What is the 5 mile rule? It is a rule that says you should not spend advertising dollars in any market outside your 5 mile radius.

The 5 mile rule applies to many types of businesses. Why? Because people want to purchase locally. They don't want to drive 2o miles for insurance when there is an insurance company 2 miles down the road. 

If you were to plot your customers on a map, you will find that at least 85% of your customers do not travel more than 5 miles to get to your business. So, why would you spend advertising dollars over 5 miles away? You shouldn't. You should advertise locally and make sure that you're not wasting dollars on trying to get people to travel to your business.

I use this rule in my own advertising and when I advertise for my customers. This is a great advertising "rule of thumb" because it will save advertising dollars. If you think of the distance that you would normally go to the bank or other retail shops that you frequent, chances are, nothing is over the 5 mile mark. 

There are a few exceptions, but not many. It really depends on the type of business you have and whether you can talk your customers into traveling.

Everyone who starts a business should know the value of a ribbon cutting. It's an opportunity that should be relished and fertilized so it will make your business grow. It is an occasion that you actually get to talk one on one with people. There is not better platform to talk about your business.

There are a few things to think about when preparing for one. Below is some basic information for how to prepare and what to do to make it a success.

1. Give yourself plenty of time to promote it. The suggestion is 6 to 8 weeks out. This will give you plenty of time to have stuff printed and organized for your event.

2. Scheduling can determine how many people actually show up. Try to schedule your event Monday through Friday and right at the end of the day. That way people can hit it on the way home from work. Also check your local city schedules and the local chamber groups to see if there are any other events scheduled on that day. You don't want to schedule your event in conflict with another event.

3. Happy Hour is always an attractive after work offer. Many people like wine or beer after work and what there is no better way to get people to stay a little longer. Also, it's called "happy" hour for a reason and you want your business to be associated with "happy." There are some exceptions. There are some businesses that would show bad etiquette for serving alcohol, so use your best judgement.

4. Food. Have food, any kind of food. Small bites, sandwiches, a dish or snacks. It doesn't matter. People want to eat with their happy hour.

5. Invite everyone & know who's there. Invite your friends, family, co-workers, competition, all the businesses around you, people you know, people you don't know....invite everyone. This is an event that will be more successful with more participants. Make sure you have a sign in sheet so that you know who attended. After the ribbon cutting you will want to thank everyone for coming.

6. Have giveaways. People want to be entertained. Give them something they can talk about. Give away something you offer. Have other businesses give away stuff so that they also get exposure. Partner with a non-profit and do a 50/50 raffle.

7. Have helpers. Make sure when you are inviting people you have you key spots filled. Who's going to bartend, who's going to handle the 50/50 drawing, who's going to make sure the food in replenished. Your job is to get to know everyone in a one on one environment. Don't waste it by not being available because you have to get more wine.

8. Make your business clear. Make sure you have signage and that people know what the name of your business is. Have samples of what you do or a way of presenting what you do.

9. Take pictures. Have someone take a few pictures. Make notes of who are in the pictures. That way when you send in your press release, you have pictures to accompany it. The articles submitted for publishing with pictures have more of a chance to get published than stories without.

10. Market your event. You can advertise your ribbon cutting in a print ad or on the radio. Also, print invitations and give them to everyone. People will only know to show up if you invite them.

This is a topic that has perplexed the printing industry for years. OMG 5,000 cards for $20! Thats crazy. It sure is. And in the printing industry you will get what you pay for. And if you pay crap prices you're going to get crap product. You may get 5,000 cards to hand out, but they are going to be of thin stock, have color irregularities throughout the run and probably have the printer's logo on it. Is that the impression you want to give about your company? Absolutely not! You want an impression of integrity.

When you hand your customer a piece of your company, you want that customer to know that your company is worth investing in. They desire confidence in your business. And handing them a crappy, flimsy card is no way to go about it. And today, printing has changed so much it is not necessary to do do that anymore. The price difference isn't that great between quality and quantity.

You can still get a professionally designed business card, full color for under $100.00. And that is a minimal business expense to promote confidence, wouldn't you agree?

That goes for more that just your business cards. That goes for brochures, presentation folders, everything you're going to put your name on. Give your customers confidence. Print your materials professionally and with the right designer.

I know I do not have a bunch of readers, but I would like to share the most amusing videos I have ever seen on a business card below. Please take a look, it is fabulous.

http://www.youtube.com/watch?v=4YBxeDN4tbk

Our current business card is to the left. It is printed on a silk laminated 14 pt stock with spot UV. You cannot see the contrast in the background and the shine here, but you can request a card to be sent to you by going to our contact page. I will be glad to send one out right away.

Advertising dollars are very important to any size business. You will need to spend money to make money. Whether you are a small start-up or a mighty chain, advertising is imperative to your survival. People need to know you're there and more importantly that you are "still" around. 

Most people spend between 10% to 20% of sales on advertising during a normal season, and raising that number a smidge for special events or holidays. The rule of thumb is 15%. But during a grand opening or Christmas sale, you should move that number to 15% or 20%. If you put your advertising dollars in the right places, you will receive all that money back and then some. That is a whole new topic to talk about at another time.

A great term to know is "feeding the fire." In advertising you always want to feed the fire when the season is at its busiest, throw more food on the fire with advertising. So increase your budget during your busy season, you will get the return.

If you are a new business, take your projected earnings from your business plan and use 5% of those dollars for your advertising. But, before you go and take out a full age print ad with those dollars, think about how you can effectively spread those dollars over different mediums and take advantage of grabbing someone through different channels.

Also, most people handle their advertising on a monthly basis. Usually you have a plan a head of time and get all of the advertising purchased and produced prior to the time you are running your sale. What you want to avoid is running around your store trying to set up your sale and proofing advertising at the same time.

Now that you have your budget, ask yourself who your customers are and who you are trying to reach and what types of lifestyles they lead. That will start leading you to the right markets to target. That is your next step. Good luck!