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Frequently Asked Questions

For easiest navigation, the following frequently asked questions are also links to their brief answer and location on this page. Wherever possible, an answer may also contain a link to additional information on this SBA signage site. After each answer, a link is provided to bring you back to the top of this page.

Why do I need a sign for my business?
What is the most effective signage for my business?
Do I need a lighted sign?
What should my signage say?
How do I effectively "brand" my business location?
Is signage expensive?
How can I determine whether my current sign is effective, or what should be changed?
What are some of the alternative payment methods for signs?
Should I buy or lease a sign?
How do I choose a sign company?

Legal Rights:

What legal rights do I have as a sign owner?
What are my legal obligations?

Why do I need a sign for my business?

There are many reasons, the most primary of these being:
o Signs are the most effective, yet least expensive, form of advertising for the small business.
o A sign is your introduction and handshake with those passing by, identifying your business to existing and potential customers.
o Signs are always "on the job" for you, advertising 24 hours a day, 365 days a year.
o People often judge a business by how it looks on the sign.
o Many merchants increase their business measurably just by adding a good sign. Conversely, many have gone out of business because they simply were not identified well, so not enough potential customers knew of their existence. As one sign industry professional put it, "A business without a sign is a sign of no business."
o We live in a mobile society. According to the United States Census Bureau, 18% of households relocate each year. As your customers move, you need to replace them by attracting new customers.
For additional information, please review the "Understanding the Value of Signage" section.

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What is the most effective sign for my business?

The answer here will vary somewhat depending on your business, location, and other factors. In general, following these guidelines will increase the effectiveness of your sign.
o The best sign for your business is a sign that will attract the most customers and project the image you desire.
o Your sign must be visible and easy to read for people who are driving and walking past your business.
o Your sign must be attractive and appropriate for your type of business.
o A sign will serve to remind existing customers of your business and location, and provide new customers with a valuable visual indicator about the products or services you offer.
o Your sign should be as large as allowable for your location.
Additional in-depth material is available in the "Design Tips" and "Evaluating Your Business Location's Signage Needs" sections in the "Obtaining Your Signage" section.

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Do I need a lighted sign?

Yes, we no longer live in a 9-to-5 society, and people will drive past your business location 24 hours a day. With a lighted sign, you have an opportunity to communicate with your existing and potential customer, even when your business is closed.

Large corporations create "top of the mind awareness" when they constantly and consistently present their name, corporate logos, and products until their name becomes a household word and their corporate logos or graphics become synonymous with the corporation's name. With a lighted sign on display 24 hours a day, the small business owner has the opportunity to create a "top of mind awareness" in their local community. (See the related question about 'branding' a location.)

Additional discussion about lighted or illuminated signage is available on the "Lighting and Illumination" page.

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What should my signage say?

A successful sign will communicate effectively and concisely. Therefore, here are some general guidelines:
o In as few words as possible, clearly communicate what you are selling.
o A picture depicting your product or service adds impact and clarity.
o Present the image you want to project that will attract customers and entice them to stop, shop, and buy.
o Determine the best sign type, size, colors, and placement, keeping in mind what the sign will look like from the street and sidewalk. The proper design of your sign is critical to its effectiveness.
o Crowding the sign with too many words or lines of text makes it impossible to read from a distance. Use as few words as possible. In general, not more than 5-7 words, with 3-5 being ideal.
o Don't try to sell your customers with the sign -- save that type of information until they are in your place of business.
People are looking through a windshield, in traffic, day and night and in all types of weather. Help your customers both see and read your sign easily.

In addition to this answer, be certain to review the information available in the Design Tips section.

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How do I effectively "brand" my business location?

As a business owner, one of the primary goals of your signage is to create "brand" recognition for your business in the community. National companies use their signage, architecture, and logos in every type of advertising they do, thereby reinforcing their corporate image and creating a "top-of-the-mind awareness" with consumers worldwide.

To do this, use your company logo or graphic on all of your signs, stationery, uniforms, company property, vehicles, etc. Repeated viewing of your company's logo, especially on your sign, will help "brand" your business and location, and create "top-of-the-mind" awareness for your existing and potential customers.

