Common Marketing Mistakes Small Businesses Make

When you’ve been providing bespoke SEO services for small businesses across Australia since 2007, you start to find yourself spotting the same marketing potholes across various industries. From splashing cash on the wrong marketing channels to forgetting your local audience entirely, we have seen every kind of marketing misfire under the sun.

As a small business, you have already got enough on your plate without having to decode marketing jargon or wonder if your hard-earned dollars are actually pulling their weight. So, to save you some grief (and a few grey hairs), our SEO experts have rounded up the most common marketing mistakes small business owners make and how to fix them before they cost you another lead.

The top 8 marketing mistakes small businesses make are:

• Relying purely on word of mouth.
• Ignoring local SEO.
• Using an unoptimised website.
• Neglecting reviews and reputation.
• Chasing shortcuts and cheap packages.
• Not tracking results properly.
• Spreading budgets too thin.
• Not following up with leads.

Plenty of small businesses still rely solely on referrals and repeat business, forgetting that everyone Googles before they call (even when they “know a bloke who knows a bloke”). Without an optimised website and Google Business Profile, you’re basically invisible.

To fix this, you should start investing into a local SEO strategy that fits your business, goals and the types of leads you actually want.

By working with an SEO agency, you can claim and optimise your Google Business Profile with up-to-date photos, genuine reviews, and clear service details. Then, to keep your leads flowing, your SEO agency will assist you with expanding your visibility across nearby suburbs and keeping your Google Business Profile active with fresh projects, new reviews, and regular updates.

The more love and attention you give your online presence, the more Google (and your next customer) will reward you.

Another classic SEO mistake small businesses make is targeting broad keywords like “electrician” or “plumber” instead of focusing on local search rankings. As a small business, your budget will not stretch across a national campaign and so starting smaller is best.

Broad keywords rarely attract nearby or high-purchase intent customers which means the few visitors you do get are less likely to convert into actual enquiries. Remember, Google also prioritises search results based on proximity and so if your website doesn’t clearly state where you operate, your competitors will show up instead.

To make sure your SEO budget is hitting the right audience, check that your SEO agency is investing at least 75% into local keywords and ready-to-book customers. In other words, focus on phrases like “plumber near me” or “electrician in [your suburb]” instead of top-of-funnel searches.

Take Pestline Pest Control, for instance. Once we ditched broad, “everyone-and-no-one” keywords and built a proper local SEO strategy around their service areas, suburbs, and Google Business Profile, their website traffic skyrocketed by 641%.

After all, someone Googling “how to change a lightbulb” isn’t looking to hire an electrician, they’re looking for a YouTube tutorial.

A pretty website is nice to have, but if it doesn’t make people call you then it’s just digital wallpaper. The aim is to make sure your website is a conversion magnet that inspires site visitors to keep engaging with your business – rather than bringing them all the way to ten yards before the finishing line and then just letting them fall off your funnel entirely.

Given that most customers check out three or four businesses before deciding who to contact, if your website does not have the following then you’re practically handing ready-made, motivated leads to your competitors:

• Clear calls to action.
• Solid information about your business.
• A phone number that’s visible.
• Fast loading times.

Invest in a fast, mobile-friendly website that makes it effortless for customers to call, book, or request a quote in seconds. You should keep your website’s content genuine, share helpful information, and align with Google’s basic SEO fundamentals.

Every page on your website should have a clear purpose and guide visitors towards taking action. After all, Google doesn’t just reward great content; it also penalises slow, thin, or outdated websites. So take your time and get this right. Sure, a new website might feel like a big upfront cost. But the real expense? Every advertising dollar you burn by sending people to a website that doesn’t convert.

Google Reviews are one of the biggest factors in local rankings and often the deal-breaker between a customer choosing you or ol’ mate down the road. Yet, despite how powerful they are, plenty of businesses still spend big on ads while forgetting the simplest win of all: asking happy clients for reviews.

Even worse, negative reviews get left to rot, which sends all the wrong signals to both Google and your future potential customers. When you ignore your reviews, your adverts end up working twice as hard to earn half the trust. That’s money you don’t need to waste.

While automation tools like Podium or Reviewly can help streamline the review process, it’s still up to you to proactively ask happy customers for feedback and to respond professionally to every review that you receive across all platforms. Even if you receive a negative review, replying with genuine care and professionalism can actually work in your favour.

