Advertising your small business on a tight budget

Now that you’ve got your small business off the ground and running, it’s time to start thinking about advertising.  But how can you do that in an inexpensive way?  According to the Small Business Administration, 5% of an entrepreneur's gross sales should be budgeted for advertising.  Banner and print ads can be expensive so here are some helpful tips to advertise on a tight budget.

For starters, try Google Ad Words.  You don’t have to spend a lot of money to get a lot of traffic.  A small daily budget of $10-$20 per day can provide you with a large amount of traffic and in turn qualified leads, as long as the ad is relevant.  “AdWords and PPC [pay-per-click] can give you crazy amounts of traffic if you are tight with your campaign and run niche ad groups,” explained Andrew Riker an SEO specialist at WordStream. “Focused, long-tail keywords that are specific to your industry will cause the highest possible click-through rate and in-turn conversions.”  (https://accounts.google.com/ServiceLogin?service=adwords&hl=en_US&ltmpl=jfk&passive=false&ifr=false&alwf=true&continue=https://adwords.google.com/um/gaiaauth?apt%3DNone%26ltmpl%3Djfk&error=newacct&sacu=1&sarp=1)

Next up is advertising on Facebook.  You can choose whatever sum you see fit so you can start out small.  Facebook allows you to target customers in an effective and focused way.  You can pinpoint specific demographics.  This kind of targeting allows you to minimize extemporaneous clicks from consumers who are just browsing or searching for information and gets you the most for your money.  You can set a small budget of even less than $10 a day and target customers by age, gender, education and interests similar to the product you are selling.  “Even if people don’t immediately make a purchase because of a Facebook ad, many of them may wind up “liking” your business which can allow you to create a database of potential customers.”  (http://www.facebook.com/advertising/)

Another good site is StumbleUpon Paid Discovery.  It costs as little as $0.05 a click so for $5 you can get 100 unique visitors to your site.  It’s also a great way to advertise contests, giveaways and big promotions.  “And if the content you are promoting proves to be popular and receives a lot of “likes,” you will start receiving free traffic from Stumble, which can go on for months, even after you have stopped advertising.”  (https://www.stumbleupon.com/pd/)

Another great way to advertise your business on a budget is to submit articles on topics your customers may be interested in.  Try Ezinearticles.com, Articlesbase.com or TheFreeLibrary.com.  “In exchange for content, they allow you to include a couple of back links to your website.”  This provides you with potential traffic to your business and also might help establish you as an expert in your field

Try donating products to volunteer services or worthy causes.  If you build a website for a cause, you can get a lot of revenue back in advertising.  This investment of time can really pay off and result in new business.  Other vendors who participate might see what a fine job you’re doing and hire you to help their own businesses.

Hire someone to blog for you.  Blogging is a great way to advertise your company’s services and offer your customer information that is of interest to them – something that goes beyond the reach of your product.

Use community sites and local directories.  “Community-based online networks such as Thumbtack (http://www.thumbtack.com/) and Quentin’s Friends (http://www.quentinsfriends.com/) are a great way to cost-effectively get the word out about your business to more targeted groups.”  Quentin Friends is an invitation-only network where members can post recommendations and offers for their products and services for a small fee of $15.  The service is location-specific, so your ad will go out to thousands of people who are specifically in your geographic area.  For example, Dana Leavy, CEO of Asprye Solutions, ROI by using the site has been 6,500 percent.

Try LinkedIn Ads (http://www.linkedin.com/advertising).  LinkedIn Ads can work well because it allows you to target a specific audience by geographic area, demographics, job titles or LinkedIn Groups.  You can tailor your ads specifically to group users which can result in great conversation rates and ROI.

Lastly, try distributing flyers.  It is particularly useful if your small business focuses on a particular area.  They needn’t be expensive.  Likely you know someone that can help you design a flyer inexpensively and you can print them in your home for free.   Hire some high school or college students to distribute them for you at a low hourly rate.  They can hand them out to people on the street or place them on parked cars, house doors and distribute them to businesses and apartment complexes. 

As I’ve written today, you don’t need a big budget to advertise your small business.  Many people think otherwise and it hinders them from getting the word out.  Try some of these tips and you might be surprised at the rewards you reap.

