For those ready to launch their marketing firm, the most important part of the process to consider is financing. Having enough money to open your doors and make sure all your customers’ needs are met may mean turning to various sources for capital. The question is, how do you convince lenders to support your startup marketing firm? Here is a guide to help you finance your startup marketing firm.
The secret to attracting lenders is showing them that you have something worth offering. In addition, you must present lenders with some credibility. This ensures lenders can trust that your startup company has what it takes to deliver and be successful.
To do this, you’ll first need to work to build credibility. That is one of the most important components in the process of financing. You’ll have a higher chance of getting funded if you build credibility within your company, services, and your skills. While developing credibility for you and your company isn’t always a simple process, doing so can help gain the finances necessary to bring your business to life.
Build Out Your Marketing Firm
Create a business outline that clearly states what your company offers and what makes it different. Before you can approach lenders to request money, you need to be able to communicate several things, including:
- What your company has to offer. Outline what your marketing firm will do exactly. Some things to consider is if it will offer digital services or local advertising, for example.
- Who the company’s target customer is. This is essential because it will help visualize how much your firm can attract and who your efforts should be targeting. Outline who the target persona is by demographics, industries, or services.
- The defining components that will help your company stand out from the competitors. There are many potential options here. For example, some marketing firms may specialize in a few specific services. Other companies may be using automated services or focusing on just digital marketing. Ask yourself if your company does anything special that the competition doesn’t, and highlight this to lenders.
- Define the daily tasks involved in your company. This may include how and where you market, how you attract customers to your business, and how you maintain your education and skills in this area.
- Define your company. Just as you would for your customers, create an overview of your brand image and goals. Outline your financial expectations, as well. How much do you charge for services? How much profit do you plan to make from each service or project? All of this information helps to show lenders what you have to offer and whether it’s valuable enough to see long-term growth.
Create a Financial Roadmap
The next step is to start working to build financial security. As a startup marketing firm, this is hard to do. How do you show lenders that you have what it takes to be trusted with capital if you don’t have a lot of revenue coming in at this point? Here are a few steps you can take to execute this adequately:
- Work to build strong personal credit. To do this, use personal loans and credit cards to help you establish your creditworthiness.
- Create a winning business plan. Outline what your business is and what it is going to offer. In the digital world, it’s still essential to make your case very clear. Address what your marketing firm is going to do to stand out. Another factor to consider is the management and organization of your company.
- The outline you’re “why.” Why should a lender work with you? Make sure it is clear what you bring to the table – a reliable credit history, a solid business that already has customers, or an extensive amount of experience in the field, for example.
- Address your need for funds. What (amount) do you want to borrow, and what do you plan to use it for? Be specific here and make sure you already have a solid budget in mind for spending the money, such as purchasing equipment or hiring professionals.
It’s helpful to work with a lender who can see what you offer. That’s why it’s crucial to provide lenders with a feel for what your company will do for them and the community.
Apply for a Startup Business Loan
Remember that not all lenders are the same when applying for a loan. They have different qualifications, and, in many cases, they have genuine expectations for borrowers (especially when it comes to startups). If possible, look for a lender that works with startups and offers a local focus. When you go this route, the lender will be more likely to develop a personal relationship with your business as it continues to grow.
Once you find a lender, you’ll need to work through the application process. Most lenders make the formal application digitally, which means it is fast and easy to complete. However, it also strips away all personal aspects of borrowing from a community lender. That’s why it is always a good idea to meet with them in person (if they are local to you) and to discuss your business, build a relationship, and show some zeal about what you will accomplish with their funding.
Financing a startup marketing firm is, in itself, one of the best ways to show off your skills. You are working to “sell” a business idea to a lender who can help you get your business off the ground. Use your marketing talents to the fullest here, outlining what you have to offer and why this is a solid transaction for lenders to become involved in.
Taking these steps can help you get the loan you need for your business and help create a long-term partner out of a community lender.