I didn't include overspending in the headline of this essay because it is seldom a problem. What else would you expect an advertising person to say? Seriously, under-spending (or spreading a good budget too thin—mistake #2 ) is a major problem for most small to medium sized businesses.

First of all, don't base your ad budget on last year's sales. That is like saying that sales cause advertising. Advertising creates customers (we're assuming a good product and good advertising-not always a good assumption ). Customers create sales. So create your budget from projections, realistic projections. An associate of mine put it memorably. Advertising is the fuel for your marketing engine. You won't get far if you run out of gas. If you're ready with a wise crack about more miles to the gallon then you don't have the right people writing your ads.

Nothing except advertising can get you customers. Of course, signs, location, salespeople, etc are all forms of advertising and should be as good as you can make them. But most under-spending occurs in the budget assigned to communicate through mass media. Roy Williams in his book Secret Formulas of the Wizard of Ads includes a good formula, especially for retail businesses, for creating the right budget. There is no one correct answer. But keep in mind that advertising is your communication to potential customers. The more they hear from you the more value you have in their mind. So let them hear from you as much as you can.

I know this section has been brief, but if I really delved into proofs it would become a book. However, I welcome your e-mail correspondence if you would like to talk a bit more about this topic.

NO U.S.P. (Unique Selling Proposition)
HIT AND MISS advertising.
FORGETTING THE NUMBER ONE GOAL of a business is to grow and maintain a base of customers.
POOR COMMUNICATION with employees.
TOO MUCH PROMOTION—especially when you think it is advertising.
THINKING LIKE A SELLER instead of a buyer.