After all, customers appreciate transparency, and seeing you take responsibility for any mishaps also builds trust. In fact, a 2020 Smart Insights survey found that 65% of consumers say they’re more likely to choose a business that responds to reviews and businesses experience a 16% increase in customer advocacy when they respond to negative reviews.

One of the biggest small business marketing mistakes is chasing shortcuts, cheap packages, or promises of instant results. Marketing’s a marathon, not a sprint and while quick wins do exist, the real payoff comes from sustainable strategies and long-term growth.

I get it, everyone loves a bargain. But there’s a common saying in marketing which goes “when you buy cheap, you buy twice”. Cheap SEO or marketing packages can be fine to dip your toe in the water as a small business, but only if the agency has a proper plan to scale your investment and business over time. Otherwise, you are just paying for shiny buzzwords that don’t bring enough leads to cover the costs.

To avoid throwing money at agencies that don’t deliver, do your homework. Look for teams with a proven track record in your trade and people who actually understand your industry.

Work with a team that actually knows what they’re doing, not one that slaps marketing on as a “bolt-on” service alongside web design, app development and whatever else they’re selling that week. A one-size-fits-all approach might look cheaper upfront, but it’ll cost you far more in missed leads and wasted time down the track.

It still amazes me how many small business owners spend thousands of dollars each month on SEO or advertising without proper reporting. Or, at least, any real understanding of where their enquiries are coming from. Without data, you’re flying blind which means you can’t tell what’s driving results…or worse, what’s wasting your money.

To stop just spending and praying it will work out, take a few minutes to watch a short YouTube video on basic website reporting metrics. Seriously, 15 minutes of learning could save you thousands of dollars down the track. Then, you should also quiz your marketing agency to make sure they can clearly explain what every number in your report means.

Under no circumstance should you ever just accept an SEO or marketing report and move on without understanding the details. These metrics are vital for knowing not only where your budget’s going, but also whether your agency’s actually doing their job.

Any agency worth their salt will welcome those questions with open arms. Trust me. Fewer than half of clients ever ask, and when they do, it shows they actually care about growth. We love working with that kind of customer.

One of the easiest ways to waste money on marketing is by trying to do everything at once. A splash of Google Ads here, a sprinkle of SEO there, maybe a Facebook post when you remember.

Before you know it, you have spent a decent chunk of money, but nothing’s gained enough traction to actually move the needle. When your budget gets split across too many channels, it’s like trying to dig five shallow holes instead of one deep one and you’ll never hit gold like that.

The reality is that your marketing budget is not big enough to properly test each channel to really see what works. So don’t.

Focus your budget where it counts. Start with one or two high-impact channels (like SEO and Google Ads) that deliver measurable leads and couple that with one or two of your primary services that generate high profit.

Then, scale up once those are performing. By working with your agency to prioritise the services that align with your goals, you will achieve a faster return on investment that can be re-invested back into another channel.

Pro Tip: it’s better to dominate one marketing channel than to dabble in five.

You would be amazed how many businesses lose good leads simply because they never follow up. Someone calls, fills out a form, or visits the site and then… crickets. No follow-up email. No advert reminder. Nothing. That’s money slipping straight through the cracks.

Again, most customers look at three or four businesses before making an enquiry and not everyone is ready to book on the first visit. That’s where remarketing and simple follow-ups or gentle nudges make all the difference to keep your business top of mind.

To resolve this, your business should set up a basic follow-up system for all enquiries. This could be as simple as a quick call, an automated email, or even a text message a day or two later. When paired with remarketing ads to capture website visitors who bounced, your brand will be reinforced whilst they are scrolling Facebook or Google.

This marketing tactic is super low-effort whilst delivering high-returns and can be the difference between being forgotten and being booked out.

At the end of the day, good marketing isn’t about how much you spend. It’s about how well you build and the amount of care you put into each strategy. Every dollar should have a job to do. Whether that’s attracting the right customers, earning their trust, nudging them to make a decision or turning them into repeat business.

If you take anything away from this, stop guessing, stop rushing, and start tracking. By doing fewer things, and doing them properly, you will see better results across the board. Nail your website, focus your budget, follow up your leads, and make Google love your business through real reviews and solid content.

The small businesses who win online aren’t the ones throwing money around. They’re the ones treating their marketing like a system, not a gamble. So, take a breath, get your foundations right, and let your marketing start working as hard as you do.
If you would like us to audit your business and fix your marketing foundations, get your free audit and 120-day growth plan right here.