Starting any business from scratch, including a digital marketing agency, can be tiring in both a physical and mental sense. You will be pushed to your limits, but this is also a chance to see what you are made of and to surprise yourself with a resilient and resourceful approach to problems. However, this endeavor might also be a strain on you financially and drain your savings. Borrowing from friends and family is not the best way to stay on good terms with them, and it could be quite challenging to explain what ‘digital marketing’ is to your 90-year-old grandmother. The best way to nurture harmonious relationships and to succeed in your undertaking is to raise funds elsewhere.
Opt for venture capitalists
If you are at a phase when you don’t know where to turn, this could be perfect for you. A venture capitalist will provide you with the capital you need in return for a percentage of equity share.
Although giving a part of the share to someone else can sound discouraging, venture capitalists are a popular way of raising funds so there is no cause for any alarm. Since they wish for their investment to return fast, besides capital, they can offer other resources to aid your business and support their own investment.
These resources include quality advice and a good networking grid of business partners of all kinds.
Go with bank loans
Banks have been a preferred source of funds for many people since the tradition of bank loans stretches far into the past of the business world. This means it is reliable, so if you opt for this kind of conventional loan, there will be two options at your disposal: funding and working capital loan.
Funding requires an assessment of your business plans by the bank, and if the bank approves of it, you are good to go. A working capital loan doesn’t function in that manner, but they cover the whole cycle of operations that generate revenue.
Consult with other small business owners and visit a few banks so that you can say with certainty that you went with the best option for your digital marketing agency.
Try loans from NBFCs
NBFCs stands for Non-Banking Financial Corporations which are, as the name suggests, corporations which offer banking services, the only difference being they don’t get into the legal requirements.
The biggest advantage of these types of no security business loans is that you don’t have to wait as much for the decision whether the loan was granted or not. Besides that, banks are often reluctant to approve a loan to an agency that is just starting since they need to be certain you will be able to pull through and return the capital.
Be as it may, just like with banks, ask around and do your research to be certain that this is the optimal course of action.
Choose crowdfunding
Crowdfunding could be ideal for your digital marketing agency since that is the perfect opportunity to show your creative potential. How you present your cause and your business idea is what will attract people to either offer donations or pre-buy one of your services.
There are numerous sites which serve this purpose, so just to name a few, there are Kickstarter, AngelList, CircleUp, etc.
With this type of money raising activity, you are not only collecting the necessary funds to start your agency but growing a potential customer base since you are spreading the word about your marketing agency.
Find a partner
Having a business partner does mean that another person is now participating in the decision-making process but this doesn’t have to feel confining.
There are actually many positive sides to it. It might turn out that one of you is more business-oriented and the other is more creative, so you may even be invested in different parts of the agency’s operations. Not to mention that two people means that you will have twice as much capital to start with.
Since both of you will be equally dedicated, the business is bound to flourish under two people working unanimously for the same cause – the success of your digital marketing agency.
The best approach to making a decision of this magnitude, one that will impact the future of your agency, is to be frank with yourself and others about your ideas and plans.
Do thorough research on all the possible banks, institutions, platforms and schemes and consult with others who have been in the same position.
This is the only way in which you can be certain that you made an informed decision which is best suited for your agency.