Where should I direct my spending in these tough economic times?

SCORE counselor Alan Yarnoff once again offers his insights on the necessity of promoting your business in a slow and changing marketplace.

“Over the last eighteen months, the small business owner has faced a wide range of problems: liquidity has become difficult, sales have softened, and costs continue to grow. To the detriment of their future, companies have cut back or eliminated promotional spending as a means of staying afloat.

This, I am sorry to say, is probably the least effective method of looking positively at your long term growth. You must look at the strategies that helped build your business at a time when it’s most needed. Look back and recall how you grew your customer base, what promotions worked best, and then concentrate the limited promotional funds you now have to make those successful tactics work again.

If the best way to turn the tide is by keeping your current customer base, then place your promotional endeavor against this target. Open up a new line of communications with them by e-marketing, social networking: Twitter, Facebook, You Tube, or blogging. With a series of meaningful e-mail bursts, enticing offers, and actionable options for them to act upon, your business will start to improve.

If the road to survival needs a new base of customers, then apply your best efforts to sourcing new business. Review what worked in the past when you had the funds to use multiple methods of promotion and spend your dollars there. If print is the right way to go, advertise there. If special offers or couponing had positive results, then spend your limited dollars there.

Lastly, review your website and make sure it is working as hard as possible in building your business. You must allocate a portion of your promotional budget to making your site always look fresh and exciting. For new customers, it’s their first opportunity to meet you and shop your store. For returning customers, it’s their way of finding out what’s new, what special offers are available, and new trends in the marketplace.

Remember, the goal is to keep you business viable until the economy improves and the worst thing you can do is to stop being aggressive, because being aggressive is what built your business in the first place."

Richard Strug
Greater Princeton Area SCORE (Chapter 631)
Serving Mercer and Middlesex Counties