I have always thought it sad when I see a going out of business sale or auction. When this happens I know a lot of hard work and money has been lost. More importantly another dream has been shot down.

Even more upsetting is that the folks going out of business or giving up, can make it, they just need to change their way of thinking, and get in line with the market. This is really difficult to do for many, because most starting a business have a passion for their industry or trade, not for marketing or the operations side of a business.

Unfortunately because money, time, and resources are put into the wrong advertising and marketing areas, businesses spend but do not get a return, and most sadly close with in the first year to eighteen months.

It is not from lack of work or passion, or even investment in most cases, it is from lack of knowledge on how to grow a business on a budget and how to maximize efforts.

With a little technology, and a little knowledge, any business whether it is a $50 start up part time business hoping to turn full time, or a six-figure franchise opening, can build and grow their business on a budget and they can start today!

One of the biggest mistakes any new business makes is advertising. No, advertising in itself is not a mistake but the mindset and execution that 90% of businesses take is. The normal scenario is that a business owner goes and buys space in a magazine, newspaper, or if their budget allows, radio and TV.

Next, they put some ineffective ad in whatever medium they choose. Their ad usually tells about their business. This is a huge mistake. No one wants to know that you are John Smiths Family Flooring. They don't want to know what products you have, or how great your service is. They want to know what problem they have that your business will solve. People want solutions.

For example, and ad that says " Bob's Professional Flooring Company. Great prices, fast service, free estimates. Family owned. Licensed and Insured. Cal 123-333-3333. " and picture of Bob or flooring, really does zero for Bobs Flooring Company. There is nothing compelling about the ad, and there is no problem being solved, and finally there is no "hook".

Now, and ad that says " Do You Suffer From Allergies? Tired of Vacuuming all the time? Get rid of that old, dingy carpet, and replace it with cutting edge, beautiful, resilient laminate flooring from Bob's Flooring. Cost effective and easy to maintain. We install for you, and bring samples to your doorstep. Call us today at 123-456-7890 for a free no obligation consultation in your home."

Do you have comments or questions on how to write effective ads? If so, please ask your questions or leave your feedback below.

The next big mistake businesses on a budget make is not asking for referrals. Your current customers, even people you have touched base with but not sold to are a potential floodgate of new business. If you are nice and cordial, and give good service you can easily ask for referrals. There are many ways to do this, but the simple way is a greeting card, postcard, or survey sent to your lead or client, and simply asking them if they know anyone interested in your service.

Referral business should be your lifeblood. While you have to advertise initially, your advertising budget should decline as profits increase if you use referral marketing properly. This technique is applicable to ANY business, whether you have small home based business, a service business, or a large multi employee, complex business.

Another way to build a business on a budget is to take advantage of technology. Use local online free advertising sites to bring more business. Use low cost, high quality no minimum order direct mail programs for postcards and thank you cards, brochures etc. An example of one of these systems can be found at customizedgreetingcards.com. Request a free demo account.

Have a website for your business. It does not have to be expensive or a chore for you. A simple business card style website will work just fine, and is an extension of your advertising.

If you need more specifics on any of the suggestions in this article, feel free to leave a comment requesting more information or asking questions, or submit a request for me to write another article on the specifics of the subject that peaks your interest. If enough people request the same subject I will write another hub or do a video to help out.

I want people to succeed; I want you to be able to achieve your dream. I don't want to see more liquidation ads, going out of business signs, etc - not when there is no reason for it!

You can also check some of the links below for more information on specific areas.

If you can, please give a thumbs up below if you want more articles like this, with more specifics. This way I know what information to post for you.

Please leave comments for subjects you need more information on to grow or start your business.