Bring in the Dough: Yielding Wealth in Your Own Business

Often when you start a home business, your business income becomes part of your personal finances. And vice versa. And it’s important to make the most of it. Here’s an example of using money to make money:

Kay just started a new business marketing aprons and chef’s hats for children.  After other expenses, she has $500 to spend on a marketing campaign – she doesn’t know if she should take out an ad, hire a PR person, start a website or what.  What do you recommend as the best use of her dollars?

First, some general advice: Prior to spending your marketing budget, verify your target (kids, parents, or mix) and what you are selling to them. While you are selling “hard” products (hats and aprons), you are also meeting needs like improving the emotional bond between children and parents. Understanding the needs that you are meeting can help clearly differentiate your business and drive marketing direction and messaging.

Because you make your own product seems sensible with a focus on offline marketing efforts given your budget. With 100 aprons and 100 hats and the materials and ability to make 200 more of each, you are positioned to begin marketing locally. A focus on a big local marketing campaign is suggested with a two-pronged approach:

1. Find at least three sponsors, with cross promotion in mind (for prizes and/or facilities), for a local contest at a school or a local business (like a kitchen supply store or a restaurant) to raise awareness. A cookie baking contest, or something similar, that kids can do with their parents, would be ideal. Spend $100 on a couple of cool prizes. Make sure that aprons and hats are included for the top winner and his/her parent as part of the prize pack.

Take pictures to ensure that they can be used in future marketing, and be sure to send a press release to the local newspaper.

2. Use $200 to pay for rented space, and transport there and back, at three or four carefully selected local craft fairs and holiday shows. Sell your products by marketing them as great Christmas gifts.

Additional marketing steps:

Publicize a promotion where she sells a set of one apron and one hat together at a discount. For example, if you sell hats for $15 (cost $7 to make) and aprons for $17 (cost $10 to make), you can sell the set for $28 (instead of the $32 it would cost separately).

Moo.com offers great products that you can design using your logo. Set aside $100 ($20 a box for 100, but you can get a buy two, get one deal right now) to have minicards made. These are larger than business cards, but still ideal for passing out and giving away with the product. Always carry minicards so that you can pass them out. Include them with packaging, and have plenty on hand at the contest.

Consider using MySpace or some other appropriate social website to set up a webpage and a blog. This can be done for free, or with a little of the leftover $100. With this you can gauge interest for an online campaign financed from your initial sales efforts, which might be followed by a larger web-based marketing campaign. Additionally, some of the left over money could be used to set up an eBay storefront (inexpensive) or get going with PayPal.

Find out about making appearances at local business venues and seminars. Many towns have public access stations that include local business spotlights. You should appear on one of these, showing your product (on kids of course!).

As your sales grow from the initial local marketing push, you can consider hiring additional help in assembling aprons and hats and send product samples to others, and contact a variety of people for cross-promotions.