03/ 26/ 2008
Advertising is an inescapable part of life, a fact evident each time you turn on the television, drive past endless billboards or sit down to check your email. As a small business owner with a limited budget, you may be more sensitive to the ads surrounding you than most. Do you have a recurring fantasy about the kinds of commercials you'd like to make and how much business they'd bring in? Have you been setting aside money to start your advertising campaign? While most businesses pay for advertising eventually, make sure the time is right before plunging in. Read on to find out if the risk of the expense will pay off for your business.
Is your business still growing by word of mouth and free exposure? If you're considering launching an ad campaign, then hopefully you've already utilized cheaper means of getting the word out about your business, such as launching a Web site and leaving flyers and business cards around town. If these tactics, along with customer referrals, are still bringing in new business, then you might not need to pay for advertising just yet. However, if business is steady or if the initial rush is starting to taper off, then it's the right time to explore new avenues, including buying ads.
Are you in a place where you could handle more business? While the ultimate goal of most business owners is to keep growing, you don't want to bite off more than you can chew. And if you are also in school right now, growing your business slowly might be easier to handle. If all goes well with an advertising campaign and it leads to more business, the influx could also lead to more hiring, acquiring a bigger space for your operations and so on. Be certain you're ready for that.
Do your homework. Research different advertising mediums and figure out the best fit for your type of business and your budget. Would your target customer base likely be reached through television, radio, billboards, the Internet or a combination of mediums? Find out the costs. Some options will likely be crossed off your list due to pricing. So decide if it's better to launch print ads right now, or save your funds for a local TV spot.
Looking at where other small businesses advertise will help make your decision easier. Pay especially close attention to which businesses are trying to attract a similar customer base and see where their ads show up and if they keep the ads running. For example, if a business places ads in the local paper month after month, they are probably getting at least some results from the ad. And don't be shy about talking to some established business owners about their recommendations and experiences with different mediums. Many will be willing to save you from making the same mistakes they made.
Figure out your advertising budget before you commit. The worst thing you can do is start inquiring about ad space before you know your spending limits. Don't let a salesperson talk you into buying ads before you've figured out a budget. Project what you can spend on ads for the whole year to decide what monthly rates are reasonable. When you do talk to salespeople, be upfront about how much you can spend and don't budge. If they want your business, they will be willing to work with your limits. And if they don't want your business, someone else will.
If and when you decide to advertise, keep track of the results. Let customers mention or bring in the ad for a discount or simply ask new faces where they heard about your business. If the ad strategy you chose isn't bringing people in, try something else. Like many other areas of your business, advertising will require a degree of flexibility until you find what works best for you and your customers.
