Episode at a glance: The Moxie Creative team explains why marketing is a true business expense, not a nice-to-have, and why cutting it first during slow times can stall growth. The conversation covers how much to spend, why a website comes before social media, what does not count as marketing, and when an agency saves money. The key takeaway: plan for about 10% of gross revenue and keep marketing consistent.
Listen to Episode 031 of Behind the Brand
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Episode chapters
- 00:00 Introduction: The Importance of Marketing
- 00:35 Meet the Hosts: Behind the Brand Team
- 00:56 Diving into Marketing Budgets
- 01:47 The Necessity of Marketing in Business
- 04:32 Building a Strong Marketing Foundation
- 06:33 Effective Marketing Strategies for New Businesses
- 09:24 Understanding Marketing Budgets and Guidelines
- 10:27 Common Misconceptions About Marketing
- 11:29 Choosing the Right Marketing Tactics
- 12:43 Marketing as an Investment
- 13:09 The Misconception of DIY Marketing
- 13:40 The Importance of Hiring a Marketing Agency
- 15:06 Marketing During Economic Downturns
- 17:01 The Role of Marketing in Business Continuity
- 18:46 The Long Game of Marketing Strategies
- 20:04 Adapting and Measuring Marketing Efforts
- 22:42 Conclusion and Final Thoughts
Here’s the thing about marketing for your business: it’s not optional. It’s not the cherry on top, the “nice-to-have if there’s room in the budget” item. Marketing is a bona fide business expense—just like rent, payroll, or equipment—that drives your business forward. And yet, when budgets get tight, it’s often the first thing to go.
That mindset doesn’t just stall growth—it can put your business at risk. In this episode of Behind the Brand, the Moxie Creative team dives into why a marketing budget is essential, how much you should realistically spend, and what smart allocation looks like whether you’re a solo shop or scaling quickly.
Marketing: A True Business Expense
When you apply for a business loan, banks expect to see a marketing section in your plan. It’s not optional—it’s a required part of building a sustainable business. And beyond being tax deductible, marketing is what tells people you exist, why they should trust you, and how to buy from you.
Some business owners assume they can get by without it, leaning on word of mouth, networking, or long-standing reputations. But markets shift. New residents move in. Competitors evolve. And as the pandemic proved, without visibility—especially online—you disappear.
Think about it this way: even marketing agencies have a marketing budget. If it’s essential for us, it’s essential for you.
Should a small business build a website before social media?
One of the biggest mistakes small businesses make is thinking a Facebook page can replace a website. Social media is valuable, but it’s not a foundation—it’s a megaphone. Your website is your storefront. It builds credibility, houses your services, and drives conversions.
Yes, anyone can start a social account. But when someone finds you there, the next thing they’ll do is click through to your site. If what they find is outdated, incomplete, or nonexistent, you’ve lost their trust before the conversation even begins.
Social media also takes time to pay off. For most businesses, the first one to two years on a new account are about brand awareness, not instant leads. That’s why the foundation matters: brand strategy, website, and content come first. Social comes next.
What doesn't count as part of a marketing budget?
Another common trap? Thinking business supplies are part of your marketing budget. Business cards, letterhead, and envelopes are not marketing—they’re operational costs. Sponsorships and community donations are important, but they should live in a separate “community giving” budget.
Marketing dollars should be dedicated to activities that actively drive awareness, engagement, and sales—your owned media (like your website and email list) and paid tactics (like digital ads).
How much should a small business spend on marketing?
So what’s the magic number? While every business is different, a reliable guideline is about 10% of your gross revenue (not profit).
- Established businesses with steady pipelines may succeed at 2–5%, if they’ve built strong recognition and consistent sales.
- New or growth-stage businesses often need 10% or more to launch, learn, and scale.
Yes, that number can feel shocking. But remember—marketing isn’t just “spending.” It’s investing in visibility, credibility, and pipeline growth. Without it, sales teams struggle, growth stalls, and opportunities slip through the cracks.
Can hiring a marketing agency actually save you money?