Back to top of FAQs Is signage expensive?

* Signage is the least expensive, yet most effective, form of advertising for independent and national retail businesses.
* You pay for the sign once and it works for you 24 hours a day, 7 days a week for years. Use of other media requires paying month after month and you never have the benefit of ownership. You also have no assurance that you're reaching potential customers.
* From a business owner's perspective, a sign should not be viewed as an expense, but as a capital investment. When you factor in your return on investment, signs are not expensive. An effective sign will most likely pay for itself many times over.
* The price for signage will vary greatly depending upon the size, design, style, manufacturer, and mounting type.

In addition, please review the Understanding the Value of Signage section of this site.

Back to top of FAQs How can I determine whether my current sign is effective, or what should be changed?

As with measuring a new sign's effectiveness, evaluating your existing signage will require assessing readership. Sign companies often offer this service, however you can also conduct simple "customer surveys" in which you ask your customers a series of questions about your existing signage, such as the words, colors, and size, and whether they can even recall what it looks like from memory. Open discussions like this, with your customers, will provide valuable insights. You may discover that customers remember the graphic or image on the sign, but not the business name, or maybe it's the color that stands out in their memory. Listen closely and carefully, because these are answers that can help you determine not only the effectiveness of your existing sign, but also suggestions about what you might do differently with a new sign.

Tip: Remember to thank your customers for their time and input after the survey with a tangible item that further reinforces your business' product or service. You might extend a discount for future services, or present them with a gift related to your business (a mouse pad from a computer store, a coupon for the daily special from your cafe, or similar).

Additional information about working with a sign company is available through this link.

Back to top of FAQs What are some of the alternative payment methods for signs?

In general:
o A deposit of 20-50% of the total sign order is usually required when you place an order, with the balance paid on completion.
o You may be able to lease the sign on a lease purchase. Many sign companies have arrangements with a lease company. (See the "Should I buy or lease a sign?" question that follows.)
o Signs are eligible for inclusion in business asset loans, including all normal SBA programs.
You can arrange for the sign to be financed through your bank or other lending institutions, however, you might need to make these arrangements on your own. Some sign companies will involve themselves with or arrange for the financing, but you'll need to ask.

Related information is available in the Obtaining Your Signage section.

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Should I buy or lease a sign?

The decision to buy or lease is a business decision. Consider the following when determining your answer:
o As a business owner, consider all of your options, which may include cash payment, financing, or leasing.
o Some business owners prefer leasing to purchasing to reduce their cash outlay. Leasing enables you to preserve your working capital for inventory, labor, and other normal costs of doing business. A normal lease will result in perpetual monthly payments, you never own the asset. There are leasing options structured with a final large payment to "buy-out" the lease and gain ownership of the asset.
o If you have the available cash, you could purchase the signage and avoid the additional expense of paying interest, and you avoid any monthly cash flow requirements.
o Bank financing, particularly if you include other assets, will result in the lowest monthly cash flow. Signs are assets eligible for inclusion in SBA loans.

See the Obtaining Your Signage section for more information.

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How do I choose a sign company?

You comparison-shop for other products or services, and a sign is no different. There are several initial approaches, including reviewing examples of their work, speaking with their references, and doing your research.

Then, consider as you would with any vendor:
o the quality of the signs offered
o the sign company's ability to design and deliver a sign that fits your needs
o the product knowledge and experience of the sign company's personnel
o the price, quality and value offered
o the follow-up and ongoing service provided
Additional information, as well as a "tool" to assist you in shopping for a signage company, is available in the "Obtaining Your Signage" section.

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What legal rights do I have as a sign owner?

In summary, you have the right to display a sign that conspicuously and legibly identifies your business. Your right to business identity is protected by the United States Constitution, federal laws, state laws, and important legal principles established through litigation. Briefly, these protections include:

1. The United States Constitution - the First, Fifth and Fourteeth Amendments (Additional detail is provided in the "Legal Considerations" section through the link provided below.)

2. The Highway Beautification Act. This Act regulates the location and types of signs that are allowed along the nation's highways.
o On-premise business signs and electronic variable message signs are among those exempted in the Act.

