When companies seek funding, marketing is one of the primary uses of that funding. In order to wisely utilize those funds, business owners must engage in effective marketing. To do that, you must precisely determine and describe your market, determine its characteristics, where your prospective customers gather and how best to approach them. Only then do you actively market, and then you must consistently test and measure all parts of that marketing. One caveat: Do this within reason. If you have a marketing department and several staff members, you can test and measure everything, including the words and colors used in all your communications, online and offline. If you do not, you must focus on measuring the broader aspects of your marketing campaigns.
So how do you find the funding and/or resources to market effectively? Following are 5 ways to do just that.
1. Use Your Customers.
One immediate way to correct a cash flow gap issue is to use your existing customers or prospective customers you have in your pipeline to front the cash you need. How do you do this? Approach your customers and offer them a 5% discount if they prepay. Alternatively, if your company offers a subscription service or the customer buys the same amount each month, offer your customer a 10% discount or similar strong discount for pre-paying for the year. For new customers, require a 10% deposit on orders and payment within 10 days of order fulfillment.
One key: Whatever payment schedule you demand of your customers, you must ENFORCE it. If your invoice says “Due upon receipt” and you regularly allow customers to pay in 30 or 45 days, your invoice is a joke! You must immediately follow-up as soon as you send the invoice with a “customer service call” in which you ask your customer how was the product/service – i.e., delivered on time? To your specifications?, etc. Then inquire as a “by the way”, whether your customer received the invoice and is aware that payment is due immediately.
2. Form marketing partnerships.
Sales and marketing are how you grow your business. Your marketing must be effective, otherwise highly ineffective marketing can become a money pit. You must clearly identify your target customers and determine what marketing works best for your company and your staff. One way to drastically reduce or even eliminate your out-of-pocket marketing expenses AND significantly increase the effectiveness of your marketing is to enter into marketing partnerships.
I’ve provided you with 1 1/3 ways to access the funding or resources you may need to market effectively. For the remaining 3 2/3 ways, click on the picture below to obtain the free ebook, “5 Ways To Get Enough Money To Market Effectively AND Meet Payroll”