3 Marketing Lies Small-Business Owners Tell Themselves
Too many startup leaders deny the difference quality marketing makes and what they can afford.
Whip-smart brand positioning drives revenues for enterprises from Apple to Zappos. But for growing organizations, cutting-edge marketing can feel like a luxury. The Small Business Association suggests companies budget 7 to 8 percent of revenues for promotion, yet the average small business allocates just 1 percent.
That’s a shame, given that marketing brings in more money than it costs. A Nielsen study revealed an average return on investment of $1.09 for every dollar spent getting offerings in front of clients. Remember, that’s an average. With a little planning, marketing can deliver serious returns for even the smallest of startups.
3 Marketing Lies Small-Business Owners Tell Themselves
Getting entrepreneurs to invest in marketing begins by knocking down common misconceptions around it. Here are the top three.
Lie No. 1: I don’t really need marketing
It’s easy for many small-business owners to make a virtue of necessity by minimizing their need for brand promotion. There’s an intuitive logic to this lie that makes it seductive. Growing organizations often cultivate local followings, connect with their customer base using grassroots techniques and rely on word of mouth to spread their reputations. If they’ve experienced some success, they can convince themselves that marketing isn’t a significant driver of revenue. Better to plow those funds back into avenues that create value.
Can small businesses get away with cutting corners like this? Occasionally, but not for long. Companies that skimp on marketing rarely fare as well as they would have if they’d invested in promotional channels. Many entrepreneurs whose startups failed regret underspending on advertising, brand management and strategic initiatives.
The Truth: The numbers don’t lie: Everyone needs some marketing. The key is to do outreach that fits your brand’s needs with the budget you have. Getting bang for your buck is getting easier in the digital age. Buildfire, an app builder for small-scale entrepreneurs, suggests starting with these options for maximum impact:
- Facebook Ads
- Google My Business and AdWords
- Content marketing
- Webinars
- Promotion of free consultations and referral incentives