Until next time…

The Top 15 Social Networking sites for small businesses

As I’ve discussed in other blogs, social media is a MUST as you start-up a new venture.  Finding online communities where you can network with likeminded individuals is very helpful in launching a start-up.  You can promote your product, meet others, brainstorm ideas and find advice.  Here’s a list of 15 online sites that might help you grow your business and brand.

1)      Twitter:  Twitter is number one on my list as I think it’s most prolific.  It is after all, an $8 billion dollar company.  If you’re not familiar with Twitter, you follow people and they follow you – it is a free information exchange.  You get 140 characters to “tweet’ your message.  You also have the option of a retweet whereby you tweet someone else’s message to your followers creating an online dialogue. (http://twitter.com/)

2)      Facebook: As I’ve mentioned before, I have my reservations about Facebook.  However, as of February 2012^[update], Facebook has more than 845 million active users so it too is a must.  You have the option to set up a “page” for your company where people can “like” it.  You can also have your tweets sent into your Facebook page and vice versa.  You can also advertise your business/product on the site for whatever sum you so choose.  (http://www.facebook.com/)

3)      LinkedIn:  LinkedIn is a professional network that allows you to be introduced to and collaborate with other professionals.  As of November 3^rd, 2011 (2011 -11-03)^[update], LinkedIn reported more than 135 million registered users in more than 200 countries and territories around the world.  As you connect with people via LinkedIn and build your network, you have the option to get in touch with their connections as well.  There are 3 tiers of “connections.”  Employers often post jobs on LinkedIn and search for candidates that way.  There are groups you can join to connect with likeminded individuals.  The site is free or you can pay for additional services not available to non-paying members.  One of those options is something called “In Mail” where you are able to privately email a connection.  (http://www.linkedin.com/)

4)      Pintrest: Pinterest is a pinboard-styled social photo sharing website.  The service allows users to create and manage theme-based image collections.  The site's mission statement is to "connect everyone in the world through the 'things' they find interesting."  Users of Pinterest curate themed boards, populating them with media found online using the "Pin It" button, or uploaded from their computers.  Each such item of media is known as a "pin", and can be a picture, a video, a discussion, or a product.  While "pins" can come directly from the user, one of Pinterest's main features is the ability to see what others have pinned, and in turn, users can "re-pin" such media to their own boards.  (http://pinterest.com/)

5)      Ryze: Ryze is a free social networking website designed to link business professionals, particularly new entrepreneurs.  It is dubbed Ryze “because it's about people helping each other 'rise up' through quality networking.”  The site claims to have over 500,000 members in 200 countries.  Ryze helps people make connections and grow their networks.  You can network to grow your business, build your career and life, find a job and make sales or just keep in touch with friends.  One of the benefits of Ryze: it’s free!  You can message other members, join networks, view member home pages, etc.  Of course, there is also a paid service similar to LinkedIn where you can do a few other things such as advanced searches.  (http://www.ryze.com/)

6)      XING: XING is a social software platform for enabling a small-world network for professionals with over 7 million members.  The platform offers personal profiles, groups, discussion forums, event coordination, and other common social community features.  Basic membership is free but many core functions, like searching for people with specific qualifications or messaging people to whom one is not already connected, can only be accessed by the premium members.  (http://www.xing.com/)

7)      Biznik: Biznik is a community of entrepreneurs and small businesses dedicated to helping each other succeed.  Biznik claims to believe in people not professions and in community and events, technology, relationships, giving and being progressive.  (http://biznik.com/)

8)      StartupNation: StartupNation is a community focused on the exchange of ideas between entrepreneurs and aspiring business owners and provides real-world business advice to people who want to start a business and who want to grow their small businesses.  The site offers step-by-step advice, helpful articles, small business and entrepreneur forums, local, interest and professional groups, member-to-member networking, expert blogs, podcasts, contests and more.  (http://www.startupnation.com/)

Should you quit your day job?

If you’re not starting a new business right out of school, leaving a permanent job to do so can be a scary proposition.  Quitting your job can be one of the most rewarding yet scary things you do in your life.  In order to do so, you’ll need a lot of advanced planning especially to make sure you are financially secure enough to step away from the 9-5 lifestyle.

