How to Generate Funding for a Supercar Rental Agency

Bet you haven’t heard this title before? Generating business funding or sponsorships for a potential supercar rental agency, how can you do it, well we are going to talk to someone who did exactly this, He’s going to explain how he did it, where he is now, where he was and more importantly what you need to get started, it’s not what you think it might be. So without further ado I’ll let our writer take this over.

Aston Martin

Funding a Supercar Rental Agency

Hi everyone, as Tom mentioned this is a relatively interesting topic that I thought people would be interested in hearing. I’ll start by giving some information about myself. I own 2 supercar rental websites, both of which generate approximately 50-100 enquiries a month. These are: http://www.astonmartincarhire.com/ and http://www.ferrarihire.co.uk/ we are going to get into other brands of supercars eventually but for the time being we don’t have the cash flow (ironic I know.)

I’m going to start with the story of how I got rejected by 12 banks and investors. You’ve probably heard all of this before, the business owner with a good idea goes to a bank and tries to get a loan, he gets rejected and the business gets put on the back-burner, he continues to work but he can’t do much without the funding. Well this was me but I was committed. I got rejected by approximately 12 banks and investors before securing a loan for £75,000 to purchase 3 supercars to add to our fleet.

The reason why I was eventually accepted and the requirements I think your audience will find interesting. It wasn’t down to good credit or how much I had invested into the business myself, it was based on 2 things, I had a house and I was “more experienced” which is a kind way of saying I was older than when I first applied, although banks will never never ever admit to this, they tend to shy away from lending to very young individuals, especially when they are trying to get £75,000 to buy supercars! Can you imagine the looks I got, well I did get those very looks. What turned all these no’s into yes eventually was the commitment I showed to my business. I had 3 models in my fleet already when I was applying for this loan.

I also explained that we were having to turn customers away and raise prices because we simply didn’t have enough of a fleet. A £75,000 loan across 20 years is approximately £300 a month. That’s 1 day per month renting 1 of our new fleet that the loan would allow us to buy 3 supercars…. The maths was there I just need to show the commitment. In 2010 I decided to do this by working like a monster to scrape together enough money to buy another supercar, this meant I could now have approximately £6,000 in earnings most months. Although that doesn’t sound like much more than £4.5, it makes a huge difference for 2 reasons. The 1st is now subconsciously they weren’t investing £75k for a 50% stake, the value was lower as it was 3 supercars vs my 4. And secondly the £6k per month meant I had turnovers of £6 x 12 = £72,000. Pretty much equal to the loan I was asking for. This meant that people knew if everything went to sh*t I was still making enough to pay 10% of the loan off per year, meaning I could pay it off inside 10 years, not nearer 20. That’s another big psychological factor.

The grind that lasted about 8 months, working stupid hours (10-12 hour days) almost every day meant I was able to afford my next supercar, which lead to generating the loan, which now means I have a fleet of 18 supercars across 2 brands. It’s the compound affect in action. Grind for as long as you need to grind! Just get it done.

The Most Useful Marketing Advice – Small Businesses Listen Up

Return On InvestmentOkay I’m not going to give you some long introduction as I think the title was enough, but what you need to know is that small businesses should be doing active marketing! Whatever type you decide if your business is quiet, you need to do more, its a difficult situation to be in as sales = more cash flow for more marketing, but you have to be willing to make a loss to make a longer term gain, that’s basic business! Alright without further ado the most useful marketing advice:

Focus on: Return On Investment Marketing Methods.

If you didn’t already know ROI or return on investment was initially introduced as a financial trading term (as it sounds) it discusses the potential ROI for a particular stock or trade, usually with a time element to the trade. For example a trade might make a 20% ROI in 6 months, which would be seen as really good in most financial trading agencies. The ROI weighed against the risk associated would lead to a decision to either purchase the stock or avoid the trade.

In the marketing world

ROIIn the marketing world ROI is more commonly referred to as how effective a particular marketing angle or advertising campaign will be. The higher the DIRECT ROI, generally the most successful the marketing campaign will be. You can see this frequently in online advertising with Adwords for example or in lesser businesses simply offering the “up-sell” when you are in a purchasing decision. Either way calculating ROI can be difficult but its extremely important. We will look at a few marketing campaigns and talk about the issues and why you should focus on ROI when making a decision whether to go ahead or not.

