How to Raise Funds for Your Digital Marketing Agency

In today’s world of smartphones, social media, and countless advances in modern technology, running a digital marketing agency can be a rather profitable business venture. 

Not only that thanks to the accessibility of the internet we have everything in the palm of our hand, but also the number of new startups is on the rise. This means that digital marketing is in constant and high demand.

That being said, you might have the best, most original business idea, however, without a proper financial strategy, it is impossible to get it off the ground. Even with a digital marketing agency, where it is likely that you’ll be able to turn a profit quite soon, you still need that initial capital.

Financing a startup company tends to be the main issue for a new entrepreneur and the most important thing on their mind from the beginning.

There are many methods of financing and we selected the most effective and accessible ones.  All you have to do is pick the one that suits your company the best.

1. Bank loans

Bank loans have been the most common method of financing a startup business.

Usually, a bank offers two types of loans:

• Working capital - it is meant to fund an entire cycle of a company’s operations that generate revenues
• Funding - bank reviews the business plan and based on that evaluation, the bank either approves or refuses a loan.

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Since the number of small startups is on the rise, banks had to adjust their financial options to fit many different types of business ventures. For that reason, some banks also provide loan solutions that are suitable for small companies.

However, there are still a lot of limitations and requirements that tend to be too strict and restrictive for the needs of a small business. So, many startup companies tend to avoid bank loans and choose a more flexible solution.

2. NBFC loans

Similar to banks, NBFCs (Non-banking Finance Companies) offer banking services to businesses (and individuals).

But, unlike banks, NBFCs don’t get into legal requirements, their loan terms are more flexible and their eligibility criteria are less rigid. They also provide their clients with a lot more loan options to choose from.

As a result, it could be easier to find an NBFC loan that suits your business needs much better than a bank loan.

3. Angel investors

There are individuals (or groups) who are genuinely interested in investing in promising new businesses.

The main thing with angel investors is that they tend to take a considerable share of the startup’s equity. 

However, they can also help the company out in difficult times by adopting a role of a mentor, consultant, and guide. This assistance along the way can make all the difference, providing your company with a much-needed boost in certain periods.

It can be a relief to know that you can rely on someone’s expertise, guidance, and financial status. That can reduce some of the stress and let you redirect your focus to other aspects of your business.

Recommended: Startup Funding: Why Your Personal And Professional Status Matter

4. Venture capitalists

Venture capitalists (VCs) are big players in the financial game and the most sought after assets in the business world. It is a company that will (similar to angel investors) provide you with their expertise and necessary funds in exchange for a percentage of equity shares in your startup. 

And they are always on the lookout for new lucrative investment possibilities.

It can be a great opportunity, especially if your business is beyond the startup phase.

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For example, with outside investors in the form of fintech companies such as Saldo Finance, you’re going for a safe and reliable option. Alongside optimal, technologically advanced financial services, they think about the individual loaning needs of their client and the future growth of the business.

5. Partner up

It is quite straightforward, having a partner can be beneficial in the sense that you have someone to share the experience with, not just financially but mentally and physically as well.

You can combine your resources and creative ideas and build a strong, productive, and profitable collaboration over time. You can also divide the responsibilities according to your strengths. That way your company gets the best aspects of the parties involved.

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A successful partnership could be just what you need to launch your company. And there are many different types of business partnerships you can explore.

6. Crowdfunding

If you are not interested in the more traditional loans, there are various crowdfunding platforms. It is amazing just how much funds you can generate via crowdfunding. When done right, it can be a highly efficient financial method.

You probably already heard about some successful business ideas and companies such as Oculus Rift, The Pebble E-Paper Watch, Fidget Cube, The Dash, Pono Music, and many, many others that were started (or saved) by crowdfunding campaigns.

Especially if you’re in the digital marketing business you already know just how important a strong marketing strategy is. In this case, you have to market yourself and your business in order to attract further funding. People need to believe in your idea and your company.

Also, a digital marketing agency can be a rather profitable business venture. The higher chances of success can reassure the donors, making them feel more confident that their investment will pay off.

7. Fundraising

What better way to raise some funds and possibly make some connections, than a good old fundraiser. 

An ideal fundraiser gathers all the prominent people, both those with deep pockets that are ready to invest in a promising and lucrative idea, and those people from the industry with all the right connections. 

It can be a greatly efficient way to expand and grow your business in the near future.

It sounds amazing, but you might wonder how to start a fundraiser?

Well, here are the main things to keep in mind when organizing a fundraiser:

• estimate the cost of the fundraiser
• identify the funding sources and know your donors
• develop a timeline and write down a plan
• set a financial goal.

There are various types of fundraising, from door-to-door, events, and gatherings, online methods, sponsorships and grants, to charity fundraising. So make sure that you are aware of all your options.

There are even fundraising companies that can arrange and take care of everything for you. If you can afford it at this early stage, it can be a great investment! Leaving things in the expert hands of the professionals will make the fundraiser a guaranteed success.

Go online

In the past year, it became more obvious than ever before that the way business is conducted had to change. Due to the outbreak of the COVID-19 epidemic, online-based work became not only an additional method but an absolute necessity. 

It undoubtedly changed the game, (especially) small companies had to adapt quickly in order to survive. That goes for (almost) all aspects, including fundraising strategies.

Being in the digital marketing business yourself, you are very aware of the importance of social media. There is no denying the crucial role it plays in the business world and our everyday lives.

Even if you think that nothing can replace face-to-face interaction, the benefits of social media are far-reaching and undeniable. So use it to its full potential.

If you play your cards right, work out your online strategy properly, and build a large online community of people that believe in your idea, the opportunities can be truly limitless. There are countless online fundraising ideas that you can explore and implement.

8. Bootstrapping

The simplified version of the term bootstrapping pretty much means that you will finance your startup with your own money.

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Being in the digital marketing world, you know that to earn money, you have to spend money. So, sometimes you need to invest in yourself.

First of all, you should carefully examine both your personal and business finances and capabilities. If you don’t have enough savings on your own, you can borrow from family or friends, which means you are going around any official channels or financial institutions.

The main advantages of bootstrapping are:

• there are no interests on borrowed money
• since there are technically no investors, you don’t have to share the profit
• you’re not obligated to give up any equity of your business.

Putting your own money into the startup very often means that there will be some financial restrictions along the way. But it is all about being smart with your investment and optimizing your current situation. You want to make sure that you are exploiting your valuable and hard-earned resources to their maximum.

That means sticking to the budget you have and making quick and efficient business moves right from the start in order to increase your funds. In other words, start small and calculate your decisions well.

9. Incubators and accelerators

These types of programs can be very efficient for small startups in the early stages of development. These programs usually run for 4 to 6 months and they create a nurturing environment for small companies to grow.

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In a digital marketing business, you know how crucial it is to keep track of competition and new trends while constantly generating new ideas. Incubators can support a new company by providing useful connections, training, necessary tools, etc, giving you a head start.

Sometimes, even a small advantage can be enough to separate you from the competition and give you some strong foundations for a successful company to be built on.

In summary

These were suggestions you need to create a good financial strategy. You can choose one or combine a few. And with a strong financial start, making your business venture a success will be that much easier.

By securing the finances, you are ready to dedicate your attention to other (maybe a bit more interesting) aspects of your digital marketing business.