First of all, while this might be hard, you’ll have to rethink the way you live so that you can save money.  Eating lunch out?  Daily Starbucks?  Weekend dinners with friends?  After work drinks?  Those might have to become a thing of the past as you save up money.  Remember, you will be working with a reduced income and you have to take that into consideration.

The first thing you might want to do is see if you can switch to part-time hours.  This will enable you to bring in steady (although somewhat depleted) income while you get your business off the ground.  As your business grows, you can continue to cut back on hours until you are ready to quit your job full-time and rely solely on the income your business is generating.

Another option is to consider doing some freelance work which means you will still be working for someone else and bringing home money but at least freelancing gives you the option of working on your own terms.  That way you can decide what hours to spend freelancing and what hours to start on your new venture.

Remember to develop a budget and stick with it before quitting your job.  You should definitely try to put away a few months worth of pay checks into your savings account so you won’t be stressed while trying to pay the bills at the same time you are starting up your company.  “A general rule is to try to put away a minimum of 6 months worth of expenses but the amount you might want to put away will depend on how much income your business is bringing in and how many expenses you have on a monthly basis.”

From my research, some experts seem to be divided on how to go about starting up a new venture.  Some feel it’s wise to make a clean break right away and devote all your time and resources to your new venture whereas others feel you should stick with your day job in some capacity and test the waters.  That is a judgment call you will have to make for yourself.  If you stay on at your day job, you might be distracted and not be able to put in the time and effort needed to get your company off the ground.  Or if you leave right off the bat, you might be digging yourself deep in a financial hole which may hinder you from being able to make a success of your start-up.  You have to think critically about this.  Some experts suggest that aspiring entrepreneurs wait until their new venture is generating about two-thirds of their full-time income before they quit their day jobs.

Put some thought in before you quit your job to how you’re going to advertise your business. By having a clear plan you will be able to get up to speed in terms of income generation much faster than if you quit your job and then try to figure out how to generate your sales. “Go through exercises where you try to determine what your target market is and what your ideal customer looks like and thinks like and then try to figure out the best way to advertise to that ideal customer of yours.”

Those who start a business while working 9-to-5 as an employee choose several paths: Weekend entrepreneurs (work on the start up on weekends), webpreneurs (build an online business), and part-time entrepreneurs (work before, in-between, or after your office hour).  These might be some good options for you to think about before leaving your job full-time.

My thoughts on the subject are mixed.  I freelance and have my own consultancy.  This gives me a sense of financial security.  I plan to eventually stop freelancing and devote myself full-time to my new venture but I’m not ready to do that – not because I don’t want to but because I can’t afford it.  If you do plan to stay on at a job in some capacity, you have to be committed to long hours and late nights and weekends after you leave the office so that you can make a success out of your new venture.

Here are some articles that might help you make this tricky decision.

“Ten signs that you are ready to quit your job and start a new business”: http://biggsuccess.com/bigg-articles/quit-your-job-and-start-a-business/

“Ten really good reasons to quit your job and start your own business”: http://managementconsultingnews.com/article-michael-katz-4/

“5 ways to quit a job and start a new biz”: http://www.microsoft.com/business/en-us/resources/expert/5-ways-to-quit-a-job-and-start-a-new-biz.aspx?fbid=EZZd-1p6d6b

“When to quit your job and start a new business”: http://www.businessweek.com/articles/2012-03-06/when-to-quit-your-job-and-start-a-business

Should you take on a business partner?

There are no guarantees to success in business, even when undertaking a partnership with another person that has demonstrated success. However, there are some advantages in having a partner. Partnerships work when there is equal investment and exposure to risk, and equal effort. There are some endeavors that simply cannot be accomplished with a sole proprietorship, and having a partner can make a big difference when times get lean. Some partnerships are doomed to fail from day one because they are poorly matched or the partners have different goals. Also, things in the business landscape change quickly and it is good to have a partner that can grow with you, and in the same direction.

“Working with a business partner drastically changes the dynamics of running a business. A great business partner can add a lot to a venture. On the other hand, entrepreneurs can also benefit from going solo when the alternative means an incompatible partnership or working with a partner who doesn’t have the right skill set or experiences necessary for success.”

