Ad Mistakes are Costly Lessons
Perhaps the area where you will make the most mistakes when you start a new business is in marketing. We must promote or die, but how do we do that without spending a fortune?
Advertising is expensive and a mistake here is a costly lesson. A few years ago I was running a typing service and decided to try a classified ad in the newspaper. The ad ran for 1 month and generated enough revenue to just pay for the ad. The majority of the business that I received from this ad was for typing resumes and the customers did not require any additional work. It was not cost effective to repeat the ad for a second month.
This year we ran an ad in a local publication that we thought fit our pool service customers perfectly. This paper catered to retired people with above average incomes, which describes our customers very well. The ad ran for 6 months (through the "pool season") but we did not receive one call from that ad. Advertising can be such a gamble.
Is free advertising worth your time? Yes and no. If you put your advertising flyer on a public bulletin board you have no control over how long it will stay posted. It might be just five minutes before someone else comes along and posts a flyer over yours. Of course, it may stay there long enough for a few people to see it and you might gain a customer. You cannot predict the outcome at all, because you have no control.
Many businesses have had good results after putting their flyer on car windshields. This might be nearly free promotion but do you want your business name on all the paper that is littering the parking lot?
OK, so pursue free advertising opportunities whenever you find them but do not waste a lot of time on them. After all, you get what you pay for.
Put your time and effort into free and low cost marketing avenues that are proven result-getters: Free publicity, networking, and referrals.
Newspaper and magazine writers are always looking for a good story. If you think about it, you probably have a story to tell.
A recent story in my local paper featured two sisters who were taking over their father's business. The business wasn't new, nor was anything about this type of business new. What was newsworthy was that the two sisters were new to the business and that they planned on working together. This put their business name in front of the public again and it lends some credibility when someone can say they saw it in the newspaper.
Joining a group, even if it is unrelated to your business, can bring in customers. When people get to know you personally, they will remember you when they are interested in buying. It works because you are now more than a name on a business card.
Do the best job you can for your customers and the referrals will come. This has been one of the best methods for finding customers for our business. We have let our current customers know that we are looking for more business and they come through for us. Why? Because they can tell their friends that we do a good job for them.
You will make mistakes with your advertising efforts but by pursuing free and low cost marketing methods, you can minimize the cost of learning.
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