Depending on your marketing strategy, you may need to source additional business funding to see it through. According to the U.S. Small Business Administration, newer businesses tend to use more of their budget for marketing, while more established businesses generally use a lower percentage.1
Whether your business is fairly new or very well recognized, it’s important to maintain your marketing efforts to reach new customers. However, it’s not always easy to find the capital to fund your marketing campaign. Read our guide for seven tips to help finance your next marketing campaign.
1. Plan a Reasonable Marketing Budget
According to the U.S. Small Business Administration, a practical marketing budget can be hard to define. Determining a reasonable number depends on a number of factors, including your industry, specific business needs and time in operation. Additionally, B2C companies typically need to budget more than B2B businesses.1
In order to find the right number for your business, you may want to measure the success of smaller campaigns before committing to a particular amount in your budget. If you need help, learn more about creating a reasonable marketing budget for your small business.
2. Start Small
While you may want to launch a marketing campaign to grow your business, it may be a better idea to start with smaller marketing campaigns and build up over time. If you’re new to small business marketing or aren’t sure which strategies are the most beneficial, it’s a good idea to run a couple smaller, more focused marketing campaigns before committing to a larger budget and strategy. Additionally, make sure to measure your campaign’s success, and tweak your marketing strategy where necessary. This can help you find the most efficient usage of your marketing budget over time.
3. Use Cash from Your Savings
If possible, open a special savings fund to allocate business income to help fund your campaign, or use capital from your existing business savings account. While it may take a while to save up for a fully funded campaign, you can supplement your marketing fund with other financing options on this list.
4. Apply for Small Business Financing
While you may aim to run a self-funded marketing campaign, business financing can help ease the strain on your budget and make it easier to reach your marketing goals. Applying for business financing is an option to fund a marketing campaign to reach new customers and expand your business. There are several forms of business capital, including;
- Term Loans: Also referred to as small business loans, borrowers access one lump sum and repay the loan in installments over time, according to the specific term agreement.
- Lines of Credit: This funding option provides access to a revolving credit limit. As the amount borrowed is repaid, that amount is available again to reuse.
- Business Credit Cards: Similar to business lines of credit, business credit cards provide access to a revolving credit limit.
5. Focus on High-Impact, Low-Cost Marketing Strategies
As you fine tune and refine your marketing strategy, you can leverage more high-impact, low-cost methods to help keep funding down. If your business is newer, a few low-cost strategies that can lead to a higher return on investment (ROI) include:
- Email marketing: According to recent data, email marketing can yield roughly $42 for every dollar spent.2
- Social media: With 3.6 billion global users, you can find the right niche to market to your customers and spread the word about your company.3
- Word of mouth: People trust their friends and family, and this option costs nothing to you.
6. Launch a Crowdfunding Campaign
Crowdfunding, similar to angel investors, is a group of individuals who have pooled capital in exchange for shares of a particular company. Small businesses interested in crowdfunding their marketing efforts can explore options like Fundly and Crowdfunder.
7. Look for a Small Business Grant
Business grants are like a gift — they’re a funding option that does not need to be repaid. However, it may be difficult to find one that your business can qualify for. Grants are available from a number of sources; including government organizations, private groups and large corporations. They’re typically given to help promote a particular cause or idea. While it may not be an all-inclusive list, this small business grant guide can help you start your search for grant funding.
1Lesonsky, R. (2019). How to Get the Most From Your Marketing Budget.
2Holvach, H. (2021). 104 Email Marketing Statistics You Should Know In 2021.
3Chen, J. (2021). 36 Essential Social Media Marketing Statistics to Know for 2021.