Seven Cheap and Easy Ways to Get the Word Out Getting word of your business out on the street is worth a fortune. Use these techniques, and it won't cost you one!
By Gwen Moran •
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It's the chicken/egg syndrome of start-up: You need to spendmoney to bring in customers, but you don't have money to spenduntil you get customers. Too often, new business owners treatmarketing as an optional expense. The truth is, if you don'tdedicate an adequate budget of time and money to marketing,it's unlikely you'll attract enough customers to sustainand grow your venture.
The good news is, many small businesses have successfullymarketed themselves on a shoestring. By applying creative solutionsto marketing challenges, you can get the word out to prospectivecustomers without going for broke. Simply keep in mind these sevensecrets to successful small-budget marketing, and you'll bewell on your way to big-time results.
1. Have a game plan. By creating a marketing plan thatincludes goals, vehicles and budgets for time and money, you gainsignificant advantages. Planning six to 12 months ahead gives you abroader view of your marketing needs and expenditures. Use thatinformation to take advantage of volume discounts on advertising,services and printing by committing to a schedule in advance. Youmay also be able to negotiate longer payment terms on products andservices related to promoting your business. Most important, a planwill help you stay focused, and you'll be less likely to makepurchases that aren't in your company's best interest.
Chris Larson learned about the importance of marketing focuswhen he launched O'Plenty Animation Studio in 1990. Because helaunched his studio on the New Jersey shore, an unlikely place tofind a character animation company, it was easy for O'Plenty tocapture the attention of local media. Larson found efforts nottargeted toward specific niche markets-TV producers, corporateadvertising executives and animation producers-drew in largenumbers of unqualified leads.
"Sticking with a plan helped us avoid marketingopportunities that would cost us a lot of time," says Larson,35. "The more focused we stayed, the less we had to deal withthat."
News releases about new productions and new hires are sent onlyto the trade media that his best prospects read. And low-cost demoreels of work his studio has produced for other clients routinelycapture interest in his company.
2. Sell yourself. As you craft a plan, become your owntoughest customer. Ask yourself why you should invest in eachmarketing opportunity. Does it hit your target? Is itcost-efficient? What will it do for your business? If your ideadoesn't pass with flying colors, rethink it.
The Most for Your Efforts
3. Get good "marketing mileage." Elevate yourefforts so they include many opportunities for attention. WhenDaryl Lynn O'Connell, 38, opened Anita's Joy Gift Shoppe,she saw the value of working with charities. But rather than justcutting a check, O'Connell makes events out of theirfund-raisers. The charities get a forum for raising money andcultivating relationships, and each soiree brings customers intothe shop.
Besides using news releases, O'Connell publicizes events byposting signs in her store, sends mail to her customer list andtaps the charities to spread the word. Because she works withnonprofit organizations, her events get picked up as free publicservice announcements on radio stations. The result is moremarketing mileage than she would have gained by merely making adonation. Since launching in 2000, Anita's Joy has moved to abigger store in Manasquan, New Jersey. O'Connell believes herpromotions played a large part in building her customer base."When they realize they're taking part in afund-raiser," she says, "they return again andagain."
4. Partner up. By partnering with other businesses inyour marketing efforts, you can expand your circle of influence andslash your budget. Jennifer Graham, 27, owner of Le PalaisBoutique, a bridal shop in Grand Junction, Colorado, has teamedwith a photographer and a florist to pass around each other'smarketing materials. Because they all targeted the samemarket-brides-the arrangement boosted business as the threebusinesses referred and promoted each other.
Pounding the pavement for partners worked for 37-year-old DawnForrest Armstrong. Her Phoenix company, K-OS Designs producesreflective stickers for motorcycle and other helmets. Armstrongsought endorsement from national and international safetyorganizations and used their testimonials in her marketing, givingher credibility with prospects. The organizations also link to herWeb site. The increased traffic has resulted in double-digitincreases in annual sales.
