Marketing challenges can negatively impact a business’s bottom line.
The most common ones include getting new customers, training marketing teams, keeping up with changes, keeping data accessible, and increasing competition. Such obstacles can be due to a lack of resources or budgeting problems, so implementing the right funding strategies can help you overcome them.
In this article, you’ll learn effective ways to fund your marketing campaign to accelerate your efforts and generate the best outcomes for your brand.
1. Consider Getting A Business Loan
A business loan is where a lender grants the principal amount to the business owner. The repayments are based on the mutually-agreed tenure with interest.
It can help business owners sustain their operations by purchasing equipment, solving cash flow problems, and funding marketing campaigns.
Take a look at the following types of business loans that could fund your marketing campaigns:
This business loan allows business owners to borrow a higher principal amount than other loan types. If your business wants to expand, a term loan can help you fund more aggressive and bigger marketing campaigns.
Small Business Administration (SBA) Loan
Banks and lending companies guarantee SBA loans with the lowest interest rates. Repayment periods depend on how the borrower plans to utilize the money.
These types of loans are usually applicable for equipment and real estate purchases. Moreover, SBA programs, such as microloans, can finance a marketing budget.
Business Line Of Credit
This type of loan is suitable for seasonal businesses or those needing short-term marketing funding. A business line of credit enables business owners to access funds up to their credit limit. It’s more flexible than a term loan because it doesn’t require collateral, and the interest only applies to the money borrowed.
By determining your current needs and repayment capacity, you can select a loan type that best fits your marketing goals.
Of course, you also need to consider your business size and type. For instance, you can use the money you borrowed to fund your social media marketing campaign and offline promotional activities, such as the printing of flyers and signages for your restaurant business.
You may learn more about how a restaurant business at www.credibly.com/restaurant-business-loans/ and bother similar online resources.
2, Try Crowdfunding
Crowdfunding platforms can help small business owners generate a decent amount of marketing capital through small donations from investors. These investors donate money to help startups flourish, including funding their marketing campaigns. In return, they receive equity within the businesses they support.
Sign up for a crowdfunding platform and include a detailed description of why crowdfunding investors must support you. If you’re looking to fund a marketing campaign, include details such as the type, duration, budget, and related tasks. Make your proposal more compelling by including expected outcomes and metrics.
3. Find A Grant
Government and charitable grants can fund marketing campaigns for startups and small businesses. Marketing plan grants help business owners boost their market exposure to increase sales.
A matching grantee’s contribution or membership to a particular sector or organization might be necessary to participate in a grant program. For instance, entrepreneurial artists can apply for Artist in Business Leadership grant to strengthen their marketing campaigns.
4. Seek Help From Family And Friends
Your loved ones are your number-one supporters. They can lend you money to fund your marketing campaign. That way, you don’t have to pay high-interest rates from traditional loan options. Start by proposing a marketing plan with all the details to make it more formal, establishing your eagerness and seriousness about pursuing your business goals.
But, seeking monetary help from family and friends may affect relationships due to mishandling. So, ensure you use their money wisely by investing in proven-effective marketing methods.
Also, provide a regular update to the people from whom you borrowed funds about the progress of your marketing campaign to give them peace of mind and confidence.
You may also seek help from your social media friends. Social media is an excellent avenue to seek marketing support. So, take advantage of its power by creating a post about your marketing plan for your startup or small business. Ask your social media followers to share it with their friends and families.
Who knows? You might entice an angel investor or a philanthropist willing to fund your marketing campaign or your entire business.
5. Find An Online Lender
Online lending companies come in various forms. For instance, financial technology (fintech) companies usually offer personal loans and small business loans. One great benefit of borrowing money from online lending companies is the fast application and approval processes.
Online lending is more convenient because you don’t have to wait in a long queue at banks. Once your online loan is approved, the money will go straight to your fintech wallet. Afterward, you can transfer the money straight to your bank account and withdraw it through your debit card.
Most non-bank online lenders, however, have higher interest rates and fees. So, if you plan to take this funding route for your marketing campaign, familiarize yourself with the terms, such as the repayment structure and associated fees.
6. Use Your Personal Savings
Do you have a bright marketing idea and want to make it happen?
If you’ve saved enough money in your bank account, you can use a percentage of it to fund your marketing campaign. The biggest advantage of using your savings is you don’t have to get a loan and pay interest and associated fees.
But don’t go overboard. Set aside 50% of your savings for contingency and emergency purposes. It’s crucial to have savings from which you can draw the money during the toughest times, such as during a recession.
Funding marketing campaigns entail identifying financing options, such as business loans, crowdfunding, and grants. Friends and family can also lend you funds.
But, at the end of the day, whatever funding strategy you want to adopt to successfully carry out your marketing campaign, you must consider your cash flow, capacity to pay, and an in-depth review of your marketing plan for successful outcomes.