DIY marketing looks cheaper on the surface. But without strategy, businesses often end up:
- Spending on the wrong tactics.
- Wasting time and money redoing work.
- Operating without clear messaging, target personas, or funnel alignment—making sales harder.
A good agency partner helps you prioritize, allocate smarter, and measure results. At Moxie, we treat client budgets as if they were our own, recommending what we’d do with those dollars. That guidance prevents the “throw spaghetti at the wall” approach that leaves many owners frustrated.
And let’s be honest: you wouldn’t expect yourself to do your own accounting or legal work without training. Marketing requires expertise too.
The Long Game vs. Quick Wins
Some marketing tactics take time. SEO, brand awareness, and organic social don’t pay off overnight—but they build powerful, compounding assets. Others, like paid search or retargeting ads, can deliver faster, trackable wins.
That’s why measurement matters. Define what success looks like (awareness, engagement, conversions), track leading indicators, and adapt as you go. If a tactic isn’t working, shift the budget—not the overall strategy.
Why is cutting marketing first during slow times a mistake?
When business slows, many owners pull back on marketing to save costs. It’s understandable—you don’t want to cut payroll. But cutting visibility during slow times creates a downward spiral: fewer people hear about you, fewer sales come in, and recovery takes even longer.
During the pandemic, businesses with strong digital presences weathered the storm better. Social media and websites became lifelines, helping brands communicate hours, services, and changes. Those who invested in marketing before the crisis could pivot faster and stay top of mind.
Plan Beyond the Launch
Another pattern we see often: a business invests heavily in startup costs—equipment, leases, even branding and a website—but leaves nothing for ongoing marketing. They launch beautifully, but without continued investment, momentum stalls.
Marketing isn’t a one-time project. It’s an ongoing system. Budget monthly for activities like SEO, email marketing, and social campaigns. Even a modest, consistent spend creates momentum that sporadic splurges can’t.
DIY Social: Worth It?
DIY social media can work if it’s intentional and aligned with a clear strategy. But it won’t deliver overnight leads, and it won’t replace foundational work like brand development and website optimization.
If you want results faster, pairing DIY with consulting or partial management from a strategist can help you avoid wasted effort. Think of it like hiring a trainer at the gym—you still do the work, but you’re doing it right.
10 Key Takeaways
- Marketing is a business expense, not a bonus.
- Always start with a website before scaling social.
- Plan for ~10% of gross revenue as a guideline.
- Don’t confuse business supplies with marketing.
- DIY marketing often costs more in the long run.
- Marketing defines your audience and messaging, making sales easier.
- Long-term tactics (SEO, social) need patience.
- Track results and adapt budgets regularly.
- Don’t cut marketing during slumps—it fuels recovery.
- Think ongoing system, not one-time spend.
Tune In and Get Inspired
There’s no “perfect” marketing budget number. But there is a right mindset: marketing is non-negotiable if you want to grow. Whether you start with a small monthly amount or invest aggressively, the key is consistency, intention, and strategy.
At Moxie Creative, we help small businesses make sense of their budgets, invest wisely, and adapt as markets shift. If you’re ready to stop guessing and start building momentum, let’s talk.
Frequently Asked Questions
What percentage of revenue should go to marketing?
The Moxie Creative team recommends about 10% of gross revenue, not profit, as a reliable guideline. Established businesses with steady pipelines may succeed at 2 to 5%, while new or growth-stage businesses often need 10% or more.
Are business cards part of a marketing budget?
No. The Moxie Creative team says business cards, letterhead, and envelopes are operational costs. Sponsorships and community donations are important too, but they belong in a separate community giving budget.
How long does it take for social media to pay off?
According to the Moxie Creative team, the first one to two years on a new social account are mostly about brand awareness, not instant leads. That is why brand strategy, website, and content should come first, with social next.
Is DIY social media worth it for small businesses?
DIY social media can work if it is intentional and tied to a clear strategy, the Moxie Creative team says. It will not deliver overnight leads or replace brand development and website work. Pairing DIY with consulting or partial management can help you avoid wasted effort.
