When you are just starting up your business, funds can be a little tight. Marketing is often overlooked because you just don’t have the cash to spare. However, you will have a hard time reaching new customers if you don’t make an investment in your marketing campaigns. How can you get the money you need? Here are four ways to get funding for your marketing when you are just starting out.
Consider Crowdfunding Options
Startup companies can find marketing funding and even inventory financing through angel investors. This type of funding can be either debt-based, reward-based, or equity-based. You will need to be able to tell investors the reason for the investment and how you plan to pay them back. The investors will need to see all your financial statements. If you can show that you have invested a substantial amount of your own money into the business already, it will greatly increase the probability that the investors will give you the cash you need.
Ask Friends and Family
You can ask friends and family to loan you the money you need. You typically won’t have to pay back interest and can negotiate better payback agreements. To sweeten the pot of getting them to invest in your business, you can offer them incentives such as profit shares or a percentage of revenue.
Take Out A Loan
Another way to get funding for your marketing or even financing inventory is to take out a loan. Some business owners may think they don’t have enough collateral to a loan for marketing campaign efforts, especially when first starting out. According to a Federal Reserve survey, only 40% of business owners in America applied to receive a loan in 2017. You will probably have to pay high-interest rates, but it is one of the fastest ways to get the money you need. Be sure to make your loan repayments on time each and every month to avoid additional fees.
Apply For Grants
There are numerous grants available for small businesses to apply for. This long term funding is typically divided into several stages. You complete various milestones and are rewarded with a round of funding after each one. This funding can take a long period of time to get but can be worth it long term for continuing marketing campaign efforts.
Your business thrives on acquiring new customers, but that won’t happen unless you invest in your marketing efforts. When you need to get funding for your marketing, consider which of these four ways will work best for you. Do your research and explore your options carefully.