Capital Requirements for a Successful Outbound Fundraising Campaign

22 Mar

By Tom Crosby, Marketing Manager, LSN

To have a successful fundraising campaign, it is important to create effective marketing mate­rials from the very beginning. Not only does this process require a lot of time, but you must also make a financial commitment up front if you want to see the best results.

What conclusion can investors make when they see unprofessional marketing materials coming their way from a life science firm looking to secure capital? First and foremost is that the firm in question doesn’t take their outward image seriously. This can be a telling sign of internal operations, and is often all that is needed to turn a serious investor away.

It can seem like a good idea to put you marketing materials together in-house. After all, who knows more about your company than your staff? However, there is much to consider before trying to brand your firm by yourself. Most importantly is that unless you have gone out and specifically hired a marketing professional with design experience, your team will be taking valuable time away from performing the job functions that they are trained in, and therefore, are the best at. Design is a practiced skill with developed theory and technique behind it. Many people take its nuances for granted, and this is the genesis for poor design of marketing materials.

If, on the other hand, you make an initial investment in your marketing materials by hiring a professional firm with design expertise, the message you are sending to prospec­tive investors is that their time is important to you, and that you value their ability to discern professionalism from amateurism. This lets them know that you are making your best attempt to cover all your bases in terms of making your firm’s message clear and concise.

While it is an option to place your investment in hiring an in-house marketing professional, the more realistic move is to outsource the work to a professional marketing firm. Although the overhead will be higher initially, the results will be worth it. It is easy to tell when professional firms have created marketing materials. Not only do they stand out as more visually appealing, but they read differently, and evoke a different feeling in the audience. Furthermore, they make an investor’s job easier, because they are created with their interest in mind.

So what does it cost to have a marketing company create high-quality materials with content that matters – content that reflects your firm in the most positive way possible, and gives you the best chance at securing valuable capital?

Prices will vary based on the type of your company, its complexity, your strategies and audience, and other factors. Your branding requirements will also affect the cost. However, a quality firm can pro­vide a quote for each individual item. Typically, firms quot­ing at the low end use templates, and create very little original content, leaving that part up to you. Estimates on the higher end usually include custom content, and thereby, custom graphic design.

Through his years of this type of market research, Life Science Nation CEO Dennis Ford has estimated that the cost of branding, messaging, & website creation for a regional outbound marketing campaign should cost somewhere between $40 – $60,000. For a global campaign, this range increases to $80-$100,000. Unfortunately, this type of financial commitment makes everything more difficult for those entrepreneurs who are just scraping by, but the fact remains that their competitors are figuring out that to make money, you have to spend money.

A life science firm should expect to have this type of capital ready to deploy in order to run a successful campaign. Of course, these figures are ball park estimates and you can do it for less by trying to finesse the collateral. But at the end of the day, it has to get done, and is simply the cost of doing business.

If you get your branding, messaging and marketing presence sorted out, and make it a priority, you will have quick turnaround with a high-quality product. Prioritize what is important – which is getting in front of investors and pitching your ideas, technology, and products.

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