GUIDE / STRAIGHT ANSWER

What Google Ads budget should a small business start with?

There is no useful universal minimum. A sensible test budget comes from the value of a customer, the close rate, likely cost per click and available search demand.

One practical question. One straight answer.

The short answer

Estimate the profit left from an average customer after delivering the work. Multiply that by the percentage of genuine enquiries that become customers. This gives the expected value of a lead before advertising cost. The monthly budget should then be large enough to test a meaningful number of clicks without risking money the business cannot comfortably lose.

Graeme Edment, founder of Hypertrail Digital
Practical guide from Graeme Edment13 years making paid search answer to real business numbers.

I manage campaigns directly and use the decision process explained in these guides. Last updated 8 September 2026.

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01

What to check first

The right decision depends on a few commercial facts. Work through these before changing budget or buying another service.

  • ✓Profit left from an average customer
  • ✓Enquiry-to-customer close rate
  • ✓Likely Google cost per lead
  • ✓Enough monthly searches to learn from
02

Start with a tolerable cost to acquire a customer

Use the profit left from a normal completed job, then decide how much of that contribution the business can sensibly spend to win the customer. This figure must leave room for overhead, missed quotes, cancellations and uncertainty.

03

Convert customer cost into a lead target

If one in four genuine enquiries becomes a customer, four leads are normally needed for one sale. A £200 tolerable customer-acquisition cost therefore implies roughly £50 per genuine lead. It is a planning limit, not a promise that the market will supply leads at that price.

04

Make the test large enough to answer something

A tiny budget spread across ten services and twenty towns may produce no useful pattern. Start with the most valuable service and realistic coverage. Use Keyword Planner and real search-term data to judge whether the budget can buy enough relevant activity to learn.

05

What I would check in your account

If you share what the business sells, where customers are and what is not working, I can inspect the actual route from search to enquiry and tell you the first thing I would improve. If there is no sensible paid-search opportunity, I will say so.

Sources checkedPrimary platform documentation (2)

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