3. The Lanham Act. A federal Act that deals with trademark protection.
o A federal appeals court in California has interpreted the Lanham Act as prohibiting a city from requiring that a federally registered and protected logo mark or name on a sign be altered as a condition of approval for a sign permit. As a result, in nine western states -- including Arizona, California, Nevada, Oregon & Washington -- a city or county may not force the user of a registered trademark to change the color, typeface, or design of the mark to comply with local ordinances or design criteria. However, the federal appeals court for the states of Connecticut, New York and Vermont, has interpreted the Lanham Act as allowing local government sign codes in those states to require the alteration of a federally protected mark. Outside of the states mentioned, the law is still unsettled on this issue, and a business owner who is asked to alter the federally protected mark on a sign should contact legal counsel.
o There are also state trademark laws that offer similar protections in varying degrees.

4. Copyright and patent protections. Your original ideas (i.e. logos, sign design, etc.) can and should be legally protected by copyrights and patents, as appropriate.

For additional information, review the Legal Considerations section.

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What are my legal obligations?

You should be aware of several legal obligations that may affect your sign, including, among other things, permits, copyrights, patents and trademarks, building and electrical codes, local zoning or sign codes, and perhaps other regulations. These will vary depending on many factors. Due to the nature and detail of legal obligations, be certain to review the information located in the Legal Considerations section.

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Back to Signage Home

Source:
http://www.sba.gov/starting/signage/faqs.html

Why Use Signage?

Introduction

"Why should I have a sign?" is a question often asked by business owners. The answer will vary depending on your business type and format. In a highly impulse oriented business, good signage can be the difference between the success or failure of the business. The profile of your trade area also impacts your signage needs. Good signage can increase a business's opportunity for success.

Signs are the most affordable means of advertising for many businesses, and most businesses -new or not -- don't have a dollar to waste. The United States Small Business Administration Bulletin Number 101 on signage for businesses says, "...signs are the most effective, yet least expensive form of advertising for the small business." What's more, signs are always on the job for you, advertising 24 hours a day, 365 days a year.

This section introduces the term "on-premise" sign, as well as presents information that supports why a business must have an on-premise sign to be to most successful. So, what is an "on-premise" sign, and why the focus on that particular type? An on-premise sign is:

"A communication device whose message and design relates to a business, an event, goods, profession, or service being conducted, sold, or offered on the same property as where the sign is erected."

Simple enough, and there are dozens of examples of the many types of on-premise signs in our "Types of Signs" and "Sign Gallery" sections for your review. Before you go to either section, however, we recommend you complete this section by following these next links to review additional information that helps answer the question "Why Should I Have a Sign?

Compelling Reasons for an On-Premise Sign

Visit the case studies that illustrate different reasons for effective signage.

Important Note:

Signs are considered "speech", and in the United States are legally protected as such. To help you understand the legal aspects of signage, as well as their protection under the First, Fifth and Fourteenth Amendments, we've developed the "Legal Considerations" section. We mention this briefly here so that you're aware of this fact, as well as are aware that - as a business asset - your sign can have certain protections under law.

Back to Signage Home

Source:
http://www.sba.gov/starting/signage/index.html

eMarketing

E-mail marketing is one of the most effective ways to keep in touch with customers. It is generally cost-effective, and if done properly, can help build brand awareness and loyalty. At a typical cost of only a few cents per message, it's a bargain compared to traditional direct mail at $1 or more per piece. In addition, response rates on e-mail marketing are strong, ranging from five to 35% depending on the industry and format. Response rates for traditional mail averages in the 1-3% range.

One of the benefits of email marketing is the demographic information that customers provide when signing up for your email newsletter. Discovering who your customers really are – age, gender, income and special interests, for example – can help you target your products and services to their needs. Points to consider when creating your email newsletter:

* HTML vs. Plain Text: Response rates for HTML newsletters are generally far higher than plain text, and graphics and colors tend to make the publications look far more professional. The downside is that HTML email is slower to download, and some email providers may screen out HTML email.
* Provide incentive to subscribe: Advertise the benefits of receiving your newsletter to get customers to sign up for your newsletter, such as helpful tips, informative content or early notification of special offers or campaigns.
* Don't just sell: Many studies suggest that email newsletters are read far more carefully when they offer information that is useful to the customers' lives rather than merely selling products and services. Helpful tips, engaging content and humor are often expected to accompany email newsletters.
* Limit questions: As each demographic question you ask may reduce the number of customers signing up, it's best to limit the amount of information you solicit or give customers the option of skipping the questionnaire.

