Actually that's been tested and found to be the most expensive way to find new students. Hint: teaching group classes or specific classes that train students to play live is an excellent solution to this problem. I also had space where parents could wait for their child.
The more value you give to your students, the more money you earn. I suggest asking your students to pay in blocks of 5,10 or 20 lessons in advance, rather than on a lesson by lesson basis. Its a growth industry!!
Before you go on Google adwords. Some things to consider: How long have you been teaching?
Teaching is rewarding and a great source of regular income. No need for a hard sell, just make people aware of what you are doing. I just was so excited about guitar that I wanted to pass on what I knew.
Word of mouth is king.
The studio had a kitchen area, space for bookcases and amplifiers, a comfy chair for parents and wall space to hang a few guitars, it also had a tiled floor which was mud proof.
By now I had found premises suitable for teaching; a small art studio not far from where I live. This new studio had two rooms to allow me to separate the teaching room from the storage area and kitchen space and also provide room to fit a workbench for guitar repairs.