How to start a business #9: create a marketing strategy

Any entrepreneur will know how difficult the first few years and months after starting a business can be, but a good marketing strategy – and, importantly, its implementation – can make all the difference in the extent of that difficulty. You don’t need to be contacting expensive marketers in your first few months of business, instead, you can follow a few of these tips…

Why do I need a marketing strategy?

A marketing strategy gives a small business complete control over how it is discovered, evaluated, and chosen by target customers. Without a clear plan, marketing becomes an inefficient guessing game that wastes valuable financial resources and time. Establishing a structured marketing strategy ensures every promotional activity directly drives business growth and brand awareness.

Your business is constantly being perceived, monitored, researched, and found by prospective clients. Having a proactive strategy puts you firmly in control of that process rather than leaving your brand reputation to chance. The U.S. Chamber of Commerce reports that ineffective marketing and a lack of structured planning was reported as the reason small businesses struggled in 22% of cases.

To build an effective promotional foundation, it helps to understand what a marketing strategy actually involves—and what it does not:

What a marketing strategy IS:

• A clear operational roadmap: A structured plan defining your target audience, value proposition, and revenue targets.
• An ongoing customer engine: A system designed to attract new leads, convert prospects, and build long-term loyalty.
• A budget management tool: A framework ensuring your marketing expenditure focuses on high-ROI channels.

What a marketing strategy is NOT:

• A single advert or social post: One-off promotions without a broader plan rarely generate sustainable growth.
• A rigid document: Effective strategies evolve based on real customer feedback and analytics.
• An expensive luxury: You do not need thousands of pounds or an agency to build a powerful strategy from your workspace in a Capital Space business centre.

How do I develop a marketing plan for my new SME?

Developing a marketing plan for your new business requires clarifying your value proposition, defining your ideal audience, setting SMART goals, determining a budget, and selecting two or three core channels. Focusing on a tight mix of proven activities ensures consistent execution without burning out your team or budget.

Step 1: Clarify your value proposition and audience

• Value proposition: Define the exact problem your business solves and why clients should choose you over competitors.
• Target audience: Outline your buyer persona, including their age, geographic location, daily challenges, and online habits.
• Competitor analysis: you don’t have to begin by trying to compete with major names in your industry. Research three local or online competitors. Identify what they do well and locate gaps in the market that your small business can fill. If you have read our previous blogs on how to start a business, you will have already conducted your market research and know a bit about your competitors.

Step 2: Set KPIs for your marketing strategy

Establishing KPIs is an essential step for tracking return on investment, turning a generalised marketing plan into one that strategically and methodically contributes to the greater goals of your business. If you have already written your business plan, you will already have goals in mind for how you want to scale your business, attract and retain clients, and generate a higher turnover for your business. Key performance indicators for your first year of business could be:

• Increase conversions by 20%
• Increase your client base by 20%
• Increase your net profits by 20%

Step 2: Set SMART marketing goals

Ensure your targets are Specific, Measurable, Achievable, Relevant, and Time-bound. Rather than vague ambitions to “increase brand awareness”, set concrete first-year objectives that work towards your greater business goal such as:

• Building an email list of 300 active subscribers within six months.
• Securing 50 verified customer reviews on your Google Business Profile.
• Increasing qualified website traffic through targeted SEO for business growth by 20% each quarter.

Step 3: Establish a realistic budget

Most small businesses dedicate between 5% and 10% of their gross revenue to marketing.

If you are launching with minimal capital, prioritise organic, low-cost channels—such as local Search Engine Optimisation (SEO), organic social media, and client referrals—before committing to paid advertising campaigns.

Map out a simple monthly timeline in a spreadsheet to organise promotional campaigns across the year.

Step 4: Pick 2–3 core marketing channels

Attempting to maintain a presence on every platform leads to quick burnout. Select a manageable mix tailored to your target audience:

• Google Business Profile: Essential for local search visibility, enabling nearby clients to discover your workspace or services on Google Maps.
• A fast, mobile-friendly website: Ensure your site loads quickly and features clear calls to action (CTAs).
• Organic social media: Select one or two platforms where your target audience is active. Check out our guidance on digital marketing for SMEs to streamline your posting schedule.
• Email marketing: Collect email addresses from day one. Regular updates remain one of the highest-return activities for small businesses.
• Targeted promotions: As your budget grows, explore complementary tactics such as pay-per-click marketing for small businesses or video marketing for entrepreneurs.

Step 5: Measure and adapt monthly

Marketing is an evolving experiment. Review your performance data at the end of every month using free tools like Google Analytics to identify which sources drive real sales leads, and reallocate time away from underperforming activities.

How can I adapt my marketing strategy once I have been trading for a while?

Yes, an established SME should regularly adapt its marketing strategy by shifting focus from broad lead generation to customer retention, doubling down on high-performing channels, and pruning ineffective campaigns. Leveraging historical customer data allows an established business to lower acquisition costs and maximise customer lifetime value.

Once your business has built market momentum, transition your strategy using these five key steps:

1. Audit and stop what isn’t working: Review lead generation data to identify which sources yield high-value clients. Eliminate marketing habits that consume time without delivering a measurable return on investment.
2. Shift from acquisition to retention and LTV: Focus on driving repeat purchases and client referrals. Track Customer Lifetime Value (LTV) against Customer Acquisition Cost (CAC) to ensure sustainable profitability.
3. Re-evaluate your target audience: Re-examine customer transaction history and feedback to update your buyer personas as your brand matures.
4. Refine your value proposition and messaging: Move away from basic brand awareness toward clear market differentiation. Evolve your promotional messaging using tactics like hosting webinars to boost visibility or leveraging podcasts to boost your business brand.
5. Streamline and test channels: Focus resources on your top three channels. Build authority through targeted strategies like online PR, guest posting, and backlinks to strengthen your search rankings.

Pitfalls to avoid when developing a marketing strategy

Small businesses can avoid wasted spend by recognizing common marketing pitfalls early. Preventing these frequent strategic mistakes ensures your promotional budget works efficiently to support long-term business growth.

• Spreading resources too thin: Trying to maintain active profiles across every social network dilutes message quality and exhausts your team.
• Chasing vanity metrics: Focusing on social media “likes” rather than qualified leads, sales inquiries, and email sign-ups.
• Ignoring local search optimisation: Failing to claim your Google Business Profile or list your physical location in an established Capital Space business centre.
• Expecting overnight results: Abandoning promotional campaigns prematurely before search engines and audiences have time to respond.
• Failing to include a clear CTA: Publishing content without giving prospects a direct next step, such as booking a consultation in one of our on-site meeting rooms or signing up for a flexible easy-in, easy-out licence.

Developing a structured, adaptable marketing strategy gives your business complete control over how it is found, trusted, and chosen by customers.

If you’re looking for office space from a provider that wants to support your business success, get in touch.