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3 Reasons Why Small Business Owners Need To Allocate A Marketing Budget

Author: Petar Petroviฤ‡ (Growth Architect / Expert SEO Consultant in Melbourne)

Date Published: 12.04.2025

Read Time: 4-6 Minutes

Over the last 6 months, I’ve spoken to over 150+ business owners across Australia and the US.


A recurring theme amongst 90% of these businesses was an over-reliance on word of mouth.


The thing is, most of the business owners I speak to are suffering from the same problems:


  • Poor cash flow
  • No idea of where their next customer is coming from
  • Feel invisible
  • Don’t know their audience


When I ask them:


“how much are you allocating towards your marketing budget to acquire new leads?”


Many give me that confused look and echo the same thing:

”Huh.. What marketing budget?!”

They are all riding the emotional rollercoaster of working for their businesses instead of having their business work for them.

If you're constantly wondering where your next lead is coming from…

You're not running a business — you're playing roulette with your income.

Here are the top 3 reasons why setting aside a marketing budget isn’t optional — it’s paramount:

Note

In a study by mega consultants Deloitte.

They found that businesses that allocate a defined marketing budget grow 60% faster than those that don’t.

Download Study

1. Greater Reach & More Visibility


In 2025, all your customers are online.


Allocating a marketing budget helps your business gain more visibility and attract a wider audience. Campaigns on the internet give you the opportunity to put your product/service in front of your ideal client.


You can narrow down who sees your offer by

  • Age
  • Gender
  • Target Location
  • Specific Interest
  • Keywords They’re Using in Search
  • many many more nuances…


Instead of waiting by the phone passively for your next client to come through, you can simply put yourself in front of your target audience.


By allocating a marketing budget, you can introduce your business to new prospects daily, helping them solve their problems and improve their quality of life.

2. Consistent Lead Flow


Humans crave predictability.


No one wants to be guessing where the next dollar is coming from.


By allocating a monthly marketing budget, you can instil predictability in your business model and stop the emotional roller coaster nightmare.


Placing your business and offer in front of your target audience allows you to predictably close more sales and generate a stable revenue stream.

Note

The algorithm gets better and more efficient the longer you run your marketing campaigns.


This means you can systemise your client acquisition process.

You're in full control - All you have to do is click a button, raise the ad spend on whether you want to scale.

๏ปฟ

Giving you the flexibility to make more money and have greater freedom.

3. Your Competition Is Doing It


What’s that old saying?


Keeping up with the Jones’…


Let me explain


Your competition is allocating a monthly marketing budget towards capturing and nurturing prospects. As a byproduct, they’re taking your market share. Your competition is actively nurturing and building relationships with prospects whilst you’re sitting by the phone waiting for the next client to come.


What does this mean for my business?


When you decide to go to market and generate prospects, the market share is smaller and harder to break into.

The longer you delay, the harder it gets. Skepticism is higher, and trust takes longer to build up.


Think of this way…


If you’re not marketing your business — someone else is marketing to your customers.

Insight

Change only occurs when the pain of change is smaller than the pain of staying the same.

Secret Sauce

Advertising on social media in 2025 is expensive and saturated. The best way to utilise socials in 2025 and beyond is to use them as a retargeting tool.


Learn why 'retargeting' is the #1 method driving conversions

Not your typical "Buy my sh*t" digital marketing agency - At Mesmerise we're Omnipresent Growth Architects ๐Ÿ“Š ๐Ÿ“ˆ

At Mesmerise, we understand the unique challenges small businesses face in today’s digital landscape.


With years of experience, we help businesses like yours achieve long-term success through tailored SEO strategies, Google Ads, and a holistic approach to digital marketing.


Take the next step.


Let’s build an online ecosystem that aligns with your business goals, connects with your target audience, and secures your businesses success and long standing.


Your potential customers are searching. Make sure they find you.

What the FAQ โ‰๏ธ

(Common questions regarding marketing budget for small business)

  • I run a local business in Melbourne — do I really need a marketing budget?


    Yes.


