When the economy is 'doing it tough', there seem to be a lot of business entrepreneurs who appear to listen with what seems like 'blind faith' to their accountant's sage advice, and cut back on advertising, marketing and promotion. Now why is that?

When business is slow, the only way you're going to win back lost trade is to persuade more customers to give you their business. How are you going to do that if all of a sudden you stop marketing and promoting your business to them?

Now please understand, I don't have anything against accountants. they are the ballast that business needs, and watching those dollars and cents is critical - not to mention managing the BAS , GST and everything else they look after.

Yes, your accountant is correct, it is sensible to cut overheads as much as possible when business is slow - non-essential overheads. However, it is important when considering rationalisation, to ask yourself this important question - "Is cutting 'this' or 'that' going to make it harder for my customers to find my business and / or buy my goods and services?" If the answer is "Yes, it will make it harder", find something else to cut.

An example if I may. imagine if you decided to cut off your phone service to save costs (a silly example I know, however I trust you'll appreciate the concept). The impact on your business is obvious. In one hit, you will have made it a lot harder for anyone to make contact with you - and if they can't make contact, how are you going to persuade them to buy? Yes, they might be able to fax you or send an email, but what happens if they really want to talk to someone? How long do you think they'd wait around before giving up and talking to your competitors?

The phone is more than just a communications instrument; it's an operations, marketing, promotions and sales tool all rolled into one. Without it your business would be stuck in a big hole, your turnover would shrink and profits would become nothing more than a fanciful dream.

It's the same with marketing. without this essential business operation, your business has no chance of surviving. If you don't promote your business to your target market, where are the customers going to spend their money? Obviously a customer can only approach a business they can find. When times get harder and the economy is dragging, your job as an business operator is to make it easier for your potential customers to find you; you need to promote your business more , not less.

I guarantee you; when today's economy swings back into the black, those businesses still solvent will be the ones which the customer could actually find and make contact with. If you hide your business, can you imagine where those customers will go? Promotion, marketing and sales; these are essential business operations, without them, you might as well close your doors now... you'll lose less money than if you delay shutting down.

Obviously, it takes more than promotion for a business to be successful. A strong business also needs solid foundations, such as desirable products and / or services, excellent customer service etc.. During tough economic times, even some good businesses fail; there are those which shrink and others expand. When a business ceases trading, its customers move onto another business, one that fights for their custom, is easy to find and stays open. Businesses which are proactive in their promotion while others slash their marketing budgets, have a better chance of weathering the storm. Those businesses will be the ones reaping the rewards of a broader customer base and less competition when the economy bounces back.