Investing Education

Your Start-Up Business Needs External Financing for Marketing Operations

You have to spend some money first to make more money. This rule of thumb is so far a run-of-the-mill precept in every start-up business.

If you’re a smart business owner, you’re already way ahead from understanding that investments are the stepping stones for any business success.

When launching a new entrepreneurial venture, getting the word out to the masses is one of your top priorities. While there are various strategies to market your company or product without a sizable budget, they wouldn’t be enough at most times.

It’s in these instances when you, as a business owner, should consider debt financing for marketing purposes. To that end, here are a few things to look into before bolstering into your marketing operations with external financing.

Why Financing is Needed Marketing Campaigns

Although the Internet can be accessed easily, there are no such things as free online marketing strategies. Pay-per-click ads, content marketing, and social media campaigns, for example, need fundings.

Also, there are a few situations when business owners need to leverage talent fees for influencer collaborations or referral programs, depending on their business industry.

Some circumstances when owners are advised to incorporate both online and offline marketing strategies happen, as well. For instance, marketing in local community events or health fairs for medical practitioners, while advertising or mail marketing in print media for wholesalers.

All of these marketing efforts require financial aid in achieving the desired results!

Another uphill task for startups is to invest available resources and time in conducting marketing research. Basically, it’s a way to familiarize your audience and garner insights to ameliorate both present and future business conditions.

This doesn’t include hefty budgets, but external financing helps in accessing essential tools in finishing the project efficiently. 

Your Start-Up Business Needs External Financing for Marketing Operations

What to Consider before Funding Marketing Campaigns.

As mentioned, as savvy business owners, we’re considering marketing as an investment rather than an expense. We’re positive that debt-based financing for marketing has a higher probability of driving return on investment (ROI), so long as it’s a good one.

To make sure you’re indulging in “effective” marketing investment, take the following as your guide.

Have a specific goal for your marketing campaign.

You should only take on debt for marketing operations after you decided what to achieve. The chance is the longer you repay your loan, the higher the price you’re going to return. If you aren’t clear about why you’re taking external financing, you’ll end up suffering from higher payments.

Be clear about how your marketing would convert sales.

You have to determine an effective conversion method as you’re taking on debt-based financing for marketing. At the end of the campaign, both soft (e.g., word-of-mouth advertising) and hard (e.g.,  social media followers) ROIs should increase, as well as your overall profit even after paying off both of your principal and interest accrued.

Thus, perfect every kink before signing the dotted line.

Types of Marketing Financing

Once you identified your marketing campaign goals and determined specific measures to drive higher ROI, you’re more likely ready to finance your marketing plan.

The common types of marketing financing include unsecured loans and short term loans, like a line of credit and merchant cash advance.

1. Unsecured Loan

Having no collateral is not a problem. Your creditworthiness is enough to get an unsecured loan.  A borrower’s strength of cash flow or business credit score can serve as an asset to get a loan. What’s more, its process goes much quicker than the process of getting a secured loan.

Sounds too good to be true? Check CreditNinja. They offer various personal loans, including unsecured ones.

2. Line of Credit

If you’re planning for a short marketing expense, then the line of credit is the one for you. It’s flexible enough to let you draw against a pre-approved amount of money. Not only that, it only put interest on the funds that have been withdrawn. Above all, it’s lender-friendly. It allows you, the borrower, to set the size of the payment, amount of interest, and other rules yourself. 

3. Merchant Cash Advance (MCA)

MCA is an alternative route to stringent credit requirements and a tedious approval process of a conventional term loan. It’s not a loan but a cash advance. You can quickly get advance deposited into your account through a provider.

But here’s the catch. The provider needs to check your daily/weekly credit card receipts to make sure whether your company can pay timely or not.


It’s a wrong move to apply when you’re already facing liquidity pitfalls. The tendency is that providers would be reluctant to lend money for those companies that consider cash infusion as a last resort, regardless of profitable their businesses are.

Hence, the best time to apply for external funding is when you don’t need it!