Remember: Although ROI is extremely important it is not everything. The brand recognition you gain from a certain marketing method could be priceless in the long run but might not make any sales in the short term, always factor brand recognition into your marketing budget decisions.

For example if we take TV advertising to start with, have you ever considered getting a TV ad? Probably not unless you are a large corporation, this is because there is no need, you think your customers wouldn’t convert well with an advert, great that’s the first step in ROI marketing, this is seeing and visualising what will work for your business. Every niche and industry is different so I cannot give you guides and data on what will work for you, you can do as much market research, listen to a number of experts and look through a ton of data but if you don’t feel like a marketing method will work for you, then don’t bother getting it!

Social Media Marketing IdeasIf we next look at online marketing – Let’s say Google adwords for example, we know that people aren’t going to scroll to page 2 on Google, so why not pay Google a proportion to get people to click on your site? Easy! Well maybe not. ROI can be calculated quite easily on the face of it. If you convert 5% of your visitors and make £10 profit per visitor, then you can’t pay more than £0.50 per click. (50p x 20 = £10.) But you also have to factor in the LIFETIME value of a customer. This is the difficult bit. Generally you should be willing to make a slight loss to generate long term customers, in the longer term (and as your business grows) this will lead to much more profit!

Leaflet Marketing - Leafet Distribution3rd we are going to look at direct mail marketing. Personally one of my favourite marketing tactics. We use a leaflet company in Essex for all our local distributions and drops. Although only on a small scale (5000 units) we get a good ROI as well as a stronger brand recognition, this leads us to belive that the campaign was a success! Design a simple leaflet that explains your main values and reasons why people shold buy from you and you can get straight to distribution. If you have time more than money then feel free to distribute yourself, if you do not then I highly recommend hiring a leaflet distribution agency… Or you could just hire some kid!

Finally SEO, SEO has a bad name for itself, people being scammed and individuals making £20k+ a month, but the truth is if done correctly and effectively Search engine optimisation is THE MOST EFFECTIVE marketing method. Just find yourself a good SEO company and get going, generally you should look for people with experience in your industry, don’t tend to go for someone just because they are close to where you live, that’s the best way to get ripped off. Search for companies who have experience promoting and ranking websites in your industry. Relevance is everything!

There are tons more marketing ideas that don’t require funds you just have to be willing to put the effort in!

Thanks for reading!

Remember to share, comment and I will get back to you in the comments section!

Cheers.

K.

Guest Post: Branding Your Business RANT

Another guest post today on the importance of branding your business in the right theme. This post is by the guys over at the London branding division.

Over 500 start ups go under every single day! That’s a crazy metric to comprehend. Why shouldn’t you be one of them? Well the answer is simply = YOU WILL BE! Unless you can ATTRACT enough customer and clients to survive!

Harsh? But true!

We believe that the best way to do this is to be different. I’m not going to write an article on how to get funding for your business as the team at Sponsorship-advice.org already have that covered. Instead I’m going to talk about what we have done and what we had problems with along the way. And yes this does turn into a rant so if you are against ranting about your business (which I’m guessing your not) then you should leave. If not, let’s get started.

Why Branding Is Important

We are a branding agency and our job is to convince people that branding is extremely important for their business!?

Right?

WRONG!

Our job is to teach them that without it, they will never be remembered.

There are 2 things that are guaranteed in life…. Death and taxes.

We can’t control either of those, so let’s play on people’s fear of both, but instead let’s switch the emphasis to: MONEY and TIME.

Ever heard the phrase time is money? Well its true and as we get older we start to realise it even more. But if you have 1 you most of time don’t have the other. Got both? Well done, you are a SUCCESS!

Success Image

So how does this come back to you me and our businesses?

It’s simple, we have to convince people that without us they will not be successful. As success = Time + Money. If you can convince someone you can give them 1 of these 2 things then you will likely be a good marketer. If you can convince people you can give them both, then you are a legendary marketer!

