Budgeting may be one of the more important pieces of information you can be armed with when deciding to design or redesign your web presence. By sharing your budget with the developer you will be able to get a better idea of what kind of "bang for your buck" is available. You don't want to spend more to get features you will never use or that do not apply to you business model. Your developer should always have solutions that can fit within a reasonable budget. If you aren't sure what your budget is, then you can sit down with your developer and figure out exactly what your needs and wants are, then figure out what will work and keep costs down.
This is an interesting place because most people will tell you the more you spend on advertising, the more people will see your business and the more money you will make. This really isn't true. You need to figure out who your target group is and what is the best balance to reach them. Online marketing is a quick way to spend large sums of money very quickly if you don't have a real plan with an experienced marketer. It is easy to set up a Pay-Per-Click campaign and watch the dollars fly out of your bank account and not see the return you were hoping for.
Remember even a small daily budget adds up:
$20/day = $140/week = $560/month = $6720/year
This adds up fast and can hurt a small business if there is very little return on those marketing dollars.