Small firms are missing out on valuable business opportunities by failing to market their company effectively, new research claims.

Although 94 per cent of firms recognised professional marketing services were important to the success of the business, 77 per cent admitted they dealt with this crucial area themselves.

The poll by New2Marketing.com revealed that three quarters of firms thought marketing agencies were not interested in working with the SME sector, while the majority cited cost as the main factor prohibiting them from seeking professional help.

Experts recommend that 50 per cent of a business' budget should be spent on marketing, yet the report found a third of firms dedicated less than 20 per cent of their finances to promoting the business.

The majority believed an online presence was crucial with 80 per cent of respondents saying a website was vital to the marketing mix.

However, only 19 per cent felt their site was up to date and well advertised.

Ben Harris, New2Marketing.com managing director, said: "It worries me that so many small business owners decide to either take the 'home-made' approach to marketing, or ignore it in business planning and budgeting altogether

"Entrepreneurs follow that course at their peril - and by doing so put their business in peril.

"Our survey shows that many small businesses immediately discount seeking professional marketing advice on grounds of cost, when in fact it can be the most important investment they make in their business."

The report said many marketing agencies offer value-for-money services specifically targeted at small businesses.

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