1. Advertising on a small budget
2. Establishing a marketing plan
3. Marketing programs
4. How do I do business with the government?
5. Does direct mail work?
6. Will fliers help market my business?
7. How do I distribute fliers effectively?

Focus on the customers you've already established, and offer them savings coupons or discounts if they bring in friends as new customers. Other inexpensive ideas include printed fliers or special ad rates offered through local newspapers. Also, if something worked well in the past, use it again. Remember that marketing may take up to two months to work, so don't give up on one idea and change to another too quickly because it could prove costly down the road.

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The marketing plan is the end component in determining if a business will be successful. It offers final financial projections, and is divided into four important parts: the market definition which reviews the geographic and demographic market of a product/service; the competition analysis which evaluates production, pricing, service and existing market share; the product definition which evaluates the actual types of products/services offered, the selling price obtained, and production costs that can be equated into potential profit margins; and the advertising and promotional aspects which determine the best way to reach customers and serve their needs.

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Q: I realize how important marketing is, but how do I know which advertising and marketing programs are working?

A: Simple -- ask your customers! It should be standard operating procedure to ask every customer how he heard about you. And be sure to keep a record of these responses!

It would be nice to think you did have time to ask every customer how they heard about you, but we live in the real world and know this is a difficult goal. Survey customers when you're running special advertising or marketing promotions. At the very least, go through the exercise for two or three weeks, three or four times a year. Tip: If a customer says he got your name out of the Yellow Pages, qualify that answer. Ask him if he had heard of your business before finding a listing in the Yellow Pages. If he says "yes," find out where. Remember, many people look in the Yellow Pages to find the phone number of a business they already know about -- in this case, it's just a memory jogger. The real reason could be that he saw an ad or promotion several weeks or months ago.

Once you know how your customers came to hear about your business you can evaluate your marketing programs and know which are bringing in customers and which are letting profit dollars slip through the cracks.

Don't forget about existing customers, either. Just because someone is a "regular", don't think he is not impressed -- or turned off -- by your advertising and marketing programs. Everything you do affects your image and will ultimately determine whether customers continue doing business with you.

When you know how many customers buy from you because of a particular marketing program, figure the average sales per customer and multiply it by the number of people who purchased from you. Now you have a good estimate of revenues created by marketing or advertising.

Keep in mind that some customer responses will slip through the cracks, so it doesn't hurt to boost your recorded numbers by a reasonable percentage. This increase could be anywhere from 10 percent to 25 percent.

When evaluating marketing dollars, many business owners forget to determine the return on the investment (ROI). This is the total real dollars returned for the amount spent. Be sure to look a "profit" dollars, not gross revenue dollars. Let's say you spent $1,000 on an advertising program over a five-week period and you had 137 customers (125 customers increased by 10 percent) who made average purchases of $28 each. This means the advertisement brought in $3,836. On the surface this looks great, but after deducting expenses like payroll and administration you discover your business has a net profit of 12 percent. The end result? You spent $1,000 to make $460 (12 percent times $3,836). The above example doesn't take into consideration the residual effects (i.e., gaining a new customer who keeps coming back because of your great service). Nevertheless, it's important to know what kind of return you get on actual marketing and advertising dollars.

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Q: I want to go after federal government contracts for my business. How do I start?

A: The most difficult part of getting started in government contracts is playing detective and weaving your way through the red tape. First rule: working smart is better than working hard.

Persistence also pays off. In addition to federal opportunities, state, county and even local governments might be able to use your services. Frequently, they're easier to sell to than federal groups.

Don't get the wrong impression: the government isn't just waiting for you to come knocking. Selling to the government can be time-consuming and exasperating. (Let's remember who we're dealing with here!) And just having the best bid won't necessarily get you the business. You'll need to establish personal contacts. Good, old-fashioned ground pounding can be your best sales tools starting out.

Think of the government in the same way you do any target customer and develop a marketing plan to attract attention. Several government publications are worth reading: The Federal Acquisition Regulations, The U.S. Government Purchasing and Sales Directory, and Commerce Business Daily. These may be available in your local library or can be purchased from the Government Printing Office. The SBA and its Small Business Development Centers are a good source of information. It's also common for the continuing education departments of colleges to offer small-business courses about how to do business with the government. Don't overlook the local library, either. Your state Department of Commerce's small business division probably offers programs and advisory services about how to do business with the state government. On the county and local community level, contact that entity's procurement office, or talk directly to officials to find out how to get on notification lists for upcoming contracts.

