This is a question that is very important to both new computer businesses and established computer businesses. When times get tough for the established businesses, marketing is often one of the first expenses to be cut back when it really should be the last.
A friend of mine didn’t spend any money on marketing his business because he said “he couldn’t afford it”. This set in motion something much worse than the computer advertising trap, the business death spiral™. Here’s that story which Ive written about in a past article:
Last year a friend of mine brought an internet/lan-gaming cafe in a nearby suburb; this year it went bust. A few months before it went bust I asked him “hows business?” and he said “slow”. I recommended that he put out some more advertising and he responded with “I cant afford it”. This response will make the jaw drop of any business owner who has survived the first two years because they understand how important advertising really is. If one does not have the funds to put out any advertising then it even more important that they do put some out because if they don’t, it will start a cycle of death for the business. If you don’t advertise you wont get more customers, if you don’t get more customers you wont get any money, if you don’t get any money your business will die.
For those of you who are are just starting out you should still spend between 5 to 20 percent of what you realistically think you are going to make. If your budget is low then there are still many cheap ways to advertise your business mentioned in one of our past articles “how to advertise your computer business“.

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I spend on average £20 per month on networking events, I often find these more effective than traditional marketing.
Although next week we are purchasing new company leaflets from our graphic designer, two 2 large banner stands and doing a business trade show.
Jamie
Keep up the good work with the blog!
I agree spending some money on advertising but I think the most effective way is by word-of-mouth. Do a good service for your existing customers and let them spread the words for you. Then when you really have some budget to spend, start the real advertisements. Also, you must create an image of yourself as being the tech guy among your friends and relatives. So when they have any computer problems they will know where to go to right away.
I advertise every day regardless of budget or not. Craigslist ads, Flyers, Doorhangers, Fax newsletters, ads in small local papers, post cards, Articvles in local small papers.
They ar every low cost or no cost. I love marketing & am a graphic designer so it’s fun for me. I can’t imagine not advertising or marketing daily!