Money has to come from somewhere when a new marketing campaign is birthed. There are a million and one different ways to procure funding for such things, but we only have time to talk about a few. There are several questions to be answered, as well.
Funding can come from the equity already retained by the business owner, it can be facilitated through a short-term loan, or thrifty budget arrangements might serve the purpose well. However an owner decides to fund their new marketing campaign, there are a few ground-level pieces of information that should be understood.
Bootstrapping and self-funding
Bootstrapping pulls from the funds within a business. With strategic planning and conservative spending habits, many companies are able to support new marketing ventures by drawing from their own capital. Reworking a company’s financial management strategies can go a long way in savings.
If the marketing campaign is dear to a business owner’s heart, it is possible for them to fund the project personally. Some owners sell off other assets or simply have the liquid funds to support such a decision.
Short-term business loans
Short-term business loans provide a quick and easy way for a reputable company to receive money in a lump sum. The term on these types of loans is typically much shorter than a more hearty loan request. If the marketing campaign is successful, then there is no reason to worry about repayment of the small, short-term loan.
Angel investors can help
If necessary, companies can enlist the support of an angel investor to fund significant marketing ventures. These investors are typically affluent members of the community that are willing to invest their own money into a business. The local chamber of commerce is likely to provide a more detailed listing of angel investors in the area.
Cloud funding is when a business owner presents his/her ideas to various groups of investors via the internet. There are a few restrictions on how cloud funders can help, but this method usually brings more than one investor to the table.
Small Business Association loans
The Small Business Administration sponsors many different programs aimed towards providing funding to small business owners. SBA loans will offer up to $50,000 for a max term of six years. It is actually termed a microloan, but $50,000 is nowhere near “chump change.”
One of the major drawbacks to obtaining an SBA loan is that the funds cannot be used to pay off existing debts or buy any new real estate. These restrictions could cause a major hurdle to arise, depending on what type of marketing strategy an owner is looking to fund.