Return on Marketing Investment for Small Business can exceed Big Business

Warrillow & Co., who was recently acquired by The Conference Board, comments in their most recent e-Mail newsletter about the ability of small business to survive in the tough economy because, unlike their larger corporate counterparts, most small businesses are not dependent upon bank borrowing to improve return on equity. Marketingwitz is thrilled to see that Warrillow appears to be thinking about balance sheets over income statements, as suggested in an earlier (3/16/08) MarketingWitz post.

ROMI, return on marketing investment, can be very favorable for business with healthy balance sheets in turbulent economic times. Most small business operate with positive cash flow and thus are not as dependent on the banks for day-to-day operating capital, and only 11% of small businesses, per Warrilow, rely on bank loans to acquire or start.

With more and more layoffs in the corporate section, and 516,000 new unemployment claims last month, look for a surge in new startups. The economic rebound will start on Main Street, not Wall Street.