Hi Andrew,
Thanks for the amazing and detailed response.
My advertising budget is pretty much the same as yours :-)

Cold calling if done properly works like a charm, the previous company I was employed at did very aggressive cold calling, to the point where they would not leave until a client had signed the 24 page contract - certainly not the way I want to do business - I am kind of old fashioned in that regard and would have a hard time 'forcing' anyone into utilsing my business services. Word of mouth is most definitely the best form of advertising ever, the only drawback is of course earning the reputation in the first place.

I think the most difficult and limiting part of marketing the business for me is the fact that I am still employed full time and you cannot effectively search for new business after hours, potential clients want to see you during business hours - I am very tempted to throw caution to the wind and do this properly - resigning and then going full speed ahead, the cautious side of me says this would be stupid. Aaarrrrrrrrghhhhhh!!