When times get tough for small businesses there are a few things that a small business owner can do to reduce cost. There are so many cost in your business that are fixed costs, like your rent, phone bill, inventory, and your employee labor cost. There are only a few areas in a small business that the small business owner really has any control over and they are the owners salary and advertising cost.
Now, nobody wants to make less money so usually one of the first expenses that gets reduced, or sometimes even cut out, is the advertising cost. When you as a small business owner sees your business revenues dropping the most common reaction is to reduce, or even cancel, planned advertising. This is usually a big mistake. Without an aggressive advertising program attracting new customers your small business revenues will drop even further. But you have to be smart about how you spend your advertising budget. High cost advertising like television, radio, and even some print media can be effective, but they tend to not give you the biggest return on your advertising dollar. There are more cost effective ways to spend your advertising budget in areas like Pay-Per-Click online advertising with the large search engines on the internet. Also, if you don’t have a website for your business this would be a good time to expand your online presence. If your business is really small then maybe instead of a website you could start a free blog from Blogger.com or WordPress.com and tell people about what you have to offer. Social marketing can be an inexpensive way of reaching new customers and letting them know the services or products that are offered by your small business.
Since reducing advertising cost during business down turns is a common reaction from most small business owners then it is more than likely your competition will be cutting their advertising budget giving you an open door to attract new customers and gain market share for your business.
Going against the trend is not an easy thing to do, but if you can do it you will see rewards while other are wondering what happened to their small business.Read the rest of this entry »