That’s time many businesses don’t have.

I once worked with a local fitness studio that built an amazing space, hired incredible trainers, and had a beautiful brand, but they relied 100% on word of mouth and occasional Facebook posts from the owner’s personal profile. Their business didn’t take off until they invested in a lead generation campaign and built a simple, mobile-friendly website that actually converted visitors. They went from 12 monthly memberships to 84 in less than a year.

It wasn’t magic, it was marketing.

So, What Should You Do Instead?

If you’re ready to grow your business, even in a resource-tight environment, here’s where to start:

1. Set a Realistic Budget

Treat marketing as an investment, not an afterthought.

Start with 8-10% of gross revenue, or go higher if you’re launching something new or want aggressive growth. If you can’t commit to that much right away, at least put together enough budget to help you get established. Remember, the return isn’t always immediate, but without consistent investment, growth won’t be either.

2. Get Strategic About Your Customer Journey

Ask yourself:

• How are people discovering you right now?
• Are you showing up in search results?
• Do your social profiles tell your story clearly?
• Is your website mobile-friendly and optimized for conversions?
• How will I track results?

Marketing isn’t one tactic, it’s how all your touch points work together to turn strangers into loyal customers.

3. Make Time To Market

Most small businesses need 8-10 hours a week just to maintain a strong digital presence. If you don’t have that kind of time — and most don’t — then outsourcing may be your best option. Partner with someone who understands your brand, your goals and your customer.

4. Track What Matters

Marketing without measurement is just guessing. Set SMART goals (specific, measurable, attainable, relevant, time-bound) and use those to guide where you spend your time and budget. If your goal is more foot traffic, focus on local SEO and Google Business Profile. Want more leads? Try lead magnets and email nurture campaigns.

A Mindset Shift: You’re Not “Spending” You’re Building

The most successful businesses I’ve worked with, including more than 75,000 small businesses across North America, have something in common: They view marketing as a non-negotiable part of running and growing their business.

If you’re feeling overwhelmed, I see you. This isn’t easy work. But you don’t have to do it all at once, or alone. Whether you’re just getting started or ready to scale, you deserve a strategy that works as hard as you do.

And if you’re not sure where to start? That’s what we’re here for. Let’s talk about your goals and build something great together.