Why is Social Media Important for Business?
One reason is an ability to obtain a loan
When thinking about digital marketing for your small business, you probably view it as another expense. However, it turns out that it can actually be a source of financing for your small business, especially your social media presence. The Chicago Tribune recently reported that many traditional lenders are starting to consider strong social media presence and positive online reputation when considering granting loans.
Several online lenders use social media analytics to inform their loan decisions. Many factors go into the loan-decision algorithm, including revenue, accounts payable turnaround, e-commerce marketplace presence and success, and other accounting data. When looking into social media activity, primarily Facebook and Twitter, they consider what customers are saying about your business and your response time to comments.
Social media is definitely a small business’ best friend if you’re looking into crowdfunding. It’s impossible to have a successful crowdfunding campaign without promoting it on Twitter and Facebook, using both your business’ accounts and your personal ones.
Traditional lenders are also starting to look into social media presence, but paying more attention to Linked Traditional lenders rely on search results they find when searching your business in a search engine – but getting Googled instantly is to be expected. This makes it crucial to blog regularly about relevant topics and promote the posts on social media platforms.
It’s true that you have to spend money to make money. Does your business’ marketing budget include resources dedicated to digital marketing and social media development?