6 Funding Options For Your Next Marketing Campaign
Need help getting that marketing campaign up and running? Here are 6 great funding options to help new businesses get rolling with marketing.
Every business owner knows that marketing is one of the most vital elements in any business. No matter how great your products and services are, no one will avail of them if you don’t market them effectively. Unfortunately, marketing strategies are not usually free. In fact, there are marketing campaigns that require hefty investments of money.
While the efficacy of marketing promotion is non-reliant on the amount of money you invested in it, you still need to use the money for it. But if you have limited resources, the problem now lies in how you can get funding for your marketing plans.
The good news is that there are many funding options to consider so you can finally get your marketing campaign off the ground.
1. Small Business Loan
Small business loans will typically be the first step most people take when it comes to funding their marketing campaigns, especially for sole entrepreneurs. You need to learn more about what business loans are. Banks, lending companies, and other financial institutions usually offer these.
Both small business loan secured or unsecured, are available for you to choose from. The difference between these two is that the secured loan gets you approved based on the value of your collateral which acts as the security. On the other hand, an unsecured loan means your loan gets approved based on the earnings you have and your repayment potential.
Lenders require various documentation when considering your application for a small business loan. It would help to ask for the requirements early on to expedite the approval process. Furthermore, you should have a very good credit score and a well-developed, realistic, and detailed marketing plan. Finally, make sure you carefully read the terms of the loan, along with the interest rates, collateral requirements, and any ‘hidden’ costs, before signing any documents.
2. Money From Revenue Or Sales
Your revenue-based finances are the next funding you can use for your marketing campaigns. It’s commonly used by many entrepreneurs who have just started their businesses. It’s the next best alternative when you have trouble obtaining loans or borrowing money from others.
However, it does come with a downside. You should consider risking the money that you’ve already generated as sales. Instead of using it for your business operations, you need to use it for marketing purposes which may impact your operations adversely. There could be risks of compromising operational processes due to a shortage of money.
The key to note for this funding step is to ensure that your marketing strategies will produce results. Also, it is important to spend your campaign money wisely. The safest way is to ensure that you have enough profit margin to continue your operations and conduct marketing at the same time.
3. Borrow From Friends Or Family
A loan from family and friends is one of the fastest ways to generate funds. It’s time for you to take advantage of your connections. If you’re lucky to have friends or family members with spare money to lend you, this option is ideal. However, there are also disadvantages to this step.
The risks lie in the fact that anything can happen to your business, which means that the marketing campaigns may not produce the results that you expected. In such cases, you must pay up the borrowed money in different ways. Also, being honest about how you’ll spend their money to earn their trust is important.
Describe your business’s offerings to customers and how you intend to spend the money you borrow. And mention who you’re targeting and what marketing strategies you’d apply if you market to millennials, baby boomers, and so on.
A genuine reason will make people more likely to lend you money. If they’re business-minded like you, they’d understand and be able to relate to your vision, even offering business advice along the way. Finally, you should make a deal about the loan regarding interest, repayment terms, and so on.
4. Business Credit Card
One of the easiest and fastest ways to source marketing funds is through a business credit card. Credit cards are a viable way to pay for marketing campaign expenses, whether you already own one or wish to open one. There are many banks that offer them to small, medium, and large business owners.
As you already know, there are many perks to using credit cards. They offer reward points, discounts, and other promotional offers. However, the important rule here is to ensure to pay your credits on time so they won’t generate interest, as their rates are relatively higher than other funding options.
5. Crowdfunding
Crowdfunding has become increasingly popular in recent years as a way to fund startups. If you’re unfamiliar with crowdfunding, it’s basically when entrepreneurs describe their businesses on crowdfunding sites. There’s a need to mention and discuss business goals, plans for making money, how much funding you need, and for what reasons. This information will give consumers reasons to decide whether to support your plans or not.
They can finally learn about the business and donate if they are interested. Crowdfunding is effective in getting donations for your marketing plans or generating pre-orders for your products and services in exchange for their donations. It’s available for anyone to take part in, so you’ll have more opportunities to seek donations from anyone.
In addition to raising funds, crowdfunding can also generate interest, which helps market the product. It allows you to hit two birds with one stone. Aside from generating funding, you could also increase your brand awareness. If a campaign is particularly successful, it may also attract venture capital investment.
6. Business Grants
Lastly, you should be able to explore if there are business grants available in your line of business. Your venture may qualify for government or charitable grants depending on your industry. Identify what kind of funding is available for small businesses like yours, then prepare an application and explain your business plan and reason for borrowing funds.
The key is to check and research online entities and institutions offering grants for businesses. Besides receiving the grant, you will be able to obtain free business formation services. The application process is usually simple. Some of them require you to submit a short video, a business plan, and a completed online application.
Conclusion
It’s important to keep in mind that any investment or funding you receive for your business will have a trade-off. Getting short-term funding may allow you to kickstart your marketing campaign. However, depending on your deal, you will have to pay for it with interest or other means. The key is to find the best funding option that is more suitable for your business goals.
