URL: http://www.entrepreneur.com/marketing/marketingideas/article59170.html

It's the chicken/egg syndrome of start-up: You need to spend money to bring in customers, but you don't have money to spend until you get customers. Too often, new business owners treat marketing as an optional expense. The truth is, if you don't dedicate an adequate budget of time and money to marketing, it's unlikely you'll attract enough customers to sustain and grow your venture.

The good news is, many small businesses have successfully marketed themselves on a shoestring. By applying creative solutions to marketing challenges, you can get the word out to prospective customers without going for broke. Simply keep in mind these seven secrets to successful small-budget marketing, and you'll be well on your way to big-time results.

1. Have a game plan. By creating a marketing plan that includes goals, vehicles and budgets for time and money, you gain significant advantages. Planning six to 12 months ahead gives you a broader view of your marketing needs and expenditures. Use that information to take advantage of volume discounts on advertising, services and printing by committing to a schedule in advance. You may also be able to negotiate longer payment terms on products and services related to promoting your business. Most important, a plan will help you stay focused, and you'll be less likely to make purchases that aren't in your company's best interest.

Chris Larson learned about the importance of marketing focus when he launched O'Plenty Animation Studio in 1990. Because he launched his studio on the New Jersey shore, an unlikely place to find a character animation company, it was easy for O'Plenty to capture the attention of local media. Larson found efforts not targeted toward specific niche markets-TV producers, corporate advertising executives and animation producers-drew in large numbers of unqualified leads.

"Sticking with a plan helped us avoid marketing opportunities that would cost us a lot of time," says Larson, 35. "The more focused we stayed, the less we had to deal with that."

News releases about new productions and new hires are sent only to the trade media that his best prospects read. And low-cost demo reels of work his studio has produced for other clients routinely capture interest in his company.

2. Sell yourself. As you craft a plan, become your own toughest customer. Ask yourself why you should invest in each marketing opportunity. Does it hit your target? Is it cost-efficient? What will it do for your business? If your idea doesn't pass with flying colors, rethink it.

3. Get good "marketing mileage." Elevate your efforts so they include many opportunities for attention. When Daryl Lynn O'Connell, 38, opened Anita's Joy Gift Shoppe, she saw the value of working with charities. But rather than just cutting a check, O'Connell makes events out of their fund-raisers. The charities get a forum for raising money and cultivating relationships, and each soiree brings customers into the shop.

Besides using news releases, O'Connell publicizes events by posting signs in her store, sends mail to her customer list and taps the charities to spread the word. Because she works with nonprofit organizations, her events get picked up as free public service announcements on radio stations. The result is more marketing mileage than she would have gained by merely making a donation. Since launching in 2000, Anita's Joy has moved to a bigger store in Manasquan, New Jersey. O'Connell believes her promotions played a large part in building her customer base. "When they realize they're taking part in a fund-raiser," she says, "they return again and again."

4. Partner up. By partnering with other businesses in your marketing efforts, you can expand your circle of influence and slash your budget. Jennifer Graham, 27, owner of Le Palais Boutique, a bridal shop in Grand Junction, Colorado, has teamed with a photographer and a florist to pass around each other's marketing materials. Because they all targeted the same market-brides-the arrangement boosted business as the three businesses referred and promoted each other.

Pounding the pavement for partners worked for 37-year-old Dawn Forrest Armstrong. Her Phoenix company, K-OS Designs produces reflective stickers for motorcycle and other helmets. Armstrong sought endorsement from national and international safety organizations and used their testimonials in her marketing, giving her credibility with prospects. The organizations also link to her Web site. The increased traffic has resulted in double-digit increases in annual sales.

5. Find diamonds in your own backyard. Every time you reach out to customers, you have an opportunity to reinforce your marketing message. By using vehicles you already have, you can increase your outreach and get more business from existing customers. For example, turn monthly bills into opportunities to mail buying suggestions based on past purchases or to share good news about your company.

When Boston-based Palladion Services Inc. received a coveted write-up in The Boston Globe, the company turned it into a promotional mailer. As a result of the company's reputation, built through its marketing and service, customers are often referred to Palladion. "When people make a referral, they want to be sure you're going to do the job well," explains partner and vice president Patrick Knight, 36. "By showing them we received this positive coverage, we reinforced the fact that our reputation is well-earned."

Within your place of business, you may have ample opportunity to inexpensively reach out to old and new customers. When Armstrong got her business started, she had little budget for trade-show space. Instead, she attended motorcycle rallies and handed out free samples of her product as a "gift" to those wearing or carrying their helmets.

"That started a dialogue about the product," she says. "I got great customer feedback and new ideas for a cost of about $50."

Marketing Mishaps

While there are plenty of ways to mess up a marketing campaign, new business owners typically fall prey to four particular pitfalls:

Theories on how to set a marketing budget range from a certain percentage of net revenues to whatever is left after all the bills are paid. While there's no formula to tell you the "right" number, these guidelines can tell you whether you're in the ballpark.

The bottom line when it comes to your marketing budget is-well, your bottom line. Be sure the amount you dedicate is going to be manageable for your business.

Marketing Mishaps to Avoid

While there are plenty of ways to mess up a marketing campaign, new business owners typically fall prey to four particular pitfalls:

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Gwen Moran helps small businesses with marketing through consulting and writing.