We have a finished product LineBuzzer.com we need to raise money for advertisement. None of existing cofounders having an advertising experience. What is the best solution, sell company shares (this is a startup) and hire an agency or find a partner with advertising skills and budget?
There is a third option.
Hire a digital marketing company that works on a percentage of your ad spending.You are going to spend money on advertising anyway.You do not need to borrow enough money to advertise over the next 12 months.
Advertising expense should pay for itself fairly quickly. It should generate more than what you spend.If you cannot make your ads pay for itself using your own money,Borrowed money is not going to change the trend.
That should be the criteria to look for a partner instead of raising money. I just went thru a three month long experiment and decided to hire a marketing company and fund the first few months myself. You need a team, that lives and breathes digital marketing all day long.
If you decide to take on a partner, he/she will probably just fund the advertising and drive the team. And that is ok, if you do not have the money to fund the first few months of advertising. It is not practical to expect one partner will be as effective as a full stack digital marketing team.
Start with a smaller monthly budget and increase it based on performance.If you are an entrepreneur that cannot sell, then you need a partner that can.
So, if we will raise money in either way, what would be the best way to spend 60k cap in advertising to rich out to broader audience in both B2B and B2C areas. Please keep in mind that LineBuzzer.com providing guest paging services which intend to replace pager system (like restaurant, etc.). So, we are not tie to a specific area or state.
We're an expanding start-up company based in New York City. We have a team of experienced developers who covers complete development and project management, the only one project puzzle piece is missing, advertisement.
We would like to raise money to get professional services or get a partner who has an experience and money to invest in exchange for equity.