Funding Your Businesses Marketing Campaign for 2022

Published by Salespanel on July 11, 2022

Funding your business marketing campaign can be a very daunting prospect, particularly for someone who is just setting off into the exciting, nervy, and unfamiliar world of a new startup.

When starting your business as a sole trader it is easy to get caught up initially with the full setup process – deciding on a trading name, securing an ABN, registering for GST, finding an accountant, and writing a business plan.

But once this is done, it is time to start making some money. And that is when the hard work really begins!

If you are lucky enough to have sufficient savings or capital behind you to fund your marketing activities, you are in a very good position to move forward.

However, if you are not blessed with large reserves of cash, then to get your business dreams off the ground, sooner or later, you are going to have to support it with some proper finance.

In this guide, we will show you how to go about trying to procure some funding for your business.

The Importance of Financing your Marketing Campaign

According to the Australian Bureau of Statistics, there are over 2.4 million businesses in Australia that are actively trading. That is a lot of companies trying to get into the headspace of their customers all at the same time!

So, to get noticed by the people that should matter most to you, it is imperative to invest in activities like new product launches, brand awareness, and marketing activities, to persuade customers to buy what you are offering.

As the old adage goes, sometimes in business you must spend money to make money. But, what happens if you do not have any?

Well, that is when you need to start raising capital. Thankfully, there are several ways for you tp do that.

Seven Options for Financing your Marketing Campaign

If you are in a position where you need to fund your business’s marketing campaign, here are six different ways you can do that.

Loans from family and friends

One of the quickest ways to generate funds is to obtain a loan from family and friends. If you have a good list of contacts, you can sometimes generate a tidy sum to kickstart your business venture just by asking them.

Few people like being asked directly for money face-to-face, so when approaching them, one of the best ways to do it is via email, or an official letterhead (if you have created it).

Be sure to outline what your business will offer customers, and how you will spend the amount of money you want to borrow from them.

Also, try to be specific as people are more likely to lend you money if they can see a genuine purpose i.e., to run a series of Facebook adverts, or buy production equipment – as opposed to the money just sitting in your business bank account.

Small business bank loan

For most people, particularly sole traders, applying for a small business loan will be their first action when it comes to funding their marketing campaigns.

Successful small business loan applications meet several criteria with the lender including the ability to provide specific documentation relating to your ABN, proper business financials, and accountancy details.

It helps too if you have a very good credit score, while a well-thought-out realistic, and detailed marketing plan is essential as well.

When applying for a small business loan, check out the terms of the loan carefully along with the interest rates, demands on your collateral, and other ‘hidden’ costs there might be, prior to signing any documentation.

Apply for grants that help new entrepreneurs

You may be able to qualify for a grant that provides funds to new entrepreneurs.

For instance, the Fresh Start Business Grant from Incfile is a grant for entrepreneurs that provides one entrepreneur with funds of $2,500 to put towards their business startup costs.

If you receive the grant, you can also obtain free formation services to help you set up your small business.

To apply, simply complete the online application, create a short video, and submit your business plan.

You should also look at other grants that are available. Furthermore, it can be useful to get advice from an entrepreneurship mentor.

Online business loans

If you do not want to approach the big banks, or if you have already been rejected by them, you may wish to consider an online business loan.

As a general rule, online business loans are more flexible than bank loans. You can apply for them at any time of the day or night, and as the process is automated, you often receive a quick yes or no decision. Some of the lenders can even get the funds to you within 24 hours of approval.

For many sole traders, online business loans are an attractive option as they often do not demand you have an excellent credit rating.

It is worth being mindful that terms, rates, and eligibility requirements do vary between lenders, however. So be prepared to investigate their offerings and thoroughly shop around before committing to anything.

Business Line of Credit

An effective way for many sole traders and small business owners to access funding for their marketing campaigns is via a business line of credit.

Essentially, a business line of credit words along the same lines as a credit card. With your business being afforded access to a predetermined amount of capital. Funds from this capital can be withdrawn at any time and you only pay interest on the amount you borrow, as opposed to the entire line of credit you have.

To put this into context, if you have an agreed limit of $10,000 as your business line of credit, and then withdraw $1000 from that, you will only have to pay interest on the $1000 you borrowed – as opposed to the whole amount of $10,000.

Providing a flexible and convenient way to borrow money, this is a great option for those who require money to fund new production equipment, manage temporary cash flow issues or finance a sales promotion.

As good as this sounds, be mindful that it can often be difficult for new businesses, and especially those run by owner/operators, to qualify for such funding until they are a bit more established.

Small Business or Marketing Grants

Although they are extremely competitive, small business and marketing grants can be an excellent way to generate a sizable sum of money for your company.

The Small Business Administration arm of the Australian government, for example, currently provides 724 grants and programs on its website which can assist small businesses to grow. Most typically these grants have a value of between $5000 and $25,000, although on occasion could even top six figures.

They can involve a lengthy application and deliberation process, so is not necessarily the best option if you need immediate capital. However, the great thing about these grants is that if successful, you don’t have to pay them back.

Crowdfunding

Crowdfunding can be a God send for sole traders and small business owners, as it does facilitate an effective way to generate a decent amount of capital when your pitch gets traction.

Giving you a platform where you can receive small donations of capital from several entities, crowdfunding investors tend to donate money, either for altruistic purposes, to help new businesses flourish, or to receive equity within your business, for their own profitability.

If you receive cash on a loan-basis you will need to pay it back with interest. But if all the other finance options on this list don’t bear fruit, this could be a viable alternative for you.

Final Thoughts

So, there you have it! Our suggestion of six ways for funding your business’s marketing campaign for 2022. Sourcing finance is an essential part of many fledgling businesses’ growth. Should you find yourself in a position where you need to generate capital, we hope this guide has given you plenty of inspiration on how to do so.