As a small business owner, you may need to take out a loan at some point to finance your marketing campaigns. But is this the right move for your business?
Before taking out a loan to finance your marketing campaigns, you must consider a few things.
- First, you need to make sure you have a solid plan for how you will use the loan.
- Second, you need to make sure you can afford the repayments.
- And third, you need to make sure you understand the risks involved.
This article will take you through financing a marketing campaign and the range of products to consider.
Drafting a Marketing Budget Prepares You to Make the Most of the Funding
When drafting a marketing budget, you create a road map for your marketing efforts. This budget will help you allocate your resources in the most efficient way possible and ensure that you’re making the most of your available funding.
A well-crafted marketing budget will consider all your marketing objectives and identify the most cost-effective ways to achieve them. It will also consider the different channels you’ll use to reach your target audience and the various tactics you’ll employ.
Draft a marketing budget
Drafting a marketing budget may seem daunting, but it is pretty simple.
The first step is to calculate your total marketing costs for the year, and this includes all of your:
- public relations
- marketing expenses
Once you have your total marketing costs, you can allocate your budget to different marketing activities.
For example, you may want to allocate a certain percentage of your budget to online advertising, another portion to print advertising, and another percentage to public relations.
Or you may want to focus your budget on a specific marketing initiative, such as a Facebook campaign or a meet-and-greet between your fans and your brand’s ambassador.
Loan Products to Finance Your Marketing Budget
There are a variety of loan products you can use to finance your marketing efforts. They include:
- Term loans
- SBA loans
- Lines of credit
- Business credit cards
- A cash advance
Each has advantages and disadvantages, so you must carefully consider your needs before deciding which type of loan is right for you.
Term loans are a good option for businesses that need a large amount of money for their marketing efforts and can repay the loan over a long period.
SBA loans are a good option for businesses that may not be able to qualify for a traditional bank loan.
Cash advances are a good option for businesses that need a quick infusion of cash but should be used cautiously as they typically have high interest rates.
No matter which type of loan you choose, shop around and compare rates from multiple lenders before making a move.
Michael Hollis is a Detroit native who has helped hundreds of business owners with cash advance solutions. He’s experimented with various occupations: computer programming, dog training, accounting… But his favorite is the one he’s now doing — providing business funding for hard-working business owners across the country.