Establishing a Web Presence
Even if you choose not to sell your goods or services online, a business web site can be a virtual marketing brochure that you can update on demand with little or no cost. Your presence on the Internet can be a useful marketing tool by providing richer pre-sale information or post-sale support and service. This might temporarily differentiate your product or service from your competitors'. E-marketing has lessened the disadvantage that small businesses have faced for years when competing with larger businesses.

E-Commerce has redefined the marketplace, altered business strategies, and allowed global competition between local businesses. The term “electronic commerce” has evolved from meaning simply electronic shopping to representing all aspects of business and market processes enabled by the Internet and other digital technologies. SBA is preparing to help this new generation of Internet-enabled or eSmall Businesses.

Today's business emphasis is on e-commerce - rapid electronic interactions enabled by the Internet and other connected computer and telephone networks. Rapidly business transactions and unparallelled access to information is changing consumer behavior and expectations. The U.S. Small Business Administration (SBA) is reshaping its programs to better serve small businesses that taking advantage of the Internet and other emerging technologies.

Many small businesses assume that the Internet has little value to them because they feel that their product or service cannot be easily sold online. But inexpensive information processing and electronic media can help most small businesses provide better, faster customer service and communication.

To learn more about the benefits of e-commerce as a marketing tool download the SBA/Cisco Systems E-Commerce Online Video Course:

The E-Commerce Economy
Internet Basics
E-Commerce Basics
E-Business Basics
Web Marketing

About.coms' E-Commerce 101
SBDC Net's E-Commerce Guide

Source:
http://www.sba.gov/starting_business/marketing/emarketing.html

Trade Shows

Trade shows are designed to let entrepreneurs meet many potential customers face-to-face in a brief period of time inexpensively. According to the Trade Show Bureau, more than 4,300 were held nationwide in 1994, attracting 85 million visitors.

"A trade show can significantly help your business," comments Barbara Kimmelman of Sellit Inc., marketing and trade show consulting firm in Santa Monica, California. "Qualified buyers in your category are congregated in that city for a few days. Not only can you make an impression, but you can captivate them."

Trade shows help level the playing field for smaller firms, since booth space is generally inexpensive ($13 per square foot on average, with the typical small booth covering 100 square feet), and even small companies can usually afford attractive displays. With creative marketing and booth design, small businesses can actually appear as substantial as much larger corporations.

The Trade Show Bureau reports that of the firms exhibiting at business-to-business shows, 44% have fewer than 50 employees. Sophisticated exhibitors do well at trade shows no matter what their size, while the naive and inexperienced can waste thousands of dollars and countless hours - and possibly do more harm than good. Using trade shows effectively takes only a little effort and planning.

Trade Show Benefits
Because trade shows generally take place at a single location, have short runs (usually one to three days), and bring together thousands of exhibitors and potential customers, they are a very powerful marketing medium. The Trade Show Bureau claims that the average total cost of closing a sale in the field is $1,080, while the cost of closing a sale to a qualified trade show prospect is $419.

Because business-to-business shows typically do not allow selling on the show floor, generating sales leads is the most common reason exhibitors participate. Norm Hughes, president of Norda Technologies, a software firm in Newton, New Jersey, uses the computer industry's major shows as his primary marketing vehicle for introducing new products, another popular reason for exhibiting.

It is possible during the course of one trade show to personally meet most of your important clients and suppliers, making shows a good way to establish and reinforce relationships.

Common reasons for exhibiting include:

* Generating sales leads.
* Generating actual sales at the show.
* Enhancing your image and visibility.
* Reaching a specific audience.
* Establishing a presence in the marketplace.
* Improving the effectiveness and efficiency of your marketing efforts.
* Personally meeting your customers, competitors and suppliers.
* Prospecting for new customers.
* Introducing new products and services.
* Demonstrating your product in ways not possible using other marketing channels.
* Recruiting distributors or dealers.
* Educating your target audience.

