Businesses grow as they enlarge their customer base. Enlarging this base is usually a product of advertising, and developing a good reputation. Since advertising is extremely expensive in many areas, community involvement is a great method of advertising at a low cost monetarily.

A high profile in the community is of great value for several reasons. The free publicity is easy to quantify. Not quite so obvious is the customer base available within other businesses that are also highly active in the community. Public perception is very kind to businesses that are operating at a high visibility level within their trade area. Any business known to sponsor youth sports, active within service organizations, and in areas of anti-criminal activities is seen to be a "good guy".

Any business that can develop a positive community image has far greater opportunity to achieve a loyal business base that expands as "word of mouth" advertising spreads this good image. Even though prices can induce customers to do business most anywhere, the public is not ignorant as to who gives back to the community in some significant form, or fashion.

Community involvement actually permits a business to grow in another area as well. The savings afforded by being able to reduce commercial advertising permits a business owner to invest a higher percentage of his capital back into the business. As products, and services are expanded in accordance to the advertising savings, additional growth is almost guaranteed.

One other subtle factor comes into the mix for those who are highly active within the community. Many potential customers are tired of the concept of being just a number where they presently do their business. Large companies, and national chain stores are perceived to take from the community. The psychological impact of encountering a business that is giving back to community inspires great customer loyalty. The end result is quite predictable! A growing business with a loyal customer base that will be supportive in both the good times, and the bad times

Learn more about this author, Bob Schmidt.
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