What is the cheapest way to market a new business? Here’s the truth the marketing industry won’t tell you: for most new small businesses, the highest-ROI marketing costs little or nothing. Google Business Profile (free) puts you on the map — literally. Referrals (free) convert better than any ad. And a well-run Instagram (free) outperforms a £500/month ad budget for local businesses. I’ve watched businesses thrive on under £100/month in marketing spend, and others burn thousands on agencies with nothing to show. Here’s what actually works, cheapest first.

The free foundations (do these in week one)

• Google Business Profile — the single highest-ROI free marketing in existence. Claim your free listing, add photos, hours, services, and your location. You appear in Google Maps and local searches — where customers with intent (“plumber near me”, “café open now”) actually look. Businesses with complete profiles get dramatically more calls. This is non-negotiable; do it today.
• Get Google reviews from day one. Reviews are the engine of local trust — our guide on getting Google reviews shows the system. Ask every happy customer; make it easy with a direct link or QR code.
• Local Facebook groups and Nextdoor. Free, hyper-local, full of your customers. Join as a helpful community member first — answer questions, be useful — and mention your business naturally. Blatant spam gets banned; genuine helpfulness gets customers.
• A simple website. One page with what you do, where, prices, and contact details. £50–£100/year for domain + basic hosting, or free tiers (Google Sites, Carrd). It exists so Google can find you and customers can verify you’re real.
• Tell your network properly. Not “I started a business!” but specific asks: “I’m doing garden clearances in [area] — who do you know with an overgrown garden?” Specific requests get specific referrals.

What is the cheapest way to market a new business on social media? (Free, done right)

• Pick ONE platform where your customers actually are — Instagram for visual/trades/hospitality, Facebook for local community and older demographics, TikTok for younger audiences, LinkedIn for B2B. One platform done well beats four done badly.
• Post consistently, not perfectly. Three genuine posts a week (work in progress, finished jobs, behind the scenes, tips) beats one polished monthly post. Authenticity outperforms production value for small businesses.
• Local hashtags and geotags — #[yourtown]business, location tags on every post. This is how locals discover you.
• Engage locally — comment on other local businesses’ posts, share community news. The algorithm rewards it, and the community notices.
• Reels/short video get disproportionate reach versus static posts — a 30-second “watch us transform this garden” outperforms any photo. Our guide on growing on Instagram without paid ads goes deep.
• Don’t buy followers. Fake followers destroy engagement rates and credibility. 200 real local followers beat 10,000 fake ones.

The referral engine (your cheapest growth channel)

Referred customers convert at 3–5x the rate of cold leads and cost nothing to acquire. Build the engine deliberately:

• Ask every happy customer. “Do you know anyone else who needs [service]?” — asked warmly at the moment of satisfaction, this works astonishingly well.
• Make referring effortless — a simple “forward this to a friend” message, referral cards, or a shareable link.
• Reward referrals — a discount, a freebie, or a thank-you. It doesn’t need to be big; acknowledgement matters more than value.
• Partner with complementary businesses — the cleaner recommends the Airbnb host, the host recommends the cleaner. Formalise 2–3 partnerships and referrals flow both ways.
• Follow up past customers — a six-month check-in (“how’s the garden looking?”) generates repeat business and fresh referrals. Most businesses never do this; it’s free money.

Cheap paid options (when free isn’t enough)

• Google Ads for high-intent searches — £100–£300/month targeted at “[service] near me” searches can work brilliantly for trades and local services. Start small, track calls, kill what doesn’t convert. (Avoid agencies until you’re spending £500+/month — learn the basics yourself first.)
• Facebook/Instagram ads, hyper-local — £5/day targeted to a 10-mile radius around your postcode. Excellent for launches, events and offers.
• Flyers and door drops — unfashionable but effective for local services. £50–£100 prints 1,000 flyers; a weekend of door-knocking in target streets works.
• Local sponsorships — youth football kit, community event, school fair. £100–£500 buys genuine local goodwill and visibility money can’t otherwise buy.
• Vehicle signage — a sign-written van is a moving billboard seen thousands of times weekly. £200–£500 one-off.

What not to waste money on

• Expensive branding before revenue — a £2,000 logo doesn’t get customers. Start simple, rebrand when profitable.
• Marketing agencies on retainer (early on) — you need customers, not reports. DIY until £500+/month ad spend justifies expertise.
• Print advertising (mostly) — local papers have their place for older demographics, but track response ruthlessly.
• SEO agencies promising page one — for local businesses, Google Business Profile + reviews + a decent website does 90% of local SEO free.

Measuring what works (even on £0)

Cheap marketing still needs measurement — otherwise you’re guessing. The free metrics that matter: Google Business Profile insights (how many people found you, called, asked for directions — built in, free), website analytics (Google Analytics is free; even simple visitor counts tell you what’s working), ask every customer “how did you hear about us?” (the lowest-tech, highest-value tracking in existence — keep a tally), and track by channel monthly (a simple spreadsheet: enquiries per source). Kill what produces nothing after an honest 3-month trial; double down on what produces customers. The Federation of Small Businesses at fsb.org.uk offers members marketing resources and advice alongside its other support — worth knowing as you grow. Marketing without measurement is just spending; marketing with measurement is investing, however small the amounts.

The bottom line

What is the cheapest way to market a new business? Google Business Profile + reviews (free, highest ROI), one social platform done consistently (free), systematic referrals (free, highest conversion), and local community presence (free). Add small, trackable paid spend (£100–£300/month) only once the free channels are working. Marketing isn’t about budget — it’s about being findable where customers look, remarkable enough to recommend, and disciplined enough to ask for the referral. Total cost to start: under £100.

Next: finding your first customers and getting Google reviews.