Walk into a meeting and say “I will give you 10 minutes to listen to me” What do you do, you instantly remove the control from the prospect. I know this takes balls of steel but there is no reason why you can’t do it. And after 10 minutes (even if you presentation is not complete) say are you ready to sign up. This is a very odd but extremely successful way of doing business.

The next step is to show them how you saved someone both money and time. Think of it from the businesses perspective. Hi we are going to save you time, which will save you money, oh and also we are going to make you money…. So yeah!

Never forget the foreign market either! Hablar De Dinero makes a killing from translating their make money online content into Spanish!

If they believe you then they will say yes to any price you quote. You save us 4 years and 10,000 hours of staff time, sure we will pay you £100,000. It’s stupid not to as you save them £150,000. Oh and also in this time we should be able to generate a 200% return on investment. Which means we can earn your business £200,000. So this means over 4 years this business is saving £150,000 and earning £200,000 whilst at the same time paying you only £100,000.

I’ll leave you with one final sentence: BE SMART!

be smart

Become A Renewable Energy Powered Business

Renewable energy is all the rage in 2015. The UK government is helping both individuals and businesses switch to renewable sources, including pv solar panels, mainly due to the ease to install as well as the proximity of solar companies. The reasons for this is that a “greener Britain” is good. I mean if we become more eco friendly then David Cameron can go to his G8 Summits and say “look at us, we are eco-powered” and get some great hand shakes from France and other countries who care. But for me and you as small business owners, is it worth the plunge?

solar panels UK

solar panels UK

Well we did some testing and in true Sponsorship advice fashion have some great numbers for you. The first of which is: YES, in the current economic and Government grant situation (if you live in the UK of course) it is 100% worth you converting to solar energy or other renewable energy forms! The reason? Is as always it saves you lots of money on your electricity bill, but more than this, it allows you to qualify for loans, grants and funding from the government more easily….Do I have your attention now? Thought so!

Anyway, aside from the obvious ethical reasons to switch to solar, their are other ones that people always always forget.

The first is your prospects and potential clients! If they see you are helping the envionment and doing everything you can to become more green and environmentally friendly. ALL OTHER THINGS EVEN, they will go with you over a competitor! This is a huge factor for you as its another win-win, new clients and you get to take them away from your direct competition.

The second is that when you come to eventually sell your business, having these is a HUGE asset to you, potential prospects love low-overhead businesses. Would you rather have a business that spends £20,000 a year on energy or one that spends nothing?!

The third is that these are great for marketing. Release a press release about your news solar panels and watch people come to you “because of it”. Most of our customer can either see or know about our panels and it’s also a great way to pick up random visitors to your store or start a conversion with a new potential client.solar energy

Social Media Marketing for Small Businesses

Taking your online promotions to the next level!

Social Media Marketing Ideas

When it comes to digital marketing everyone seems to get a bit crazy. Sure SEO is great and ranking in Google is pretty much the only thing you need when it comes to making a buck. But the fact of the matter is that SEO is not enough any-more, you have to be socially active, not so you can look like a brand or a big business, although that is pretty important too, but instead so you can convert potential clients that check everything (including your facebook page) into paying highly profitable customers!

As was said on: http://hqseo.co.uk/web-design-cardiff/ there is a reason you spent a lot of money on your website design and it wasn’t so you can have a nice place to go when you feel lonely!! It was so you could make some sales and convert potential clients. BUT a very important aspect to remember is that growing online is not just about making a good website and firing as many visitors as you possibly can at it. Instead you also have to tick off the other boxes, such as social media marketing, or you can just cheat by buying the relevant followers, the decision is up to you but be warned that buying twitter followers in the UK at least is highly frowned upon and against the T&Cs of the business. So instead this is what we recommend:

1.) Create active social media accounts – Twitter, Facebook, Linkedin and Google plus are the most common ones and all you need really.

2.) Grow these accounts – You can do this through 2 ways – the first is advertising, all of the below have platforms you can promote your brand too, facebook is seen as the best with the “Like” metric but followers on Twitter are also pretty good too.