Source:
http://www.sba.gov/starting_business/marketing/tradeshows.html

Ads and PR

Advertising

What Advertising Can Do For Your Business

* Remind customers and prospects about the benefits of your product or service
* Establish and maintain your distinct identity
* Enhance your reputation
* Encourage existing customers to buy more of what you sell
* Attract new customers and replace lost ones
* Slowly build sales to boost your bottom line
* Promote your business to customers, investors and others (Learn more)

What Advertising Cannot Do For Your Business

* Create an instant customer base
* Cause an immediate sharp increase in sales
* Solve cash flow or profit problems
* Substitute for poor or indifferent customer service
* Sell useless or unwanted products or services

Advertising's Two Important Virtues

* You have complete control. Unlike public relations efforts, you determine exactly where, when and how often your message will appear, how it will look, and what it will say. You can target your audience more readily and aim at very specific geographic areas.
* You can be consistent, presenting your company's image and sales message repeatedly to build awareness and trust. A distinctive identity will eventually become clearly associated with your company, like McDonald's golden arches. Customers will recognize you quickly and easily - in ads, mailers, packaging or signs - if you present yourself consistently.

What Are Advertising's Drawbacks?

* It takes planning. Advertising works best and costs least when planned and prepared in advance. For example, you'll pay less per ad in newspapers and magazines by agreeing to run several ads over time rather than deciding issue by issue. Likewise, you can save money by preparing a number of ads at once.
* It takes time and persistence. The effectiveness of your advertising improves gradually over time, because customers don't see every one of your ads.
You must repeatedly remind prospects and customers about the benefits of doing business with you. The long-term effort triggers recognition and helps special offers or direct marketing pay off.

Getting Ready to Advertise - Drawing the Blueprint

1:Design the Framework

* What is the purpose of your advertising program? Start by defining your company's long-range goals, then map out how marketing can help you attain them. Focus on advertising routes complementary to your marketing efforts. Set measurable goals so you can evaluate the success of your advertising campaign. For example, do you want to increase overall sales by 20% this year? Boost sales to existing customers by 10% during each of the next three years? Appeal to younger or older buyers? Sell off old products to free resources for new ones?
* How much can you afford to invest? Keep in mind that whatever amount you allocate will never seem like enough. Even giants such as Proctor & Gamble and Pepsi always feel they could augment their advertising budgets. But given your income, expenses and sales projections, simple addition and subtraction can help you determine how much you can afford to invest. Some companies spend a full 10% of their gross income on advertising, others just 1%. Research and experiment to see what works best for your business.

2:Fill in the Details

* What are the features and benefits of your product or service? When determining features, think of automobile brochures that list engine, body and performance specifications. Next, and more difficult, determine the benefits those features provide to your customers. How does your product or service actually help them? For example, a powerful engine helps a driver accelerate quickly to get onto busy freeways.
* Who is your audience? Create a profile of your best customer. Be as specific as possible, for this will be the focus of your ads and media choices. A restaurant may target adults who dine out frequently in the nearby city or suburban area. A computer software manufacturer may aim at information managers in companies with 10-100 employees. A bottled water company may try to appeal to athletes or people over 25 who are concerned about their health.
* Who is your competition? It's important to identify your competitors and their strengths and weaknesses. Knowing what your competition offers that you don't, and vice versa, helps you show prospects how your product or service is special, or why they should do business with you instead of someone else. Knowing your competition will also help you find a niche in the marketplace.

3:Arm Yourself with Information

* What do you know about your industry, market and audience? There are many sources of information to help you keep in touch with industry, market and buying trends without conducting expensive market research. Examples include U.S. Government materials from the Census Bureau and Department of Commerce. Public, business or university libraries are also a good option, as are industry associations, trade publications and professional organizations. You can quickly and easily learn more about your customers by simply asking them about themselves, their buying preferences and media habits. Another, more expensive, alternative is to hire a professional market research firm to conduct your research.