    Even if you're a bricks-and-mortar store with regulars, relying solely on word-of-mouth in 2025 is a ticking time bomb. 


    Melbourne’s market is saturated — if you're not actively staying visible, someone else is taking your spot.


  • What if I can’t afford to market right now?


    The real question is: Can you afford not to?


    Allocating even $2,000–$3,000/ month towards targeted visibility can unlock consistent leads.


    Start small. Scale up. 


  • How do I know my marketing budget is actually working?


    Simple:


    • You’ll see more enquiries.

    • You’ll see better-quality leads.

    • You’ll stop feeling like you’re gambling each month.


  • What’s a good starting budget for a small business in Melbourne?


    Aim for 5–10% of your monthly revenue if you want to sustain.


    Aim for 15-20% of your monthly revenue if you want to grow.


  • I’ve tried ads before — they didn’t work.


    Exactly, you tried ads. 


    You need an omnipresent strategy that has intention and purpose. 


    Book in a free marketing audit


    You'll discover


    • The #1 silent killer draining 80% of your ad budget — and how to plug it in under 15 minutes.

    • The 3-second test we use to see if your brand passes the ‘Would I Trust This Business?’ filter.

    • How to know if your SEO agency is secretly gaslighting you

    • One question that reveals if you’re marketing to buyers… or just shouting into the void.

    • The offer alignment test we use to predict if your next campaign will flop… before you spend a cent.

    • + Many more industry secrets


  • Can’t I just rely on referrals like I’ve always done?


    You can — but it’s like fishing with a line when you could use a net.


    Referrals are random ๐Ÿคฌ


    Marketing is predictable. And predictable = freedom. ๐Ÿ’ธ


Sick of waiting by the phone for your next leadโ‰๏ธ

At Mesmerise we’re passionate about helping businesses like yours dominate their competition and generate real results. Here’s how we can help you:

๐Ÿ›œ Website Audit:  Comprehensive look at your website, conversion rate optimisation and UX

๐Ÿ”Ž SEO Audit:  Thorough look at your website on page/off-page SEO, backlinks, technical SEO + more

๐Ÿ“ Local SEO Audits:  We’ll take a deep dive into your current local SEO efforts and find opportunities for improvement

๐ŸŒŸ Review Management:  We’ll help you get more reviews and manage them effectively.

๐Ÿค Your Core Offer:  Help you craft a core offer that cuts through the noise and resonates with your target audience

๐Ÿ”— Local Link Building:  We’ll use proven tactics to get high-quality local backlinks for your site.

๐ŸŒช๏ธ Marketing Funnel:  We’ll dissect your campaigns and construct state of the art marketing funnels.

--
Do you need guidance with your marketing strategy moving into 2025 and beyond?
Hit the button below and book a complimentary strategy session.

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Hey I'm Petar (my friends call me Pezzie), the founder of


I'll keep this short..

Two years ago, I quit my 9-5 and went down the long, hard road of entrepreneurship...
Since then as a solopreneur I've generated over $3.2million in revenue for my clients.

My mission with Mesmerise is to implement integrated digital marketing ecosystems that generate long term stability, growth and engagement. 

Led by Integrity, Innovation & Intelligence my commitment is to deliver exceptional results whilst building life long relationships with my clients.

Are you passionate about your purpose? Do you live and breath your vocation?

If you're reading this the answer is most probably yes.

Let's connect.. I'd love to hear more about your business.

Speak soon

Petar






Hey I'm Petar (my friends call me Pezzie), the founder of MESMERISEI'll keep this short..
Two years ago, I quit my 9-5 and went down the long, hard road of entrepreneurship...
Since then as a solopreneur I've generated over
$3.2million in revenue for my clients.

My mission with Mesmerise is to construct integrated digital marketing ecosystems that generate long term stability, growth and engagement. 

Led by Integrity, Innovation & Intelligence my commitment is to deliver exceptional results whilst building life long relationships with my clients.

Are you passionate about your purpose? Do you live and breath your vocation?


If you're reading this the answer is most probably yes

Let's connect.. I'd love to hear more about your business

Speak soon

Petar

MESMERISE

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