So you have a fantastic idea for a startup and enough funds to create a minimal viable product to test it on the market? That’s great; you’re on your way to launching a potentially successful venture.
However, many startup owners forget how vital marketing is to the success of their product. After all, how else will your target audience learn about it without you putting in any resources into promotion?
Most of the time, founders have only enough funds to build an MVP and spread the news to acquire the first adopters. That’s why you need extra capital to spread the news about your product to a broader group of potential customers.
Here are 5 ways to help you find money for your startup’s first marketing campaign and take your business operation to the next level.
1. Friends and family
Financing your startup campaign thanks to resources coming from friends and family is one interesting option you should consider. Getting funded by people you know is rather simple because they already respect and trust you. Moreover, you can ask them for loans on favorable terms, and in some cases, you won’t even have to worry about interest.
Still, make sure that the deal is beneficial for them as well. You can offer them some dividend such as a share in the profits or revenue.
But don’t forget that raising funds for your marketing campaign from friends and family will not allow you to validate your product idea. After all, they might not know your industry and won’t be able to judge the value of your idea accurately.
2. Microloans & grants
Have you ever heard about microfinance? Microloans are small, short-term loan available to businesses that can be used as working capital or resource for your next marketing campaign. If you’re looking for a few thousand dollars, consider getting a microloan or government grants.
Microloans are subsidized loans by the state designated authority or nonprofit organizations. If your startup idea has been validated, you stand a chance at getting one to fund your marketing activities.
All you need to do is draft a business and marketing plan and get in touch with the organization responsible for giving out the loans or small grans. Even if you are sure that your application is strong, it’s always a good idea to ask for advice.
Research the opportunities available to businesses in your area and get in touch with the appropriate authorities to learn more about the application process and boost your chances of success. Start by checking out this list of the best microloans on the market.
3. Logbook loans
Logbook loans are a type of secure loans that work like a security bill of sale. In that type of transaction, borrowers transfer ownership of their car or another vehicle to the logbook lender as a security to secure the loan. While repaying the loan, the borrower keeps possession of the vehicle and can use it.
But until the loan is cleared, the formal ownership of the vehicle rests with the lender. If you’re based in the UK, logbook loans are an excellent option to raise funds for your marketing campaign because there exists a designated legal process to administer these loan to make them secure.
Another great option to kick off your startup idea is by sharing it on a crowdfunding platform. Crowdfunding means that you will be funding your campaign by raising contributions from a large number of Internet users.
This relatively new concept of alternative financing gained lots of popularity over the last years, and some claim that crowdfunding is on its way to surpassing venture capital funding as its size has reached $35 billion and constantly expanding.
Just consider the number of startup success stories we owe to the platform Kickstarter.
There are many ways in which you can benefit from crowdfunding – it can be reward-based or equity-based. Have a look on the web to find a crowdfunding platform and consider consulting and mediating company to make sure that you’re choosing a reliable funding partner. And before you set up a crowdfunding campaign, read the terms of your contract with the platform carefully. All that’s left is sharing the campaign as widely as possible on the web to reach lots of users.
5. Renting out extra space
If you’ve got some physical space you’re not using such as the garage, basement or a room at your office, don’t hesitate to advertise it on the sharing community sites to earn extra cash and fund your startup’s marketing campaign. That type of initiative will help you make the most of your resources, so advertise your space right now and start making money off it to add an extra boost to your marketing.
Use these 5 steps, and you will be on your way to securing funding for your marketing campaign and ensuring the efficient promotion of your products among your target audience.
Emma Lewis is a loving mother, a devoted wife and a part of the team supporting Spacer – a company helping you find storage space whenever you need it. Emma is also a staunch supporter of the sharing economy and often mentions its benefits.