Businesses typically allocate two to 10 percent of an annual budget to advertising. Retail businesses usually spend near the top of that range, because it's easier for service businesses to use word-of-mouth referrals and networking as promotion. Senjem says entrepreneurs must view advertising and marketing as an investment, not as an expense. "As soon as you can handle more business, spend the money to get it," he advises. "If you follow the tradition of putting a cap on the advertising budget, you may sell yourself short."