Four Ways to Keep Your Business Startup Costs Low

Are time and money standing in the way of getting started with your small business idea?

These two aspects seem to be the most common challenges that entrepreneurs in every stage of developing their business faces.

However, as it becomes easier to start your own business from home, and an increasing number of tools become available for starting a company on a budget, cutting down costs may be easier than you realise.

Whatever kind of business idea you’re trying to turn into a reality, we’ve put together some top tips to help you keep your expenditure as low as possible.

#1. Shop Around:

First of all, make sure that you are getting the best deal on everything – from website hosting and design to essentials for your business premises.

Comparison sites are available for pretty much anything that your business may need to get started, and a quick search is one of the easiest and most convenient ways to find the best deals for your company.

If you’re looking for the essential utilities that your office or other business premises will need to successfully run day to day, check out to compare the best deals.

#2. Outsource Personnel:

Getting the right people on your team is one of the most crucial elements of starting and running a successful small business.

However, hiring full-time employees can be one of your biggest business expenses. The good news is that today there are many services that can be completed out-of-house at a much cheaper price.

HR services, marketing, design, web content creation, and even customer services can all be outsourced to experienced individuals and companies, and you’ll usually get much more value for money compared to paying full-time employees, particularly if you work with freelancers who can be paid on a per-job basis instead.

#3. Take Advantage of Second-Hand Goods:

Some businesses can be set up and run entirely from home, but if you need to have a physical office space or store for your company, then you might be worried about the cost of equipment and everything else that you will need to make it into a workable space.

This is a great time to take advantage of second-hand and refurbished goods; refurbished computers, for example, are often just as functional and reliable as brand new and can save you a significant amount of money.

And when it comes to office furniture, you can find some bargain gems on second-hand selling sites.

#4. Switch to OpenSource Software Programs:

Finally, save money on everything from website design to creating presentations with OpenSource software.

This type of software is absolutely free, because programmers all over the world work on bits of it until it is complete.

OpenOffice, for example, is an ideal free alternative to Microsoft Office when it comes to word processing, creating slideshows presentations, and creating and managing spreadsheets.

And, Google Drive is another free option that is great for backing up files and collaborating in real time with freelancers in another location.

What are your top tips for saving money on a business startup?

We’d love to hear from you!

Investing in Microeconomics or in Macroeconomics?

Most economists, believe different methods are needed for studying individual markets versus the whole economy.

Even though most economists agree on the basics of microeconomic analysis, the field of macroeconomics grew out of dissatisfaction with perceived limitations in the predicted outcomes from microeconomics.

Investing in Microeconomics

There is no widespread agreement on the conclusions drawn from macroeconomic studies.

Therefore, it is not shorthand for microeconomic truths.

It is not clear if investors need macroeconomics to make good decisions.

An economy is an extremely complex and dynamic system therefore, it is very difficult to identify real signals in macroeconomics because the “data is noisy”.

Macroeconomists frequently disagree about how to measure effectiveness or how to make predictions and makes it easy for investors to draw incorrect conclusions or even adopt contradictory indicators.

Investors should study basic economics, though the limitations of the field present ample opportunities to be led astray.

Economists often present information in a definitive manner to sound authoritative or scientific, but most economists make poor predictions.

Investing in Macroeconomics

However, this does not prevent them from making more bold proclamations, each about topics with a lot of uncertainty.

Investors should demonstrate more humility, and this is where microeconomics can really help.

It is not useful to try to predict where the indexes will be in 12 months or what the inflation rate will be at that time.

But investors can try to find companies with products that demonstrate a low price elasticity of demand, or identify which industries are most reliant on i.e low oil prices or require high capital expenditures to survive.

Microeconomics can help identify, which companies are most likely to use their resources efficiently and generate higher returns, and the tools of analysis are easy to understand.

Macroeconomics may be more ambitious, but so far it has a much worse track record.

10 Habits for Financial Freedom

Achieving financial freedom is a goal for many people.

