I am a 21-year-old guy without any debt, good credit, and about $10,000 saved up. I know it is not a lot, not enough to buy a billboard with good exposure.
I am thinking about whether it is realistic to buy or build a billboard, maybe with a loan since it could pay for itself eventually. It seems like a smaller loan compared to a mortgage.
I plan to rent out the ad space. I am not an expert in marketing, but I am willing to learn the basics. I will use the billboard to advertise itself and set up a website for it. I’ll also reach out to local businesses. I think this could be a passive income stream once I set it up, handle maintenance, and find customers. Correct me if I am wrong.
I know it depends a lot on location, like finding a good spot for visibility and negotiating land leases. Also, whether to go for LED or traditional wooden billboards. Any advice or warnings about getting a loan or owning a billboard would be really helpful.
Purchasing or constructing a billboard might be a smart investment, especially given your financial stability and interest in mastering marketing fundamentals. Here are some considerations:
Financing: Using a smaller loan for the billboard could be manageable, akin to a mortgage but on a smaller scale. Ensure you have a solid plan for rental income to cover loan payments.
Marketing and Rental Strategy: Your approach to advertising the billboard itself and setting up a website is smart. Reach out to local businesses early on to gauge interest in renting ad space.
Location and Type: Location is crucial for visibility and negotiating land leases. LED billboards offer dynamic advertising but may have higher initial costs compared to traditional wooden ones.
Maintenance and Management: Factor in ongoing maintenance costs and time for managing rentals and customer relations.
Before starting, examine local restrictions and get advice from professionals in billboard advertising or small company funding. It is a good idea with the potential to provide passive revenue if performed properly. Good luck!
The expense of installing and maintaining billboards is another factor that raises the capital requirement far over $10,000. Plus, you might not make a lot of money with only one panel, depending on the billboard’s placement.
However, 21 is a great age to start working in outdoor media! What a huge industry!