The most important activity for a new business, besides providing a quality product or service, is getting the word out to potential customers that your product or service exists. It’s generally recommended that at least 2 percent to 5 percent of a company’s budget is devoted to advertising and marketing. However, 2 percent to 5 percent of a company with a very modest budget leaves very little for a large scale marketing campaign.
This is where a little creativity comes in. A huge mistake that many new business owners make is the belief that “word-of-mouth” advertising is sufficient. Keep in mind that in order for word of mouth marketing to be effective, you still have to put the “word” in the “mouth” of your initial customers. Creating a successful marketing campaign on a budget is much like David’s encounter with Goliath-you get three shots!
Stone 1– Know who your target customer is and figure out the best way to reach them. If your product is an energy drink, it may be best to target gyms, sporting events and related online communities for maximum exposure. It is also recommended that you give out product samples or provide free consultations to create a buzz.
Stone 2– Use social media. Using the information that you have about your target market, take full advantage of free social networking sites. These sites are free and give you access to a large group of individuals at one time. Find groups within these sites that contain individuals that will benefit from your product and service. Think about this from both the perspective of attracting customers and also attracting those in the industry that you can benefit from as a contact.
Stone 3– Take advantage of low cost advertising methods. There are many online companies that offer really low price (FREE!!) promotional material. From business cards to T-shirts, fliers and even mailing lists targeted to a specific locations and groups, these sites are real business savers. Determine which promotional material will be most affective to your target customer and make sure that any information you print is current and accurate.
This can mean buying 500 business cards to pass out or it could simply mean purchasing one shirt to wear to key locations. For example, I love to wear a shirt that advertises my website when I’m traveling in airports and at conventions. The site is nationwide and seeks to attract a large group of people. However, if you are a local seamstress, a shirt may not be the most effective method of advertising your services… unless you’re wearing it a local event or a craft fair.
Advertising is extremely important for a new business, but if you don’t have the financial means to do so on a large scale, it doesn’t mean you can’t be just as effective with little to no money. Good luck!