If there is one mistake small town businesses make more often than any other it's, "What ever is left over, we'll use for advertising."
Marketing and advertising is an investment, not an expense. I know it sure seems like an expense to me when I'm writing the check, but trust me it's not.
Without enough money put aside for advertising your sales can go down and you suddenly have less and less for promotion.
When do you advertise the most? For most businesses it's the first day of business. Don't you have a Grand Opening, balloons, flyers, ads, on-site radio stations, contests, and prizes? Did the income from sales pay for that? No, it didn't. You advertise most when you need business. You advertise more when you don't.
An average cost of advertising is usually 1 to 5% of gross sales, which can vary according to location, local advertising rates, and industry. Car dealers need more advertising than funeral homes.
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