A useful infographic

3.) Keep these people engaged – The best way to keep people engaged on your website is to have free stuff! Do the same with your twitter and facebook profiles, simply offer something that people will want to constantly check your FB page and keep going back and liking what you are posting. This is the way you can grow exponentially.

Below is another good info graphic if you’d like to check it out:

Another Useful Twitter follower infographic

Sponsoring a Local Business – Case Study

In August we decided to run a case study of what happens when we sponsor a business. We decided to choose Bennett Glass, a SASH and stained glass repair man based in Nottingham. He’s a OMG (one man gang) but wanted to scale his online promotions but didn’t have the capability to do it. This was a £1,000 sponsorship and the results speak for themselves, Mr Bennett has now had 5+ responses in August all from the online promotion effort. This means that the promotions would have paid for themselves. Never under estimate the power of online marketing.

HQ SEO Local SEO CardiffThe individuals we hired for this promotions were HQ SEO, a Cardiff based SEO agency with some very good online marketing skills. We used their local seo services for Bennett and a re-design which came to a bargain price of £1000! Seems though Mr Bennett has already had 5 stained glass repair jobs (totally approximately £800), I think the promotions speak for themselves! Best of all, this was a one-time fee, which means he will continue to get business through this promotion effort.

We wanted to make an article on this case study for 2 reasons. The first was to convince people that marketing DOES WORK! No longer can you just rely on your location or reviews/word of mouth to create a successful business. 80% of start ups go broke in the first 2 years because of this exact point, they believe the statement “build it and they will come” Except the problem is they don’t!

Anyway that’s enough of this, its turning into rant territory. My main point is this: investing especially in online marketing is expensive BUT the results are worth it. Find a good company and the results will pay for themselves.

Sponsorship Advice For Schools

Schools should be well advised when finding a sponsor for the needs of support for their students and further enhancing their education systems. A lot of people are always happy to receive sponsorship that came from different organisations, especially from private companies in which they provide balances and checks that are already in place. But the part that they are most concerned about is when the sponsorships goes to a direction that leads to marketing to children directly. This is a combined guest post, from educational marketing expert Tom Buckland of Ghost Marketing and also The River School Worcester.

Schools must be wary about sponsorship, especially the ones that are from the commercial sector that it will not lead to unsuitable marketing to young people and children. Schools are also expected to consider the other inference that comes with sponsorship in which it does not apply in similar way to the organisations of the public sector. An example of this is ensuring that the resources for education which is given are not in any way biased or that it is not using the children in encouraging the parents to purchase for a specific brand.Example of Sponsorships in schools

The main factor to make an arrangement with a sponsorship successful is that both the organisation of the public sector and the sponsor get similar and equal benefits. Keep in mind that the sponsorship is not in any way a part of  social responsibility by the corporate nor is it a form of donation. This is still related to business in which it is arranged by the sponsor to expect a benefit in return, which is mostly legitimate. Businesses, particularly commercial ones use sponsorship as a way for them to gain more opportunities in marketing, which is also taken part in the sponsorship agreement.

There are different kinds of sponsorship. Financial sponsorship is the clearest form of all sponsorship that has been made. For those going with the financial form, the sponsor will be providing the school with the resources in cash in order to achieve the aim stated. An example to this is when the school holds an event such as discos or open days and they need funding in order for it to succeed. The exchange for this is for the business to be able to advertise themselves during the event, in the form of a banner or programme. There are also the in-kind sponsorship, although this type can be varied. It might be provisions in which the company provides materials for education like posters, books or software. When it comes to banks, they usually provide money management resources while fuel businesses offer climate change resources.

The most important thing of all in a sponsorship is the potential benefits and costs both parties are going to expect. There are 3 parts that gets affected with sponsorship: the parents and students, the schools and the sponsors. The common potential benefits that students and parents get are improved school resources, better understanding about the private sector and better associated with employers and local businesses. The same can be said about schools. For the sponsors, they get increase in customer loyalty and sales, their reputation and image are improved and they also gain access to the students directly.