Many small to mid-sized business owners make the mistake of putting half-hearted efforts into marketing their products and services. They do not have a well-defined marketing campaign. They often assume that random advertising snippets can transform their business and bring them the sales they need. A thoughtful, strategic marketing plan and campaign are not just for large companies. Small businesses can reap many benefits from implementing a marketing campaign to invest in awareness and demand generation.
Some marketing campaigns are quite expensive and can’t be funded by business revenue alone. In this post on The Marketing Sage, we’ll talk about the ways by which a small business can comfortably fund a marketing campaign. A small business loan is one way for small companies to finance their marketing campaign. This article will discuss this idea and other means of funding and investing in marketing to grow your brand.
Small business loans
Small business loans remain the most accessible form of funding for newly founded businesses. To obtain the loan, you need to meet multiple lender criteria along with certain documents. You must be able to provide business financials and accounting details when requested for. You should have a good credit score. You should also have a well-detailed marketing plan that shows how you plan to spend the money. This will help you get the loan and to grow your business. Just like buying hard assets like machines or equipment, banks will lend money to businesses that have a way to invest the funds to generate and grow revenue through new customers.
Take your time before obtaining a loan. Compare the loan terms, interest rate, collateral demands, and other hidden demands before applying or accepting a loan from a company.
Marketing Grants
Some government and non-government organizations offer marketing grants to small businesses that are deserving of it. Companies must craft detailed marketing plans that prove to the judges that they deserve the grant to benefit from this loan. An example of this is the Facebook $100 million cash grant and ad credit for 30,000 small businesses.
You can also apply for general grants and use them solely for marketing. The Small Business Administration runs a database on their website that shows various grants available for small businesses.
Loans from Family and Friends
You can obtain quick loans from your family and friends to finance your marketing campaign. A lot of small businesses have raised money from family and friends to begin businesses. They can also do the same to fund marketing campaigns that will fetch lots of customers and help scale up the company tremendously.
Invoice Financing
If you have a lot of customers owing you money, you can borrow money against the amount that is due from the customers. You can also contact some ad agencies to help you create well-defined marketing campaigns with payment to be made against the money owed to you by customers. This is an excellent way to get urgent marketing done without relying on customers to pay the money they owe a business immediately. It helps you accomplish your business goals very fast without putting yourself at the mercy of your customers.
Business Line of Credit
This kind of credit is an open line or open access to funds for a business. It grants organizations access to a readily available source of working capital. Interest is paid on the amount of money drawn. A business line of credit is one of the best ways to fund a marketing campaign. A business line of credit ensures that funding is available for a business without applying for a loan or providing documentation.
Next Steps
The ideas discussed in this post are how a small business can fund a marketing campaign. The returns of a marketing campaign are usually worth the investment, especially if you have clearly defined metrics in place. So, obtaining small business loans and other forms of funding for a marketing campaign is almost always the best thing to do if you need capital for growth.
Before seeking financing, do thorough planning and calculation to figure out exactly how much you’ll need for the marketing campaign and identify how you’ll measure a successful return on your investment.
You can set up a time to chat with me about your marketing challenges using my calendar. Email me jeffslater@themarketingsage.com Call me. 919 720 0995. The conversation is free, and we can explore if working together makes sense. Watch a short video about working with me.
