Can’t Afford To Advertise… Think Again

Allan Goldner

Too many of our fellow entrepreneurs fall into this mindset, “I know I need to advertise, but I simply can’t afford it.” We jealously observe others spending small fortunes keeping their name and brand in the public eye, while we bemoan our own inadequate budgets and see our dire situations get progressively worse by the day.  Sure, their successful businesses have the financial wherewithal to continually reinvest into countless ads in newspapers, magazines, radio and even TV.  We liken it to the theory that the rich get richer. And it’s true.  When our purses are empty, we must watch every penny. Our staff must be paid or we’d lose them. Not paying our taxes could lose us.  We have to re-supply a minimum amount of product or inventory necessary to fulfill the business we have, and we have to keep our phones and lights on.  We’re in a tight spot and not having much fun.

But what happens when we pull out the rug from our advertising?  Things tend to go from bad to worse.  Think of a sick person who really can’t afford the medicine.  Afford it or not, you have to find a way or risk losing everything.  It’ll certainly take some creativity thinking on your part.  Consider all of your invoices. What vendors might be willing to extend your terms? Look at your billing. Can you appeal to your customers or clients to make an earlier payment or even a partial one?  Look everywhere for waste. Reassess your staff members. Who’s really getting it done? Do what you have to, but find some dough to advertise with. 

Another old business maxim that “Sales fix a multiple of sins” is true.  Getting more sales is an upshot of good, strategic advertising. Of course, you need to be sure that the ads will produce results. 

It is less expensive to market your existing client base than finding new ones.  Your customers already like doing business with you and can be persuaded by a postcard, letter, phone call or email.  However, you must also be careful not to go to the same well too often.  You could cannibalize your existing customers into those that only react to special offers, thereby hurting your dollars per client.

Alternatively, yet equally important, you must balance this approach with a steady stream of new customers or clients and that is done by ads that promote your business appeal.  You ad must be viewable where the future clientele will see it.  If you’re reading this column, do you think that your potential clients might check out this website as well? Internet ads are generally much cheaper based on numbers of viewers, than any printed piece.  Choosing a web site for your ad will be more direct then a direct mail to everyone.

When you stop the advertising, its game over. Find your ad money, you can’t afford not to.