5. Find diamonds in your own backyard. Every time youreach out to customers, you have an opportunity to reinforce yourmarketing message. By using vehicles you already have, you canincrease your outreach and get more business from existingcustomers. For example, turn monthly bills into opportunities tomail buying suggestions based on past purchases or to share goodnews about your company.
When Boston-based Palladion Services Inc. received a covetedwrite-up in The Boston Globe, the company turned it into apromotional mailer. As a result of the company's reputation,built through its marketing and service, customers are oftenreferred to Palladion. "When people make a referral, they wantto be sure you're going to do the job well," explainspartner and vice president Patrick Knight, 36. "By showingthem we received this positive coverage, we reinforced the factthat our reputation is well-earned."
Within your place of business, you may have ample opportunity toinexpensively reach out to old and new customers. When Armstronggot her business started, she had little budget for trade-showspace. Instead, she attended motorcycle rallies and handed out freesamples of her product as a "gift" to those wearing orcarrying their helmets.
"That started a dialogue about the product," she says."I got great customer feedback and new ideas for a cost ofabout $50."
6. Keep your ego in check. The adage "fake it untilyou make it" may be true for some things, but marketingspending is not one of them. Some entrepreneurs lose sight ofwhat's effective when they let their egos dictate promotionalspending. While a lavish grand opening party may be a great way toimpress friends, it's a bad idea if you must cut back onactivities that bring customers through the door. One New Jerseyart gallery owner spent thousands on printed materials, but he wasleft so overextended that he didn't have money in his budget topublicize his business.
Similarly, don't be tempted to overspend when approached byadvertising salespeople if the opportunity doesn't fit withyour plan. Knight is contacted by advertising salespeople frommedia that aren't good vehicles for his company. "Whodoesn't want to see their name up in lights?" he says."But you have to say no if it's not the rightfit."
7. Track results-and reinvest appropriately. Put trackingmechanisms in place to ensure your efforts are paying off. Someways you can track customers:
- Hold drawings for prizes. On the entry form, include a spot forpatrons to fill in where they heard about your business.
- Encourage employees to ask customers how they found yourbusiness. Graham's employees routinely ask (and record) howcustomers heard about the shop.
- Imprint promotions and coupons with medium-specific codes.
- Collect addresses for customers, and spot trends related toyour marketing (i.e., an increase when you promote your business ina particular area).
Keeping these guidelines in mind can save you hundreds or eventhousands of dollars on your marketing efforts and ensure the moneyyou do invest is well-spent.
Setting a Budget & Avoiding Mistakes
Theories on how to set a marketing budget range from a certainpercentage of net revenues to whatever is left after all the billsare paid. While there's no formula to tell you the"right" number, these guidelines can tell you whetheryou're in the ballpark.
2. Find similar noncompeting businesses and find out whatthey're doing. Industry associations and even the Net aregreat ways to find people who do what you do in noncompetingmarkets. You may be surprised that many business owners are eagerto help each other-especially when they're not vying for thesame customers.
3. budget more for a start-up. It takes more effort-andoften, more money-to make a name for a new business.
4. Review your plan periodically and adjust your expendituresaccordingly. Just because you have a plan doesn't mean yourexpenses are written in stone. Be sure to review how your marketingdollars and time are being spent to see what's working and whatneeds to be modified.
The bottom line when it comes to your marketing budget is-well,your bottom line. Be sure the amount you dedicate is going to bemanageable for your business.
Marketing Mishaps
While there are plenty of ways to mess up a marketing campaign,new business owners typically fall prey to four particularpitfalls:
2.Being inconsistent: If each piece of your printmarketing materials looks as if it's from a different company,you're not likely to be effective.
3. Cutting your marketing budget first: When cash flowdips, it's more important than ever to keep up your promotionalefforts. Don't be tempted to make marketing your first cut whenit's time to slash expenditures.
4. Hiring a big agency with a small budget: Like mostbusinesses, advertising, public relations and other marketingconsulting agencies come in different sizes and price points. Ifyou need to hire help on a shoestring, look for a small to midsizedagency where your dollars and your business will be treated withthe respect they deserve.
Gwen Moran helpssmall businesses with marketing through consulting andwriting.
