How Much to Advertise

* The first step in advertising, as in anything else, is to do the groundwork. A businessman can begin asking himself these questions :

Determining the right amount to spend for advertising is important because this expend often ranks among the highest. For the small business is especially important that limited funds be used to the best possible advantage. Once the amount available for advertising is decided upon, a more intelligent campaign can be planned covering such factors as items to promote, prospects to seek, media to use, and frequency for releases.

For a business in an established field, operating ratios are valuable guides in determining how much to spend. However, these are guides, not absolute standards. Many profitable stores and shop spend more than the standard for they fields. The correct amount of money to budget for advertising will depend upon the job to be done and the funds available. A compromise is the usual result. The following nine factors for a retail store, which can be modified for other small business, should be considered in most cases:
* Age of the store
* Merchandising and services policies
* Size of business
* Location
* Size of trading area
* Competition
* Media
* Business condition
* Past experience