4:Build Your Action Plan - Evaluating Media Choices

* Your next step is to select the advertising vehicles you will use to carry your message, and establish an advertising schedule. In most cases, knowing your audience will help you choose the media that will deliver your sales message most effectively. Use as many of the above tools as are appropriate and affordable. You can stretch your media budget by taking advantage of co-op advertising programs offered by manufacturers. Although programs vary, generally the manufacturer will pay for a portion of media space and time costs, or mailer production charges, up to a fixed amount per year. The total amount contributed is usually based on the quantity of merchandise you purchase.
* When developing your advertising schedule, be sure to take advantage of any special editorial or promotional coverage planned in the media you select. Newspapers, for example, often run special sections featuring real estate, investing, home and garden improvement, and tax advice. Magazines also often focus on specific themes in each issue.
* For additional information:
Read SBA's "A Primer on Advertising"
Read SBA's "How to Improve Your Yellow Pages Advertising"

5:Using Other Promotional Avenues

* Advertising extends beyond the media described above. Other options include imprinting your company name and graphic identity on pens, paper, clocks, calendars and other giveaway items for your customers. Put your message on billboards, inside buses and subways, on vehicle and building signs, on point-of-sale displays and shopping bags.
* You might co-sponsor events with nonprofit organizations and advertise your participation; attend or display at consumer or business trade shows; create tie-in promotions with allied businesses; distribute newsletters; conduct seminars; undertake contests or sweepstakes; send advertising flyers along with billing statements; use telemarketing to generate leads for salespeople; or develop sales kits with brochures, product samples, or application ideas.
* The number of promotional tools used to deliver your message and repeat your name is limited only by your imagination your budget.
* For additional information:
Read SBA's - 15 Foolproof Ideas for Promoting Your Company
Read SBA's - 12 High-Impact Marketing Programs that You Can Implement by Next Thursday
Inc's Word-of-Mouth Marketing

The Advertising Campaign

You are ready for action when armed with knowledge of your industry, market and audience; a media plan and schedule; your product or service's most important benefits; and measurable goals in terms of sales volume, revenue generated, or other criteria.

The first step is to establish the theme that identifies your product or service in all of your advertising. The theme of your advertising reflects your special identity or personality, and the particular benefits of your product or service. For example, cosmetics ads almost always rely on a glamorous theme. Many food products opt for healthy, all-American family campaigns. Automobile advertising frequently concentrates on how the car makes you feel about owning or driving it rather than performance attributes.

Tag lines reinforce the single most important reason for buying your product or service. "Nothing Runs Like a Deere" (John Deere farm vehicles) conveys performance and endurance with a nice twist on the word "deer." "Ideas at Work" (Black & Decker tools and appliances) again signifies performance, but also reliability and imagination. "How the Smart Money Gets that Way" (Barron's financial publication) clearly connotes prosperity, intelligence, and success.
Comparing Advertising and Public Relations
Advertising Promotion
Space or time in the mass media must be paid for. Coverage in mass media, if any, is not paid for.
You determine the message. Interpretation of the message is in the hands of the media.
You control timing. Timing is in the hands of the media.
One-way communication - using the mass media does not allow feedback. Two-way communication - the company should be listening as well as talking and the various PR venues often provide immediate feedback.
Message sponsor is identified. Message sponsor is not overtly identified.
The intention of most messages is to inform, persuade, or remind about a product - usually with the intention of making a sale. The intention of public relations efforts is often to create good will, to keep the company and/or product in front of the public, or to humanize a company so the public relates to its people or reputation rather than viewing the company as a non-personal entity.
The public may view the message negatively, recognizing advertising as an attempt to persuade or manipulate them. The public often sees public relations messages that have been covered by the media as more neutral or believable.
Very powerful at creating image. Can also create image, but can sometimes stray from how it was originally intended.
Writing style is usually persuasive, can be very creative, often taking a conversational tone - may even be grammatically incorrect. Writing style relies heavily on journalism talents - any persuasion is artfully inserted in the fact-based content.

(Vicki Hudson, Grand Rapids Opportunities for Women, Grand Rapids, MI, 1/99)

PR Newswire Small Business ToolKit

Source:
http://www.sba.gov/starting_business/marketing/adspr.html