Some people are able to own their own business and make a living, others are not. People are different with different personalities and this can make the difference as well as someone going into business that is underfunded.
I opened a Real Estate office several years ago. Other Brokers had been in business longer than me and I felt I had to make up time and get my business name out there. I spent $16,000 the first year for advertising. I believe in advertising. Designated advertising. Determining your specific market and how/what reaches it. I did hats!! Neon, black, white, all colors. Very pretty hats and even plain hats but all of them had my Company name on them with my phone number. After giving away several hundreds hats, Tshirts, colored pictured business cards, etc, etc I noticed I never saw any of my hats on people. I started asking people if they ever wore the hats I gave them and they told me no, they collect hats and the nicer ones go on the wall in their garage (or wherever) for personal display.
Now at about $2.50 to $3 a hat I decided hats were not the best gift to give for the Real Estate business. Ink pens were 5 cents or less in quantity purchase and people would thank me and then use them and then leave them for someone else to pick up soooo ink pens were much better for advertising. My second year I spent $6000 in advertising and my gross revenue was exactly, almost, $10,000 less. Advertising pays but does it pay for itself? Some times and some things do and bottom line guys, those gifts are not for love but for increased revenue or for ego boosting by seeing your name in print. I've found that in the Kubota tractor business that a hat is fairly cheap advertising and most tractor owners wear their hats and will wear them around town as they shop and hang around. I've also found/determined that most of us Kubota Orange owners are not ashamed (proud) of our Kubotas.
When someone owns a business and money is flowing out in a constant stream and maybe not coming in as rapidly as it's going out the spincter muscle and the wallet muscle starts getting tighter. This tightening can sometimes make ones business plan/good sense get confused and conserving can be done in maybe the wrong places but until you personally try it don't be quite so harsh in your judgements.
I've spent like a crazy man and I've sometimes sweated running a copy thru my copy machine at a penny or two per page. Some people can be self employed and make money and some of them could have made ten times more money if they had been a bit better business managers.
At $2.50 to $5 a whack, how many $5 dollar bills would you give away to everyone that walks in your door and how would you determine who to give them to if not to everyone?
I have several different Kubota hats and some of them I won't wear because they are really special hats but they attained their purpose and that purpose is my appreciation that they were given to me. Other plain ones I wear when I'm mowing or out in the sun, like at an auction. I wear my better looking ones at auctions but also appreciate the "work" plain ones that are ink printed instead of embroidery ones.
I gave hats and I have rec'd hats. Hats are usually for advertising but can be just a show of appreciation to a customer or even potential customer.
