The state of the economy is filtering out the real entrepreneurs from the competition.  

“I’ve cut back on advertising because it’s slow.”

Small businesses and corporations alike are laying employees off, reporting loss in revenue and cutting back on as many expenses as they can.

Unfortunately, one big but common mistake many small business owners are making is cutting back in advertising.  This is the opposite of what a small business looking to survive these trying times should be doing.

Although marketing and advertising should always be constant, it is important to spend wisely.

CASE SCENARIO:  The Flower Shop

Flower Shop, Oxford, Covered Market | Photo: Carol.pgh/Flickr

ABC Flower Shop only advertisers during Valentine’s Day, the busiest day of the year for them, but fails to attract business the rest of the year.  

And when the owner does advertise on Valentine’s Day, there is a heavy discount, hoping to bait customers into purchasing from her shop throughout the year.

Unfortunately, because her prices are low on Valentine’s Day, when a potential customer does come back, the high price eventually drives the customer away without purchasing any bouquets.

If this pattern repeats year after year, the flower shop will soon go out of business.  

Solution

An advertising budget is just that: a budget.  It does not make financial sense to spend your entire advertising budget when your industry will most likely already get customers.

Customers don’t always know what they want: you have to tell them. Besides doing the usual “Buy her flowers for Valentine’s Day” campaign, you must also give the buyer other ideas.  

In the case of the flower shop, flowers are universal:  there is never a wrong time to give flowers, and there is no reason for a flower shop to go out of business.

But you don’t need to be a flower shop to create a universal way to market your product. 

“I am always amazed at how many people marvel at what I do and expect to get the same results without investing in things like a website or business cards. These people don’t take time to network and can’t fathom writing a press release about their latest project. Then they ask me why they’re not doing so well…and in some cases expect me to share my secrets of success.“

-Kristen Fischer, copywriter & author, on Marketing: Necessary Must-Do or Selfish Plea for Attention?

Ice Cream in the Rain | Photo: Owen Benson

The Ice Cream Man

My friend Hector owns an ice cream truck, a business he’s had since he was 16.  

It’s not his main source of income, as he does it purely for putting a smile on children’s faces, but he still markets his business so it can be as profitable as possible.

Occasionally, he invites me to ride alongs so we can catch up on business.  

One day, it started raining and I  asked him if he wanted to reschedule.

“Are you kidding?  I make more money on rainy days than I do on hot days!”

Interesting concept, and he elaborated:

“When it’s raining, none of the other ice cream men come and service some of these neighborhoods.  When it’s hot, it seems that everyone and their grandma owns an ice cream truck!  I have no competition when it’s raining, and kids still want their ice cream.”

So, how do you sell ice cream when it’s raining?

Remember, anyone can sell ice cream when it’s hot.  Marketing means you found a way to sell it when it’s raining and that means that you will have to do the one thing your competition is not doing: sell in the rain!

With that, I welcome you to the new Elidet.com, a marketing and advertising blog that focuses on the small business owner.