To run a successful business, you have to advertise, right? Not necessarily. Granted, not all market places work the same, but the following is a good rule of thumb:
First, advertise only if it is not possible to meet every desired prospective client in person.
Next, advertise only when the following four conditions are met:
- Can the business handle more clients? Doesn’t make sense to advertise if you’re out of product or can’t deliver services in a timely fashion.
- Is the business good at what it does? Advertising can’t make up for a lousy product or service. Innovate, then advertise.
- Is there enough market share to be gained? If the business already dominates 80 to 90% of the marketplace, it can be hard (and expensive) to get more.
- Is the business to be gained profitable? Duh.
If the answer to all four of these questions isn’t ‘yes,’ then it probably doesn’t make sense to advertise. Simple as that.