Starting a Small Business · Level 4 of 5 · Advanced

Marketing and sales

Reach customers with a clear message, the right channels, and a simple sales process.

Study notes

Know your customer: where they look for solutions, what words they use, and what makes them trust a business.
Start with one or two channels you can do well, such as a Google Business Profile for local services, referrals, or one social platform.
Customer acquisition cost (CAC) is marketing and sales spend divided by new customers won.
Customer lifetime value (LTV) estimates the gross profit a customer brings over the whole relationship. A healthy business wins customers for well under their LTV.
Follow the law on marketing: no fake reviews, honest claims, and email marketing that follows CAN-SPAM, including a working unsubscribe.

Quiz: 6 questions

Choose one answer for each question, then check your answers. Score 5 of 6 to pass. Then enter your name and email to download a PDF certificate and have a copy emailed to you. Answers are graded in your browser.

1. You spent $1,200 on ads and won 30 customers. CAC is:

$40 $1,200 $30 $360

2. A local plumber's strong first channel is often:

A Google Business Profile and referrals A Super Bowl ad A billboard in another state No marketing

3. Posting fake reviews is:

Deceptive and can violate FTC rules Fine if they are positive Required for new businesses Only a problem on weekends

4. CAN-SPAM requires commercial emails to include:

A working way to unsubscribe A coupon A photo of the owner A phone call

5. If LTV is $300 and CAC is $350, the business:

Loses money winning each customer Is very profitable Breaks even Has no customers

6. Why focus on one or two channels first?

You can do them well and measure what works More channels are illegal Customers dislike variety It is free

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