Standing out in a highly competitive world is surely challenging. Yes, businesses nowadays have access to new platforms to reach consumers. But even when they get there, it’s still a battle for the target audience’s attention (and wallets). The solution? Sourcing the funds you need to build your brand and stand out from the crowd.
Where to Secure Funds for Marketing Campaigns?
You need the right financial resources to give your marketing ideas wings to take flight. But if you don’t want to use your personal savings to fund your marketing campaigns, here are other sources of funding you can consider:
Many businesses turn to banks to get the funding they need. This traditional route allows business owners to secure funds to support different facets of the business, from expansion plans to marketing campaigns. In the simplest terms, loans involve a sum of borrowed money and repayment. You must pay back the bank over an agreed-upon period, typically with interest.
With bank loans, you need to ensure you have the complete documentation and fulfill the requirements to avoid any mishaps with the application process. You also need to be patient with the application process, which can take weeks or even months because of the thorough vetting process. Before applying for a loan, make sure to do your research about the loan terms, service fees, and interest rates to help you decide whether this is the right funding source for your campaign.
Typically, venture capitalists (VCs) seek high-growth and highly innovative businesses to support. If your business falls under this umbrella, this can be a good source of funding for you.
This private equity financing option provides funding to startups in exchange for ownership equity or a stake in the business. VCs offer substantial capital to support large-scale marketing plans. But you need to remember that these investors will expect high returns for the large sum they produce. They’ll surely put your marketing plans under a microscope and scrutinize them to measure their effectiveness. If you’re willing to partner with investors who will provide their money and active participation in your business, this can be a suitable option.
An alternative way to raise funds for your business’s marketing campaign is crowdfunding. Instead of applying for a large sum from one financial institution, crowdfunding allows you to solicit small amounts of money from many individuals. Crowdfunding transactions are done on websites like GoFundMe or Kickstarter, which links businesses to individuals looking to support the next big thing in business or donate to a worthy cause.
Before starting your crowdfunding page, learning about the different types of crowdfunding is essential. The most common ones include:
- Donation-based crowdfunding, where individuals provide financial support without expecting anything in return
- Reward-based crowdfunding, where you can offer a product or service in return for funding
- Equity-based crowdfunding, where those who help fund your business will receive ownership shares in the project or company
Crowdfunding is an excellent alternative for entrepreneurs who don’t want to take on additional debt from financial institutions or give up control of their business to investors.
As long as you meet the obligations of a government grant, you won’t need to pay back the grant amount. This makes government grants a good source of funding for eligible small businesses. You can get the funding you need for your marketing efforts without having to think about repayments and interests.
When applying for grants, it’s vital to conduct research on the different types of grants available. You must consider various factors, such as the allowable grant amount and the criteria of eligible businesses. Some grants may have specific criteria like the type of ownership (minority owners) or business size (small to medium enterprises or SMEs). Doing a check of these elements will help you narrow down your options. This way, you can focus on nailing your application for the grants that you do qualify for.
Making the Most out of Your Funding
You can choose to secure funds through traditional means like bank loans or alternative options such as crowdfunding. But one important thing to remember is securing business funding is one thing. Knowing how to spend it smartly and efficiently is just as crucial.
You must optimize the resources you receive to empower your brand and achieve business objectives. This means creating a solid marketing campaign aligned to your brand’s goals and tracking your campaign KPIs. It also means seeking out excellent marketing services that can help you maximize both your money and time.
As crass as it may sound, money truly does make the world go round. And this saying is also applicable when it comes to marketing. Those who know how to secure and handle their money well are better positioned to succeed in business.
If you need more help turning your ambitious marketing ideas into reality, why not work with Spree Marketing? We have a team of experienced digital marketing professionals who have both the creative spirit and data-driven mindset to deliver measurable results.