How can a small business with a tight budget reach new customers both on and off line? -

There is leg work to be done for advertising off line and leg work to be done for advertising online. What are the best ways to accomplish effective marketing strategies with tight budgetary concerns?

I own a now successful carpet cleaning company, and what I did to get started was to hire a couple of students from the local university to telemarket, hang fliers on doors, and also to post frequent ads on craigslist. I would monitor their hours and commison and have them sign off on each others hour sheets when necessary. Also i would not pay them for their time spent passing out fliers if I did not recieve any buisness from the assigned area to prevent fraud if you will.