Thursday, November 05, 2026

Vistage puts you in a group of 12 to 16 owners with a Chair. Simple-Growth is one owner-run coach who finds your constraint first. Here is who each suits, what is public on cost, and six questions to ask. Checked 5 November 2026.

If you're one of the 26% of small business owners planning to spend exactly $0 on marketing this month, you're not being frugal — you're setting your own growth ceiling. New data from 7,413 small business sign-ups shows 90% of small businesses spend under $200 a month on marketing, while growth-focused firms sit at 9.4% of revenue, per Duke University's Fuqua School of Business CMO Survey. That gap is a large part of why so many SME owners feel like they're working harder for the same result, year after year.

Why “My Clients Refer Me” Isn't a Marketing Strategy

The data is stark. Of 7,413 small businesses surveyed on planned monthly marketing spend, 26.1% said zero, 39.4% budgeted $1–$50, and a further 24.9% sat between $51 and $200. Add those bands together and 90.5% of small businesses spend less on marketing in a month than most people spend on groceries in a week (UENI, August 2026).

Compare that to Duke's Fuqua School of Business CMO Survey — directed by Professor Christine Moorman, co-sponsored by Deloitte and the American Marketing Association. Its most recent edition — 281 marketing leaders, 99% at VP level or above — found marketing budgets had climbed to 9.4% of revenue, up from 7.7% the year before. That's not a small gap. It's a different business model entirely.

Here's the enemy in this story: the Referral Economy Myth — the quiet belief that if the work is good enough, word of mouth will do the marketing job on its own. It's appealing because it costs nothing and flatters the quality of the work. But referrals are a lagging indicator, not a growth strategy — capped by the size of your existing customer base, not the size of the market you could serve. A business spending $0 on marketing isn't undercutting competitors on price. It's opting out of ever meeting the customers who don't already know someone who knows them.

The Marketing Floor: A Simple Rule for What to Spend

Every business — whether it's shifting cereal for Nestlé or coaching SME owners in Auckland — needs a marketing floor: a minimum percentage of revenue below which it stops being found. Kevin has spent over 30 years building brand budgets at DDB, Ogilvy and Saatchi and Saatchi for McDonald's, Nestlé and IBM, and now runs the Simple-Growth System™, and in all that time the principle has never changed — only the number of zeros. Three tiers:

1. Survive (2–3% of revenue). The bare minimum to stay visible outside your existing network — enough for consistent content and basic paid reach. Below this, you're invisible to anyone who hasn't already met you.

2. Sustain (6–9% of revenue). This is where growth-focused businesses actually sit, in line with what Duke's CMO Survey shows established companies committing. It keeps your pipeline full at your current pace.

3. Grow (10%+ of revenue). What it takes to win market share from a competitor, launch into a new segment, or rebuild momentum after a slow patch.

The action is simple enough to do before 9am tomorrow: pull last month's revenue, calculate 3% of it, and compare that number to what you actually spent. That gap — not your competitors, not the algorithm, not the economy — is exactly what's capping your growth right now. Then put the gap into one channel, run properly, for a full quarter before judging whether “marketing doesn't work for my business.”

“Kevin D'Ambros-Smith was the first coach that helped us and he was so great. He understood the business straightaway, was able to identify some of the areas where we could grow it, and some of the things to park. I don't think the ROW branding would be nearly as strong without his input.”

— Sarah McGuinness, Founder and CEO, Revolutionaries of Wellbeing (ROW)

Why Owners Know This and Still Spend $0

Most SME owners could recite this logic back without prompting. Almost none act on it, for three reasons: marketing feels optional in a way rent and payroll don't, so it's the first line cut when cash is tight — even though it's the line most likely to fix the cash problem; a budget never big enough to test properly never gets to prove itself, so “marketing doesn't work for us” becomes self-fulfilling; and there's rarely anyone reviewing the number monthly, so a floor written down once is just a line in a plan nobody reopens.

That's where the real gap sits — not in strategy, but in accountability. A budget without someone checking it against results every month rarely survives its first bad quarter. That's the specific, unglamorous reason coaching changes outcomes here: not better ideas, but someone in the room holding the floor steady when the instinct says to cut it.

Three Things to Do This Week

  • Calculate your current marketing spend as a percentage of last month's revenue — most owners have never actually done this math.
  • Set your floor at a minimum of 3%, moving to 6–9% if steady growth is the goal for the next 12 months.
  • Choose one channel, not five, and commit your floor to it for a full quarter before switching or judging results.

Key Takeaways

  • 26% of small businesses budget $0 a month for marketing, and 90% spend under $200 a month (UENI, 7,413 businesses, data captured August 2026).
  • Growth-focused companies budget 9.4% of revenue for marketing, up from 7.7% the year before (Duke University Fuqua School CMO Survey, 281 marketing leaders).
  • Referrals are a lagging indicator of past work, not a growth strategy — they plateau at the size of your existing network, not the size of your market.
  • The Marketing Floor: 2–3% of revenue to survive, 6–9% to sustain growth, 10%+ to take market share.
  • A marketing budget without a monthly accountability review rarely survives its first bad quarter.

Work out your Marketing Floor number this week — and if closing the gap between what you spend and what you need feels impossible to do alone, that's exactly the conversation Kevin is ready to have with you.

...and you become the owner who markets on purpose, with a number you set and review.

Monday, October 12, 2026

The 4 real reasons marketing fails for SME owners, and the practical, low-cost fix for each one.

Monday, October 12, 2026

New research shows 39% of small business owners blame admin, not the market, for stalling their growth. Here is how to find the real constraint before you spend another dollar fixing the wrong one.

Monday, October 12, 2026

Only 20-30% of businesses for sale actually sell, often because they can't run without their owner. Here's how to design yours so it can.

Monday, October 12, 2026

Writing your goals down is linked to real gains in achieving them. Here's the Vivid Vision exercise that turns a fuzzy dream into a measurable plan.

Monday, October 12, 2026

Owners using AI with purpose save 6 to 10 hours a week. Here's the simple audit that finds your first three tasks to hand over.

Monday, October 12, 2026

97% of buyers read reviews, but trust in them is falling. Here's how to build the review ask into your sales process, not just your marketing calendar.

Monday, October 12, 2026

64% of marketers can't tell competing brands apart. Here's the one-sentence positioning formula that makes sure your customers always can.

Monday, October 12, 2026

Most SME owners already know their real edge isn't price. Here's why benchmarking competitors kills that edge, and how first-principles thinking builds a strategy around it instead.

Sunday, October 11, 2026

Coach, consultant, mentor or advisor? How the four roles differ, which one suits an established NZ business, and the questions to ask before you pay.

Sunday, October 11, 2026

Gallup's 2026 data shows global employee engagement fell to 20 percent, even in the best-performing regions. Here's the three-question check SME owners can run this week to find out where their own team really stands.

Sunday, October 11, 2026

Everyone agrees December is too close to Christmas to prospect. One sales agency's own client data says the businesses that kept going saw 19 percent more leads the following January.

Sunday, October 11, 2026

Most SME owners can describe next year's budget in detail and go quiet the moment you ask about year ten. A UK study of over 1,000 companies found that gap predicts success almost on its own.

Sunday, October 11, 2026

Most SME owners build their people plan around courses. The research behind the 70-20-10 model says courses are the smallest lever you have, and it is worth knowing how shaky that research actually is.

Sunday, October 11, 2026

A lead called within five minutes is up to 100 times more likely to be contacted and 21 times more likely to qualify than one called 30 minutes later. Almost nobody does it.