Starting a new business is an exciting journey, but the real challenge begins when it’s time to get the word out. Whether you’re opening a bakery, a dental clinic, or a boutique fitness studio, marketing is one of the most important investments you’ll make early on.

But how much should you actually spend? There’s no universal answer, but there are general percentages and categories that can help guide your budgeting decisions—especially in those crucial first few months. This article will walk you through the common marketing expenses for new businesses and offer insights into how to plan wisely without overspending.

Know the Right Amount to Invest in Marketing

The Grand Opening: Your First Big Impression

One of the earliest marketing moments for many local businesses is the grand opening. This event serves multiple purposes—it builds buzz, introduces your brand to the neighborhood, and often becomes the first impression for potential loyal customers.

Allocating about 15–20% of your initial marketing budget to your launch event is reasonable. That percentage typically covers event setup, food and beverage, entertainment (if any), signage, and invitations. Some businesses also invite community leaders, press members, and influential locals, which can amplify the visibility. A well-executed grand opening can leave a lasting impression and jumpstart word-of-mouth marketing.

Traditional Print Marketing: Flyers, Mailers, and Door Hangers

Even in today’s digital age, traditional marketing still plays a valuable role—especially in local markets. Mailers, postcards, and flyers can introduce your brand to households in your immediate vicinity. They’re tangible, targeted, and often kept longer than a digital ad.

You might want to allocate 25–30% of your early marketing budget to print materials. This would include design, printing, and distribution costs. Many new businesses run two to three print campaigns in their first few months, particularly when offering promotions or highlighting new services. These efforts are great for reaching people who may not yet follow you online.

Digital Advertising: Google, Yelp, and Nextdoor

Once you’ve created a solid brand foundation, it’s time to focus on digital outreach. Platforms like Google Ads, Yelp, Facebook, and Nextdoor offer excellent tools to target people in specific zip codes or neighborhoods. These platforms can bring immediate visibility when someone searches for a business like yours nearby.

It’s smart to assign 30–35% of your early marketing budget to digital advertising. This should cover search engine ads, sponsored social media posts, and boosted business profiles. These campaigns can be monitored and optimized in real-time, allowing you to adjust based on what’s working. With local search being so powerful, investing in these platforms early can deliver great ROI.

Community Involvement and Local Associations

Joining the local chamber of commerce or a relevant business association is another smart move for long-term brand building. These memberships provide networking opportunities, event participation, and increased trust in the eyes of the community.

Dedicating around 10% of your initial marketing resources to this category can pay off. Some chambers even offer marketing perks like featuring new businesses in newsletters, social media shout-outs, or event sponsorship opportunities. For example, if you’re a veterinarian, joining veterinary associations not only builds credibility but also connects you with referral networks.

Networking Groups and Referral Circles

Many local entrepreneurs find success through personal connections. Participating in networking groups such as BNI (Business Network International) or local entrepreneur clubs can be another worthwhile strategy. These groups often focus on relationship-building and referrals, which can lead to repeat clients over time.

You may want to reserve 5–8% of your budget for networking memberships and related materials, such as business cards or printed leave-behinds. While not as flashy as digital ads or mailers, these groups can provide ongoing leads and support from other professionals in your area.

Website and Online Presence

Your website is often the first place potential customers will land after hearing about your business—whether through word of mouth, advertising, or mailers. A professional-looking website that communicates your offerings, values, and location is essential.

Investing 10–15% of your marketing budget into your website and online presence in the early months is wise. This includes design, development, basic SEO optimization, and possibly a blog or FAQ section. Partnering with experts who understand how to market local businesses online—like the team at Ellipsis Marketing—can ensure that your digital foundation is both effective and affordable.

Social Media Content and Engagement

Social media plays a dual role: it helps you attract new customers and stay connected with existing ones. Depending on your industry, platforms like Instagram, Facebook, and even TikTok can become essential channels for engagement.

Allocate about 10–12% of your marketing budget for social media efforts. This can include professional photography, content creation, community management, and advertising. While some of this can be managed in-house, many small business owners choose to outsource parts of their social media to ensure consistency and creativity.

Branding and Design Assets

Your logo, brand colors, signage, and other visual elements will shape how customers perceive your business. First impressions matter, and consistent branding creates a professional image from day one.

Spending about 8–10% of your initial marketing budget on branding ensures your visual identity is clear, memorable, and aligned with your message. This often includes logo design, brand guidelines, and printed materials like brochures or menus.

Ongoing Promotions and Seasonal Campaigns

Once the initial launch buzz dies down, you’ll need to keep customers engaged through promotions, events, or seasonal campaigns. Whether it’s a “back-to-school special” or a “holiday gift package,” ongoing campaigns maintain momentum.

Set aside 5–7% of your total marketing spend for these activities. They don’t have to be extravagant, but they should align with customer needs and be promoted through the right channels (print, digital, email, etc.).

Budget Allocation Summary

Here’s a quick overview of where your early marketing dollars might go, broken down by percentage:

• Grand Opening Event: 15–20%

• Print Marketing (Mailers/Flyers): 25–30%

• Digital Advertising (Google, Yelp, etc.): 30–35%

• Associations & Local Groups: 10%

• Networking Memberships: 5–8%

• Website & Online Presence: 10–15%

• Social Media Marketing: 10–12%

• Branding and Design: 8–10%

• Seasonal Promotions: 5–7%

These percentages are flexible depending on your industry and goals, but they provide a helpful structure to make sure you’re covering all essential areas without overspending in just one.

Stretching Your Budget with Affordable Marketing Solutions

Marketing doesn’t have to break the bank. What matters most is using your budget strategically. If you’re looking for cost-effective ways to reach your audience, build awareness, and gain trust—partnering with the right team can make all the difference.

At Ellipsis Marketing, we offer a variety of affordable marketing and advertising solutions designed specifically for small and local businesses. From smart digital campaigns and community mailers to web design and branding, our solutions are tailor-made to deliver results without the high price tag. Our focus is on helping local businesses make smart choices that lead to long-term growth and visibility.

Final Thoughts

When you’re launching a new business, it’s easy to either overspend on flashy marketing or underspend and miss key opportunities. By thinking in terms of percentages and breaking your budget into well-defined categories, you can cover all your bases—from grand opening events to digital ads—without surprises. Focus on strategies that build awareness, trust, and customer loyalty. And if you need help planning a smart, affordable marketing approach, Ellipsis Marketing is here to guide you every step of the way.