Your shelves are stocked, your employees are trained and you company is ready for business. This grand opening would be absolutely perfect – if only there were customers. It’s understandable why some small business owners don’t spend money on advertising; there are so many other expenses associated with launching a company, money spent on marketing might take away from the cash needed for overhead costs. That’s why many entrepreneurs turn to lenders to get money they can put towards advertising. A little money borrowed can become a lot of money in return.
Start by thinking about how your business will find customers without advertising. The only real option is word of mouth, which is a great way to get clients, but far from a sure thing. Even if you are able to get people talking about your store, that doesn’t allow for you to pass along information about savings, specials and new items in stock. An advertising campaign isn’t just a way for a small business to announce its presence; advertising is how you keep people informed and turn one-time sales into repeat customers. If a loan is required to get the word out, it’s probably a loan worth securing.
Borrowing money isn’t something to be done nonchalantly, of course. You need to know what kind of terms you’re getting yourself into and how exactly the money is going to be spent. Before applying for a loan, make sure you have your marketing strategy well thought out. You need to know the demographics you’re targeting and how best to reach them. This will ensure that you know how much money you need to borrow and that you’re spending it wisely once you’re approved.
You also need to decide if you have assets that you’re willing to use collateral. While there’s always a risk associated with offering a guarantee, you can likely get much better terms on your loan if you have collateral to put forth. This is another reason to have your marketing strategy meticulously planned, as you’ll want to have a time frame set for implementing the advertising campaign and beginning to repay the loan. The more succinct your plan is, the better equipped you’ll be to secure financing.
You owe it to yourself to promote your brand and give your small business the best possible chance to succeed. If you do the research and understand the market, borrowing money to put towards an advertising campaign can be the smartest move for your company.