Put your tax stimulus check to work: invest in advertising for your small business.

Wondering where to put that cash from your tax stimulus check? Before you blow it on a steak dinner, consider investing in your small business.

Economic stimulus payments are going out ahead of schedule, and you may be getting a tax stimulus check or direct deposit from the IRS sooner than you think. So what should you do with your windfall?

Turn that tax incentive check into your financial advantage by trying something that makes the payoff more direct. Consider the merits of advertising in an economic downturn, and invest some of that rebate into your small business.

Times of economic uncertainty are the ideal time to advertise.

Cutting from a marketing budget is one of the first mistakes businesses make during times of economic crisis.

The research firm of Meldrum & Fewsmith conducted six studies that offered conclusive evidence that advertising aggressively during a recession increases both sales and profits. Check out their chart that shows how advertising during recession is good for business in the long run.


Advertising can reposition a product to take advantage of timely consumer concerns, give your brand a stable image in a chaotic environment, and give you a chance to dominate the media when your competitors are conveniently quiet.

Look at your marketing dollars as an investment not an expense.

When money is tight, it's tempting to hold on to what you have rather than expanding your brand. But if you stop advertising and marketing, you'll do your business serious harm. "If you cut back on advertising in the face of a recession, then the customers stop, and it's basically a self-fulfilling prophecy," says small-business consultant Karl Paluchuk of Sacramento, California.
A few examples of companies that weathered economic storms and succeeded:

• Proctor and Gamble - During the Great Depression they pushed Ivory soap and made it a household name for the good years to come.

• Intel - In 1990-1991 during economic difficulty they launched the campaign "Intel Inside".

• Wal-Mart launched their "Every Day Low Prices" campaign in the economic turmoil of 2000-2001.

Expand your business during a recession, and reap the rewards from markets that your competitors are too scared to enter because of a bad economy.

Here’s an offer: see what a new tagline can do for your business. Peel off $450 from your tax stimulus check and invest it in creating a smart slogan for your small business. From now until August 1, 2008, I’m offering these services as a special "tax stimulus package" so you can see what a little public image stimulus can do for your business. And you’ll still have $150 left for that steak dinner.

Email me at tagqueen at zagstudios dot com and put “Tax stimulus check special” in the subject line. In as little as two weeks, you could improve your image and start seeing the results of advertising during an economic downturn.

One major business-to-business advertiser summed it up best. "When times are good, you should advertise. When times are bad, you must advertise."