You can also work under another government contractor as a subcontractor. Businesses that have already made inroads into government contracts frequently use other small businesses for certain aspects of the jobs. Find out who the major players are in your area. Talk to them directly about submitting bids as a subcontractor.

Again, establish personal contacts. The government spends millions of dollars each year with small businesses on products and services that are never announced to the general public or put out on bid lists. Dealing with the government isn't any different than dealing with the general public; often who you know is more important than what you know.

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Q: I want to generate sales for my business through direct mail. What will get me the best results?

A: Done right, direct mail can be an excellent marketing tool. There may be a few businesses for which direct mail just doesn't work but the percentage is pretty low.

You can't just write a letter or throw labels on fliers or brochures and think everyone will miraculously run to your door with a fistful of money. Here are a few pointers that will increase your chance of getting good results from direct mail: Target your market, mail to past customers or buy a list from your local chamber of commerce. If you're after a specific type of person, look in your phone directory for a direct mail label broker that has the appropriate list. Hire a professional to design the mailing piece; the more professional and enticing your direct mail looks and the more people see your name, the more apt they are to respond. With proper guidance from a good freelance graphic artist or marketing consultant, you'll most probably recoup the couple of hundred dollars the advice costs you.

And unless you're doing a mass mailing of thousands of pieces, the first mailer is just a door opener. Tie your efforts to other marketing. Coordinate the mailer with local advertising. Or, if you're doing a limited mailing to professionals, follow-up with personal phone calls. If you're mailing to consumers, consider several mailings over a couple of months.

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Q: I have a small marketing budget and want to use fliers to get the word out about my business. How can I get the best response?

A: As you would do with any type of advertising, you need to first answer a couple of questions. Who is your target customer? What will get them to buy your products or services?

The answer to these two questions will help you develop the copy on your flier. The first three to five words are critical -- that's all the time you have to get people's attention and entice them to read the rest of your message. Make sure these first words are big, bold and attention getting. Words like "free gift" or "lowest prices in town" in big type will go a long way toward getting your flier read. Present the rest of your message in as few words as possible. There should be enough information to let people know: who you are, what you have to sell and the benefits of buying from you rather than from the competition. But don't give so much information that your readers lose interest. If an advertising piece looks like it will take effort to read or understand, the prospect, more than likely, will just throw it away.

Keep in mind what the real purpose of your flier is. You're not trying to actually sell your products with the flier; you're trying to get a potential customer to contact you for more information, or come to your place of business. Encourage the reader to take immediate action by using phrases like "limited time offer" or "call now to reserve your free gift."

Fliers that look cheap will give the impression of a cheap business. Spend a few extra dollars and have the flier professionally typeset or have someone with good computer graphics lay it out. If your flier looks sloppy or unprofessional, has misspellings or just looks junky, that's the image you'll convey to potential customers. Your response will be hurt. It costs very little to have a good, professional job done. If you can't afford to do it right, you're better off not doing it at all.

Finally, have three or four people read a draft of the flier before you have it printed. Ask them if they would respond by contacting you or coming to your business. Other people's comments and suggestions can really help improve your presentation.

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Q: What's the best way to distribute a flier once it's produced?

A: There are a multitude of ways to get a message out through fliers. Will you put them on car windshields at a local shopping plaza or mall? Hand them out to people as they walk by? Hang them on house doors? If these are your choices, be sure to check with your city hall. Many municipalities and homeowners' associations have solicitation ordinances. You don't want to create negative advertising by upsetting the people you're trying to reach.

If you want to put the fliers on windshields at a local shopping plaza or mall, check with the property management of that facility. The parking area is private property.

And don't even think about putting your flier anywhere on a mailbox, it is illegal and sure to invite a visit or notice from the local postmaster.

If you really want your flier to reach everyone -- with the bonus of added credibility -- consider using a local weekly newspaper. For a few cents each, most newspapers will include advertising fliers as an insert in the paper. The cost may be higher, but should produce a higher response. And after all, getting back $2,500 for spending $500 is better than getting $500 for spending $100, isn't it?

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