Please suggest what is the most effective way in advertising small business?

[Randi]

I guess it mostly depends on what service you're providing. Most of the time just having a website and the ability to be Googled is a big boost. If you're looking for more local traffic, I'd suggest an add in a local newspaper and word-of-mouth. Also, hand out business cards (if you don't have any I highly suggest obtaining some) any chance you can get.
Other than that, there's always the option of having your business' name slapped onto many hand-out things, ie; shirts, pens, erasers and so forth.