Many small businesses are painfully aware of the competition they face from national chains and other well financed businesses. Indeed, the movie "You've Got Mail" dramatized a phenomenon witnessed by the author in her own community, when a giant discount bookseller set up shop and shut down smaller, more limited, but much-loved neighborhood institutions.

If your business is a David in a world of Goliaths, how can you compete? You don't have their advertising and marketing budgets. You may have no money to spend on marketing at all. But you're a member of the community, so you can use a tool that the Goliaths can't. It's not a slingshot, it's free publicity.

Just ask Harry Winston the value of free publicity. The upper-crusty jeweler bedecks the world's biggest movie stars with exorbitant jewels every year for the Academy Awards. The average person isn't going to buy jewelry from Harry Winston--certainly not the $20 million necklace Gloria Stuart borrowed one "Titanic" year. But among the Rodeo Drive set, who wouldn't want to wear the baubles that have graced the likes of Mira, Geena, Whoopie, Gwyneth, Uma, and others on Oscar night? (In fact, Gwyneth reportedly called Harry Winston to buy a timepiece for Ben that he had worn for the occasion and fallen in love with.)

And what about Oprah Winfrey and her book club? With a simple recommendation, Oprah can single-handedly place a book on the best-seller list. That's the power of free publicity1x

Here's a less extravagant example. A woman who worked as a cake decorator for a Boynton Beach, FL supermarket was named the grand champion of a nationwide cake decorating contest. The store celebrated with a huge congratulatory banner, customers started ordering cakes, and the local press covered the story. As a result, sales of decorated cakes at that supermarket jumped 30%1x

Publicity can be more effective than ordinary advertising. Put yourself in the role of consumer for a moment. When you see an ad, you're immediately skeptical. Sure, you may ultimately buy the advertised product or service, but you know somebody's trying to sell you something. But when a product or service is objectively praised, such as in a newspaper article, don't you trust that evaluation more than an advertising pitch?

The best way to get free publicity is to use the media, and the best way to get media attention for your business and story is to do something newsworthy. Anything about your business that is interesting, entertaining, informative, enlightening, unique, or unusual can be news. For instance:

1. Your gift shop merges with a local flower shop, and the business relocates.
2. The diner that has been owned by three generations of your family celebrates its 50^th anniversary.
3. Your bookstore hosts a reading and signing by a prominent author.
4. You own a store that sells jewelry that repels insects, or other unusual merchandise.
5. Your appliance store is the first in town to carry the new front-loading washing machines.
6. A national department store chain has agreed to carry your line of hand-painted silk scarves.
7. You are participating in a citywide charity event to raise money for youth arts programs.
8. You open a restaurant that employs only twins.

No milestones or landmark events on the horizon? Make your own news. Host a special event, sponsor a charity drive, offer a free seminar, apply that thing that your business does better than anybody to address a need in the community. One small business owner in Ohio pays the membership dues of employees who join volunteer-based organizations such as the Kiwanis Club; is on the board of the United Way; sings in a local barbershop quartet; and leads free computer training classes--and he has been on the front page of the local newspaper six times in 10 years1x

Another idea: Be the expert. Writing an article or appearing on a local television or radio program talking about some aspect of your business that is of interest to the public at large positions you as the authority and as a credible source. This is what the Meg Ryan character did in "You've Got Mail."

Here are three excellent sources for more information on this subject:

Next time we'll cover: Getting Really Cheap Publicity for your Business