Having a business partner has advantages and disadvantages and I’ll talk about some of those today.

One of the biggest benefits of a partnership is having someone to share the responsibility of running your business.  When you work with a partner you can do twice as much.  There is another person there to pick up the slack should you be called away by something in your personal life.  You might not have the financial backing to hire employees so having a partner can be helpful.

In some instances, there is also less pressure and responsibility.  Having a partner doesn’t mean you’ll do less work necessarily but you have someone there to share all the challenges of starting up a new venture – bookkeeping, networking, sales, marketing, research and development, securing funding.

A partner may also bring new skills to the table.  Two minds are often better than one.  You might have different outlooks and perspectives on how your business should be run.  Remember, no one knows everything.  When you have a partner, you can bounce ideas off each other.  You can also brainstorm together and come up with potentially more innovative ideas on how to grow, succeed and sell your product.

Partnership also gives you balance; the right push and pull.  One partner might be more reserved and cerebral whereas the other might be more social or an active go-getter.  It puts a system of checks and balance in place.

A business partner can also hold you accountable.  “Some people become lackadaisical when they begin a business.  They may have a hard time maintaining the discipline needed to stay motivated.  Partners keep each other on the ball, and hold each other accountable for any mistakes.”

A partner can also help you keep things in perspective and stay realistic about the obstacles you may face when first starting up.  Partners can help keep each other positive about where the business is heading.  Sometimes you might find yourself getting down as you face challenges in the marketplace.  A partner is there as your reality check.

There are also financial benefits to having a business partner.  If you are trying to start your own business, it can be difficult to deal with all of the financial aspects that are included.  You have to worry about the start up costs, the maintenance, and any other costs that are included all on your own.  This is one of the main reasons that so many individual business owners give up, since they run out of funds to make the business grow.

While there are many advantages to partnerships, there are also disadvantages.

Often business partners can grow apart and deviate from the original concept for the business.  One person might want to branch out or take the company in a different direction.  Additionally, a partner can get lazy, leaving all the responsibility on your plate.  Many entrepreneurs find themselves working with partners who don’t share their enthusiasm or passion for business. “Partners who can’t meet deadlines, follow up with clients, or follow through with their responsibilities can bankrupt an established business or a new business venture.”

There could also be an inability to make financial decisions together.  As the business grows, there will be various financial decisions that will need to be made.  It is very rare for an agreement to occur between both parties when there are issues dealing with money. “Often, a third party has to be brought in to help resolve the issues. It is best if both people make a finalized agreement prior to starting their business arrangement to avoid having any financial misunderstandings.”

Some people are often stubborn and find it difficult to compromise.  The question of who is really in charge can arise.  Is one person becoming more powerful in the decision-making process?  These are issues that need to be dealt with at the start of any new venture.  Outline the responsibilities both partners will take on so there are no misunderstandings down the road.  

“Business partners may disagree on the long-term goals for the company. They may spend weeks or months bickering over key decisions. Disagreements between partners may consume resources, cause stress to other employees or lead to inconsistent business practices.”

Additionally, you are liable for your partner’s actions.  If your partner violates any laws, you will be held accountable too.  This can lead to fines or even a day in court or possible imprisonment in the event your partner commits a criminal act.  Don’t forget: your reputation is on the line in business so you have to make sure you and your partner are both committed to keeping all practices above board.

As I’ve said, taking on a business partner has its advantages and disadvantages.  There is someone there to help you reach your goals or work with when times get tough but there are also liabilities or disagreements that can arise.  Think long and hard before deciding on whether partnership is right for you.  It might be wise to begin as a sole proprietor and then look to take on a partner as your business grows.

Check out this article on just how to find the perfect business partner: http://www.inc.com/guides/leadership_strat/23041.html.  It just might help you make the right decision. 

 

Here’s a “Beginner’s Guide to Finding the Right Business Partner”: http://www.quicksprout.com/2009/11/04/finding-the-right-business-partner/.  

“Steps to Finding the Right Business Partner”: http://www.wikihow.com/Find-the-Right-Business-Partner

“Finding the Right Business Partner is Harder than Finding the Right Spouse”: http://myventurepad.com/MVP/92391

Until next time…