Over the past few years, millions of small businesses across the country have seen their finances improve sharply thanks to the slow but steady economic recovery that has put them in a position to succeed for the first time in a while. However, some experts wonder whether these companies are doing enough to promote themselves, and whether Facebook can help them to achieve those ends.
The fact of the matter is that a large percentage of all small businesses across the country have at least some presence on Facebook, the world’s most popular social network, but a small fraction of them don’t really do as much as they could to promote themselves on the site, according to a report from the investment advice site the Motley Fool. One of the biggest issues often cited by entrepreneurs when it comes to this issue is that they don’t want to – or can’t afford to – spend money on social media advertising.
Unfortunately for those small business owners, Facebook recently changed its algorithms so that companies would have a greater need to pay for promotion on the site, the report said. However, the good news is that the vast majority of such firms are projecting that they’ll generate more revenues this year than last, so more should be in a position to spend what will typically be a relatively nominal amount of money each month to promote themselves in this manner.
Why is this smart?
There are more than 23 million small businesses nationwide, and the amount they spend on ads in their local markets – television, radio, newspaper, etc. – is estimated to be about $140 billion annually, the report said. That works out to a little more than $6,000 per company each year. Now, that doesn’t mean every firm spends that much, but it certainly provides a baseline for what many should expect to be a normal number overall. With Facebook, the likelihood is that they’ll have to spend less to promote themselves and still reach a relatively robust audience in their local areas. Plus, that group will be more likely to be receptive to their offerings overall.
Owners who want to make sure their companies can maximize their promotional opportunities might want to consider the benefits of cutting costs. By finding more affordable small business insurance policies, including those for errors and omissions insurance, they may be able to free up thousands of dollars annually.