You may have heard the adage that says you have to spend money to make money, and as a business owner, this holds true. Investing in marketing is a great way to boost visibility, establish or build a brand image, drive sales through promotions and more. A marketing campaign for a small business generally is more cohesive and effective than single efforts that are pieced together. While there are numerous benefits associated with investing in a small business marketing campaign, a full and comprehensive campaign can cost a small fortune. You may be scratching your head trying to determine how you can fund the campaign that will generate new revenue.
There are a few steps to take to better understand the options available to you.
Determine Your Financing Needs
Initially, it is helpful to put a marketing plan together, and this is because creating a full plan enables you to determine the actual cost of the plan. Some may be surprised to learn that the marketing plan that is most effective for them is more or less expensive than what they had guessed. You may work with a marketing consultant to generate a better overall plan, and your consultant may assist with creating a budget for you.
Keep in mind that an effective marketing campaign may take weeks or months to fully execute, and there may be some variation to the cost. Therefore, some flexibility with the financing may be needed, or the full amount of funds needed should be established up-front to ensure the plan can be executed without a hitch.
Consider Small Business Loans
Once you understand the estimated cost of your plan, you can explore financing options. For some businesses, credit cards or an infusion of funds from investors or business owners may be ideal. However, credit cards have a higher rate than others, and many business owners may not have funds available to infuse into a growing business.
A better option may be a small business loan or a line of credit. Small business financing may use collateral, such as inventory or equipment. However, not all business loans use collateral, and you may qualify for competitive loan terms and for the funds needed to help your business grow through the funding of a full marketing campaign.
Review Collateral Options
Before you can request a small business loan, it is necessary to determine if your loan will be secured or unsecured. A secured loan uses collateral that you have pledged, such as business inventory, equipment or other items of significant value that your business owns. Unsecured loans may have a higher interest rate and sometimes a shorter term than secured options. However, some business owners feel more confident requesting financing when not pledging an asset and placing it potentially at risk. This is a personal choice for you to make if you have collateral that may be pledged.
There are numerous options available for financing a small business marketing campaign, and small business owners should carefully review all options available to them. Many will discover that requesting either a secured or unsecured small business loan is the most advantageous and attractive option available. If this is the option that you want to pursue, there is no better time to request the small business financing you need than now.