Prosper Newsletter: October 2007 > Entrepreneurship

You understand that the following information is educational in nature and is not intended to be legal, accounting, or tax advice. You are responsible for your own financial decisions and should consult your own legal, accounting, and tax advisors before making your financial decisions.

The Power of Yellow

How yellow page ads can be an effective medium for promoting your business or service

Arguably, the most effective form of advertising is a woman. Generally speaking, women are notorious for telling others about products and resources they like (and don't like). And since women make about 85% of the household financial decisions and purchases, according to Harris Interactive, a word-of-mouth referral from a savvy woman can, indeed, prove to be a valuable advertising medium; however, this form of communication is not exactly measurable. So, for entrepreneurs who wish to run a strategic advertising campaign that brings in measurable results, consider the power of yellow as the "next best thing."

The yellow pages are a highly effective, yet often overlooked advertising medium. If you consider the fact that approximately 80% of people have access and use yellow page directories, the potential for capturing a piece of the consumer market is significant.

Consider the following advantages of advertising through the yellow page directories, particularly Yellow Book—the most popular of the directories:

• People use the yellow pages when they are ready to buy. Many consumers use yellow page directories to find pizza delivery locations, plumbers, auto mechanics, dentists, lawyers, accountants, and many other service providers.
• Nearly 100% of all homes and businesses are listed in the yellow pages.
• Yellow page directories have almost universal coverage and distribution through the local phone company; nearly everyone uses yellow pages since they are mass distributed at no-cost to the user. (Newspapers only reach about 50% of the area market and nearly 60% of the people reached are over the age of 40, which provides a narrow target market).
• Yellow pages are free to the user and accessible 24/7, year-round.
• An advertiser can list a considerable amount of information in a yellow page ad including logos, photos, taglines, color, borders, and testimonials.
• Yellow page directories are the only resource where you can find the ad by alphabetical order, as well as by category.

"For many small businesses, Yellow Book is their first foray into advertising," according to AllBusiness.com. Yet, the yellow pages are not necessarily ideal for all businesses. As with any advertising medium certain businesses will yield better results than others. When analyzing the benefits of advertising through the yellow pages, keep in mind the following disadvantages:

• Advertising in the yellow pages is usually expensive. Directories often charge the highest advertising rates, but television is considerably more (based on the number of people who see the ad).
• If you buy a yellow page ad, you are usually locked into that ad for at least one year. It is difficult to change the ad, but it is not impossible.
• Typically, you need to buy a large ad to get listing in the front of the directory which is, again, expensive.
• Generally, it is hard to get good placement in certain categories such as chiropractors, accountants, insurance, and attorneys which are high-demand categories that feature a plethora of large, eye-catching advertisements.
• You cannot determine how well an ad in the yellow page is working for you unless the yellow pages are the only medium in which you are advertising. (You can find out, however, through coupons, rebates, and surveys).

On the whole, the advantages of yellow page advertisements generally outweigh potential disadvantages-that is, if you maximize your advertising power through placement and design. That said, here are several factors to consider, as well as suggestions on how to yield the best results from your yellow page ad:

• Size and placement. For the novice advertiser who has a limited budget, consider purchasing a half column ad in the yellow pages first. Yet, if you have an adequate amount of advertising dollars to spend and can afford to purchase a large ad&mdashyou might do it. Bigger ads attract more customers and earn better placement. And placement is important, especially since your company is listed alphabetically in the yellow pages. For instance, if your company name is Watson Plumbing, it will be listed toward the end of the category listing. Yet, with a large advertisement, you will have better placement. You may also consider including a headline to give your better placement; a headline such as "Amazing Plumbing Service — Watson Plumbing" will not only help with alphabetical listings, but grab the attention of your target audience.
• Headline. Use a strong headline that trumpets a key feature of your business such as "guaranteed service" or "emergency service" or "celebrating 50 years of excellence." Highlighting a facet of your organization helps capture customers' attention and distinguishes you from your competitors. For example: "Largest Selection of Kitchen Appliances," "Only Computer-Repair Shop this side of Town," or "Fast, Free Delivery", incorporate key words that speak volumes and, most importantly, grab people's attention. Generally speaking, it is recommended that advertisers use a catchy (but truthful) headline rather than the business name unless it happens to make a strong selling statement that stands alone, such as: 24-Hour Locksmiths, Inc. or Custom-made Furnishings Direct.
• Copy. Research indicates that copy-heavy ads draw about twice as many customers, but careful that your message isn't lost amid wordiness and clutter. Be sure and list pertinent information such as company name and phone number, point of contact, website, email, and location, as well as highlighting key services that you provide; include information that potential customers might need such as:
  