Financial freedom generally means having enough savings, investments and cash on hand to afford the lifestyle you want and a growing nest egg that will allow you to retire.

You may fail to reach that goal because of increasing debt, financial emergencies, profligate spending and other issues that thwart you from reaching your goals.

Financial Freedom

It happens to everyone, but these twelve habits can put you on the right path.

1. Set Life Goals

A general desire for "financial freedom" is too vague of a goal.

What does it mean to you?

Write down how much you should have in your bank account, what the lifestyle entails and at what age this should be achieved.

The more specific your goals, the higher the likelihood of achieving them.

Then, count backwards to the current age and establish financial mileposts at regular intervals.

Write it all down neatly, and put the goal sheet at the very beginning of your financial binder.

2. Make a Budget

Making a monthly household budget, and sticking to it, is the best way to guarantee all bills are paid and savings are on track.

It is also a monthly routine that reinforces your goals and bolsters resolve against the temptation to splurge.

3. Pay Off Credit Cards in Full

Credit cards and similar high-interest consumer loans are toxic to wealth-building.

Make it a point to pay off the full balance each month.

Loans and mortgages typically have much lower interest rates, making them less of an emergency to pay off.

4. Create Automatic Savings

Pay yourself first!

Ideally, the money should be pulled the same day you receive your paycheck so it never even touches your hands, avoiding temptation entirely.

5. Start Investing Now

There is no better or tried and true way to grow your money than through investing.

The magic of compound interest will help your money grow exponentially over time, but you need a lot of time to achieve meaningful growth.

Habits for Financial Freedom

6. Negotiate

Many consumers are hesitant to negotiate for goods and services, worrying it makes them seem cheap.

Overcome this handicap and you could save thousands each year.

7. Proper Maintenance

Taking good care of property makes everything from cars to shoes and clothes last longer.

Since the cost of maintenance is a fraction of the cost of replacement, it is an investment not to be missed.

8. Live Below Your Means

Mastering a frugal lifestyle by having a mindset of living life to the fullest with less is not so hard.

In fact, many wealthy individuals developed a habit of living below their means before rising to affluence.

Making small adjustments by distinguishing between things you need rather than things you want is a financially helpful and healthy habit to put into practice.

9. Get a Financial Advisor

Once you've gotten to a point where you are able to discern if you've amassed a decent amount of wealth, be it liquid investments, or assets that are tangible but aren't as readily available to convert to cash, getting a financial advisor to educate and help you make decisions is highly suggested.

10. Take Care of Your Health

The principle of proper maintenance also applies to the body.

Ailments make insurance premiums skyrocket, and poor health may force earlier retirement with lower monthly income.

These 10 habits won't solve all your money problems, but they will help you develop helpful habits that can get you on the path to financial freedom - whatever that means for you!


Utility is a term introduced by Daniel Bernoulli (Swiss mathematician and physicist, 1700 - 1782) referring to the total satisfaction received from consuming a good or service.

Economists operate under the assumption

The economic utility of a good or service is important to understand because it will directly influence the demand, and therefore price, of that good or service.

A consumer's utility is hard to measure, however, but it can be determined indirectly with consumer behavior theories, which assume that consumers will strive to maximize their utility.

Economists operate under the assumption that all utilities can be measured as a hard number.

To help with this quantitative measurement of satisfaction, the designation of a util was created to represent the amount of psychological satisfaction a specific good or service generates, for a subset of people in various situations.

If, for example, an individual judges that a piece of ham will yield 20 utils and that a piece of cheese will yield 25 utils, that individual will know that consuming the cheese will be more satisfying.

Utility is a term

For the producers of ham and cheese, knowing that the average piece of cheese will yield 5 additional utils will help them price cheese slightly higher than ham.

Additionally, utils can decrease as the number of products or services as consumption increases.

The first piece of ham may yield 20 utils, but as more ham is consumed, the utils may decrease as people become full.

Therefore, consumers can understand how to maximize their utility by allocating their money between multiple types of goods and services as well as help companies understand how to structure their pricing. 

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