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.
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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.
Originally published in the February 2003 issue of Entrepreneur's StartUps
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