Marketing of a business is an absolutely critical step towards the success of a business. Home businesses need a totally different strategy than shop front businesses because they have to go out and find their customers, as opposed to those with a shop front that have a certain percentage of their customers find them from driving by.
It is quite possible to get free or even cheap marketing so don’t be brainwashed into thinking that you cannot market your business if you do not have a big budget. Offline marketing is very effective for small home based business so read about that here.
Having a home based business can be a huge benefit in that there is no rent to pay but that benefit comes at a cost in other ways and that is that a home business operator needs to spend some time and possibly some money on getting their business known.
That is a generalization, I know, because there are so many different types of business that can be run from home, but the fact is that if you do not have a business where customers are knocking down your door you have to go out and find them – that means marketing.
In my working past I spent 7 years as a business broker and in all that time the most successful and profitable businesses we had listed were the ones that spent 10% of their gross profit on marketing. Yes, 10% of gross profit on marketing! And they were not home based business, but business that had quite good street frontage as well.
I have always kept that in mind because at the other end of the scale there were businesses that had good products but did not have the funds or did not for one reason or another, market their business and consequently their businesses were not running at full potential, nor were they growing.
The only way a small business can make a profit is to have sufficient turnover, with sufficient profit. There are some home based business that can make a reasonable amount of money without marketing, but it only takes losing a few clients for turnover to drop so a business should never let themselves get into that position where the loss of a few clients could harm their income.
All owners need to market their business at least some of the time. A business owner needs to be aware of bringing in new customers and creating new interest all of the time.
I know some people will say, “but I rely on word of mouth” and that is fantastic if you have enough customers to spread the word, but again you only have to lose a few customers because they move away, or outgrow your business and before you know it your number of customers will start dropping.
Don’t be complacent because if you are you may find too much time on your hands with a business that is not making you money.
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