May 19, 2016
6 Common Ways Small Businesses Waste Money Marketing
Small businesses usually have a limited financial budget, and wasting money on marketing is
not an option. Below are some easy ways to stop wasting money on advertising:
1. Do not use social media to simply build a following. Social media is great, but using this
valuable tool, to simply build a following and not taking it to the next step, is a waste of
your financial resources. The trick is to collect the e-mail addresses of said followers, so
you will be able to directly communicate with these potential customers.
2. Having high expectations and giving up when these impossible goals are not met. It has
been researched and documented, that more than a quarter of small businesses fail
within 24 months of opening, due to out of proportion expectations. When out of reach
expectations were not reached within a few months, many small business owners simply
gave up. To bring expectations back into the realm of reality, plan on the first two years
of your business to be the “ramp up” time period. Use your funds carefully, and focus on
your ranking on a popular search engine. This is not an overnight process; it will take
time and dedication.
3. Know your audience. If you just advertise without having a target audience, much of
your money will be wasted, as you will not be reaching the people that will make up your
client base. If you do not understand the needs and desires of your potential customers,
you might as well donate your marketing funds to your local charity. Prior to making any
purchases on advertising, study the behavior of your targeted audience. Before adding
content to your webpage, have a strategy. Know what you plan to say (write), and how
you plan to get an important message across. If the entire basis of marketing is to reach
potential customers, you need to know who to target (what they like and don’t like, etc.).
4. By not knowing which marketing tactic is bringing in your mega customers or “big
spenders”, you are basically lighting your cash on fire and watch the ashes float in the
wind. Remember, that it is more than likely, that the top 20% of your mega customers
account for at least 50% of your total revenue.
5. Going big is also a money marketing mistake. You would think that bigger is better
right? But that is not necessarily true, when it comes to your advertising budget. In fact,
when you invest $1,000 in your marketing campaign of choice and you see positive
results, than it would be safe to continue to “test the waters”, and dig a little deeper into
your marketing budget pool.
6. Not adjusting with the times. Sticking with a marketing plan that works is a great idea,
but it is also important to keep in mind, that the marketing world is evolving very quickly,
and you must keep up with the times. For instance, if you do not have “phone app”
coupons, you may be losing a large chunk of your demographics, because paper
coupons are passé