Marketing of any product or service is crucial. Every single business pumps in a lot of money in their marketing. But traditional marketing is no longer able to reach people the way digital marketing does.
With the rise in smartphones, laptops and tablets, opting for digital marketing makes more sense. It is an easy way for any business to tell their brand story and connect with their customers instantly.
If you are a digital marketing agency, the following 7 ways can help you get funding for your business.
7 Popular Ways to Get Funding
1. Venture Capitalists
Venture Capitalists or VCs are the most sought after assets in the business world.
A VC is someone who will give you the required capital in exchange for a percentage of equity share of your company. Apart from money, they also offer their guidance and expertise.
Venture Capitalists help you at every stage by constantly evaluating the business and its progress. They have a great business network and can connect you with the right people. This can help you explore lucrative business development opportunities to accelerate business growth.
VCs are interested in making quick profits. Therefore, this would be a viable option for companies that are beyond the startup phase.
2. Line of Credit
A line of credit, also referred to as revolving credit, is an arranged amount of standing credit that you may draw upon at any time.
You can borrow money against the repaid amount at any given time without having to reapply for loans over and over again.
The interest rates of a line of credit are higher but it proves to be a more affordable option as compared to a credit card. With a line of credit for businessmen, you just have to pay interest on the amount you use rather than the total amount that is approved.
3. Bank Loans
Bank loans have been the most common funding option for entrepreneurs for a long time.
A bank generally offers two types of financing options:
- Working Capital: This is a loan offered to fund an entire cycle of revenue-generating operations of a firm.
- Funding: In this case, the bank evaluates the business plans of the small business. If the bank is satisfied with it, only then will it sanction a business loan.
Check if your bank has any programs that provide online loans for small business and firms.
4. NBFC Loans
If you cannot secure a bank loan, you can opt for a loan from NBFC.
Non-Banking Financial Corporations or NBFCs are institutions that offer banking services. The difference between banks and NBFCs are that they don’t get into the legal requirements like a bank does.
5. Partner Up
Starting a new company on your own can be a difficult road to take – mentally, physically and financially.
So, why not bring in another partner? If you have a reliable and trustworthy partner, the benefits will double. You can combine your creative and technical forces, the resources will double and so will the funds.
Seeking trusted and strategic partnerships have propelled numerous start-ups to success.
In simple words, bootstrapping means financing your digital marketing agency with your own money.
It may not be easy to attract investors or VCs in the initial stages of the business. So, self-funding will help you gain traction in the market gradually. You can either use your savings or take a loan from your friends or family.
Bootstrapping has a few advantages:
- You don’t have to give up any equity of your business
- You don’t have to pay any interest on borrowed money
- There is no investor to share your profits with
Crowdfunding is a great way to raise money for your digital business. It helps in creating a buzz about your product through the crowdfunding sites such as Kickstarter, Indiegogo or CrowdFunder.
You need to specify your business goals, how much money you need and what you need the money for. People on the crowdfunding platforms can make online pledges to your business either by promising to pre-buy the product or by offering donations.
You may have to give back something to those who helped you raise money. It can either be in the form of freebies or giving them early access to buy.
There are many ways to raise money for your business at any stage. You can either opt for one of these methods or a combination of them. Ensure whichever option you choose, you get a good funding deal for your business.
Shiv Nanda is a financial analyst who currently lives in Bangalore (refusing to acknowledge thename change) and works with MoneyTap, India's first app-based credit-line. Shiv is a truefinance geek, and his friends love that. They always rely on him for advice on their investmentchoices, budgeting skills, personal financial matters and when they want to get a loan. He hasmade it his life's mission to help and educate people on various financial topics, so email himyour questions at firstname.lastname@example.org.