Small Businesses: In Downturns, Invest in Public Relations

Suzanna de Baca -- Expert Business Source, 11/13/2008 11:38:00 AM

In today’s economy, businesses large and small are aggressively cutting costs. Companies are laying off valued workers, freezing salaries, slashing budgets, foregoing business travel, and canceling entertainment. But as you prune your budget, think strategically: one area you can’t afford to trim is public relations.

I’m not a PR person; I’m an investment advisor to individuals and business owners. But if you’re looking for some quick ROI, focusing on your public relations efforts is probably one of the best investments you can make right now. In a difficult economy, public relations – which can cover a wide range of marketing, prospecting communications, advertising, and customer/client outreach efforts– can be the key to success now and in the future.

It doesn’t matter what you make or do, you have to sell it. If people don’t know about you, your products or your services or if they aren’t reminded about them, then how can they buy from you or hire you? You must be visible.

The good new is that public relations can be one of the most affordable ways to let customers know what you’re doing and how you can help them. In addition to using a traditional PR firm to help you get press, you can employ countless free or inexpensive PR techniques yourself.

The digital world has made grass roots PR easier than ever. Email can be your best friend. It costs very little, if anything, to send out email blasts highlighting your successes, offering special incentives or unique offerings to customers or clients, or brief newsletters discussing points of interest in your industry.

If you have not already done so, consider using social media such as MySpace or Facebook. Of course, blogs are an effective way of getting your message out, creating conversations with customers, or driving traffic to your website. For more tech savvy companies, there are text messaging, Twitter, or iPhone apps.

As I mentioned in an earlier Expert Business Source article, “Client Thank You Notes: A Personal Touch in a Tough Time,” sometimes a simple gesture like a call or handwritten note can be the most powerful type of communication. Call your clients or customers. Invite them into your office, if only for a cup of coffee. Give them updates. Thank them for their business. Ask them for suggestions of what might be good promotions or niche markets, products or services. Ask them what is on their minds. Ask if they’d like to contribute to your newsletter or blog. Depending on your type of business, ask for referrals to other people you might be able to help or serve. Letting your clients know you appreciate them is always great PR – also referred to as good old client service!

In a difficult environment, small businesses cannot afford to hibernate. You must be seen and you must communicate. Investing in your own public relations efforts will keep you in front of your customers and let them know that your doors are open. Plowing time and even a small amount of money into communications and outreach can be one of the best investments you can make in any environment. In this challenging atmosphere, concentrating on public relations might be the smartest investment you can make.

Suzanna de Baca is president of Private Capital Solutions Group. Securities offered through Broker Dealer Financial Services Corp. Member FINRA & SIPC. Investment Advisor Representative of Investment Advisors Corp., A Registered Investment Advisor. Material discussed is meant for general illustration and/or informational purposes only and it is not to be construed as tax, legal or investment advice. Although the information has been gathered from sources believed reliable, please note that individual situations can vary, therefore the information should be relied upon when coordinated with individual professional advice