Last month, we listed some stats in our newsletter. If you read that, you know that 99.9% of businesses across the US are small businesses with nearly half of all U.S. employees being employed by a small business. Yet, over 8 out of 10 small businesses have no employees and just 16% of small businesses have 1-19 employees.*
Small businesses rule. So that’s interesting!
Also interesting, advertising accounts for just 1% of a business’s revenue on average.* So what gives? Aren’t we supposed to spend a bunch of money on advertising? Of course we can, if we want to see a low ROI. Or, we can go a better route.
Did you know, 85% of small businesses get customers through word of mouth referrals?!** It’s the number one way to generate revenue with search engines coming in at number two and 59%. Word of mouth referrals have the least cost in out-of-pocket expenditures and is based on the Know You, Like You, Trust You Principle and it works!
SO, WHAT TO DO?
- Build and maintain your online presence, social media, GMB page, etc. Customers will check you out online to verify what they hear from others.
- Survey your customers to understand what it is they Know, Like, and Trust about you.
- Focus on customer service to create Raving Fans.
- Ask for referrals and testimonials from those Raving Fans to help create buzz and spread the word!
* Forbes Advisor Small Business Statistics Of 2023
** Small Business Trends Philadelphia Survey 2014