  
  • A brief but complete rundown of your products or services, and any specialties (i.e., family law, one-on-one consulting, made-to-order furniture).
  • Your credentials, including years in business, licenses, certifications, awards, and professional or industry-association memberships (i.e., member of the Better Business Bureau, practicing since 1984, licensed clinical social worker).
  • Special services such as at-home pickup or worldwide delivery, free estimates, free initial consultation, year-round service, evening or weekend hours, same-day service, money-back guarantees, senior discounts, package deals, referral discounts, or free parking.
  • Basic information such as service area, location (with directions and even a map), business hours, brand names available, which forms of payment are accepted. Be sure your contact information, particularly your phone number is in large, bold type.
• Graphics. Design your ad with enough blank space to prevent clutter. Consider an illustration or photo, but keep it simple. Use color and borders to create a visual appeal and add impact. However, if your advertising budget is limited and you must decide between size and color, opt for size. The bigger the ad, the better placement and better chance of catching the eye of a potential customer.
• Categories. If your business fits in more than one category, such as retail and health, but you can afford only one ad, choose the category where most of your competitors advertise. You may have to work harder to secure customers' attention by competing with other companies in that category, but the more popular a category is the better. Remember, you want to spend your advertising dollars wisely and secure good placement.

When determining which advertising medium will yield the most results for your business, consider this: Say you have landscaping and lawn care business, and to place a yellow page ad will cost you $500.00. If the average cost of service is $50.00, you will need to recruit at least 10 customers a month to have the ad pay for itself. On the other hand, if you were to place an ad in the newspaper, you may pay double the amount for less exposure. So, while yellow page ads may be expensive initially, consider the benefits; yellow page advertising may prove to be the ideal method of promoting your business and recruiting clientele.

What Do You Do When the Right Employee Doesn't Walk Through the Door?

With the current market for finding the "right" employees becoming more cut-throat, entrepreneurs looking to expand operations and ramp up for the holiday season are seeing increased difficulty with hiring. It may not be as problematic or as big of an issue for those just seeking seasonal or less-skilled labor, but for many looking to fill key positions within their rapidly blossoming organizations, hiring is quickly becoming a negatively-viewed bottleneck to growth. It never helps to hire the wrong people and invest time, energy, effort, and resources into the "wrong" person. So what do you do?

Jim Collins, best-selling author of Good to Great: Why Some Companies Make the Leap... and Others Don't, gives his insight into the dilemma. A summary of one of his bits of advice is to make sure you get the "right" people on the bus. Some would say that this would equate to spending a little more time on the finding, interviewing, and development stages of the employee life cycle. How do you get the right people into the right seats AND get this bus going in the right direction?

One of the obvious concessions one may make is lowering standards. Take whoever comes through the door for an interview. Now that we all agree that we don't want to take the lower road, let's get some real solutions on the table. After all, isn't hiring for your business somewhat like hiring a nanny? Isn't this person going to be taking care of your "baby" (so to speak)?

Here are some alternatives to lowering your standards:

• Be flexible and competitive on the pay
• Increase the job responsibilities and give more pay
• Empower the position
• Offer more growth potential
• Hire 2 people part time so you can flex to scheduling needs
• Be more aggressive with benefits, time off, etc.
• Use a temp agency
• Use word of mouth advertising to get more prospects
• Offer hiring incentives to current employees
• Use more targeted job posting
• Spruce up the job postings you currently use
• Get out there and sell, sell, sell the dream of working with the best company there is—YOURS

The answers aren't always simple, and rarely fix themselves overnight. Stay vigilant and define who and what the "right" employee is so when you do meet them, you snatch them up right away.

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