Being Risk Adverse is a Risky Business
I’ve assisted a number of companies start from the bottom up. Apart from product development my main focus was always to ensure that there was sufficient cash flow to meet the demands of the business and I always thought that I was particularly good at that part of my role. But I’m finding dealing with my own business finances rather more stressing.
I had always known that I was developing this business with a rather small budget considering I have seen companies do the same but with over $200,000 in the kitty. I think I’ve done pretty well so far to set up the back office infrastructure and develop and manufacture a product but when it comes to advertising things are now getting tough. Tough in two ways:
- Just having sufficient funds to do it properly and
- Fighting against my own nature of being “risk adverse”
I know that if you don’t advertise I’m not going to make sales but how can you advertise when you have limited funds? The old catch twenty two. I’ve done the basic things that cost very little money so far such as:
- Sent out a press release’s to beauty editors about the launch of Enhance Bust Boost Lift & Tone. Magazines work at least 3 months in advance so I’m not going to see results there for a while.
- Will follow up with sending out a sample product to beauty editors.
- Purchased leads at a very reasonable cost which yielded some success.
- Advertising on online sites such as Lets Shop and Stylescene.
- Provided product for competitions.
How I should best advertise this product and get the “best bang for my buck” is proving difficult.The thought of spending $6000-$8000 on a print ad in something like Body & Soul just scares the absolute hell out of me. What if I do that and I don’t get a single sale… It’s a big risk to take to find out it’s not the marketing channel for that product.
So I’m putting it out there…what do you think I should do? Is there any medium online or offline that I should seriously consider? How do I make my advertising budget stretch further?
I’m not a risk taker by nature and so far everything I’ve done has been a risk…but it gets to a point where my mind says ‘ïf you spend that money you’re going to have nothing left” But then again I know from past experience that if I don’t advertise aggressively the product is just going to gather dust in a warehouse. If anyone knows of any good coping techniques please let me know.