Ask ten business owners in Sherman or Denison what their small business marketing budget is and you’ll hear two answers more than any others: “Nothing, it’s all word of mouth,” and “Honestly, no idea.” Both cost money. Spend nothing and you disappear the first month referrals slow down. Spend without tracking and you’re probably paying for things that don’t work while starving the ones that do.
So here are some actual numbers, and then the part that matters more: the order the dollars should go out the door. For a local business, sequence beats size.
A starting number for your small business marketing budget
The rule of thumb you’ll see everywhere is 5 to 10 percent of gross revenue. It’s a rough guide, and the right number depends on your margins, your industry and how hard you’re trying to grow. For local service businesses we’d break it down like this:
- Around 5 to 6 percent if you’re established and mostly protecting what you have. On $500,000 a year that’s $25,000 to $30,000, or roughly $2,100 to $2,500 a month, just to stay visible.
- Closer to 8 to 12 percent if you want to grow: a second crew, a new service line, a new town. You’re buying attention you don’t have yet.
- Higher still in year one, measured against the revenue you’re aiming for, because nobody knows you exist. Underspending early is one of the easiest ways for a good business to lose ground to a louder, worse one.
If those percentages made you wince, look at it from the other side. The real question is what a customer costs you to win and what that customer is worth. If $100 in marketing reliably brings in a $1,500 job, your budget isn’t the limit. Your calendar is.
Where the money should go first
Dollar one does not go to ads. There’s a priority order for a local business, and skipping steps is how budgets get burned.
1. Your website and Google presence
Almost every marketing dollar you spend ends with someone looking you up. Usually that happens on a phone, and more often now it runs through Google’s AI answers or an assistant like ChatGPT, which pull from your website and your Google Business Profile. If they land on a slow site that’s awkward on a phone, or a Business Profile with three photos from 2021, you paid to lose that customer. Fix the destination before you pay for traffic.
This used to mean a big upfront check for a new site. It doesn’t have to. Our Website Lease is $500 a month with nothing upfront, which lets a business get a modern site live without draining cash it needs for trucks and payroll. If you’d rather buy outright, we broke down the options in how much a small business website costs in Texas.
2. Reviews, email and social
These cost little and pay off more every month you keep at them. A steady stream of Google reviews, a customer email list you actually send to, and a social feed that proves you’re still open raise the return on everything else you do. Picture a Denison homeowner who sees your ad, looks you up, and finds 80 detailed reviews and posts from last week. Now picture them finding four reviews and a Facebook page that went quiet in March. Same ad, very different phone call. Or no call at all.

3. Paid ads, once the foundation converts
Now ads make sense. Google Local Services Ads and search ads catch people with a problem right now (“emergency plumber Sherman TX”). Facebook and Instagram ads build awareness and push offers. Many Texoma service businesses can get real traction on somewhere around $500 to $1,500 a month in ad spend, partly because there are fewer advertisers competing here than in Dallas or Plano. Start small, watch what each dollar produces, and scale what works.
Track it before you raise it
Before you increase any line in the budget, answer one question: when the phone rings, do you know why? Ask every new customer how they found you and write it down. Put a tracking number on your ads. Tag your links. After 90 days you’ll have something most of your competitors don’t, which is a ranked list of what actually brings in customers.
Then budgeting gets simple. Cut the bottom, feed the top. It’s common for a business that does this to find a line item that’s been producing nothing for years, like the directory listing someone renewed on autopilot or the radio spot nobody remembers hearing. We walk through the setup in connecting marketing and sales data, and our analytics reporting shows who visited, how they found you and who called.
A sample budget for a $400,000 service business
Say you run a $400,000-a-year HVAC or plumbing company and settle on 7 percent. That’s $28,000 a year, about $2,300 a month. Once the website and Business Profile are in good shape, a sensible split looks something like this:
- About a third to paid ads
- About a third to ongoing SEO and content, so you keep showing up for “[your service] Sherman TX” and in AI answers
- The rest to the stuff that holds it together: asking for reviews, email, social posts, and tracking
The mix will shift with your trade and the season. A pool company front-loads spring. A heating company leans into October. But if your current spend looks nothing like this, say 90 percent of it in one radio contract or one ad platform, that concentration deserves a hard look. One channel going soft shouldn’t be able to empty your schedule.
When to revisit the number
Once a year at minimum, and any time something big changes: a new location, a price increase, a key employee leaving, a new competitor opening down the road. Growth around Sherman and Denison has brought plenty of new competitors into the area along with the new customers, and a budget that worked in 2023 may just be keeping you in place now.
And if you’re booked out three weeks with a waiting list, it’s fine to pull ads back for a while. Just don’t touch the foundation. The reviews, the website and the Business Profile are what keep the phone ringing when the busy season ends.







