Business Strategies

Advertising is an investment, not an expense to guess at. A good program puts a clear message in front of the people most likely to buy, and it lets you measure what you get back. Small businesses cannot afford to waste money on ads that do not work, so planning matters.

Define Your Goal and Audience

Begin by deciding what you want advertising to accomplish: new customers, more sales from existing customers, a new product launch or greater name recognition. Then describe your ideal customer in specific terms. Who are they, where do they spend time, what problem are they trying to solve and what would make them choose you?

Craft a Clear Message

People see countless messages every day. Yours has to be simple and focused on what the customer gains, not just on what you sell. Say what makes you different, include a clear next step, such as call, visit or book online, and keep it consistent across everything you do.

Choose Your Channels

• Online search and local listings: reach people already looking for what you offer.
• Social media: useful for building relationships and reaching specific groups.
• Email: inexpensive and effective with existing customers and prospects who have asked to hear from you.
• Print, direct mail and local media: can work well for neighborhood businesses.
• Sponsorships and community involvement: build goodwill and visibility.

Start with the one or two channels where your customers actually are, rather than spreading a small budget thinly.

Set a Budget

Some owners set advertising as a percentage of sales, others decide how much they can afford to pay to acquire one customer. Whichever you choose, treat the budget as part of your overall plan and make sure it fits within your cash flow. Business advertising costs are generally deductible as ordinary business expenses, but the real test is whether they bring in profit.

Track Results

Ask new customers how they found you, use separate phone numbers or web addresses for different campaigns, and review the numbers regularly. Calculate how much you spend to win a customer and compare it with the profit that customer generates over time. Drop what does not work and put more behind what does.

Be Consistent

One ad rarely builds a business. Customers often need repeated exposure before acting. Plan a steady calendar of activity rather than occasional bursts.

If you would like help fitting an advertising budget into your overall financial plan, contact our office.