You Financed Your Office Space. Why Not Your Marketing Plan?

Don't let sticker shock keep you from investing in marketing.

Marketing is a necessity for small business growth. Marketing strategies can range drastically in price and are different for every small business. Some businesses will need an e-commerce website and SEO strategy while others will do best with direct mail campaigns to a small, targeted audience.

But the price tags on some of these items can be hefty, and it's extremely common for the upfront cost to cause small business owners to scale back on marketing spending or drop it off their budgets completely. Most small business owners don't have the cash in hand to pay for a new website or an advertising campaign that likely won't give them immediate results.

Financing Your Marketing Plan

In some instances, marketing projects can be a great reason to borrow money. While we typically think of seeking out capital to pay for tangibles like office space, equipment or inventory, financing marketing initiatives can be just as important. With a loan, you can spread out your marketing expenses over a year or more, rather than cutting into your operating budget.

Look into options like SBA Express to see if you qualify for term debt at a reasonable rate. If you weigh your options, you'll likely find that borrowing $50,000 through an SBA lender is a much more feasible undertaking than spending $50,000 of your working capital on a marketing plan.

The worst-case scenario: Your marketing efforts won't generate leads and you will still be stuck with the payments. However, you'll also still be profitable for the year because you didn't spend a large part of your budget on the marketing cost upfront.

Bottom line: Consider borrowing money for marketing initiatives rather than draining capital from your business.

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