smallbusiness.co.uk: Helping your business think big

New businesses with very small marketing budgets may find the most cost-effective way of promoting their services is by word-of-mouth.

So says business adviser Phillip Martin of CENTA, the Cambridge Enterprise Agency. He adds that it’s a “case of being creative”, depending on what sector the start-up operates in, its type of business and the size of its budget.

David Bishop of the Federation of Small Businesses advises start-ups to plan their promotion first: “Most businesses do not get off the ground unless they’ve considered how their product or service will be promoted.” He points out that advisers and banks are keen to see market research in a new firm’s business plans.

An entrepreneur starting up needs to focus on what the business’ target audience is. Firms need to think about the message they want to get across to their potential customers and make sure that it is consistent, Bishop adds.

He says that many small businesses’ advertising can become stale quickly. Using a mix of different marketing mediums can prevent this. He also warns that the cheapest forms of advertising are not always the most cost-effective forms: “The value of advertising should be measured by what has to be spent in order to reach each potential customer.”

Turning to different forms of marketing, he suggests that brochures and leaflets are “great ways to add credibility to a business but only if they catch the reader’s eye”.

Bishop advises firms to build their own mailing lists from personal contacts and customers rather than rent them from specialist agencies as it is “often cheaper and more effective”.

Don’t neglect feedback from potential customers as well. He says this should be welcomed as “it will ensure that your advertising is customer-focussed in the future.”

Finally he confirms Martin of CENTA’s point that “Personal contact is almost always the best form of promotion.”

The Small Business Service comments that start-ups “should get advice tailored to suit their needs,” suggesting a local Business Link as a first point of call for new businesses planning a first marketing strategy.

To find your local Business Link, visit www.businesslink.org or ring the Business Link contact centre on 0845-600 9006.

The Advertising Association booklet, Advertising Means Business – A practical Guide to Advertising, available at www.adassoc.org.uk/guide/contents.html, lists pros and cons of using the different forms of media to market or advertise a business’s goods or services.

With thanks to Lloyds TSB Success4Business. For more news and information visit www.success4business.com.

(11/1/02)

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