Business: Now is the time to spend, cautiously

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It’s the holidays, and it seems there is endless shopping to do, lines at the mall, and Americans ringing up debt. The Federal Reserve Bank of New York reports that consumer debt continues its downward trend of the previous seven quarters, though the pace of decline has slowed recently. But now that the holidays are here, those credit card charges are bound to pick up. Retailers are seeing the up tick. The Census Bureau reports Total sales for September through November 2010 period were up 7.8 percent from the same period a year ago.

So, what about business spending? Have businesses returned to spending and will that create jobs? The unemployment rate continues to fluctuate, and was recently reported at 9.8%.

Why spend now?

It’s been reported that Google’s ad revenue has increased significantly in the past quarter, with a 23% increase in the third quarter alone compared to 9% for all of 2009. An increase in ad spending could be signs of optimism and recovery.

Is opportunity knocking? There is opportunity in a recovering market. Advertising prices are still relatively low, and getting in front of potential customers before your competition does is a clear advantage. The risk of spending too little too late is losing market share.

After several years of hunkering down for survival during a global recession, many small businesses find it difficult to start spending wisely again. Here are a few things to consider for the coming year.

1. Advertising, sponsorships, and promotions: What budgets have you set? How visible are your competitors? What channels and mediums are you using and are they effectively reaching your target audience segments? Are you successfully using online advertising?

2. Website: Does your website deliver the content your potential customers need? Has it gotten stale and out of date? Does it still provide a good user experience? Does it meet current expectations and functionality? Do you have a mobile version? (does your website language clearly reflect your company’s values, mission, etc.)

3. Print collateral and mail: Are your marketing materials up to date? Should you consider direct mail or email campaigns? Do you have a new offering for customers?

4. Public Relations and earned media: What is your public relations strategy for a changed market? Do you have an activity calendar? Do you have news (that you regularly share with your constituents)?

5. Tradeshows: What shows will you attend in person and which ones should be prioritized over others if the uptick in economic activity doesn’t hold steady? Are there other opportunities to consider? What alternatives do you have? Are your booth and collateral materials prepared?

With the new year approaching it may be time to start spending again, wisely.