Finance Roll

When we think of sponsors and advertisers, we usually put it into context as businesses paying money for the opportunity to promote themselves or their products. But the buy-side of advertising is only half of the equation. Sell-side advertising is an opportunity for your business to receive financing, and do so on a continual basis.

It might surprise you when you think about how many different organizations (profit and non-profit) use this type of financing. Take Little League teams, for example. Most of them are backed financially by a local business, which receives advertising space and good publicity in exchange for a small amount of funding. The same is true for most youth sports.

Other nonprofits do this as well. Think of the various charity or philanthropy events which you may have attended or witnessed. How many sponsors pay to put their names on the back of a t-shirt?

Now apply those concepts to your business. Every medium through which you communicate, including many that you don't realize you communicate through, can be monetized. Though they may sound strange, these techniques are in use and can generate funding for you. Restaurants sometimes sell advertising space on their menus, or on their placemats. Establishments that have restrooms place advertisements eye-level in front of urinals or in stalls. Websites sell banner ads or targeted ads to create continual cash flow from sponsors. To summarize, everything your business does can be an advertisement for someone else. Naturally, use discretion with regards to whom you seek advertisement from. It would be unwise to direct your customers to a competitor or substitute.

This trend extends into peoples' personal lives as well. A technique called "car wrapping" takes an ordinary automobile and turns it into a completely redecorated rolling advertisement for a sponsor. Depending on various factors such as car type and driver demographics, you can earn up to $3,000 per month simply for having your car repainted-think NASCAR advertising, on your Camry.

The important principle here is that everything you do can be turned into a source of cash funding with no debt, interest, or equity involved. Think creatively about the ways in which your business is visible, and about who might be interested in taking advantage of that visibility.